Establishing an estate plan before a loved one’s passing allows your family to focus on healing instead of navigating complex property matters during their grief. For families with substantial assets, the potentially high tax rates on gifts can be particularly worrisome. By creating a clear estate distribution strategy, you provide your grieving family invaluable peace of mind and gain confidence knowing your home and other possessions will be managed precisely according to your wishes.
A trust transfers property ownership from your personal name into a structured instrument under a trustee’s protection, creating vital safeguards for your beneficiaries. Without thoughtful planning, families often face challenging situations: conflicts between heirs, lengthy probate processes, significant estate taxation, and creditor claims against the estate—difficult circumstances no one wants their loved ones to experience.
If this isn’t the future you envision for yourself or your family members, here’s what you should know about real estate trusts in Washington State.
Why Trusts Matter
Property placed in a trust in Washington State allows beneficiaries to avoid the extensive documentation and complications of probate court during an already difficult time. Probate is both expensive and time-consuming, potentially lasting for months or even years. The probate court oversees asset distribution and ensures creditors receive payment from the deceased’s estate. A will outlines how the trustee should distribute assets according to the deceased’s wishes. Without a will, the court determines distribution following state laws on inheritance and property title transfer. Heirs receive funds at closing when and if the property sells.
There’s a lifetime exclusion on gift and estate transfers that adjusts yearly for inflation—in 2021, this was set at 11.7 million per individual and 23.4 million for couples. After reaching your lifetime exclusion, if you’re married and your spouse has passed, their exclusion transfers to you. When your home is held in trust, your heirs benefit from gift tax savings ranging from 8 to 40 percent, typically paid by the gift-giver. The estate tax applies upon death, and trusts may also shield the home from creditor claims. Another advantage of real estate trusts is their privacy—unlike probate proceedings, they remain confidential and aren’t public record.
Setting Up a Trust
It’s important to understand that real estate trusts in Washington State come in various forms, making it crucial to carefully evaluate your options before selecting the type that best suits your estate planning needs. Your estate may be worth more than you realize, with significant benefits to establishing a trust for your heirs. Start by gathering all important documents and realistically assessing your assets. For family members needing supplemental income, consider a special needs trust. For financially irresponsible relatives, a spendthrift trust can protect against their creditors while limiting access to principal funds. With irrevocable trusts, your decision is permanent—once assets transfer to the trust, you cannot change course. However, irrevocable trusts typically qualify beneficiaries for estate tax exemptions, making this an important factor to consider.
Depending on your comfort level, you can create your own trust or use an online service, though professional legal guidance is highly recommended. You’ll need to choose a successor trustee who will manage the estate, so have this conversation to confirm they’re willing to accept this responsibility. After creating the trust documents, you’ll transfer the deed into the real estate trust. As trustee, you’ll hold title to the property in the trust, with documentation including your correctly entered name and the date.
Park Buys Homes provides compassionate support if you need to sell property after losing a loved one. As a father-and-son team deeply rooted in Spokane, Aaron and Parker Farr truly understand the emotional challenges you’re facing. Their family-operated business brings a personal touch to every transaction, ensuring you’re working directly with caring decision-makers who understand your needs. With their extensive background in real estate—from property flipping to development projects—the Farr family offers expertise combined with genuine empathy. Park Buys Homes makes this process as stress-free as possible by offering fair cash offers and closing quickly—in just days or weeks. Their commitment to strengthening the community while helping homeowners through difficult situations means you’ll receive both professional guidance and personal support during this challenging time. Send us a message or call Park Buys Homes at (509) 241-9199.