Oregon Living Trust Form (Revocable)

1. Competent: The grantor must have the capacity to create a trust.
2. Intent: The grantor must indicate an intention to create the trust.
3. Definite Beneficiary: Unless it is a charitable trust, a stewardship trust, or a trust for the care of an animal, the trust must have a definite beneficiary.
4. Trustee’s Duties: The trustee must have duties to perform.
5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be both the sole trustee and the sole beneficiary of the trust.^[1]

Amending/Revoking – Unless the terms of the trust expressly state that it is irrevocable, the grantor may amend or revoke the trust.^[2]

Bond Requirement – A trustee must acquire a bond only if this is required by the terms of the trust or if the court has ruled that a bond is necessary to protect the interests of the beneficiaries.^[3]

Certification of Trust – A person who is not a beneficiary, who deals with the trustee, may require that the trustee furnish them with a certification of trust specifying the date of the trust’s creation, the identity of the grantor, and other relevant information.^[4]

Co-Trustees – Co-trustees may act by majority decision if they are unable to reach a unanimous decision.^[5]

Contesting a Trust – A judicial proceeding to contest the validity of a trust must be commenced within four months of the trustee having given notice of the trust’s existence or within three years of the grantor’s death, whichever is earlier.^[6]

Costs Related to the Trust – The trustee may only incur administration costs that are reasonable in light of the trust property, its purposes, and the trustee’s skills.^[7]

Jurisdiction – A trust created in another state, country, or jurisdiction is considered valid in Oregon so long as its creation complied with the laws of the jurisdiction in which the instrument was executed.^[8]

Oral Trusts – Clear and convincing evidence is required to establish the creation of an oral trust and its terms.^[9]

Pet Trusts – A trust may be created to provide for the care of one or more animals that are alive during the grantor’s lifetime. The trust terminates upon the death of the last surviving animal.^[10]

Signing Requirements – A signature is not required by Oregon statute for a living trust to be valid.

Spendthrift Provision – A spendthrift provision must restrain both the voluntary and involuntary transfer of a beneficiary’s interest in order to be valid.^[11]

Trustee’s Compensation – If the trustee’s compensation is not specified under the terms of the trust, the trustee is entitled to compensation that is reasonable under the circumstances.^[12]

Trustee’s Duties – The trustee must prudently administer the trust in good faith, in accordance with its terms and with the law, and in the interests of its beneficiaries.^[13]

Trustee’s Powers – In addition to the powers conferred upon them by the terms of the trust and by Oregon law, the trustee is empowered to collect, acquire, sell, exchange, or partition trust property.^[14]