Best Trusts Lawyers in Tacoma

About Trusts Law in Tacoma, United States

Trusts are legal arrangements in which one person or entity - the trustee - holds legal title to property for the benefit of others - the beneficiaries. In Tacoma, as elsewhere in the state of Washington, trusts are commonly used for estate planning, probate avoidance, asset management, tax planning, Medicaid planning, and protecting beneficiaries who are minors or have special needs. Trusts can be created during a person’s lifetime - living trusts - or through a will that takes effect after death - testamentary trusts. Trusts may be revocable or irrevocable, and each type has different legal and tax consequences.

Why You May Need a Lawyer

You may need a lawyer for trusts in many common situations. A qualified attorney can help you choose the right type of trust for your goals, draft clear and legally enforceable trust documents, and correctly fund the trust by transferring appropriate assets. Lawyers assist with trust administration after the settlor dies or becomes incapacitated, including managing trust assets, making distributions, filing tax returns, and preparing accountings for beneficiaries. When disputes arise - for example over trustee decisions, beneficiary rights, undue influence, or alleged breach of fiduciary duty - lawyers represent trustees or beneficiaries in negotiations or litigation. You should also consult a lawyer for specialized planning such as Medicaid qualification, special needs trusts, business succession planning, or handling complex tax issues.

Local Laws Overview

Trusts in Tacoma are governed primarily by Washington state law and by federal tax rules. Key local legal aspects to be aware of include:

- Washington recognizes a broad range of trust types, including revocable living trusts, irrevocable trusts, testamentary trusts, special needs trusts, charitable trusts, and spendthrift trusts. The formality required to create a valid trust generally includes a settlor with capacity, an intention to create a trust, trust property, an identifiable beneficiary (or a valid charitable purpose), and a properly appointed trustee.

- Trustees owe fiduciary duties to beneficiaries. The core duties include the duty of loyalty - to act solely in the beneficiaries' interests; the duty of prudence - to manage trust assets carefully and diversify investments when appropriate; the duty to keep beneficiaries reasonably informed; and the duty to account for trust administration. Violations can lead to court actions and removal of the trustee.

- Washington state follows community property principles for married couples. That can affect how assets are classified and how they should be handled when funding a trust, especially for estate and tax planning purposes.

- Avoiding probate is a common goal of trust-based planning. Proper funding of a living trust - retitling assets into the trust or designating the trust as beneficiary where appropriate - is essential to achieve probate avoidance. Assets not properly transferred may still be subject to probate even when a trust exists.

- There are procedures in Pierce County and elsewhere in Washington for trust administration and trust-related litigation. Courts supervise certain actions, such as accounting, trustee removal, and settlement of disputes. Local rules may affect filing procedures and deadlines.

- Tax considerations are important. Washington state has no personal income tax, but federal income tax rules apply to trust income. Washington also has an estate tax with a threshold that may be relevant for larger estates. Trust creators should understand federal and state tax consequences and consult tax counsel when needed.

Frequently Asked Questions

What is the difference between a revocable and an irrevocable trust?

A revocable trust can be changed or revoked by the settlor during the settlor’s lifetime. It is commonly used for flexibility and for avoiding probate. An irrevocable trust generally cannot be changed or revoked without the consent of beneficiaries or a court, and is often used for asset protection, estate tax planning, or qualifying for public benefits. The choice depends on your goals, timeframe, and need for creditor protection or public benefits.

Do I still need a will if I have a living trust?

Yes. Even if you have a revocable living trust, you should have a pour-over will that directs any assets not transferred into the trust to be moved into the trust at your death. A will also allows you to nominate guardians for minor children and handle any remaining probate matters. A trust alone does not fully replace a will.

How do I fund a trust and why is funding important?

Funding a trust means transferring legal title of assets into the trust. This may include changing the title on real estate, redesignating beneficiaries on accounts, assigning personal property, and transferring business interests. Funding is important because a trust only controls assets that are part of the trust. If you do not fund the trust properly, those assets may still go through probate or be handled as though no trust exists.

What are the duties of a trustee in Washington?

Trustees must act in the best interests of beneficiaries. Common duties include administering the trust according to its terms, investing and protecting trust assets prudently, avoiding conflicts of interest, treating beneficiaries fairly and impartially, providing information and accountings to beneficiaries, and keeping trust records. Failure to perform these duties can result in removal or liability.

Can a beneficiary challenge a trust?

Yes. Beneficiaries can challenge a trust on several grounds, including lack of settlor capacity at the time the trust was created, undue influence, fraud, errors in the trust document, or breach of fiduciary duty by the trustee. Challenges are time-sensitive and may have strict filing deadlines, so prompt legal advice is important.

How does a trust affect Medicaid eligibility and long-term care planning?

Medicaid and public benefits rules are complex. Transfers to certain irrevocable trusts may affect Medicaid eligibility and can trigger penalties if not done according to Medicaid rules and look-back periods. Special needs trusts are a tool to preserve benefits while providing supplemental support for a disabled beneficiary. An attorney experienced in Medicaid planning can help structure trusts to protect eligibility when possible.

What is a special needs trust and when is it appropriate?

A special needs trust provides resources for a beneficiary with disabilities without disqualifying them from means-tested public benefits like Medicaid or Supplemental Security Income. It is appropriate when you want to supplement, not replace, government benefits and ensure long-term care and quality of life for a disabled family member.

Do trusts avoid all estate taxes?

Not necessarily. Trusts can be structured to reduce estate or gift taxes, but tax outcomes depend on the type of trust, the assets involved, and applicable federal and state tax laws. Washington has its own estate tax rules that may apply. Tax planning with an attorney and a tax advisor is recommended for estates that may be large enough to trigger tax concerns.

How much will it cost to create or administer a trust in Tacoma?

Costs vary depending on complexity. Drafting a straightforward revocable living trust is often charged as a flat fee or a package price for estate planning documents. Complex irrevocable trusts, special needs trusts, or tax-planning trusts typically cost more and may be billed hourly. Trust administration and trust litigation are usually billed hourly and will vary based on the scope of work. Ask prospective attorneys about fee structures and get an engagement letter that outlines expected costs.

How do I find a qualified trust attorney in Tacoma?

Look for attorneys with specific experience in trust and estate planning, trust administration, and trust litigation. Check professional credentials, years of practice, local experience, and client reviews. Contact the Washington State Bar Association for referrals or use local attorney referral services. Meet with several attorneys to discuss your goals, ask about their approach to trust planning, fee arrangements, and whether they have experience with matters like Medicaid planning, special needs trusts, or business succession if those are relevant.

Additional Resources

When seeking help with trusts in Tacoma, the following local and national resources can be useful for information and referrals:

- Washington State Bar Association - for lawyer referrals and information about attorney credentials.

- Pierce County Superior Court - probate and trust administration procedures and local court rules.

- Washington State Courts - general self-help resources and forms related to probate and guardianship.

- Washington State Department of Social and Health Services - information on Medicaid eligibility and long-term care programs.

- Washington State Department of Revenue - for information about estate tax and state tax obligations.

- Local law libraries and legal aid organizations - for low-cost or free legal information and assistance.

- National Academy of Elder Law Attorneys or similar professional groups - for attorneys who focus on elder law, Medicaid planning, and special needs planning.

- AARP and community elder services - for consumer information about planning for long-term care and guardianship concerns.

Next Steps

If you need legal assistance with a trust in Tacoma, consider the following practical steps:

- Gather documents before meeting an attorney. Useful items include current deeds, account statements, retirement account and life insurance beneficiary forms, copies of any existing wills or trusts, recent tax returns, and a list of your assets and debts. Also prepare a list of people you want to name as trustees, successor trustees, and beneficiaries.

- Schedule an initial consultation with a trust and estate attorney. Prepare questions about experience, approach, costs, expected timeline, and how the attorney will communicate with you and your heirs.

- Ask about fee structure and get a written engagement letter. Understand whether the attorney charges a flat fee for planning documents, hourly rates for administration, or other billing methods.

- Prioritize urgent issues. If you face imminent long-term care needs, require Medicaid planning, or there is a potential for family conflict, seek legal advice promptly. Some matters have deadlines or look-back periods that affect planning options.

- After selecting an attorney, work with them to draft and fund the trust, update beneficiary designations, and create complementary documents such as powers of attorney and health care directives. Keep copies of final documents in a safe but accessible place and tell your successor trustee and relevant family members where to find them.

Trust planning and trust administration can be straightforward or highly complex depending on your goals and circumstances. Professional legal guidance helps ensure that your intentions are carried out, that assets are protected, and that potential disputes are minimized. If you are unsure where to start, a local Tacoma attorney who focuses on trusts and estates can provide a clear roadmap based on your situation.