Estate Planning Using Wills and Trusts
McKean & Knaupp Attorneys, LLC
101 SW Washington St.
Hillsboro, OR 97123
Phone: (503) 846-0707
Fax: (503) 419-4912
Map and Directions
Estate planning includes the wide variety of tools ranging from the most basic tool -- the will, to more complex arrangements including most kinds of trusts, and power of attorney instruments. A will is typically used when someone has a very small and simple estate. For larger estates, we recommend the revocable living trust (or "living trust"). This type of trust has become the cornerstone of the modern estate plan for most families. Properly drafted, a living trust offers complete asset control to clients during their lifetime; provides for safeguarding their property in the event of incapacity; and at death, allows them to pass their assets to their loved ones without the costs, delays, and publicity associated with the probate process.
In order to understand the benefits of a living trust, we must contrast it with a will. A will is an instrument that only takes effect upon your death. A living trust, on the other hand, takes effect as soon as it is signed and assets are transferred to it. Both a will and a living trust give your directions for the distribution of your assets after your death. But unlike a will, a living trust also allows you or your successor trustee to direct the management of your assets during your lifetime. Consequently, if you have a properly funded living trust, your successor trustee is empowered to manage and distribute your assets to your named heirs without probate court supervision.
All trusts are private agreements that contain very specific legal terms governing the management of your financial affairs. A living trust can be changed at any time during your life, but at death, they become "irrevocable" so that no one can change your expressed wishes as found in the trust.
A power of attorney form is a legal document that allows the person with power of attorney to act on behalf of the person giving the power of attorney. The most common power of attorney forms used in estate planning are the durable general power of attorney, and the power of attorney for healthcare decisions. A living trust can eliminate the need for a durable general power of attorney.
Our estate planning services also includes planning for federal estate tax consequences and the Oregon inheritance tax. Currently all estates in Oregon are taxed at rates starting from 10% to a maximum of 16% on their assets over $1 million dollars. With proper estate planning, you can maximize available exemptions and minimize the impact of estate taxes on your heirs. Failure to plan for a taxable estate can leave your heirs with no choice but to liquidate your property to pay taxes.
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