Don’t get stuck on the “who.” Estate planning when you don’t have children
As more and more people make the choice not to have children, it is increasingly important to consider their needs in retirement and after death. It is easy for people without children to get stuck on the “who” in their estate plan. Remember, just because you don’t have children, doesn’t mean you don’t have any heirs.
Where to start
For many individuals without heirs, estate planning is a unique opportunity to reflect on their personal values and life goals. Here are some great questions to start your conversation:
What are your goals for your retirement/later years? Do you want to live somewhere specific, travel internationally, exploring new hobbies?
What are your financial goals for your estate? Is minimizing estate taxes your priority? Do you want to avoid probate? Are you concerned about conflict?
What is important to you when you think about your legacy? Do you have found family that is part of your community? How to want your beneficiaries to inherit (i.e. direct versus trusts for specific purposes such as education)?
Finally, are there causes or organizations that have been near and dear to you or loved ones?
How we can accomplish these goals
Retirement goals
Planning for Incapacity: Designate a trusted person to make financial and healthcare decisions on your behalf if you become unable to do so yourself via a durable power of attorney and healthcare power of attorney/advance directive.
Funding Healthcare and Long-Term Care: Account for potential medical expenses and long-term care costs (which Medicare often doesn't cover) to protect your savings from being depleted.
Maintaining Financial Stability: Ensure your retirement savings and income streams last throughout your lifetime by aligning your estate plan with a sustainable withdrawal strategy.
Estate Financial goals
Minimizing Taxes: Employ strategies like gifting, setting up specific types of trusts (e.g., Roth conversions of IRAs), and strategic beneficiary designations to reduce or avoid estate and inheritance taxes for your heirs.
Avoiding Probate: Structure your estate (often using trusts or proper beneficiary designations) so assets can pass directly to heirs without a lengthy court-supervised probate process.
Preventing Family Disputes: Use clear, legally binding documents and open communication with friends and family to avoid confusion, disagreements, and potential legal battles over your estate.
Ensuring Orderly Administration: Appoint a reliable executor or trustee to manage your affairs, pay debts, and distribute assets efficiently according to your instructions.
Protecting Assets: Safeguard your wealth from potential lawsuits, creditors, or mismanagement through proper planning and asset titling.
Legacy goals
Designating Beneficiaries: Consider siblings, nieces, nephews, or cousins. You can also make provisions for their children's education or a first home purchase. Leave a portion of your estate to close friends who you consider family. For some people, close friendships can be more important than family connections. You can officially recognize these individuals in your estate plan.
Providing for Loved Ones: Secure the financial future of a surviving spouse, chosen family, or extended family, potentially by using trusts to manage their inheritance, especially for minors or those with special needs.
Educational trust: Fund scholarships or educational programs for aspiring students. This could be through your alma mater or an independent scholarship fund.
Seed fund trust: Create a trust to help young beneficiaries, like a niece or nephew, with life milestones, such as a down payment on a house or a wedding.
Pet trust: Ensure your beloved pet is cared for after you're gone by setting up a trust to pay for its care. You can name a trusted friend or family member to be the caretaker.
Creating a Legacy: Define your values and how you want to be remembered, whether through supporting a family member's education, or making charitable donations.
Charitable bequest: The simplest way to support a cause is to leave a portion of your estate to a charitable organization in the distributions in your will.
Charitable remainder trust: This strategy can provide you with income during your lifetime while you transfer assets to an irrevocable trust. After you die, the remaining assets go to your designated charity, and your estate receives a tax deduction.
Charitable lead trust: With this trust, a charity receives income from your assets for a set number of years. The remaining assets then go to your other designated beneficiaries.
Donor-advised fund (DAF): A DAF is an investment account dedicated to charitable giving. You contribute assets, receive an immediate tax deduction, and recommend grants to qualified charities over time.
What happens if you don’t have an estate plan
Without a will or trust, your estate passes according to the rules of intestate succession. This means that your estate goes to your closest relatives or ultimately the state of Washington if you have no surviving relatives. Here’s the hierarchy under Washington law:
Surviving spouse and children: The spouse gets all community property and one-half of the separate property. The children inherit the other one-half of the separate property.
Surviving spouse only (no children): The spouse inherits all community property and all separate property.
Children only (no spouse): The children inherit the entire estate.
Parents only (no spouse or children): The parents inherit the entire estate.
Siblings only (no spouse, children, or parents): The siblings inherit the entire estate, divided equally.
Other relatives: If there are no surviving spouse, children, parents, or siblings, the estate goes to more distant relatives like grandparents or cousins, following the hierarchy of kinship.
State of Washington: If there are no living relatives, the estate escheats (goes) to the state.
A good estate plan ensures that your estate goes to the individuals and organizations that are important to you. Even without heirs, you have the freedom to craft an estate plan that ensures their story and contribution to the world lives on in a way that is meaningful to them. Start the conversation with us today!
You’re the Personal Representative. Now what?
What is a personal representative and what do they do?
When a loved one passes away, someone must step in to manage their estate and ensure their wishes—or the law—are followed. In Washington State, this person is called a personal representative (also known as an executor or administrator). It’s an important role, carrying legal responsibilities and fiduciary duties.
Whether you're named as a personal representative in a will or appointed by the court, understanding your responsibilities is crucial. Here's what you need to know.
1. Initiate the Probate Process
The first step is to file a petition for probate with the superior court in the county where the deceased person lived. You’ll also file the will, if there is one. Once appointed, you receive Letters Testamentary or Letters of Administration, which give you the legal authority to act on behalf of the estate.
2. Notify Heirs, Beneficiaries, and Creditors
Washington law requires personal representatives to:
Notify heirs and beneficiaries that the probate process has begun.
Publish a notice to creditors in a local newspaper and possibly send direct notice to known creditors. This triggers a four-month window for creditors to file claims.
3. Locate and Inventory Estate Assets
You must identify, gather, and safeguard all assets of the estate. This includes:
Real estate
Bank accounts
Personal property
Investments
Business interests
You’ll create an inventory of the estate, which may be filed with the court, depending on the case.
4. Pay Debts and Expenses
Before distributing anything to heirs or beneficiaries, the personal representative must:
Pay valid creditor claims
Settle any taxes (including estate taxes, if applicable)
Handle funeral costs and administrative expenses
You’re responsible for making sure all debts are properly handled—personally paying them is not required, but mismanaging estate funds could result in personal liability.
5. Distribute the Assets
After debts and taxes are paid, the remaining assets are distributed according to the will, or if there is no will, according to Washington’s intestate succession laws. This process should be done carefully and transparently, often with receipts and accounting records for beneficiaries.
6. Provide an Accounting (if required)
In some cases, the personal representative must prepare a final accounting to show how the estate was managed. This can be waived if all parties agree or if nonintervention powers were granted.
7. Close the Estate
Once everything is done, you file a petition for discharge or a Declaration of Completion of Probate, depending on how the estate was administered. This officially ends your duties as personal representative.
Fiduciary Duty: Do It Right or Get Help
Being a personal representative is not just a task list—it comes with a fiduciary duty to act in the best interest of the estate and its beneficiaries. Mistakes can lead to legal consequences, so if you’re unsure about anything, consider working with an attorney or probate professional.
Final Thoughts
Serving as a personal representative in Washington is an important responsibility. While the process can be complex, understanding your duties—and getting the right support—can help you navigate probate confidently and responsibly.
Does your 18-year-old need an estate plan?
Yes they do!
Here are three quick and easy estate planning steps for your newly minted adult:
Medical power of attorney and health care directive
Once your child turns 18, the Health Insurance Portability and Accountability Act (HIPAA) eliminates the automatic access parents have to their child’s medical records. Completing a medical power of attorney with a HIPAA provision allows your 18-year-old to appoint someone to access their medical records and make decisions about their health care should they be incapacitated.
Having an adult child with a terminal illness or in a permanent unconscious state is every parent’s nightmare. However, no parent in that situation wants to guess what their child’s wishes may be. A health care directive allows your new adult to make choices about end-of-life care, providing you with necessary guidance in a difficult time..
Financial power of attorney
At the age of 18, you are no longer able to step in to assist with your child’s finances. A financial power of attorney can allow someone to step in to manage your child’s finances if they are incapacitated. But it is not limited to when your child is incapacitated. If your child is studying abroad and cannot access their financial accounts, a financial power of attorney would allow you to step in and assist.
Educational Records Release
Your child is off to college or in the process of applying for college! As part of that conversation with your new adult, a discussion about their educational records and your access to those records is important. A Family Educational Rights and Privacy Act (FERPA) release executed by your new adult will give you access needed to provide financial aid, academic support, or in an emergency situation.
A FERPA release may also be necessary during the college application process in order to allow schools and colleges to share education records and application materials with recommenders. Not completing a FERPA can sometimes hurt your child’s chances of admission to a college. If your child doesn't waive the FERPA, colleges may be skeptical about the authenticity of their college recommendations and other materials.
But wait, does my 18-year-old need a will?
The short answer is maybe.
In Washington, if a child should pass before their parents, all of the child’s property goes to the parents under state intestacy laws. While your college student may not have many assets, a will would allow them to designate who would receive important items, such as jewelry, collectibles, or pets.
It's crucial to have open conversations with your child about these documents and empower them to make informed choices about who they trust to handle their affairs.
Who Needs an Estate Plan?
It all begins with an idea.
For many, an estate plan sounds like something only the wealthy or the retired would ever want or need. But the truth is, an estate plan is vital for people in all stages of life. An estate plan is about taking control of your affairs to protect your wealth, your health, and those that you care about.
Consider what would happen if you become hurt, sick, or experience loss of life. This worst case scenario is something no-one ever wants to think about, and sometimes think of too late.
Every solid financial plan should include an estate plan that protects your health, wealth, and the people you care about. It is not only essential to grow your wealth, but also to protect those assets for yourself and your loved ones futures. And while the topic isn’t comfortable, it is essential to safeguarding your future.
What are the risks of not having an estate plan?
Like so many things, it is important to consider what your plan is if something were to happen. Your estate plan is the answer to these many “what if’s” in life.
What happens to your estate? In the absence of estate planning documents, the state and the courts are left to decide what happens with your estate and who inherits. Without instructions from you, your family has no control over the process or results.
What happens to you? Another big “what if” is who is legally able to make decisions should you become sick or incapacitated. If you are unable to act on your own behalf, there may be no-one who is able to manage your finances or make urgent medical decisions. Medical professionals may make decisions without consulting your family. Your family would need to get a court order appointing someone as your guardian, which is neither a quick nor cheap process.
What does the process look like for your loved ones? Probate is the process where the state and courts determine what happens to a person’s estate. Where a person passes without a will, the process can be more complicated, take longer, and can tie up your assets for months, leaving your loved ones with no control during a time that is already difficult.
What if your estate plan is outdated? Estate plans are documents that must evolve with along with you and your family. Life events are always something to celebrate, but are also a reason to re-evaluate your financial and estate plans. Marriage, divorce, purchasing a family home, children, starting a new business, and moving to a new state are all moments when you need to re-evaluate your list of “what-if’s” to see if you need to make changes.
What does an estate plan look like?
In this day and age, there is no such thing as a “one-size-fits-all” estate plan. You and your estate are unique, as is your plan for the future. A good estate planner has a number of tools in their toolkit to provide you with an estate plan that carries out your wishes and gives you peace of mind.
Your Will. A last will and testament is the cornerstone of every estate plan. It is this document that describes how your estate - money, real estate, and personal property - is to be distributed after you pass away. In this document, you appoint an Executor, who will have the legal authority to file your will with the court and start the probate process. This is also where you can name a guardian to care for your children.
Medical Power of Attorney. Also called a Health Care Power of Attorney, this document appoints a person to make medical decisions on your behalf. With this document, you can outline your wishes for care and give your family peace of mind.
Physician’s Directive or Living Will. Sometimes called an Advance Directive, outlines how you wish to be treated should you become incapacitated, including end-of-life care.
Financial Power of Attorney. A Financial Power of Attorney (POA) appoints someone to manage your financial affairs should you be unable to do so yourself. There are two types:
Effective immediately: This POA takes effect immediately, allowing the appointed person act on your behalf, even if you are able to make decisions for yourself.
Springing power: This POA takes effect only upon two medical professionals finding you are incapacitated.
Trusts. A trust can take several different forms, depending on your wishes. The basic principle is that a trust manages the distribution of an asset, be it property or cash. The property or cash is transferred to the trust which “owns” the property for the benefit of the person you designate as the beneficiary.
You can create a revocable living trust during your lifetime and transfer assets into that trust. This can help your family avoid probate, provided all of your estate that can be transferred into the trust has actually been transferred.
You can also create a trust in your will, called a “testamentary trust”. This is often done where there are minor children who may inherit cash or property. You choose someone to manage the trust for your children and outline how and when the property can be used for their benefit until they are ready to inherit the remainder.
Life Insurance. This estate planning tool can provide your loved ones with income-tax free cash to pay expenses, maintain assets, and carry out your distribution wishes. It is never too late (or too early!) to be thinking about this as a financial safety for those you care about.
How to create your estate plan.
As with anything, there are quite a few digital platforms and services that offer inexpensive estate planning documents. These documents are generally boilerplate terms that are not crafted with your specific wishes in mind. Every estate plan is as unique as the individuals creating and benefitting from it. A good estate planning attorney will talk to you about your goals for the future for yourself and your loved ones. It is vitally important to me that my clients understand their options in making their goals become reality, which is something that a digital service cannot necessarily provide.