What is a power of attorney?

A power of attorney is a legal document that grants someone the authority to act on behalf of another person in legal or financial matters. The person granting the authority is known as the "principal," while the person receiving the authority is known as the "agent" or "attorney-in-fact."

There are several types of power of attorney, each with its own specific purpose. A general power of attorney grants the agent broad authority to act on behalf of the principal in all legal and financial matters. A limited power of attorney grants the agent authority to act only in specific situations, such as a real estate transaction or a medical decision. A durable power of attorney remains in effect even if the principal becomes incapacitated, while a non-durable power of attorney terminates if the principal becomes incapacitated.

A power of attorney can be an important estate planning tool, as it allows the principal to designate someone they trust to manage their affairs in the event that they are unable to do so themselves. This can be especially important in situations where the principal becomes incapacitated, such as due to a medical condition or injury. A power of attorney can also help avoid the need for a court-appointed guardian or conservator, which can be a time-consuming and expensive process.

It's important to note that granting someone power of attorney is a serious decision, as it gives the agent the authority to act on behalf of the principal in legal and financial matters. It's important to carefully consider the person chosen as the agent, and to work with a qualified attorney to create a power of attorney that meets the specific needs of the principal.

What is the importance of a schedule K-1 for an estate?

A schedule K-1 is an important tax form that is used to report the income, deductions, and credits of a trust or estate to the beneficiaries. It is used to allocate the income, deductions, and credits of the trust or estate to the beneficiaries based on their respective ownership interests.

The schedule K-1 is important because it allows the beneficiaries of the trust or estate to report their share of the income, deductions, and credits on their personal income tax returns. Without a schedule K-1, the beneficiaries would not be able to report this information and may end up paying more in taxes than they should.

In addition to allocating the income, deductions, and credits of the trust or estate to the beneficiaries, the schedule K-1 also provides information about the type of income being reported and any tax credits or deductions that are available to the beneficiaries. This information is important for the beneficiaries to know in order to accurately report their share of the income on their personal income tax returns.

Overall, the schedule K-1 is an important tax form for both trusts and estates, as it ensures that the income, deductions, and credits of the trust or estate are properly allocated to the beneficiaries and reported on their personal income tax returns.

Overview of the Oregon Estate Tax

The Oregon estate tax is a tax that is levied on the transfer of the estate of a deceased person. It is separate from the federal estate tax, which is a tax on the transfer of the estate of a deceased person at the federal level. The Oregon estate tax applies to estates with a value of more than $1 million.

The Oregon estate tax rate is tiered, with the tax rate increasing as the value of the estate increases. For estates with a value of more than $1 million but less than $2 million, the tax rate is 10%. For estates with a value of more than $2 million but less than $9.5 million, the tax rate is 12%. For estates with a value of more than $9.5 million, the tax rate is 16%.

There are some exclusions and deductions available for the Oregon estate tax. For example, the estate tax does not apply to transfers to a surviving spouse, and there is a deduction for charitable bequests. Additionally, there is a credit available for taxes paid to other states on property located outside of Oregon.

Overall, the Oregon estate tax is a complex tax that can have significant consequences for the transfer of wealth from one generation to the next. It is important for individuals and families to understand the provisions of the Oregon estate tax and to plan accordingly to minimize the impact of the tax on their estates.

Oregon Estate Tax and the Fractional Formula

The fractional formula is a method used to calculate the Oregon estate tax. It is based on the concept of fractional shares, which are used to determine the value of the estate subject to tax.

Under the fractional formula, the estate is divided into two parts: the taxable estate and the exempt estate. The taxable estate consists of all property subject to the Oregon estate tax, while the exempt estate consists of property that is not subject to the tax.

To calculate the value of the taxable estate, the value of the entire estate is multiplied by a fraction. The numerator of the fraction is the value of the taxable estate, while the denominator is the value of the entire estate. The result of this calculation is the value of the taxable estate subject to the Oregon estate tax.

The Oregon estate tax rate is tiered, with the tax rate increasing as the value of the estate increases. For estates with a value of more than $1 million but less than $2 million, the tax rate is 10%. For estates with a value of more than $2 million but less than $9.5 million, the tax rate is 12%. For estates with a value of more than $9.5 million, the tax rate is 16%.

There are some exclusions and deductions available for the Oregon estate tax. For example, the estate tax does not apply to transfers to a surviving spouse, and there is a deduction for charitable bequests. Additionally, there is a credit available for taxes paid to other states on property located outside of Oregon.

The fractional formula is a complex method for calculating the Oregon estate tax, and it is important for individuals and families to understand how it works in order to plan for the transfer of their estates. It is also important to consult with a financial or legal professional to ensure that the calculation of the Oregon estate tax is done correctly and to minimize the impact of the tax on the estate.

Can My Mother Leave Me Out of Her Will?

If you have a strained relationship with your mother, you may be worried about being left out of her will. Or maybe you have already discovered that she has disinherited you after her death. Either way, you may be wondering if you have any legal rights to challenge her decision and claim a share of her estate. 

 The answer depends on several factors, such as whether your mother had a valid will, whether she was mentally competent when she made it, and whether she was influenced by someone else.   

In general, a parent has no obligation to leave property to their children in their will. They can choose to disinherit them for any reason or no reason at all. However, there are some exceptions and limitations to this rule. 

One exception is if your mother did not leave a will at all. In that case, her estate would be distributed according to the intestacy laws of her state. These laws usually give priority to the surviving spouse and children of the deceased person. So, if your mother died without a will and had no spouse or other descendants besides you, you would likely inherit her entire estate by default. 

 Another exception is if your mother left a will, but it was invalid for some reason. For example, if she did not sign it properly, or if she did not have the mental capacity to understand what she was doing when she made it. In that case, you could challenge the validity of the will in court and try to prove that it does not reflect your mother's true wishes. 

 A third exception is if your mother left a will, but it was influenced by someone else who pressured or deceived her into disinheriting you. For example, if your sister or niece convinced your mother that you were ungrateful or unworthy of her inheritance. In that case, you could contest the will on the grounds of undue influence or fraud and try to show that your mother was manipulated into leaving you out. 

If none of these exceptions apply to your situation, then you may have little recourse if your mother left you out of her will.  

Being left out of a will can be hurtful and frustrating but it does not mean that you have no recourse at all. Depending on your circumstances, there may be legal grounds for challenging your mother's decision or alternative ways for benefiting from her estate. 

What is a pour-over will?

A pour-over will is a legal document that works in conjunction with a trust to ensure that any assets not titled in the name of the trust at the time of the grantor's death are transferred into the trust. Essentially, a pour-over will serves as a safety net to capture any assets that the grantor may have inadvertently left out of the trust.

When a person creates a revocable trust, they typically transfer their assets into the trust during their lifetime. However, it's possible that the grantor may acquire new assets or forget to transfer certain assets into the trust. If the grantor dies with assets outside of the trust, those assets may be subject to probate, which can be time-consuming and expensive.

A pour-over will helps avoid this situation by directing any assets that are not already in the trust to be transferred into the trust after the grantor's death. The will "pours over" the assets into the trust, and the trust then distributes the assets to the beneficiaries named in the trust. The pour-over will can also name a personal representative or executor to carry out the provisions of the will.

It's important to note that a pour-over will is not a substitute for properly funding a trust, and should not be relied upon as the sole means of transferring assets into the trust. It's always best to ensure that assets are titled in the name of the trust during the grantor's lifetime to avoid the need for probate and ensure that the trust operates as intended. A qualified estate planning attorney can help determine if a pour-over will is appropriate for your individual circumstances.

How to remove squatters from a deceased person's home.

Unfortunately, family members or strangers sometimes need to be removed from a home after the owner has died. In Oregon, the Court has a process to remove the occupants of the house so that the property can be sold.

The Court appointed personal representative is authorized to take possession and control of the estate’s property. The personal representative petitions the Court for an order for the occupants of the property to appear and show cause. The occupants will have to demonstrate to the Court that they have a legitimate reason to remain in the deceased person’s property. If the occupants of the property do not have a legitimate reason, the Court will order them to vacate the property. If the occupants do not vacate the property, the Court may issue a Writ of Assistance directing the Sheriff the remove the occupants.

Please let us know if you have any questions and feel free to contact us.

How can a revocable trust avoid a conservatorship?

A revocable trust can be used as a tool to avoid a conservatorship in the event of incapacity, as long as the trust is properly structured and managed. When a person becomes incapacitated and is no longer able to manage their own affairs, a court may appoint a conservator to manage their financial and personal affairs. This can be a time-consuming, expensive, and intrusive process, as the conservator may have to make decisions that the incapacitated person would not have made if they were able to do so.

By creating a revocable trust, a person can name a successor trustee who will step in to manage the trust and the person's affairs if they become incapacitated. The trust document can provide instructions for how the trust assets are to be managed, and the successor trustee can carry out those instructions without the need for court involvement. This can help avoid the need for a conservatorship and provide a smoother transition of management in the event of incapacity.

It's important to note that the revocable trust must be properly funded, meaning that the person must transfer their assets into the trust during their lifetime in order for the trust to be effective. Additionally, the person must still have capacity when creating the trust, as a trust created after incapacity may be subject to challenge. Working with a qualified estate planning attorney can help ensure that the revocable trust is structured properly to achieve the desired goals, including avoiding a conservatorship.

A dead person owes me money, how do I file a claim?

If a dead person owes you money, you may be able to file a claim against their estate to recover the debt. Here are the general steps you can take:

1. Find out if the deceased person had a will. If they did, the will may specify who is in charge of handling their affairs after death (the executor), and how their assets and debts should be distributed. You can contact the executor to discuss your claim.

2. If the deceased person did not have a will, you can contact the probate court in the county where they lived to find out who has been appointed to handle their estate. You can also check the local newspaper for a notice of the person's death, which may include information about the estate and who is in charge of handling it.

3. File a claim with the estate. You will need to provide documentation to support your claim, such as a copy of the contract or agreement that shows the debt is owed, invoices or receipts for goods or services provided, or any other relevant paperwork.

4. Wait for the claim to be reviewed. The executor or administrator of the estate will review your claim and determine if it is valid. If they believe the claim is valid, they may offer to pay you out of the assets of the estate. If they do not agree that the claim is valid, you may need to work with an attorney to dispute their decision.

5. Attend the probate hearing. If there is a dispute over your claim, you may need to attend a hearing in probate court to argue your case. The judge will review the evidence and make a decision on whether your claim should be paid.

It's important to note that there may be time limits for filing a claim against an estate, so it's a good idea to act quickly to protect your rights. If you are unsure about how to proceed, you may wish to consult with an attorney who specializes in probate and estate law.