Proper estate planning can help make things easier for your loved ones after you’re gone. One way to simplify the estate administration process is to take steps that allow your assets to avoid probate in Oregon. At Johnson and Taylor, our estate planning lawyers help you understand how probate works, the best approach to avoid it, and how the law may apply to your specific circumstances.
What is Probate?
Probate is a legal process in which a person’s assets are distributed after their death. It’s important to keep in mind that even if you have a last will and testament, it must be validated by the court and pass through probate, which can be a long and costly process. However, there are ways to avoid probate in Oregon and ensure your assets are distributed according to your wishes.
Whether you wish to open a probate to manage the assets of a deceased loved one, you’re the executor of an estate that must go through the probate process, or you want to create an estate plan that helps your loved ones avoid it, our probate lawyers in Salem can help you find solutions that meet your specific needs.
Why Avoid Probate?
There are multiple reasons why someone may want their estate to avoid probate in Oregon. Probate can take several months or even years to complete, which delays the distribution of assets to beneficiaries. Even if everything goes smoothly, the probate process can be complex and make things more challenging during an already difficult time.
Court fees, executor fees, bonding fees, and other costs can also make probate expensive. Depending on the circumstances, these costs may take up a significant chunk of the estate. In addition, probate is a public process. If you’re concerned about privacy, avoiding probate can keep the details of your estate private.
Do I Need a Trust to Avoid Probate?
Although there are several ways to help your assets bypass probate, creating a living trust is one of the most popular and effective. A living trust is a legal arrangement that enables you to put your assets into it for your benefit during your lifetime. After your death, the trust is then transferred to named beneficiaries. Typically, assets and property in certain types of trusts do not have to pass through probate.
With a living trust, you can serve as the trustee to retain control over your assets during your lifetime. Upon your death, a successor trustee manages and distributes the assets according to the terms of the trust. Seamless administration of a trust without court involvement ensures your beneficiaries receive their inheritance promptly.
Living trusts offer other benefits as well – if a trust is revocable, you can modify or dissolve it during your lifetime. Using a living trust instead of a will offers more privacy, and putting assets in a trust can help to ensure they are used responsibly by beneficiaries. Our estate planning lawyers in Salem can take a look at your situation and determine the most effective ways a trust may meet your specific needs and goals.
Joint Ownership with Right of Survivorship
Typically, when assets are jointly owned with the right of survivorship, they automatically pass to the surviving owner upon the co-owner’s death. Joint tenancy with the right of survivorship is a common method to avoid real estate from going through probate. When two or more people own property together, it is automatically passed to the surviving owner(s) upon the co-owner’s death. Tenancy by the entirety is a form of joint ownership available only to married couples. It provides the same right of survivorship and can offer protection from creditors.
Community property with the right of survivorship also applies in Oregon, as it is a community property state. This means that married couples can hold property with a right of survivorship, which ensures that the property passes directly to the living spouse without going through probate.
However, when the second joint owner or the surviving spouse passes away, without a trust, real property would need to pass through the probate process. Therefore, using joint ownership and right of survivorship are generally temporary fixes.
Beneficiary Designations
Many types of bank accounts, retirement accounts, securities, life insurance, and real estate can be designated Payable-on-Death (POD) or Transfer-on-Death (TOD). This means that you can name a beneficiary who automatically receives the asset after your passing. TOD and POD designations are a simple way to ensure these assets bypass probate.
Gifting Assets
Giving away property and assets while you’re still alive can reduce the size of your estate and help simplify the estate administration process. Gifting assets to intended beneficiaries before your death can also result in lower estate taxes, which benefits your loved ones as well. It’s a good idea to consult with your estate planning lawyer or probate attorney before you decide to gift major assets to determine whether it will help your beneficiaries avoid probate in Oregon.
Small Estate Affidavit in Oregon
The small estate process is a simplified alternative to the traditional probate process In Oregon. If your estate qualifies, your beneficiaries can use a small estate affidavit to claim assets without going through the full probate process. This method of settling an estate can help them save a significant amount of time and money, and allow them to receive their inheritance more quickly.
As of 2024, thresholds for small estates in Oregon are $275,000 for the estate’s total value, with no more than $200,000 in real property and $75,000 in personal property. Our probate attorneys are familiar with the small estate process and can determine whether it may be an option in your case.
How Our Estate Planning Attorneys Can Help You Avoid Probate in Oregon
Setting up your estate to avoid probate in Oregon requires strategic planning. Our estate planning lawyers in Salem can evaluate your finances and family circumstances and advise you on the best ways to transfer assets efficiently and privately.
We can help you create a personalized plan that best suits your family’s needs, protects your assets, and streamlines the estate administration process. Our estate planning lawyers serve clients in Marion, Polk, and Linn counties and surrounding communities. In addition to handling estate planning and probate in Oregon, our team litigates personal injury and divorce, and family matters. Members of our team offer quality legal services to our Spanish-speaking clients.
Contact Our Estate Planning Attorneys in Salem, OR
At Johnson and Taylor, we’re dedicated to helping you create an estate plan that safeguards your interests and ensures your wishes are carried out as intended. To learn more about how to avoid probate in Oregon, contact us or call 503-990-6641 to schedule a consultation with an estate planning lawyer in Salem today.