Valor Law, LLC

FAQ's

Q: What is an estate plan and why do I need one in Oregon?

A: An estate plan is a set of legal documents and instructions that outline how your assets and property will be managed and distributed after your death. Having an estate plan in place can help ensure that your wishes are carried out, your loved ones are provided for, and that your assets and property are distributed in the most efficient and tax-advantaged way possible. In Oregon, it is generally recommended to have an estate plan in place, regardless of the size of your estate.

Q: What is a will and how does it work in Oregon?

A: A will is a legal document that outlines how your assets and property will be distributed after your death. It also includes instructions for the appointment of an executor (which is known as a personal representative in Oregon), who is responsible for carrying out the instructions in the will, and the appointment of guardians for minor children.  For a will to be valid, it must have witnesses and follow very specific statutory execution formalities.

Q: What is a trust and how does it work in Oregon?

A: A revocable trust, also known as a living trust, is a type of trust that can be modified or dissolved by the trustor (the person who creates the trust) at any time during their lifetime. This type of trust is commonly used for estate planning and asset management purposes.

Here's a basic overview of how a revocable trust works:

1. The trustor creates the trust and transfers ownership of their assets to the trust. These assets can include property, investments, and personal possessions.
2. The trustor also names themselves as the trustee of the trust, which means they retain control over the assets in the trust and can make changes to the trust as needed.
3. The trustor also names beneficiaries of the trust, who will receive the assets in the trust after the trustor's death.
4. During the trustor's lifetime, the trust assets are managed by the trustor as the trustee, and the beneficiaries do not have any legal rights to the assets.
5. After the trustor's death, the trust assets are managed by a successor trustee, who is responsible for distributing the assets to the beneficiaries according to the terms of the trust.
6. Since the trust is revocable, the trustor can make changes to the trust at any time, including adding or removing assets and beneficiaries, or dissolving the trust entirely.

Revocable trusts can offer many benefits, such as avoiding probate (the legal process of transferring assets after death), providing privacy, and allowing the trustor to retain control over their assets during their lifetime.

Q: Can I change or revoke my will or trust in Oregon?

A: Yes, you can change or revoke your will or trust in Oregon at any time, as long as you are of sound mind and have the capacity to do so. A will can be revoked by destroying it, making a new will that explicitly revokes the previous one, or by executing a written instrument of revocation. A revocable living trust can be amended or revoked by the trustor during their lifetime.

Q: What happens to my assets if I die without a will or trust in Oregon?

A: If you die without a will or trust in Oregon, your assets and belongings will be distributed according to the state's laws of intestacy. This means that the court will determine who will receive your assets and belongings based on state laws, regardless of your wishes or the needs of your family.  Additionally, your assets may be subject to probate, which is the legal process of settling a deceased person's estate.  This process general takes 4-8 months and can costs several thousand dollars depending upon the complexity of the estate.

Q: What is probate and how does it work in Oregon?

A: Probate is the legal process of settling a deceased person's estate, which includes identifying and collecting their assets, paying any debts or taxes, and distributing the remaining assets to the beneficiaries. In Oregon, probate is typically required for estates of persons who passed away with a will or without a will and real property assets over $200,000.00 and personal property assets over $75,000.00, which need to go through the probate process to establish legal ownership for the beneficiary. The probate process can be time-consuming and expensive, and it can also be a public process, meaning that the details of your estate will be available to the public.

Q: What is an LLC and how does it work in Oregon?

A: LLC stands for limited liability company, it is a business structure that combines the personal asset protection of a corporation with the pass-through taxation of a partnership. An LLC is a separate legal entity from its owners, known as members, and provides them with limited personal liability for the debts and obligations of the business. In Oregon, LLCs can be managed by one or more members or by appointed managers.

Q: What are the benefits of forming an LLC in Oregon?

A: Forming an LLC in Oregon provides several benefits to business owners, such as personal asset protection, pass-through taxation, and flexibility in management structure. Additionally, LLCs can be used to separate different business assets and activities, limiting the risk of personal assets being seized in case of a lawsuit. Furthermore, unlike other forms of business, LLCs are not required to hold annual meetings or record meeting minutes, making them relatively easy to manage.

Q: What are the first steps I should take if a loved one dies in Oregon?

A: The first steps you should take if a loved one dies in Oregon include contacting a funeral home to make arrangements for the deceased, contacting the deceased's physician or coroner to obtain a death certificate, and contacting the deceased's employer, insurance companies, and other relevant parties to notify them of the death. You should also gather important documents, such as the deceased's will, trust, and power of attorney, if they have any. 

You should also contact a knowledgeable and competent attorney to discuss whether a probate, small estate proceeding or trust administration is necessary and a CPA to determine if there are any tax obligations the deceased or the deceased person’s estate or trust has.