Probate–The dreaded word in estate planning, and for a good reason. Probate is the legal process that oversees the distribution of your assets after you pass away. The court ensures your will is valid (if you have one), pays off any debts, and distributes what is left to your beneficiaries. With the court’s involvement, probate can be time-consuming and expensive. However, a trust can help your loved ones avoid the probate process and give you more control in ensuring your assets are passed on exactly how you want. Here is a breakdown of why a trust might be the best choice to avoid probate in Oregon.
Understanding Wills and Trusts
Both wills and trusts help manage and distribute your estate after your death. Many people confuse the two, but they each serve different purposes.
A will is a legal document in which you name beneficiaries to receive your assets and an executor to manage your estate. You can also name guardians for children or give funeral instructions in this document. A will is something everyone should have in place; however a will must go through probate, which can be time-consuming, costly, and public.
A trust, on the other hand, allows you to transfer ownership of your assets to a trustee, who will manage and distribute them based on the instructions you’ve set within the trust. With a trust, assets are distributed without going through probate, which can save time, reduce costs, and keep your estate private. Trusts also offer more control allowing you to set specific conditions for how and when beneficiaries can receive their inheritance.
Learn more about these two legal documents in our blog “The Difference Between a Will and a Trust.“
Naming a Trustee
If you’re contemplating who to name as your trustee, it’s important to understand that this role goes beyond distributing assets. A trustee will also need to handle debts, manage taxes, and ensure everything is properly managed according to your trust. It’s a big responsibility with a lot of weight, and sometimes beneficiaries may feel the distribution isn’t fair, which can lead to complications and conflict. Because of this, it’s crucial to work with an attorney who can help navigate the trust creation process. Learn more about the trustee role in our blog “Trust Administration: Expectations vs Reality.“
How a Trust Helps Avoid Probate and Why It’s the Best Option
As mentioned, probate can be a lengthy, expensive, and public process. On average, it can take a minimum of six months to several years to settle an estate, and legal fees can eat into the value of your assets. With a trust, assets pass directly to your beneficiaries without the need for court involvement. This is especially helpful if you want to avoid delays and ensure your loved ones can access their inheritance quickly. Overall, setting up a trust is one of the best ways to protect your legacy from estate taxes, ensure your loved ones are quickly taken care of, and avoid the hassle of probate.
Contact Caress Law
At Caress Law, we’re here to you navigate the trust creation process and avoid probate in Oregon. Give us a call today at (503) 292-8990 or fill out the contact form below.
