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Almost every week, someone sits in our office and and asks a version of the same question: "Can't I just give the house to my kids?" You can. It's cheap, it's fast, and on paper it looks like it solves the problem. It also throws away most of what you were trying to protect! In Washington, it can sometimes leave your family more exposed than if you had done nothing at all. An irrevocable trust costs more up front and asks you to give up real control. This post explains what you get in exchange, and why the Washington rules in particular make the trust the better tool for most families who plan ahead. What an irrevocable trust actually is Many of our clients already have a revocable living trust. You created it, you're the trustee, you can amend it, revoke it, sell the house out of it, and spend every dollar in it. It's a management and probate-avoidance tool, and it's a good tool for a lot of people. An irrevocable trust is a different animal. You generally cannot serve as your own trustee. You cannot amend or revoke it. You cannot reach in and take the principal back. Once the property is transferred, it is no longer yours in any meaningful legal sense. That is not a design flaw. That is the entire point. A revocable trust gives you no Medicaid protection whatsoever. Because you kept control over the trust during your lifetime, the Health Care Authority counts those assets as yours, because they are. It doesn't matter that the trustee has discretion, or that distributions are restricted in timing or purpose. Any pathway back to you, and the asset counts. To get the protection that many people are looking for to qualify for Medicaid, the door has to genuinely close. The math that drives the conversation Medicare pays for a limited stretch of skilled nursing care after a qualifying hospital stay (usually around 20 days at full coverage, with cost-sharing after that) and it ends well short of long-term custodial care. It is not a long-term care program, and most families discover that at the worst possible moment. Washington's Apple Health long-term services and supports program picks up where private funds run out, but only once your countable resources are down to roughly $2,000 for a single applicant, with a protected allowance for a spouse who remains at home. Meanwhile, WA Cares began paying benefits on July 1, 2026. Washington rolled this program out as the first state long-term care benefit in the country, with a lifetime benefit of $36,500 in 2026, indexed going forward. That is genuinely useful money. It is also roughly a few months of nursing facility care at current Washington rates. It changes the arithmetic at the margins; it does not change the plan. So the planning question stands: what happens to the house, the land, and the savings you spent forty years building? Why not just gift it outright? Before 2005, there was a real reason to prefer outright gifts. Federal law used a three-year lookback for outright transfers and a five-year lookback for transfers into trust, so a trust carried a penalty that gifts didn't. The Deficit Reduction Act of 2005 ended that. Both are now subject to the same 60-month lookback. Washington says that uncompensated transfers within the 60 months before you attain institutional status or apply for LTC services generate a penalty period, calculated using the statewide average daily private nursing facility cost, and the penalty doesn't even begin to run until you would otherwise be eligible (until you're already broke and already need care). The playing field is level. And once the timing cost is identical, the outright gift has nothing left to recommend it. What the trust does for you that a gift does not Here is what you give up the moment you sign a deed to your children instead of funding a properly drafted trust: 1. Protection from your children's creditors (and their divorces). A gifted house is your son's asset. It is exposed to his creditors, his business failures, and his dissolution proceeding. Trust assets, properly structured, are not. This is the risk clients underestimate most, and the one I have watched cause the most damage. 2. The capital gains exclusion on your home. Under IRS rules, you can exclude up to $250,000 of gain on the sale of your principal residence ($500,000 for a married couple). Gift the house outright and that exclusion is gone; your children take your basis and sell into the full gain. A trust drafted so you retain the necessary interest preserves the exclusion. 3. Step-up in basis at death (which matters more in Washington than almost anywhere else). A gift is a carryover-basis transaction: your kids inherit your 1978 purchase price. Assets that remain in your taxable estate get a basis adjustment to date-of-death value instead. And because Washington is a community property state, community assets receive a step-up on both halves at the first spouse's death under IRS regulations, a benefit that separate property states simply don't have. An outright gift forfeits it. A trust drafted with the right retained powers keeps it. There is a tradeoff here worth naming: keeping assets in your taxable estate for the basis step-up also keeps them in your estate for Washington estate tax, which starts at a $3,000,000 exclusion for deaths on or after July 1, 2026. For most families that threshold is never in reach and the step-up wins easily. For larger estates, it's a real decision, and one reason these trusts get drafted differently depending on what you own. 4. Control over who pays the income tax , and 5. control over who receives trust income both of which can be controlled using a trust, and neither of which exists once you've handed over a deed. 6. Genuine noncountability for Apple Health, SSI, and other means-tested programs, once the lookback has run. 7. A succession plan. A gift ends the story. A trust says what happens next: to a grandchild's share, to a beneficiary who predeceases you, to a child who needs a special needs subtrust rather than an outright distribution. 8. Flexibility you can preserve deliberately. A limited power of appointment lets a trusted person redirect shares among a defined class after you've lost the ability to amend. You give up control; you don't have to give up adaptability. The Washington point that changes the analysis This is the part that gets left out of most national articles, and it is the reason I push back hard when a client tells me they've "already handled it" with a TOD deed or a community property agreement. Washington is an expanded-estate recovery state. For deaths on or after September 14, 2006, the "estate" the State can recover against includes not only the probate estate but nonprobate assets plus any life estate interest held immediately before death. Read that list slowly, because it covers nearly every probate-avoidance device Washingtonians actually use: - Transfer on death deeds - Community property agreements - Joint tenancy with right of survivorship - Payable-on-death and transfer-on-death accounts - Assets passing at death through a living trust In a probate-only recovery state, a TODD gets the house past the State. In Washington, it does not. Recovery applies to recipients who were 55 or older when they received the qualifying long-term care services, and Washington's hardship provisions generally delay recovery rather than cancel it. A properly drafted and timely funded irrevocable trust is different in kind, not degree. The asset was given away during life, outside the lookback, with no retained interest and no death-triggered transfer. There is nothing left in the estate for the State to come after. That is the Washington case for the trust, and it is a strong one. Who this is not for I turn people away from irrevocable trusts regularly, because they are not always the right choice for everyone. If you're already in crisis, it's too late for this tool. The 60-month lookback means a trust funded the month before a nursing home admission accomplishes nothing except cost. Crisis planning is real, and there are things we can do (spousal allowances, exempt transfers to a spouse or disabled child, the caregiver child exception, annuities, undue hardship) but they are a different conversation with different tools. If you're in your fifties and healthy, it's usually too early. Giving up permanent control of your assets thirty years before you might need care is a steep price for insurance you may never claim. If you may need the principal, don't do it. Not "probably won't." Can't. If there's any scenario where you need that money back, the trust is either the wrong plan or drafted so loosely it won't protect you anyway. The sweet spot is a client who is comfortable, healthy enough to expect five more years, clear about what they don't need, and specific about what they want protected. What to do next Irrevocable trusts are not a form you download. The difference between one that protects your family and one that produces a five-year penalty period and a tax bill is drafting, funding, and timing…none of that can be evaluated from an article. If you are seeking assistance with estate planning, probate, adoption, real estate transactions, or business legal questions, please don't hesitate to reach out to the experienced team at Limitless Law PLLC. Call 360-685-0145 or click here to learn more.

A plain-English guide for Washington families on benefit-safe estate planning for a disabled child or beneficiary

...it depends on your situation...

A terminal illness diagnosis changes everything: priorities shift instantly, and the weight of unfinished business can feel overwhelming. At Limitless Law PLLC, we frequently work with Washington State families navigating exactly this moment. Our hope is that by handling the legal and logistical pieces thoughtfully, we can give you and your loved ones more time and space to simply be together. Getting Your Legal Documents in Order Washington law provides a clear framework for expressing your final wishes, but those wishes only carry legal weight if they’re properly documented. Here’s what to address first: Your Will. If you don’t have a current will, or if your circumstances have changed significantly, now is the time to meet with an attorney. A valid will under Washington State must be in writing, signed by you (or someone in your presence at your direction), and witnessed by at least two competent witnesses. A properly drafted will ensures your estate goes to the people and causes you care about — and spares your family from the uncertainty of dying intestate. Durable Power of Attorney. A Durable Power of Attorney designates someone you trust to manage your finances and legal affairs if you become unable to do so. “Durable” means the authority survives your incapacity, which is exactly when it matters most. Health Care Directive (Living Will). Your Health Care Advance Directive allows you to document your wishes about life-sustaining treatment, artificial nutrition, pain management, and organ donation. Paired with a Durable Power of Attorney for Health Care, it designates a trusted person to make medical decisions on your behalf when you cannot speak for yourself. These documents together give your doctors and family clear, legally recognized guidance. Washington's Death with Dignity Act. Washington is one of a small number of states with a legal Death with Dignity Act (RCW 70.245), which allows terminally ill adults who meet specific criteria to request a prescription for life-ending medication from their physician. This is a deeply personal decision. If it is something you wish to explore, we encourage you to speak with your physician and, if you have questions about the legal requirements, with an attorney. All of these documents should be revisited and reviewed at the time of a terminal diagnosis, even if you already have versions in place. Things change, and your legal documents should reflect who you are and what you want today . Beneficiary Designations Many assets (retirement accounts, life insurance policies, bank accounts with payable-on-death designations, and property titled with right of survivorship) pass outside of your will entirely. Review beneficiary designations carefully and make sure they are current and consistent with your overall plan. Washington is a community property state (RCW 26.16), which affects how marital property is owned and transferred. An attorney can help you understand how your assets will actually flow at death and identify any gaps. Planning for Funeral and Memorial Arrangements Thinking about your own funeral is not easy, but doing so is a profound gift to your family. Washington law (RCW 68.50.160) gives you the right to direct the disposition of your own remains in writing, and that directive takes legal precedence over the wishes of next of kin. You can specify burial or cremation, the type of service you want, music, readings, and who should officiate. Pre-arranging with a licensed Washington funeral home locks in current pricing and relieves your family of difficult decisions made under grief. If full pre-payment isn’t possible, simply writing down your wishes and sharing them with a trusted person can make an enormous difference. Burial or final expense insurance is another option many families find helpful for covering costs. Choosing Where and How You Want to Receive Care Washington has a strong network of hospice providers, and hospice care is a Medicare and Medicaid-covered benefit available to patients with a prognosis of six months or less. Hospice focuses on comfort rather than cure and can be provided in your home, in a residential hospice facility, or in a nursing home. The Washington State Department of Health licenses and oversees hospice agencies throughout the state. Think about where you want to spend this time, and have honest conversations with your family about what is realistic. Your health care directive will help ensure your preferences are honored wherever you receive care. Comfort and Quality of Life Even when curative treatment is no longer the goal, there is much that can be done to support comfort and quality of life. Pain management, palliative care, massage therapy, and integrative approaches like acupuncture are used by many patients to stay mobile and comfortable. Talk openly with your care team about what options are available and what your insurance (including Medicare or Medicaid) may cover. Living the Time You Have Once the paperwork is in order, give yourself permission to live. A terminal diagnosis often clarifies what matters-the people, the experiences, and the contributions that have always been most important. Whether that means traveling somewhere you’ve always wanted to go, deepening connections with family and friends, volunteering, or simply being present in daily life, these moments matter deeply. The memories you create now will stay with the people who love you. Grief and denial are natural parts of this process, for you and for those around you. Give yourself grace. Many people find that working with a counselor, a chaplain, or a support group helps them navigate the emotional terrain alongside the practical. Washington has numerous hospice and palliative care social workers who specialize in exactly this kind of support. We’re Here to Help Getting your affairs in order is one of the most loving things you can do for your family. Our Washington State estate planning attorneys work with individuals and families facing serious illness with care, urgency, and discretion. If you need to update your will, create an advance directive, establish a power of attorney, or simply understand your options, we welcome the opportunity to help. If you are seeking assistance with estate planning, probate, adoption, real estate transactions, or business legal questions, please don't hesitate to reach out to the experienced team at Limitless Law PLLC.  Call 360-685-0145 or click here to learn more.

Limitless Law PLLC's new office at 1919 Cornwall Avenue, Bellingham WA 98225 is now officially open

Come see our new space on Thursday, April 30, 2026 from 3-6pm

We look forward to serving you at our beautiful new office location - 1919 Cornwall Avenue in Bellingham

Limitless Law PLLC is proud to sponsor the Bellingham Roller Betties roller derby!

If you’ve streamed Taylor Tomlinson’s recent Netflix comedy special, Prodigal Daughter, you know she tackles heavy life topics with a sharp comedic edge, including a big one that many people avoid: thinking about death. But, tucked between the laughs and bold personal storytelling, there’s a moment in the special where Tomlinson talks about something most adults should confront (but often put off) until it’s too late: getting your affairs in order, including writing a will and thinking through your health care wishes. Let’s unpack why the estate planning topics that Taylor talks about in her special matter to everyone, regardless of your age, income, or life stage. 1. Even Younger Adults Need a Plan Taylor jokes about the irony of writing a will when she’s not even “old” yet (a sentiment many of us share). Yet the truth is clear: having a will before a crisis happens is a gift to the people you care about most. A will: • Specifies who gets your assets when you pass away • Names an executor to handle your affairs • Designates guardians for minor children (if applicable) If you skip this step and something unexpected happens, the state’s default rules decide these outcomes. We find that most of our clients prefer to have the final say in how their estate is handled, rather than leaving it up to the government to decide. 2. Advance Health Care Decisions Matter While Tomlinson’s set focuses on the humor inherent in confronting mortality, it opens the door to a serious point: situations arise where we might not be able to speak for ourselves. That’s where Advance Health Care Directives come in. An Advance Health Care Directive lets you: • Appoint someone you trust to make medical decisions on your behalf • Express your preferences about treatments you do or don’t want • Include wishes about things like organ donation or comfort care choices Tomlinson’s humor might make you laugh, but the underlying message is profound: planning ahead gives you control. 3. Laughing About Tough Topics Can Prompt Real Action Comedians have a unique power to make uncomfortable subjects feel less taboo. When someone as culturally visible as Taylor Tomlinson uses her platform to talk about these realities of life, it can be a nudge for people to take real steps. Estate planning isn’t just for the wealthy or the elderly. If you have people who depend on you, property you care about, or strong medical preferences you want honored, it’s for you. And humor can be one more reminder to get it done. If Prodigal Daughter made you chuckle and made you think, here are some practical steps you can take right now: ➡️ Create or update a will that reflects your current relationships and assets ➡️ Set up an Advance Health Care Directive to name a trusted agent and state your wishes ➡️ Consider other planning tools, like financial powers of attorney, trusts, or beneficiary designations ➡️ Review your documents regularly, especially after major life changes (marriage, kids, divorce, etc.) Estate planning doesn’t have to be morbid! It can be liberating. Laughing about it with Taylor Tomlinson is one thing… but putting a plan in place can be a life-changing act of responsibility and love for your family and friends. If you’d like help crafting a plan that fits your life and goals (whether you’re just starting out, or updating old out-of-date documents) contact Limitless Law PLLC to schedule your strategy session with one of our attorneys. We’ll make the legal side as manageable and clear as possible. Call 360-685-0145 or click here to learn more about how we can help!