With the widespread adoption of limited liability company acts by state legislatures, limited liability companies (LLC) have become the business organization of choice for small closely held businesses. An LLC also provides tax advantages to transfer wealth from one generation to another while allowing the donor to maintain control over over the assets until death.

An LLC consists of members and managers. It can be structured like a limited partnership, with the members being passive investors and the managers actively managing the company. The concepts of wealth transfer are the same for LLCs and limited partnerships: The generation transferring the wealth (the parents) forms an LLC, making themselves both managers and members. The generation receiving the wealth (the children) are made members of the company. Initially, the parents hold all of the membership interest in the company along with the assets it represents. Over time, the membership interest is gifted to the children, within allowable gift tax amounts, and the parents retain the control of the company and its assets as the managers. LLCs can be structured to allow flexibility to accommodate income distribution issues and restrictions on transfers of interests.

A “Last Will and Testament” is a legal document that allows you to say who should get your property when you die. Besides saying who should get your property when you die, a Will also gives you the opportunity to say who you want to be in charge of settling your estate.  It also gives you the opportunity to say who you want to serve as guardians of your minor children.  And, it gives you the opportunity to protect any money or property you give to minor children and/or other beneficiaries who are not good candidates to receive an inheritance outright; i.e., via the creation of testamentary trusts (see below).

In order to be valid, a Last Will and Testament must comply with Washington law. Washington law requires the testator to be over the age of 18, put the will in writing, and it must be witnessed by 2 people that are “uninterested,” meaning they receive nothing under the will.

You can change or revoke your Last Will and Testament as often as you’d like.  There are two ways in which you can change your Will.  First, you can prepare an amendment to your Will (called a “codicil”).  With a codicil, your Last Will and Testament remains in place, but one or more of its provisions are changed by the terms of the codicil.  To be valid, a codicil must be executed with the same formality as a Last Will and Testament; i.e., it must be in writing, it must be signed by you, and it must be attested by two independent witnesses.

The second way in which you can change your will is to make an entirely new one.  The new Will can be identical to the original Will, except for the changes you wish to make.  Because it is a Last Will and Testament, it will have to be made and executed with the same formalities as your original Will; i.e., it must be in writing, it must be signed by you, and it must be attested to by two independent witnesses. The new Will automatically revokes the prior Will as a matter of law.

If you die without a Last Will and Testament, you are said to have died “intestate.”  In that case, the laws of the state in which you are domiciled at the time of your death will control the settlement of your estate and the distribution of your probate property.  There are other considerations as well.  For example, if you die without a Will, the state will appoint a personal representative to settle your estate.  That could be anyone, including a local attorney, a professional administrator, or a family member.  Moreover, the court-appointed representative will not have the authority to make many decisions without obtaining court approval beforehand.  If you have minor children, the court would appoint guardians for them.  There is no assurance, however, that the court will look for the same qualities in a guardian as you would have wanted.  Court-appointed guardians are also entitled to compensation for their services, which can be a very expensive proposition and consume all the money that is left for your children.

In Washington, many laws concerning estate planning are found in Title 11 (Probate and Trust law) of the Revised Code of Washington (RCW). Additional laws may be found in Title 26 (Domestic Relations), Title 63 (Personal Property), Title 64 (Real Property), Title 68 (Cemeteries Morgues and Human Remains), Title 70 (Public Health and Safety), Title 83 (Estate Taxation). You may also need to look at Federal Laws.

As I have already discussed, many attorneys try to focus on one or two areas of law. I am considered a general practitioner, but do focus on agriculture, and try not to do family law. I have also written about getting the most for a person’s money. Anyone that knows me would probably say that I am thrifty. In that same vein of thinking, when selecting an attorney that works for you, you should look to the other skills that they offer, or what I refer to as “tools in the toolbelt.”

Your counsel can only prepare for any circumstance if he/she knows all of the facts. Normally, surprises are going to harm your case not help it. Your attorney is there to assist you, so divulge all information pertaining to the situation. Your attorney may ask you questions that you do not think are relevant or that you might think are personal, but remember, they are there to ensure that you have the best outcome.