Estate Planning Weekly

"How do I avoid probate?" "Why should I avoid probate?"

I get asked questions like this all the time. Many people have heard that avoiding probate is a good thing, but they aren't sure how and why.

The how is relatively easy...create a Trust based estate plan. By having a properly funded trust, your estate will not require a probate. 

The why varies from person to person. Some the most common and compelling reasons are:

• A trust keeps everything private. If your estate requires a probate, everything filed with the court is a public record.
• There is rarely need for court involvement during the administration of a trust. This simplifies the process by not having to make court filings and making sure that you are meeting all of the court's requirements.
• Cost. While not exorbitant, there are filing fees to open and close a probate. Further, due to the number of notice and filing required a probate usually requires more attorney hours.

So now that you know the why and how of avoiding probate the next step is to get your estate plan started. 

If you'd like to find out what plan is right for you, or you have any estate plan related questions, schedule a complimentary estate plan Strategy Session. 

One of the most common questions I get about estate planning is "What's the difference between a Trust and a Will?"

Trusts and Wills are documents that you create during your life that direct who your assets go to after you pass away. The main difference is that a Trust works during you life and a Will only works after you've passed away, its submitted to probate, and the probate court accepts it.

Trusts have the advantage of allowing your successor trustee to step in and manage your affairs if you become incapacitated. A properly drafted, executed, and funded Trust allows a seamless transition without the involvement of a court or the need for other documents.

Another advantage of Trusts is that they are private. Wills on the other hand become public once they are filed with the court.

In Oregon, the main advantage of a Will is the ability to name guardians for your minor children. You can also accomplish this with a Trust based estate plan by also having a Will that names those guardians and leaves the distribution of your assets to the Trust.

Most people I work with go the Trust route. However, it depends on your specific circumstance whether a Trust or Will estate plan is right for you.

If you'd like to find out what plan is right for you, or you have any estate plan related questions, schedule a complimentary estate plan Strategy Session.