How to Set Up a Living Trust in Oregon
If you live in Oregon and want to set up a living trust, then you have come to the right place! This article includes all you need to know about setting up a living trust in Oregon. It will also introduce you to DoNotPay, a service that can help you draft a living trust in minutes!
What Is a Living Trust?
A living trust is a legal written document that serves as an estate planning tool. In a living trust, an individual, called a grantor, appoints one person, called a trustee, to hold legal title of their properties for a third party, called a beneficiary. A living trust is one set up while you are alive, rather than at your death under the terms of your will. These beneficiaries will receive the properties you appoint to them at your death and the trustee is responsible for ensuring that the properties are correctly distributed.
Revocable and Irrevocable Trusts
There are two fundamental types of living trusts: a revocable trust and an irrevocable trust.
- Revocable living trust
- The grantor can appoint themselves to be the trustee and maintain control of their assets.
- The assets in a revocable trust remain in the grantor’s estate and are therefore still taxable.
- The terms of a revocable trust can be altered at any time.
- The trust can be revoked, or eliminated altogether.
- Irrevocable trust
- The grantor must designate a trustee and cannot appoint themselves a trustee. In this case, the grantor relinquishes their control to their properties and assets.
- The assets in an irrevocable trust are no longer part of the grantor’s estate and are therefore no longer taxable.
- The grantor is no longer the legal owner of the assets and properties included in the trust, therefore the terms of the trust cannot be changed.
- The trust cannot be revoked or eliminated.
Setting Up a Living Trust in Oregon
If you live in Oregon, then the following section will outline all you need to know about drawing up a living trust in Oregon.
Do I need a living trust in the state of Oregon?
- You do not necessarily need a living trust in Oregon, however it is a good idea to create one.
- The main advantage of setting up a living trust is that you would spare your family the expenses and delays of probate court proceedings after your death.
- The Uniform Probate Code simplifies the probate process, however Oregon does not use this code, making the probate process much longer and more complex. This is why a living trust may be better suited than a will.
Will creating a living trust reduce estate taxes in Oregon?
It is not likely. The majority of people residing in Oregon do not need to worry about estate taxes since the federal estate tax is levied only on estates that are worth around $12 million. However, if your estate is worth close to $12 million, or the threshold for Oregon’s estate tax, then you could draw up a more complicated trust (AB trust) to reduce or even completely avoid estate taxes.
If I create a living trust, do I still need a will?
A will differs from a trust. Seeing as a living trust is created while you are alive, a will acts as a backup plan for any property that is not included in your trust or any new property that you acquired after setting up the trust.
How to Set Up a Living Trust in Oregon
If you are an Oregon resident, follow these six steps in order to correctly set up a living trust:
- Choose whether you want to create an individual trust or a joint trust.
- An individual trust is limited only to the properties and assets you own.
- A joint trust includes properties you or your spouse own, as well as those co-owned by both you and your spouse.
- Decide which of your properties and assets you want to include in the trust.
- Choose a trustee, and if you want to be the trustee, then choose a successor trustee who will be the person to manage and distribute your property once you are no longer able to do so.
- Choose the beneficiaries of the trust and which assets and properties they will receive.
- Create the living trust; you can either contact a lawyer to create it for you or do it yourself.
- However, a lawyer is expensive and not necessary.
- Save time and money and obtain a living trust using DoNotPay!
- After completing the trust document, you must sign it in front of a notary public.
The Costs of a Living Trust in Oregon
A standard living trust plan may cost anywhere between the range of $2,000 to $3,000 or more depending on the complexity of the plan. If you wish to hire a lawyer, then you must be prepared to pay an even larger sum. However, hiring a lawyer is not necessary and is extremely expensive. You may think that the more you pay a lawyer, the better the quality of the trust, however that is simply not true. DoNotPay can do the exact same thing, but for free!
Get Your Living Trust in Minutes with DoNotPay!
- Open the Revocable Living Trust product on DoNotPay
- Answer a series of questions regarding your:
- State of residence
- Assets and properties to be included in the trust
- Tell us which state the trust will be notarized in
That’s it! You can expect a revocable living trust ready to be downloaded in minutes!
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