The “basic exclusion amount” is the amount of a deceased person’s estate that passes free of federal estate tax.  This differs from the unlimited marital deduction that applies when one spouse dies and transfers all of his or her interest in property to the surviving spouse.  There is a basic exclusion amount for federal estate tax purposes and an applicable exclusion amount for the state of Washington’s estate tax purposes.  Under federal law, the basic exclusion amount is subject to adjustment.  Under Washington law, the applicable exclusion amount is subject to adjustment.  For federal estate taxes,...Read More

Student loans are treated differently than other unsecured debts in bankruptcy.  A debtor seeking to discharge liability for a student loan must demonstrate “undue hardship.”  While this standard is more stringent than for ordinary unsecured debts, the a very high percentage of debtors with lingering student loan debt assume that student loans are by definition non-dischargeable under any circumstances.  A recent study found that only about 0.1% of debtors with student loan debt filing for bankruptcy make any attempt to discharge the student loans.  Yet, statistically, when debtors decided to challenge their student loans, they successfully...Read More

For decades, Washington State left the its overtime rules essentially unchanged. But recent changes going into effect in July 2020 will dramatically increase the threshold for exemptions to overtime eligibility. When combined with the recent increase in Washington State’s minimum wage of $13.50/hour effective January 1, 2020, these changes will are expected to affect approximately 259,000 Washington workers by 2028. The new rules generally require employers to pay overtime to employees who work over 40 hours in a week and whose weekly salary is less than a certain multiplier of the state’s minimum wage. Starting July...Read More

In 2013, I wrote an article touting the “Friendly Quiet Title” as a more efficient means of adjusting your boundary line, when compared to a city/county boundary line adjustment (“BLA”). In recent years, the time and money savings of a Friendly Quiet Title have only increased when compared to the BLA.

For example, as of January 2020, King County’s base BLA fee is up to $3,615. Add a degree of complexity (such as vacant land or land with critical areas), and the base fee increases to $5,568. These fees will presumably...Read More

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), which was signed into law on December 20, 2019, represents a significant overhaul of retirement rules in more than a decade. Among many important changes, the SECURE Act allows you to use retirement savings to start or grow your family!

The SECURE Act allows for penalty-free withdrawals from your retirement account, up to $5,000 per parent, within a year of your child’s birth or your adoption of a child into your family.   This change allows you to avoid the 10% penalty typically assessed on early retirement...Read More

One of the features of Washington’s new LLC Act is a clarification of the fiduciary duties owed by members and managers. The Act provides that the only fiduciary duties members of a member- managed LLC and a manager of a manager-managed LLC are the duties of loyalty and care. Members in a manager-managed LLC do not owe fiduciary duties.

The duty of loyalty is limited to:

1. 1. 1. 1. Account to the LLC and hold as trustee for the LLC any profit, or benefit derived by...Read More

Do you remember that old real estate contract your parents entered into in the 1970s to buy the family home?  Or perhaps that loan they took out against the home in the 1980s that they paid off after a few years?  It is possible that your parents decided that these long completed real estate transactions might not make for the most interesting dinner conversation.  Unfortunately, you might someday end up thrust into a strange and frustrating, but surprisingly common, situation where these old forgotten clouds on title from decades ago linger on like ghosts.

This issue...Read More

Selling a home involves an almost overwhelming number of considerations.  How should you stage your home?  What will be your listing price?  How many open houses should you have?  Does your house need any touch ups?  The list can go on and on.  Indeed, even after an offer is accepted, a seller still has to worry about financing contingencies, inspection contingencies, closing requirements, and what will happen with the earnest money deposit if there is a dispute between the parties.

In the midst of all of this, a home seller might be forgiven for glossing over...Read More