Although it can be difficult to think about what will happen after you’re gone, planning for the future is one of the greatest gifts you can give your loved ones. At Johnson and Taylor, our estate planning attorneys can help you understand how a revocable living trust and last will and testament can protect your interests and your family’s future. Here, we discuss the basics of living trusts in Oregon and the benefits they can provide for your family.
What Is a Living Trust?
A living trust is a legal arrangement that allows the owner of the trust, or grantor, to put assets such as your home or real estate into the trust. While you’re alive, you can name yourself as the trustee and keep full control over your assets and add additional assets or remove them from the trust at any time. After you pass away, the successor trustee, who is the person you’ve named to manage the trust after your death, steps in and automatically has authority to quickly and privately distribute (without court intervention) the assets in the trust according to your instructions.
Benefits of a Living Trust in Oregon
Creating a living trust can give you peace of mind, make estate administration run more smoothly, and make a difficult time easier for your loved ones. Some benefits of estate planning using a living trust include:
Avoiding Probate
Probate is the legal process of validating a last will and testament and distributing a deceased person’s estate. Typically, assets in a living trust in Oregon are allowed to bypass probate, which can save families a lot of time and expense. Probate allows potential creditors to place claims against your estate, but a trust can shield your assets from claims from potential creditors.
Depending on the complexity of the estate, probate in Oregon can take months or even years, and may delay the distribution of property if issues arise. With a living trust, assets are transferred to beneficiaries directly, which is usually much faster and less costly than probate.
Privacy
Probate is a public process. This means that the details of your estate are part of the public record. With a living trust, your estate remains private, which protects your financial information and beneficiaries.
Planning for Incapacity
A living trust also provides benefits while you’re still alive. If you become incapacitated, the successor trustee can take over and manage assets in the trust without the need for court intervention. This can ensure your interests are protected and financial matters are taken care of during your incapacitation.
Flexibility and Control
Most living trusts in Oregon are revocable. This means you can amend or revoke them at any time and for any reason. This gives you complete control over your assets and the flexibility to adjust your plan if your finances or family circumstances change.
Clear Instructions for Distribution
A trust enables you to outline exactly how and when your beneficiaries receive their inheritance. For example, you can delay distributions until a child reaches a certain age or set up a schedule to provide payments long-term.
Less Family Conflict
When your wishes are clearly documented in a living trust, there’s less room for confusion or disputes among loved ones. A trust is typically more difficult to contest than a last will and testament, which can be challenged during probate in Oregon.
Cost Savings
Although creating a living trust costs money upfront, the probate process will almost always far exceed the cost of creating a trust, not to mention the significant time savings.
How a Living Trust Works in Oregon
Creating the Trust
First, our estate planning attorneys will sit down with you to discuss your goals and assets you’d like to put in the trust. We can help you draft a legal document that outlines who will be your successor trustee, who the beneficiaries are, and how assets should be distributed. It can be as simple or as detailed as you’d like.
Managing the Trust
If you name yourself as trustee, you maintain control over your assets. You can add assets or remove assets to your trust at any time. As long as you are mentally capable, you can amend or revoke a revocable living trust at any time. Upon your death, the successor trustee will distribute your assets directly to your beneficiaries, according to your instructions in the trust document.
Do I Still Need a Last Will and Testament?
Even if you establish a living trust, you may need a “pour-over will” in Oregon. This ensures any assets that weren’t transferred into the trust are moved into it upon your death. A last will and testament also enables you to name guardians for minor children and pets, which is not something you can do in a trust. If you have minor children who rely on you, having a will is vital. At Johnson & Taylor, if you do a trust and you need a pour-over will, this does not increase the cost of creating your trust.
Why Work With Our Oregon Estate Planning Attorneys?
Regardless of whether you have a complex or modest estate, our wills and trusts lawyers understand that making these important decisions can be daunting. Our experienced estate planning attorneys in Salem, Oregon can help determine whether a living trust meets your needs and goals, ensure assets are properly transferred, and help you avoid common mistakes that could cause problems down the road. We help you understand that with a little effort now, you can save a lot of time, money, and heartache in the future.
We provide personalized, compassionate legal guidance that can help you feel confident about how your family will be cared for after your passing. Our estate planning and probate attorneys take the time to listen to your concerns and help you understand your options. Our wills and trusts lawyers ensure any trust we create reflects your wishes and provides your family with clarity, protection, and peace of mind during a difficult time.
In addition to handling matters such as power of attorney, probate, wills, trusts, guardianships, and conservatorships in Oregon, our team litigates personal injury cases and auto accident cases statewide and divorce and family matters in Marion, Linn, and Polk counties. Members of our team, including our attorneys, offer quality legal services to our Spanish-speaking clients.
Contact Our Estate Planning Lawyers in Salem, Oregon
If you’re wondering whether a living trust is the right choice for you, our experienced team at Johnson and Taylor can help. Contact us or call 503-990-6641 to schedule a free consultation with a wills and trusts attorney near you in Salem, Oregon today.