Our topic for this Newsletter will emphasize the intangible benefits of a carefully thought out estate plan. We will focus on how your estate plan can Ensure the Gift of Family. We also include seven simple steps to avoid disputes among your family. These intangible benefits are often more valuable than the estate taxes we can save you.

A. Ensure the Gift of Family

1. Approach estate planning as an opportunity to preserve and affirm your values and goals.

   If you believe strongly in the value of education, set up trusts for the education of your children and grandchildren.

   Make bequests to charities that foster your values within the community.

   If a child has worked successfully with you in your business, create a succession plan that gives that child control of the business.

   Discuss your estate and succession plan with your family, and use it as an opportunity to share your goals and values.

2. Carefully choose the personal representative of your estate and trustee of any trusts.

   If choosing your personal representative choose the child that has shown the most responsibility with his or her own life. Don't automatically select your eldest child.

   If you have two children choose both of them. This may be more cumbersome, but it will require them to get along with each other.

   Exercise caution in placing one of your children as trustee of his or her sibling's trust. If you are not confident in a child's ability to manage his or her inheritance, choose a professional trustee to manage the trust for his or her benefit.

3. Specifically define the duties and discretion of the trustee.

   Avoid friction among the trust beneficiaries. Consider setting forth the factors a trustee should evaluate when exercising discretion to make distributions.

   Consider a fixed non discretionary distribution.

   Consider a professional trustee and a family member serving together as co trustees.

4. Distribute your estate equitably among your family.

   Leaving less of your estate to one or more of your children may cause resentment toward the siblings who receive more of your estate.

B. Seven Simple Steps To Avoid Disputes

1. Preserve family relationships (see above).

2. Formalize the execution process of your Will and Trust.

3. Clarify the ownership and status of your property.

4. Include a "no contest" provision in your Will.

5. Specify the allocation of taxes and expenses among your beneficiaries.

6. Complete a List Disposing of Tangible Personal Property.

7. Complete a Disposition of Remains Authorization.

If you are interested in learning more about the topics in this Newsletter, we will be presenting a seminar "Ensure The Gift of Family" on May 6, 2004. RSVP to Denise Lowry at 620-6509 or dlowry@gth-law.com.

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WARNING: Even if your estate is below the Federal estate tax exemption of $1,500,000, you may still owe $64,400 in Washington estate tax. This past summer the Washington Department of Revenue made it easier to defer the tax. Ask us if your Wills allow you to defer payment of the Washington estate tax.

If you'd like to discuss this or any other aspect of your estate planning, please call the attorney with whom you work, or Sandy Rovai, Julie Dickens, Alan Macpherson, Sue O'Reilly, Eileen Peterson, or Mary Quagliano, all members of our Trusts & Estates Group. Thanks.