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Oregon Living Trust Forms – Irrevocable & Revocable

The Oregon living trust is an arrangement in which the creator (the Grantor) places their assets into a living trust so that their estate can be distributed without probate. In addition to bypassing probate, the distribution of a trust estate is kept private, whereas a Will is made public. An Irrevocable Living Trust has the added benefit of also protecting an estate from creditors and law suits, and in certain circumstances, avoiding estate taxes. Because it avoids the usual process of probate court hearings, a living trust is most appropriate for large, complex estates with multiple holdings. By creating a living trust, the Grantor ensures that their estate will be effectively distributed according to their wishes.

LawsChapter 130 (Uniform Trust Code)

Will (Last Will and Testament) – Any property which has not been put into the living trust should be written into a Last Will and Testament.

Individual Roles

The individual roles that must be assigned for a Living Trust are as follows:

Grantor (or “Settlor”) – The individual who creates and funds the trust.

Trustee – The individual appointed to be responsible for managing the trust.

Successor Trustee – The individual assigned to become Trustee should the Trustee die or becomes incapacitated.

Beneficiaries – The individuals who are indicated as the heirs to the trust estate.

Types

There are two (2) main types of Living Trusts:

Irrevocable – After being created, this type cannot be changed or revoked. In addition to avoiding probate, the Irrevocable Trust can also protect your assets from creditors and litigation.

Revocable – This type can be changed or revoked, however, it has benefit of avoiding probate and allowing the Grantor to benefit from their assets during their lifetime.

How to Make a Living Trust in Oregon

According to § 130.155, a trust can be formed as long as the trustmaker has the mental capacity to create the trust and express the clear desire to do so. The trust document must define one or more Beneficiary, name a Trustee, and define the Trustee’s duties. Also, the same person cannot be named as both sole Trustee and sole Beneficiary. To create a living trust, you must draft and sign a document which details the assets of your estate and how it is to be managed during your lifetime and in the event of your death. After the trust has been created, you will still need to formerly transfer ownership of your property into the estate.

Motor Vehicles – The ownership of a motor vehicle can be put into the trust’s name using a Vehicle Bill of Sale.

Real Estate – Real estate transfer is accomplished by completing a notarized Oregon Deed and submitting it to the County Recorder’s Office.

Do I Need a Living Trust?

If the fair market value of your estate is valued at $275,000 or less, and $200,000 or less of that value is real estate, your estate will receive a summary probate. This means that the probate process will be simplified and therefore not be as much of a hassle. Applications for a summary probate are made with the Probate Court using a Small Estate Affidavit. This being the case, the principal reasons which make a living trust truly necessary would be if you wish to avoid probate altogether, to protect your estate from litigation/creditors, to keep the distribution of assets private, and/or if you have an extremely large estate with multiple holdings. A living trust enables a tight control of estate management and avoids most litigation processes. However, given the costs and responsibilities that a living trust entails, a standard Will may suffice for your personal needs.

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