Estate Planning Frequently Asked Questions of Hillsboro, Oregon Probate Attorney Andrew M. Rich, P.C.

• What is Probate?
• How is a Will probated?
• Who should make a Will?
• How does a trust work?
• What about Health Care Provisions and Powers of Attorney?
• What are Estate (Death) Taxes?

What is Probate?

Probate is a process whereby the Court supervises the transfer of assets from the deceased person to his or her heirs and requires the filing of particularized and complicated legal forms. Hillsboro, Oregon probate lawyer Andrew M. Rich has particular expertise and experience in the area of probate and estate administration. He will promptly respond to your probate and estate administration questions and inquiries and will assist you in a professional, courteous and timely manner concerning such matters as:

• Petition for probate of estate
• Conservatorships
• 706 and IT-1 estate tax preparation
• Will and trust contests
• Estate and trust administrations
• Real property transactions
• Elder law

If a Federal Estate Tax Return (Form 706) or Oregon Estate Tax Return (Form IT-1) is required, Attorney Rich has the expertise and ability to promptly take care of this important tax requirement and is able to assist with any of the above listed types of probate matters.

How is a Will probated?

The following is a simplified outline of the general probate process:

• The original Will is deposited with the Court.
• The Executor named in the Will or Administrator is appointed. Executors and Administrators are commonly referred to as Personal Representatives.
• The Personal Representative files a Petition for Probate of the Estate.
• For approximately four months from the date of the Petition for Probate, creditors of the Estate can file claims against the Estate. This would include any prior creditors or judgment holders, debts resulting from last illness, funeral expenses, taxing authorities, etc.
• During this time period, the Personal Representative has to identify and collect assets of the Estate. To do this, the Personal Representative finds all bank and security accounts, debts owed to the Decedent, property owned by the Decedent, etc. The Personal Representative also has to maintain the assets in good condition. This consists of maintaining insurance coverage, collecting rent, protecting assets from theft or damage, etc. The Personal Representative may also liquidate assets such as cars, real estate, etc. during this time.
• When the four-month claims period has expired, and when all assets have been collected, real property sold, and assuming no problems have presented themselves such as the Will being contested, the Personal Representative then files a petition with the probate court to allow a distribution of all remaining assets to the beneficiaries/heirs, and files a detailed accounting with the Court setting forth all monies received, monies disbursed, how assets were invested, and the proposed plan for distribution.
• If the Court approves the plan, the Personal Representative then divides the assets as instructed in the Will, or as required by statute if no Will exists.

The minimum amount of time within which the probate process can be completed is four months, but it normally takes longer. Reasons for delays can include Will contests, property cannot be sold, claimants not being notified in the original four-month claim period, etc.

Who should make a Will?

Every adult person should consider making a Will. Each year a large number of people die without Wills, leaving major decisions in the hands of the state of Oregon. Wills are especially important for parents of children who are under eighteen as arrangements for the children's financial support and/or appointed guardian can be determined. Without a Will, any property distributed to minor children could be subject to an expensive court-appointed conservatorship or guardianship which could greatly affect inheritance. If you were married before and have children from the previous marriage, your surviving spouse may need to split your property with your children.

How does a trust work?

Trusts are the process by which the grantor transfers legal ownership to a person or institution (called the trustee) to manage the property for the benefit of another person (called the beneficiary).

Trusts create a fiduciary relationship between the trustee and the beneficiary. The trustee must act solely in the best interests of the beneficiary when dealing with the trust property. If a trustee does not live up to this duty, the trustee is legally accountable to the beneficiary for any damage to his or her interests. The grantor may act as the trustee himself or herself, and retain ownership instead of transferring the property. A grantor may also name themselves as one of the beneficiaries of the trust.

What about Health Care Provisions and Powers of Attorney?

Oregon allows the delegation of decision-making power to cover health care issues including the withholding or withdrawal of life support and tube feeding by means of an Advance Directive. Through this instrument, you have the right to designate a health care representative who can make certain treatment decisions for you in instances where no communication is possible because of your medical condition.

In addition to health care considerations, it is important to have a Power of Attorney available to handle various legal and financial matters in the event you become mentally incompetent. For example, a surviving spouse can be given a Power of Attorney to handle her incompetent spouse's salary checks, social security benefits and to make other legal and financial decisions.

What are Estate (Death) Taxes?

Estate tax may apply to your taxable estate at your death. Your taxable estate is your gross estate less allowable deductions. Your gross estate includes the value of all property in which you had an interest at the time of death. Your gross estate also will include the following.

• Life insurance proceeds payable to your estate or, if you owned the policy, to your heirs
• The value of certain annuities payable to your estate or your heirs
• The value of certain property you transferred within 3 years before your death
• Trusts or other interests established by you or others in which you have certain powers

The allowable deductions used in determining your taxable estate include:

• Funeral expenses paid out of your estate
• Debts you owed at the time of death
• The marital deduction; generally, the value of the property that passes from your estate to your surviving spouse

If you or someone you know in Hillsboro, Oregon, or within the surrounding cities and counties of Oregon needs the assistance or legal counsel of an experienced probate lawyer, contact Attorney Andrew M. Rich, P.C. today at 866-736-2144, or use the contact form provided on this site to begin your consultation with a trusted Oregon estate planning attorney.