Oregon Trust Law Attorney

Living Revocable Trust vs. Will

Trusts are not for everyone and the costs of preparing complicated Oregon trusts can sometimes be greater than the costs of probating a small estate in Oregon probate court.

There are certainly a lot of things to consider when making the decisions regarding trusts vs. wills.  There has been a lot of media coverage of the advantages of a trust, many of which are true; but they are not the solution for everyone.  That is why we advise clients of their options in a cost-benefit analysis methodology.  At Arnold Law, we want our clients to know the true costs of an estate plan which include the attorney fees, probate, conservator costs if incapacitated, asset transfer costs if using a trust, etc.  These costs need to be compared with a will costs plus probate.

If you have assets (real property) in multiple states, a living trust could avoid the risks of multiple probate proceedings.  This is often useful for our California clients who have retired in Oregon and whose children are grown.

Living Will vs. Living Trust

And remember, a living a trust is NOT a living will.  A living will is essentially a document that directs health care decisions if you are incapacitated, while a living trust deals with your property after death (and allows you to keep control of your property while you are living).

Transferring Ownership to the Trust

After deciding on a living trust over a will, you have to decide how to fund it, i.e., what property to transfer to the the trust.  The most common property to transfer to a trust is real property.  TITLE TRANSFER MUST BE DONE BEFORE DEATH TO AVOID PROBATE.  If you do not transfer actual title, then when you die, probate will need to be used to effectuate the change of title.  This typically defeats the purpose of the trust documents.  You end up with the worst of both worlds: an expensive trust document and the expense of probate.

Irrevocable Trusts vs. Living/Revocable Trusts

The difference between a living trust and an irrevocable trust is that the latter cannot be changed after the trust document has been signed. You can use these irrevocable trusts in concert with living trusts. For instance, you can have control over the assets during your lifetime in a revocable, living trust but then have them convert into several separate irrevocable trusts after your death.  This can be designed to control assets held by children.

Estate Tax Protection

There are also tax avoidance reasons for an irrevocable trust.  Since the trust is irrevocable, you no longer own the property once you transfer the property ownership into the trust.  Therefore, there is less estate to tax upon your death.  There are lots of other options and factors that you can research online and then discuss with Arnold Law attorneys to hash out the Oregon trust law and document particularities.

Oregon Trust Attorneys

At Arnold Law, our attorneys can assist you in a new estate plan and help you decide if a living trust or irrevocable trust is right for you.

We can assist our Oregon trust law clients with a sensible approach to your estate plan.  Call 541-338-9111 to discuss options and to inquire about estate planning services, or use the form to the left to send an email.