One of the requirements for making a valid will is that the testator have the legal capacity to do so.  Sometimes heirs or would-be-heirs under a will contend that the provisions thereof could not have been the testator’s true intentions, that the testator must not have been of sound mind, and that the will must therefore be unenforceable.  Beneficiaries are more likely to feel this way when their understanding of the strength of their relationship with the testator diverges significantly with their share of the estate’s assets to be distributed by the will as written.  Although...Read More

For closely-held business owners, the idea of selling your business appears daunting. Where do you start? What do you need to know before beginning the process?

Several months ago, we published an article discussing the general process of buying and selling a business. This is a further discussion and includes other issues. There are many details to address throughout the sale process, and discovering these details proves difficult without the assistance of experienced legal counsel. At Beresford Booth, we provide this experienced counsel which the closely-held business owner...Read More

When a creditor obtains a judgment against a debtor, there are numerous possible avenues for enforcement.  Typical collection efforts may include wage garnishment, bank garnishment, and personal property execution.  Collection strategies depend greatly upon the financial circumstances of the debtor.  One nuanced area of enforcement involves collection efforts against a debtor who is a member of a limited liability company (“LLC”).

Some debtors will form LLCs to shield their financial assets and income from collection.  However, an LLC does not provide absolute protection.  Under RCW 25.15.256, courts may in certain circumstances issue a charging order that...Read More

What is Equitable Indemnity?

Sometimes a party’s wrongful act or omission causes the wronged party to enter litigation with an unrelated third party. The common law theory of equitable indemnity says that the separate third party may be entitled to compensation from the initial wrongdoer as an element of damages. In Washington, this rule is also known as the “ABC Rule”: When A wrongs B, causing B to litigate with C, B may be entitled to a judgment for money damages and attorney fees from A.

How is it applied?

For example, Barry buys a house...Read More

All limited liability companies embark upon journeys of varying length, activity, and consequence. Eventually, LLCs reach their journeys end and require dissolution. The process of dissolution and the time dissolution requires is different for every LLC, but what really happens with an LLC upon dissolution?

Dissolution

LLCs dissolve for a multitude of reasons. For example, the LLC agreement may provide for an event or date of dissolution, the members may consent to dissolution, the LLC can dissolve administratively (via the Secretary of State) or judicially (via a court decision). However, dissolution does not end the...Read More

What is the Washington CPA?

The Washington Legislature in 1961 enacted the Consumer Protection Act (“CPA”), (RCW 19.86), to protect consumers from unfair or deceptive trade and business practices. Historically, consumers were responsible under the old legal maxim of “caveat emptor,” or “buyer beware,” which required a high level of diligence and investigation on the part of the consumer to protect themselves in business dealings.  The CPA changed that rule and effectively imposed on businesses a standard of fair and honest dealing.

In general, establishing a CPA claim requires satisfying five elements, namely an unfair or...Read More

Last month, I wrote an article discussing how The Tax Cuts and Jobs Act affected spousal support.  The article briefly outlines how the tax status of alimony changed to tax-neutral. Therefore, under the new tax law, alimony is no longer a tax-deductible expenditure, nor can it be considered income for recipients. This alteration not only affects the tax status of alimony, but also the tax status of legal fees.

Under the old tax code, legal fees regarding alimony proceedings were also considered tax deductible.  A recipient spouse who sought Court intervention to ensure he or she...Read More

Property Ownership

In Washington, there are multiple ways in which individuals can agree to co-own real property. The most common form of ownership between unmarried parties is as tenants in common.  Tenants in common have great flexibility in how they can divide ownership interests. For example, two owners can own a property evenly, or they can choose to split their ownership interests in another manner, such as by giving one owner a 75% interest and the other owner a 25% interest. Additionally, tenants in common can pass on ownership through their wills. Most owners agree to...Read More

Statute

Pursuant to RCW 68.50.160, a person has the right to direct how his or her remains are disposed after death.  “Directing” such disposition is best accomplished in writing which includes a description of the method of disposition (i.e. burial, cremation, donation for purposes of research etc.).  The written instructions should be signed and dated while being witnessed by at least one person (over the age of 18, of sound mind, and not in any way beneficially interested in the matter).  Such arrangements are generally not modifiable by survivors and a licensed funeral home or cemetery...Read More

The “applicable exclusion amount” is the amount of a deceased person’s estate that passes free of 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 an applicable exclusion amount for federal estate tax purposes and an applicable exclusion amount for the state of Washington’s estate tax purposes. Under both federal and Washington law, the applicable exclusion amount is subject to adjustment. For federal estate taxes, the applicable exclusion amount is $11,400,000 for 2019, a...Read More