Where will your assets go? Who will make your health care decisions if you are unable to? Will your estate be subject to an estate tax? Who will take care of your children? The thought of having to plan for your death or incapacitation can be uncomfortable, stressful, scary and overwhelming. Planning well in advance all facets of your estate, getting all of your questions answered, and putting a plan in place will give you peace of mind.
What is Estate Planning?
Estate Planning is the process of determining where your assets will go at your death. Estate planning also includes making important tax decisions, avoiding probate, planning for the care of your young children, creating medical advanced directives, and deciding what will happen to your body after your death.
Wills:
A will is a legal document that only becomes effective at your death.
A will dictates how to distribute your property after your death.
A will allows you to appoint a personal representative to manage and distribute your property.
A will allows you to appoint a guardian to care for your young children in the event they become orphaned.
To make a valid will in Oregon, you must be at least 18 years old and of sound mind. The will must be in writing, and must be signed by yourself and at least two witnesses.
Without a will, certain property will be distributed according to Oregon’s intestacy laws. Because of this, it is imperative to have a will in order for your property to be distributed according to your own wishes.
Trusts:
A trust is a separate legal entity that holds assets for you or for the benefit of another. All trusts are composed of three parts:
A settlor -the person who creates the trust.
A trustee - the person who manages the trust assets.
A beneficiary - the person who will be benefiting from the trust assets.
Power of Attorney:
A power of attorney gives someone else, called an agent, the right to make financial decisions about the things you specify in the document.
Specific power of attorney - If you limit the agents power to certain decisions.
General power of attorney - If you do not limit the agents power.
Advance Directives (Health Care Planning Documents):
In Oregon, a legal document of health care instructions is called an advance directive. An advance directive can appoint a health care representative, which is a person that will make your health care decisions when you are no longer able to.
What is Probate?
Probate is the legal process where a court oversees the distribution of assets left after your death.