What are the Oregon inheritance or succession laws?

Oregon succession law is a set of laws that determine how a person's assets and property are distributed after they pass away. These laws govern what happens if a person dies without a will or if their will is found to be invalid.

In Oregon, if a person dies without a will, their assets are distributed according to the state's laws of intestate succession. Under these laws, the deceased person's assets are distributed to their surviving spouse and children, or to their next closest relatives if they have no spouse or children. If the deceased person has no living relatives, their assets may escheat to the state.

Oregon also has specific rules about how a will should be executed and what constitutes a valid will. To be valid in Oregon, a will must be in writing and signed by the person making the will, as well as by two witnesses who are present at the time the will is signed. If a will is found to be invalid, the deceased person's assets will be distributed according to the laws of intestate succession.

In addition, Oregon law allows for the use of trusts to manage and distribute assets after a person's death. A person can create a trust during their lifetime or specify a trust in their will, and the trust will be managed by a trustee who is responsible for carrying out the deceased person's wishes.

Overall, Oregon succession law is designed to provide a framework for the orderly distribution of a person's assets after they pass away, while ensuring that their wishes are respected and their loved ones are taken care of. It's important for individuals to work with an estate planning attorney to create a will and other estate planning documents that reflect their wishes and comply with Oregon law.

What is a "revocable trust" or "living trust"?

A revocable trust, also known as a living trust, is a legal agreement in which the person creating the trust (known as the grantor) transfers their assets to a trustee, who manages the assets on behalf of the beneficiaries named in the trust. One of the key features of a revocable trust is that the grantor retains the ability to modify or revoke the trust during their lifetime, hence the name "revocable" trust. This flexibility is one of the main advantages of a revocable trust compared to an irrevocable trust, which cannot be modified or revoked once it is established.

Revocable trusts are often used as an estate planning tool because they can help avoid probate, a legal process that can be time-consuming, expensive, and public. With a revocable trust, assets that are transferred into the trust during the grantor's lifetime can pass directly to the beneficiaries named in the trust after the grantor's death, without the need for probate. This can provide peace of mind for the grantor and their beneficiaries, as it allows for a smoother transfer of assets without the need for court involvement.

It's important to note that while revocable trusts can offer many benefits, they may not be suitable for everyone's estate planning needs. An attorney can help determine if a revocable trust is the right choice for your specific situation. Additionally, it's important to work with a qualified and experienced attorney to create and manage a revocable trust, as there are several legal and tax considerations that must be taken into account.

Can property be transferred without probate?

Yes, in Oregon, there are several ways in which property can be transferred without going through the probate process. These options can be useful for avoiding the time and expense of probate, and they can also provide greater privacy and control over the transfer of the property.

Some of the ways in which property can be transferred without probate in Oregon include:

1.       Joint ownership: Property that is owned jointly with right of survivorship (also known as joint tenancy with right of survivorship) will automatically pass to the surviving owner(s) upon the death of one of the owners.

2.       Transfer-on-death deed: A transfer-on-death deed (also known as a TOD deed or a beneficiary deed) allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death.

3.       Payable-on-death designations: Many financial accounts, such as bank accounts, brokerage accounts, and retirement accounts, allow the owner to designate a beneficiary who will inherit the account upon the owner's death.

4.       Trusts: Property that is held in a trust can be transferred to the beneficiaries of the trust upon the death of the trust creator (also known as the grantor or settlor) without going through probate.

It's important to note that each of these options has its own unique set of rules and requirements, and it's a good idea to consult with an attorney to determine the best course of action for your specific situation.

What happens to a bank account when someone dies without a beneficiary?

If a person dies without a beneficiary designated for their bank account, the funds in the account will generally become part of their estate and will be subject to the probate process. We discuss the Probate Process in detail in other articles. Briefly, probate is the legal process of administering the estate of a deceased person, which includes identifying and collecting the person's assets, paying any outstanding debts and taxes, and distributing the remaining assets to the heirs or beneficiaries according to the terms of the person's will or the laws of intestate succession.

If the deceased person had a will, the will may specify how the funds in the bank account should be distributed. If the deceased person did not have a will, the funds will be distributed according to the laws of intestate succession, which dictate the order of priority for heirs.

What is a Payable on Death bank account?

A payable-on-death (POD) bank account is a type of bank account that allows the account owner to designate one or more beneficiaries who will inherit the account balance upon the owner's death. POD accounts are sometimes also referred to as a "transfer-on-death" (TOD) accounts.

To set up a POD account, the account owner must provide the bank with a payable-on-death designation form that names one or more beneficiaries and specifies the ownership interests of each beneficiary. The owner can name any person or entity as a beneficiary, including family members, friends, charities, or trusts. The owner can also change or revoke the POD designation at any time as long as they are competent and capable of doing so.

POD accounts can be a useful tool for estate planning, as they allow the account owner to transfer ownership of the account to the designated beneficiary(ies) upon their death without the need for probate. This can save time and money, and it can also provide greater privacy and control over the transfer of the account. It's important to note, however, that POD accounts are not available for all types of financial accounts.

What happens if I don’t go through probate?

If probate is not done in Oregon, it can have a number of consequences for the estate and the heirs or beneficiaries of the deceased person. Probate is the legal process of administering the estate of a deceased person, which includes identifying and collecting the person's assets, paying any outstanding debts and taxes, and distributing the remaining assets to the beneficiaries according to the terms of the person's will or the laws of intestate succession.

If probate is not done, it can be difficult to determine who is entitled to the assets of the estate and how they should be distributed. This can lead to disputes among the heirs or beneficiaries, which can be time-consuming and costly to resolve. In addition, it may be difficult to sell or transfer ownership of assets that are owned by the estate, such as real estate or financial accounts.

Furthermore, the assets of the estate may not be properly protected and may be vulnerable to theft or mismanagement. For example, if the estate includes a bank account that is not properly closed or transferred to the beneficiaries, the funds in the account may be at risk.

In summary, if probate is not done, it can lead to a number of complications for the estate and the heirs or beneficiaries, and it can also put the assets of the estate at risk. It's generally advisable to complete the probate process in a timely manner in order to ensure that the deceased person's affairs are properly taken care of and that their assets are protected.

Does Oregon have a Transfer on Death deed?

Yes, Oregon does have a transfer-on-death deed (also known as a TOD deed or a beneficiary deed) option that allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death. A transfer-on-death deed is a legal document that is recorded with the county where the property is located, and it becomes effective upon the owner's death.

 To create a transfer-on-death deed in Oregon, the property owner must execute and record a TOD deed that names one or more beneficiaries who will inherit the property upon the owner's death. The TOD deed must also describe the property and specify the ownership interest that is being transferred. The property owner can revoke or modify the TOD deed at any time as long as they are competent and capable of doing so.

 A transfer-on-death deed can be a useful tool for estate planning, as it allows property owners to transfer ownership of their property outside of the probate process. This can save time and money, and it can also provide greater privacy and control over the transfer of the property. It's important to note, however, that a TOD deed does not take effect until the owner's death, so the property owner will need to continue to manage and maintain the property during their lifetime.

 If you are considering using a transfer-on-death deed in Oregon, it's a good idea to consult with an attorney to ensure that the deed is properly executed and recorded, and to discuss any other estate planning options that may be available to you.

Please contact us if you have any questions.

What Triggers Probate in Oregon?

Without someone filing a petition with the court, nothing will trigger probate in Oregon.  The better question to ask is: When is Probate Required in Oregon?

Probate is a legal process that occurs after a person's death and involves the distribution of their assets according to their will or state laws. In the state of Oregon, probate can be required in several situations.

The most common reason for probate in Oregon is the death of a person who owned property in their own name, without any joint owners or beneficiaries designated. In this case, the probate court will oversee the distribution of the deceased person's assets to their heirs or beneficiaries.

Another common reason for probate in Oregon is the need for someone to pursue a legal action in the decedent’s name.  In this situation, the Court will appoint a personal representative. 

It's important to note that not all assets are subject to probate in Oregon. For example, assets that are held in a trust or that have a designated beneficiary, such as a life insurance policy or retirement account, may not go through probate.

If you have any questions, please feel free to contact us.

What is the 65 day rule for estates and trusts?

The 65-day rule for estates and trusts is a provision in the United States tax code that allows trustees or executors of estates to make certain tax decisions after the close of the tax year, but before the due date of the tax return.

Specifically, the rule allows trustees or executors to make certain elections related to the distribution of income and deductions to beneficiaries of an estate or trust for the prior tax year. This can have significant tax implications for both the estate or trust and the beneficiaries.

To take advantage of the 65-day rule, the trustee or executor must file an election with the IRS on or before the 65th day after the close of the prior tax year (which is usually March 6th). This election allows the trustee or executor to treat certain distributions as having been made in the prior tax year, even if they are actually made in the current tax year.

It's important to note that the 65-day rule only applies to certain types of distributions, and there are specific requirements that must be met in order to qualify. Therefore, if you are a trustee or executor of an estate or trust, it's recommended to consult with a tax professional to ensure you are following all the necessary rules and regulations.