Bellevue and Lynnwood, WA estates & Probate attorney Heather Xu shares her estate planning advice for parents with minor children. She advises clients with minor children to “hope for the best, but prepare for the worst,” emphasizing the importance of having at least a basic estate plan in place to protect loved ones. For those seeking a straightforward approach, she notes that utilizing the Uniform Transfers to Minors Act (UTMA) can be effective, but under Washington law, assets can only remain under this arrangement until the child reaches age 25. If parents or grandparents wish to maintain control of assets beyond that age, establishing a trust becomes necessary.

She recommends reviewing estate plans every five to ten years, or more frequently if significant life events occur or statutory changes take place. For example, she closely monitors pending legislation, such as House Bill 2019 on the Washington estate tax and Senate Bill 5037 concerning the proposed Uniform Custodial Trust Act, to ensure clients’ plans remain aligned with current law.

She also highlights the strategic use of life insurance in estate planning, not only for providing liquidity but also for achieving equitable distribution among beneficiaries. Some heirs may prefer cash, while others may be more interested in managing a business or real property. When the death benefit is substantial, she typically recommends establishing an irrevocable life insurance trust at the outset to hold the policy, helping clients avoid complications such as the IRS three-year look-back rule.