Estate Planning Essentials for Washington Public Employees: Protecting Your Legacy

As a Washington state public employee, you've dedicated your career to serving others. Now it's time to ensure that your legacy is protected, and your wishes are honored after you're gone. Estate planning might not be the most exciting topic, but it's crucial for securing your family's future and ensuring peace of mind. Let's explore the essential elements of estate planning tailored specifically for Washington public servants.
Why Estate Planning Matters for Washington Public Employees
Before we dive into the specifics, let's consider why estate planning is particularly important for you:

1. Unique Benefits: As a public employee, you likely have specific benefits like pensions and that require careful consideration in your estate plan [1].
2. State Estate Tax: Unlike some states, Washington has its own estate tax, which can impact larger estates [2].
3. Complex Family Situations: Modern families often include blended families, unmarried partners, or other non-traditional arrangements that require thoughtful planning.

With these factors in mind, let's explore the key components of your estate plan.
1. Will: The Foundation of Your Estate Plan
A Will is the cornerstone of any estate plan. It outlines how you want your assets distributed after your death.
Key Considerations for Washington Public Employees:

• Specify beneficiaries for your non-retirement assets
• Name a guardian for minor children
• Designate an executor to manage your estate

2. Beneficiary Designations: Ensuring Your Benefits Go Where You Want
As a public employee, you likely have benefits that pass outside of your Will through beneficiary designations.
Important Assets to Review:

• Pension benefits from PERS, LEOFF, or other state systems [4]
• Deferred Compensation Program (DCP) accounts [5]
• Life insurance policies

Action Step: Review and update your beneficiary designations regularly, especially after major life events like marriage, divorce, or the birth of a child.
3. Power of Attorney: Managing Your Affairs
A power of attorney (POA) allows someone to make decisions on your behalf if you become incapacitated.
Types to Consider:

• Financial POA: For managing your finances and property
• Healthcare POA: For making medical decisions

Washington-Specific Note: Washington recognizes durable powers of attorney, which remain in effect even if you become incapacitated [6].
4. Healthcare Directive: Expressing Your Wishes
Also known as a living will, this document outlines your preferences for end-of-life care.
Key Decisions to Address:

• Use of life-sustaining treatments
• Pain management preferences
• Organ donation wishes

5. Revocable Living (RLT) Trust: Providing Flexibility and Control
While not everyone needs a trust, it can be a useful tool for many Washington public employees.
Benefits of a RLT:

• Avoid probate, which can be time-consuming and expensive
• Provide ongoing management of assets for beneficiaries
• Offer privacy, as trusts don't become public record like Wills do

Consider This: A revocable living trust can be particularly useful if you own property in multiple states or have complex family situations.
6. Estate Tax Planning: Navigating Washington's Tax Landscape
Washington is one of the few states with its own estate tax, which can impact estates valued over $2.193 million (as of 2024) [2].
Strategies to Consider:

• Gifting assets during your lifetime (Washington has no limit on lifetime giving)
• Using irrevocable trusts to remove assets from your taxable estate
• Leveraging the marital deduction for married couples

Caution: Estate tax laws can be complex. Consider consulting with a tax professional or estate planning attorney for personalized advice.
7. Long-Term Care Planning: Protecting Your Assets
Long-term care costs can quickly deplete an estate. As a Washington resident, you have some unique considerations.
Key Points:

• Washington's Long-Term Care Trust Act provides limited basic coverage [8]
• Consider whether additional long-term care insurance is needed
• Explore Medicaid planning strategies if appropriate

Long-term care planning can help protect your assets for your heirs while ensuring you receive needed care.
8. Digital Asset Planning: Don't Forget Your Online Life
In today's digital age, don't overlook your online accounts and digital assets.
Items to Address:

• Social media accounts
• Email accounts
• Digital financial accounts
• Online photos and videos

Washington Law: The Revised Uniform Fiduciary Access to Digital Assets Act allows you to give your executor authority over your digital assets [9].
9. Pension Survivor Benefits: Understanding Your Options
As a public employee, your pension likely offers survivor benefit options. Understanding these is crucial for estate planning.
Key Decisions:

• Whether to choose a survivor benefit option
• How much of a benefit to provide to your survivor
• Understanding the impact on your own benefit amount

Action Step: Review your pension survivor benefit options with a DRS representative [10].
10. Charitable Giving: Leaving a Lasting Legacy
If you're charitably inclined, consider incorporating giving into your estate plan.
Options to Explore:

• Bequests in your Will
• Charitable trusts
• Naming charities as beneficiaries of retirement accounts

Tax Benefit: Charitable giving can reduce your taxable estate, potentially saving on estate taxes.
Creating Your Estate Plan: A Step-by-Step Approach
Ready to put your estate plan together? Here's a roadmap to guide you:

1. Take Inventory: List all your assets, including public employee benefits, real estate, investments, and personal property.
2. Define Your Goals: Clarify what you want to achieve with your estate plan (e.g., providing for your spouse, educating grandchildren, supporting a favorite charity).
3. Identify Key Players: Decide who will serve in important roles like executor, trustee, and power of attorney.
4. Draft Essential Documents: Work with an attorney to create your Will, powers of attorney, and healthcare directive.
5. Review Beneficiary Designations: Ensure your DCP, pension, and life insurance beneficiaries align with your overall plan.
6. Consider Trust Options: Determine if a trust is appropriate for your situation.
7. Plan for Taxes: Assess your potential estate tax liability and explore mitigation strategies.
8. Address Long-Term Care: Decide how you'll plan for potential long-term care needs.
9. Include Digital Assets: Create a plan for your online accounts and digital property.
10. Discuss with Family: Share the key points of your plan with family members to prevent surprises and conflicts later.

Your Estate Planning Action Plan
Ready to protect your legacy? Here's your action plan:

1. Gather Important Documents: Collect statements from your pension, DCP, life insurance, and other accounts.
2. Use Online Resources: The DRS website offers information on survivor benefits and beneficiary designations [11].
3. Consult Professionals: Consider working with an estate planning attorney familiar with Washington law and public employee benefits.
4. Review Regularly: Set a reminder to review your estate plan every 3-5 years or after major life events.
5. Coordinate with Your Spouse: If you're married, ensure your estate plans work together harmoniously.
6. Secure Your Documents: Store your estate planning documents in a safe place and let your executor know where to find them.
7. Stay Informed: Keep up with changes in estate tax laws and public employee benefits that might affect your plan.

Remember, estate planning is an act of love for your family and a testament to the care you've shown throughout your career in public service. By taking the time to create a comprehensive estate plan, you're ensuring that your legacy of service and care continues even after you're gone.
Sources:

1. Washington State Department of Retirement Systems, "Plan Choice," 2024.
2. Washington State Department of Revenue, "Estate Tax," 2024.
3. Revised Code of Washington (RCW) 11.12.020, "Requisites of wills," 2024.
4. Washington State Department of Retirement Systems, "Beneficiary Information," 2024.
5. Washington State Department of Retirement Systems, "Deferred Compensation Program," 2024.
6. Revised Code of Washington (RCW) 11.125, "Uniform Power of Attorney Act," 2024.
7. Washington State Hospital Association, "End of Life Care Manual," 2024.
8. Washington State DSHS, "WA Cares Fund," 2024.
9. Revised Code of Washington (RCW) 11.120, "Uniform Fiduciary Access to Digital Assets Act," 2024.
10. Washington State Department of Retirement Systems, "Retirement Planning Checklist," 2024.
11. Washington State Department of Retirement Systems, "Life Changes," 2024.

-Seth Deal