Estate Planning 101: Wills, Trusts, Pay-on-Death Accounts, and Power of Attorney Explained

Here is something I hear from families in Burien and South King County almost every week: "I know we need to get Mom's paperwork in order, but I don't even know where to start." You are not alone in this. Estate planning sounds like something for wealthy people with attorneys on retainer, but the truth is, every family needs a basic plan in place, and the families who need it most urgently are the ones navigating a parent's aging or a transition into care.

I recently sat down with a professional who breaks down estate planning into language real families can actually use. Watch the full conversation in the video embedded above. In this article, I am going to walk through the four essential tools every family in Washington State should understand: wills, trusts, pay-on-death accounts, and power of attorney.

This is not legal advice. I am not an attorney. But after more than twenty years in senior care, I have watched too many families learn these terms for the first time during a crisis. My goal is to help you learn them now, while you still have time to act.

What Is a Will and Why Does Every Washington Family Need One?

A will is a legal document that tells the state of Washington exactly what you want to happen with your assets, your property, and your dependents after you die. Without a will, the state decides for you, following a rigid set of intestacy laws that may not match your wishes at all.

In Washington State, a valid will requires three things: the person creating it must be at least 18 years old and of sound mind, and two witnesses must sign the document in the person's presence. Washington follows the requirements set out in RCW 11.12.020. The will names an executor (the person who carries out your wishes), specifies how assets should be distributed, and can name guardians for minor children or dependents.

Here is why this matters for families considering care placement. If your parent does not have a will and their health is declining, the window to create one is closing. A will requires "sound mind," which means your parent must be mentally competent at the time they sign. If your mother has moderate dementia and you have not yet discussed a will, talk to an attorney this month. Not next quarter. This month.

One important Washington-specific detail: our state has its own estate tax, separate from the federal estate tax. For 2026, the Washington estate tax exemption is approximately $3,076,000. Estates valued above that threshold are subject to state tax. Most families will fall below this line, but if your parent owns a home in King County (where property values have climbed significantly), it is worth having a conversation with an estate planning attorney to be sure.

What Is the Difference Between a Will and a Trust?

This is one of the most common questions families ask, and the short answer is: a will tells a court what to do, while a trust avoids the court entirely.

When someone dies with only a will, their estate typically goes through probate, which is a court-supervised process that can take six months to over a year in Washington State. Probate is public, meaning anyone can see the details of the estate. It costs money in legal and court fees. And it can create delays at a time when family members are grieving and may need access to funds for funeral costs, ongoing bills, or care expenses.

A living trust (also called a revocable trust) is a legal container that holds your parent's assets during their lifetime and passes them directly to named beneficiaries when they die, without going through probate. The trust is private. It is typically faster. And crucially, a trust can also provide instructions for managing your parent's finances if they become incapacitated, not just after they die.

That last point is especially important for families dealing with dementia. A properly funded trust means that if your mother can no longer manage her finances, the successor trustee (often an adult child) can step in and pay bills, manage investments, and handle property transactions without going to court for a conservatorship. A conservatorship is expensive, time-consuming, and emotionally draining. A trust set up in advance avoids it.

Most estate planning attorneys in Western Washington recommend having both a will and a trust. The trust handles the assets you transfer into it during your lifetime. The will acts as a safety net (called a "pour-over will") to catch anything that was not transferred into the trust before death.

What Are Pay-on-Death Accounts and How Do They Help?

Pay-on-death (POD) accounts are one of the simplest and most underused estate planning tools available, and you can set one up at your bank in about fifteen minutes.

A POD designation is an agreement between your parent and their bank that names one or more beneficiaries to receive the funds in that account when your parent dies. The beauty of a POD account is that it completely bypasses probate. When the account holder dies, the named beneficiary simply presents a death certificate and identification to the bank, and the funds are released. No court, no waiting, no legal fees.

During your parent's lifetime, the POD designation changes nothing about how the account works. Your parent keeps full control. They can spend the money, close the account, or change the beneficiary at any time. The named beneficiary has zero rights to the account until the moment of death.

You can add a POD designation to checking accounts, savings accounts, money market accounts, and certificates of deposit. The equivalent for investment accounts is called a transfer-on-death (TOD) designation.

Here is why POD accounts matter for families in the care transition: when a parent dies, there are immediate expenses. Funeral costs, final utility bills, a last month of rent or mortgage, outstanding medical bills. If all of the parent's money is locked in probate, the adult children often end up paying these costs out of pocket and waiting months for reimbursement. A POD account ensures that at least some funds are available immediately.

A word of caution: POD designations override whatever your parent's will says. If the will says "split everything equally among my three children" but the POD account names only one child, that one child gets the account. Make sure the POD beneficiaries are consistent with the overall estate plan.

What Is Power of Attorney and Why Is It Critical for Aging Parents?

Power of attorney is the single most important legal document for families navigating a parent's cognitive decline, and it is the one families most often do not have when they need it. I cannot stress this enough. If your parent does not have a power of attorney in place and they are showing signs of cognitive change, this is the most urgent item on your list.

A power of attorney (POA) is a legal document that gives a named person (called the "agent" or "attorney-in-fact") the authority to make decisions on your parent's behalf. There are two primary types that every family should understand.

Financial Power of Attorney

A financial POA gives the agent authority to manage your parent's money, property, and financial affairs. This includes paying bills, managing bank accounts, filing taxes, selling property, and handling insurance claims. Without a financial POA, if your parent becomes incapacitated, you may need to go to court for a guardianship or conservatorship to do any of these things, which can cost thousands of dollars and take months.

Durable Power of Attorney for Health Care (DPOA-HC)

A healthcare POA (also called a Durable Power of Attorney for Health Care in Washington State) gives the agent authority to make medical decisions when your parent cannot make them for themselves. This includes decisions about treatment options, medications, surgery, and end-of-life care.

Here is a critical Washington State detail that many families miss. Under the Uniform Power of Attorney Act (RCW 11.125), powers of attorney in Washington are not durable by default. "Durable" means the document remains in effect even after the person becomes incapacitated. If the POA document does not include specific durability language as required by RCW 11.125.040, it will terminate the moment your parent loses capacity, which is exactly the moment you need it most.

To execute a valid Durable Power of Attorney for Health Care in Washington, your parent must sign the document in the presence of either two witnesses or a notary public. The person named as healthcare agent must be at least 18 years old and mentally competent. Importantly, your parent's care provider (including home care providers or staff at an adult family home or long-term care facility) cannot serve as the healthcare agent.

Like the will, a power of attorney requires mental competency at the time of signing. If your parent has moderate to advanced dementia, the window may already be closing or closed. This is not something to put off.

What Happens If My Parent Has No Estate Plan?

When a parent becomes incapacitated with no power of attorney and no trust, the family's only option is often guardianship and/or conservatorship through King County Superior Court. This process involves filing a petition, hiring an attorney, attending hearings, and often paying for a court-appointed guardian ad litem to evaluate the situation. The costs typically range from $3,000 to $10,000 or more, and the process can take months.

During that time, nobody has legal authority to pay your parent's bills, manage their care, make medical decisions, or access their bank accounts. I have seen families in our Burien community unable to pay a parent's rent or mortgage, unable to authorize medical procedures, and unable to move a parent into an adult family home because no one had legal authority to sign the admission agreement.

When a parent dies without a will, Washington State's intestacy laws determine who inherits. Generally, the surviving spouse receives the community property and a share of separate property, with the remainder going to children. But the specifics can be complicated, especially in blended families, and the process goes through probate regardless.

All of this is avoidable with basic planning done while your parent is still competent.

Why Does Estate Planning Matter for Families Considering Care Placement?

Families exploring adult family homes, assisted living, or memory care for a parent need these documents in place before the transition, not after. Here is why.

• Admission agreements require a legal representative if the resident cannot sign for themselves. Without a POA, the family may not be able to complete the placement.
• Medicaid applications (including Washington's COPES waiver) require detailed financial information and the ability to manage the applicant's assets. A financial POA makes this possible.
• Medical decisions during the care transition, from medication changes to therapy plans to end-of-life preferences, require someone with legal authority to consent.
• Paying for care may involve selling a parent's home, liquidating accounts, or accessing insurance benefits. Without proper legal documents, these financial moves are blocked.

At Burien Best Care Home, we encourage every family to have at least a durable financial POA, a durable healthcare POA, and a will (or trust) in place before beginning the care placement process. It does not have to be complicated or expensive. Many elder law attorneys in King County offer basic estate planning packages for $1,500 to $3,000.

What Steps Should Families Take This Week?

If this article has made you realize that your family's paperwork is not in order, here is a simple action plan.

This week: Have a conversation with your parent (and your siblings) about what legal documents are already in place. Ask: Do you have a will? Is there a trust? Who is named on your power of attorney? Where are these documents stored? You may be surprised by the answers.

This month: Schedule a consultation with an elder law attorney in King County. The Washington State Bar Association offers a lawyer referral service, and organizations like the National Academy of Elder Law Attorneys (NAELA) maintain a directory of attorneys who specialize in exactly these issues. Many offer free or low-cost initial consultations.

Today: If your parent has bank accounts without POD designations, that is a fifteen-minute errand at the bank that protects the family from months of probate delays. It is the smallest step with one of the biggest payoffs.

Watch the full conversation in the video above for a deeper walkthrough of each tool, including examples of how each one works in practice and common mistakes families make.

A Gentle Next Step

At Burien Best Care Home, we see families at one of the most complex intersections of their lives: navigating a parent's care needs, legal planning, and financial decisions all at once. We are not attorneys and we do not provide legal advice, but we understand the landscape, and we are happy to share what we have learned from walking alongside hundreds of families through these transitions.

Schedule a visit to Burien Best Care Home to see our home in Burien and talk about your family's situation. Or download our Family Guide to learn more about what the care placement process looks like from start to finish, including which legal documents you will need along the way.

Getting these documents in order is one of the most loving things you can do for your parent and for yourself. It is not about money. It is about making sure that when the time comes, you can focus on being present with your parent instead of fighting paperwork in a courtroom.

About the Author

Becca Pitts is the owner of Burien Best Care Home, bringing over 20 years of dedicated senior care experience to Burien, WA. She hosts the Your Best Season video series on YouTube, where she sits down with local professionals to discuss the topics families navigating senior care need most. She also runs Your Best Season, a senior transitions education platform, and Your Next Step Home, helping Washington families navigate real estate transitions.

*Burien Best Care Home is a licensed adult family home in Burien, WA, serving families throughout King County. We accept private pay and Medicaid (COPES). Call us or visit our contact page to start a conversation.*