When it comes to your estate planning in Oregon, a trust may be the perfect solution you didn’t realize you needed.
Trusts aren’t just for the wealthy either. Everyday Oregonians can benefit from having a trust as part of their estate plan. The reason is simple: At its heart, a trust is simply an agreement where assets are managed for a particular purpose. Typically, that purpose is to benefit a person or organization, whether that’s you, your spouse, your children, a relative with special needs, and/or your favorite charity.
Once your Eugene estate planning attorney has helped you set up your trust, these legal instruments are low maintenance but can provide a high level of benefits and protection for those you designate. Here are 3 reasons it just might turn out a trust is a perfect fit for your Oregon estate plan.
1. Trusts can help your estate with beneficial tax planning
Tax impacts can be felt by many Oregonians when it comes to estates. If you have assets over $1,000,000 in Oregon, including real property such as your home, then a trust could be very useful to your estate plan. If business interests, investments, intellectual property, and/or other assets mean you could have an estate valued over a million dollars, then a trust can be essential.
A key reason? The more valuable your estate, the more potential tax liability you or your beneficiaries could face. Depending on the values and types of assets that may be in your estate, this could add up to a large tax bill that could, with the aid of a trust, be avoidable.
2. Trusts can make it easier to provide for children
Whether adoption, a prior marriage, stepchildren, special needs children, or other situations involving your family, a trust can help you be sure you provide for your children in the way you want, but without sacrificing other legal rights or estate protections you also want to keep intact.
For example, using a trust, you can place limits on how monetary benefits are paid out, such as a maximum amount per year, or that gains can be paid out, but not funds from principal assets. Or, if you have children from a prior relationship, a trust can help you ensure that they are not left out of the estate.
If a child of yours has special needs, a special needs trust can provide financial benefit to that child, but without compromising their eligibility for various state and/or federal benefits. Trusts give you powerful options to provide for your loved ones, and the flexibility of a trust can work for virtually any family situation.
3. Trusts protect more of your privacy
Let’s be honest: Family situations can be messy. Some of that messiness can really come to a head after someone dies. While a trust can’t prevent all conflicts, it can do an end run around more than you might think.
The reason is simple: While the contents of an Oregon will become public record through probate court, the terms of a trust remain private. Instead of anyone and everyone potentially having a problem with your estate plan, a trust requires only that the beneficiaries receive notice.
As with providing for children, the flexibility of trusts makes them a powerful tool in your estate plan. You can customize your trust to essentially any allowable legal circumstance. It’s easier to have more granular control as well, such as bequeathing certain items to individual people or organizations.
In other words, trusts protect your privacy, safeguard your wishes, and can help prevent potential conflicts about your estate. Plus, since trusts don’t have to pass through probate, benefits can be paid out faster—especially helpful to those who may need it most under your estate.
A trust could be perfect for your Oregon estate plan
When it comes to avoiding potential taxes, providing for your children, and protecting your privacy, a trust is a virtually perfect tool for Oregon estate plans. Once set up, maintenance time and cost is low, and you can focus on enjoying the peace of mind that comes with knowing your wishes are established and can be carried out through the terms of the trust.
And when it comes to trusts, you are more likely to need one than you might think, especially if you own real property or other assets in Oregon. How could a trust ease your mind and improve your estate plan?