Choosing between a will and a living trust in Washington state can be confusing for various reasons. You may feel that you don’t know which estate planning tool will help you manage your financial portfolio or complex assets. You may be worried about your privacy during the probate process and prefer the confidentiality of a living trust. Complex family structures or unique considerations for loved ones may add layers of complexity.

Seeking guidance from an experienced estate planning attorney is crucial in navigating these considerations and making an informed decision about the right estate planning tool for your circumstances. Before you make a decision, here is some basic information about wills and living trusts in Washington that you should know.

When should you consider a will?

A last will and testament is a legal directive that identifies your heirs and outlines how your assets should be distributed upon your death. In Washington, having a will empowers you to articulate your wishes clearly, ensuring that your loved ones inherit your property according to your intentions.

A will allows you to make important appointments. For example, you can appoint an executor to oversee your estate during the probate process. If you have minor children, a will allows you to designate guardians.

If you don’t have a will, you will die what is known as “intestate.” Washington has a set of intestacy laws that will govern how your assets are distributed, and those laws may not align with your wishes. That is why making a formal estate plan is so important.

When should you consider a living trust?

A living trust offers additional advantages, particularly in streamlining the transfer and distribution of assets as well as avoiding the probate process. Probate, the legal validation of a will and settlement of the estate, can be time-consuming and costly. Establishing a living trust allows for a smoother transition of assets to beneficiaries. A living trust may be particularly important for people in the following 5 scenarios: (1) If you have real estate outside of Washington; (2) If you have permanent dependents; (3) If you have a non-U.S. citizen spouse or heirs; (4) If you and your spouse each have a net worth (including life insurance) over the state and federal estate tax thresholds; and (5) If you have children from a prior marriage or relationship.

For example, a revocable living trust enables you to manage your out-of-state real property assets during your lifetime. By placing your assets into a living trust during your lifetime, you maintain control and can specify how and when they should be distributed after your death without having to file an ancillary probate in the state where the real property is located. This can be particularly beneficial for those with substantial estates or specific desires for asset distribution.

Moreover, trusts can provide privacy, as they typically do not go through the public probate process. Trusts, unlike wills, do not necessarily become public records and may maintain their confidentiality.

Tailoring your estate plan to your needs

In Washington state, individuals with substantial assets or intricate family dynamics may find that a living trust provides the most comprehensive solution. In combination with a living trust, we recommend a pour-over-will to transfer all remaining assets (that have not been transferred into trust) at the time of your passing. This approach allows for the clear directives of a will and the probate-avoidance benefits of a trust.

Factors such as the size of your estate, the complexity of your financial situation, and your preferences for asset distribution all play a role in determining the best approach.

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