Oregon State Living Trust Rules
A living trust is a fiduciary relationship regarding a specific piece of property or asset. In a living trust, the trustee holds a revocable legal title to the property that's subject to the rights of the beneficiaries of that trust. In Oregon, living trusts are often used as an alternative for probate to transfer property. Through a living trust, the property is automatically transfered at death.
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Trustee
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In Oregon, any competent adult, bank or trust company can be the trustee, including the person who sets up the trust, often referred to as a settlor. Multiple trustees can also be appointed in Oregon. Once appointed, a trustee can be removed at any time with or without cause by the settlor since the living trust is revocable. However, if the settlor appoints himself as trustree, Oregon law requires a successor trustee be appointed. The successor will assume the role of trustee when the settlor-trustee dies or becomes incapacitated.
Taxes
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Revocable living trusts are not insulated from income, estate or gift taxes. If the assets in the trust exceed $1 million, a state tax return must be filed at death. Similarly, if the assets exceeds $2 million, a federal estate tax return must also be filed.
Legal Advantages and Disadvantages
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Key advantages to having a living trust include the ability of beneficiaries to avoid probate and the overall avoidance of conservatorship, the legal process for management of property and financial affairs when someone becomes incapacitated and unable to make financial decisions. Other benefits include a quicker distribution of assets to beneficiaries, confidentiality and continuity of management of assets after death or incapacity. However, there are also disadvantages of living trusts, such as the expense of planning and administration and the inconveniences associated with ongoing administration.
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