Estate Planning in Tualatin Oregon: Securing Your Legacy

Estate planning is an important process that ensures your wishes are honored, your loved ones are protected, and your assets are distributed according to your intentions after you pass away. Understanding the essentials of estate planning can bring peace of mind and clarity for the future.

Why Estate Planning Matters in Oregon

Estate planning is more than just drafting a will or trust—it’s a comprehensive strategy to manage your assets during your lifetime and beyond. We make sure that every estate plan is crafted around each client’s unique circumstances. Without a plan, Oregon’s intestacy laws will dictate how your estate is distributed, which may not align with your preferences. For example, if you die without a will and have a spouse but no children, your spouse inherits everything. However, if you have a spouse and children from a prior marriage, your spouse receives half, and your children split the other half. This default arrangement might not reflect your wishes. Furthermore, your estate may be subject to the court process known as “probate” without proper planning, which can be time consuming and costly.

Having a proper estate plan allows you to designate guardians for minor children, appoint trusted individuals to make healthcare or financial decisions if you’re incapacitated, and potentially minimize taxes and probate costs.

Oregon’s estate tax laws also play a role in proper estate planning. Oregon has an estate tax with a $1,000,000 exemption, which essentially means when a person dies, a tax will be assessed on the value of the decedent’s estate over $1,000,000. For example, assume a Tualatin resident has no debt and owns a house worth $1,000,000 and financial accounts worth $2,000,000, when he dies. He has a taxable estate of $3,000,000. $2,000,000 of his taxable estate will be hit with approximately 10.25% tax, or $205,000. Proper planning can minimize or eliminate this tax altogether.

Key Components of an Oregon Estate Plan

An estate plan in Oregon typically includes several key documents:

1. Will: A will outlines how your assets should be distributed and names an executor to manage the process. Oregon law requires wills to be signed by the testator (you) and witnessed by two individuals.
2. Trusts: Many Oregonians opt for revocable living trusts to bypass probate—the court-supervised process of validating a will and distributing assets. Probate in Oregon can take several months and incur substantial fees, making trusts an attractive option for privacy and efficiency. Irrevocable trusts can also offer tax benefits or asset protection.
3. Advance Directive: This document combines a living will and healthcare power of attorney. It specifies your medical preferences and appoints someone to make healthcare decisions if you’re unable to communicate.
4. Durable Power of Attorney: This designates someone to handle your financial affairs if you become incapacitated. Without it, your loved ones may need court approval to act on your behalf, adding stress and expense.
5. Beneficiary Designations: Assets like life insurance, retirement accounts, and bank accounts with “payable on death” designations pass directly to named beneficiaries, bypassing probate. Beneficiary designations are used in conjunction with a Will or Trust.

Getting Started

An attorney licensed in Oregon should be consulted to establish an effective estate plan. Some people attempt Do-It-Yourself estate planning using online software or forms. These people often make mistakes that cost thousands, or tens of thousands of dollars to fix. Sometimes harm caused by DIY estate planning can be significant.

Final Thoughts

Estate planning is an act of love and responsibility. By taking control now, you spare your family uncertainty and honor your legacy on your terms. Start today—your future self and loved ones will thank you. The Law Office of David Johnson is located at 18840 SW Boons Ferry Rd. Ste. 222, Tualatin, OR 97062. Call 503-575-1332 for a free initial consultation.