When planning your estate in Washington State, one of the most common questions is whether to use a Revocable Living Trust (RLT) or a Will.  Most are curious because of the horrors they hear or the experience they’ve had with the probate process. In Washington, both are efficient and effective estate planning tools, but they serve different purposes and offer distinct advantages.

Washington has one of the friendliest probate systems in the country. Unlike other states, Washington’s probate process is timely and monetarily efficient because the Personal Representative (or executor) is typically granted “non-intervention powers,” which means the court does not intervene. When a person passes away their estate either must go through the trust administration process (if there is an RLT instead of a Will) or the probate process. These “non-intervention powers” make probate in Washington much like a trust administration.

Despite that, many people still prefer RLTs, believing they can simplify administration, provide privacy, and help avoid court involvement altogether. However, the benefits of an RLT depend on how well it’s set up, funded, and coordinated with your overall estate plan.

What is a Revocable Living Trust (RLT)?

An RLT is a legal document created during your lifetime that serves as a substitute for many provisions of a Will. The person who creates the trust is called the grantor.

Instead of having your Will control what happens to your assets after death, the trust provides privacy and directs how those assets are managed and distributed. To avoid probate, however, you must transfer legal ownership of your assets to the trust. Any property that remains in your individual name at the time of your death will still go through probate, something many people accidentally trigger by forgetting to retitle new assets in the trust’s name.

When properly drafted, funded, and managed, an RLT can be an excellent tool for both lifetime and post-death asset management. It allows you to maintain control of your assets while you’re alive, and if you become disabled or pass away, your chosen trustee (often a family member or professional) takes over management.

It’s also important to coordinate the trust with assets that pass by beneficiary designations, such as life insurance policies, IRAs, and 401(k)s, to ensure everything aligns with your overall estate plan.

Common Misconceptions About RLTs

1. An RLT Eliminates Estate or Inheritance Taxes

This is false. Avoiding probate does not mean you avoid death taxes. The same estate tax rules apply whether your assets are distributed through a Will or a trust. While there can be minor income tax differences, there are no estate tax savings simply from using a trust instead of a Will.

2. RLT Provides Creditor Protection

Contrary to popular belief, an RLT offers virtually no protection from creditors or lawsuits in Washington. The reason is simple: because the person who creates the RLT, the Grantor, retains the power to revoke, change, or reclaim the assets at any time, the law considers those assets to still be the Grantor’s personal property. While RLTs are excellent tools for avoiding probate, ensuring privacy, and planning for incapacity, they should not be confused with asset protection strategies. For true creditor insulation, you would need to explore options like irrevocable trusts, limited liability companies, etc.

3. No Administration is Needed After First Death

A common misunderstanding is that having an RLT means nothing needs to be done when the first spouse dies. In Washington, that’s not the case. Even though a trust generally avoids a full court-supervised probate, it still requires a formal administrative process when the first spouse passes away.

Typically, the trust becomes partly irrevocable upon the first death, and the surviving spouse or successor trustee must:

• Obtain date-of-death valuations for assets;
• Allocate or divide assets between the “survivor’s trust” and the “decedent’s trust”;
• Prepare and file any necessary estate tax returns; and
• Retitle assets and update records for continued management.

This process, while private, still involves time, effort, and professional guidance. It’s not as simple as “nothing happens” when the first spouse dies, the trust must be properly administered to maintain its intended benefits and comply with Washington law.

Understanding Probate

Probate is the legal process of proving that a Will is valid and administering the estate according to law. Similar to RLT this includes paying debts, taxes, and distributing assets to beneficiaries.

In Washington State, probate is typically straightforward and low-cost due to its non-intervention system. Most estates proceed without court supervision, except when the personal representative (executor) requests court approval for specific transactions or when an estate is insolvent.

After death, the court appoints a personal representative to handle the estate. Similar to RLT, the beneficiaries usually must wait for the four-month creditors’ period to expire before full distributions, partial distributions and family allowances for surviving spouses or minor children can be made during probate.

Advantages of Probate

While probate often gets a bad reputation, it has advantages. The process provides court oversight and ensures that assets are distributed correctly to rightful heirs. If a trust is not properly funded or a trustee misinterprets the grantor’s intent, costly mistakes can occur. Probate helps prevent these errors by providing a structured, transparent process.

Conclusion

Every estate plan is unique, and the choice between an RLT and a Will depends on your goals, assets, and family situation. The best approach is to consult an experienced estate planning attorney who understands Washington’s probate laws.

What matters most is having a coordinated, consistent estate plan. When probate and non-probate assets are not properly aligned, it can lead to litigation, unnecessary costs, and unintended consequences for your heirs. If you have questions about RLTs, Wills or other estate planning vehicles, please consider contacting any of the lawyers on Lasher’s Estate Planning team.