The world of estate planning is changing, and it's essential to stay informed. How Technology is Changing Estate Planning in Washington is evident with the passage of SSB 5787, the Uniform Electronic Estate Planning Documents Act, which marks a significant shift in how Washington residents can approach their estate planning. While this new law intends to modernize estate planning by allowing for electronic documents, it's crucial to understand its implications before embracing these changes.
Understanding the Uniform Electronic Estate Planning Documents Act
This new law introduces the concept of electronic estate planning documents, including wills, which can now be created and stored electronically. This means you can potentially execute your will using digital signatures, and witnesses can attest to it remotely, using video conferencing.
Here are some of the key provisions of the law:
Electronic Wills: A will can now be created as a digital document that is readable as text at the time of signing.
Digital Signatures: The law recognizes the validity of digital signatures for these documents.
Remote Witnessing: Witnesses can be in a different location and still be valid witnesses via real-time communication technology.
Qualified Custodians: A unique requirement in Washington is that electronic wills must be maintained by a qualified custodian to be considered self-proving.
Navigating the Complexities of Electronic Wills
While the idea of creating a will online might seem convenient, it's not without its challenges and uncertainties. Washington state has added a layer of protection by requiring a "qualified custodian" for an electronic will to be self-proving. This means that your will can't just be saved on your computer or a USB drive. It needs to be with a third party who is not a beneficiary of the will and is a resident of Washington over 18, a trust company, a nonprofit, or a professional service corporation. This additional requirement is an attempt to prevent fraud, but the law also introduces new potential pitfalls.
Here are some crucial points to consider:
Security: While digital signatures are recognized, there is still a potential for security breaches, technical errors, or unauthorized alterations.
Chain of Custody: The law attempts to address chain of custody with the "qualified custodian" rule. This requirement is unique to Washington, and how this will play out in practice is still unclear. If a qualified custodian is not used, the will must be treated as "lost" or "destroyed," and it may not be admitted to probate.
Fraud Prevention: While these laws aim to prevent fraud, there is no guarantee that this type of will is immune to fraud. The law is still experimental and evolving, so the potential issues may not be obvious yet.
Lack of Clarity: The process for transferring custody of an electronic will to another custodian is not outlined, and this is another potential area of confusion.
Court Filings: There are still some logistical issues with filing electronic wills with courts. King County, for example, requires a paper copy of an electronic will to be filed with the court.
Practical Considerations: While the use of video conferencing for remote witnessing is permissible, technological glitches, poor audio and video quality, and an unstable internet connection might disrupt the process and lead to questions of validity down the line.
Why a Traditional Approach May Be Better for Now
Given the experimental nature of electronic wills and the potential pitfalls, it may be best to proceed with caution. The traditional paper will provides greater clarity, well-established precedent in court, and fewer issues related to security and chain of custody. At this time it is wise to consult an attorney with a long history of estate planning before making a major shift in your approach. This new legislation introduces complexities that are not fully understood. It is unclear how they will play out in the future. For now, the traditional paper will is a safer option.
Review Your Estate Plan
Regardless of whether you choose to embrace new technology, it’s a good time to review your estate plan. If you have an existing will, it may need an update to align with your current situation. Take time to review your beneficiary designations on retirement plans, life insurance, and financial accounts. You may also want to review powers of attorney to make sure the people you have chosen are still the best fit.
We can help you understand how technology is changing estate planning in Washington
Do you have questions about compliance with the new electronic estate planning laws? Do you need to create or update your estate plan to protect your family? Contact us at 206-703-0764 or reach out online to schedule a consultation. We’re here to help you make informed decisions about your family’s future.
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