The ABCs of Revocable Living Trusts: A Portland, Oregon Estate Planning Attorney's Guide

If you're considering estate planning options, you've likely heard about revocable living trusts. But what exactly are they, and how do they work? As a Portland, Oregon estate planning attorney, we help families understand these powerful planning tools every day. Let's break down the basics using a simple ABC approach.

A is for Avoiding Probate

One of the primary benefits of a revocable living trust is avoiding the probate process. Probate is the court-supervised procedure for distributing your assets after you pass away. It can be lengthy, expensive, and entirely public.

When you place assets into a revocable living trust, those assets can pass directly to your beneficiaries without going through probate court. This means your family can access what you've left them more quickly, with less expense, and with complete privacy. Your financial affairs remain private rather than becoming part of the public court record.

For families in Portland, Oregon, avoiding probate can save thousands of dollars in court costs and attorney fees, not to mention months or even years of waiting.

B is for Being in Control

The "revocable" part of a revocable living trust means you maintain complete control over your assets during your lifetime. You can add assets to the trust, remove them, change beneficiaries, or even dissolve the trust entirely if your circumstances change.

You serve as the trustee of your own trust, which means you manage your assets just as you always have. You can buy and sell property, open and close accounts, and make investment decisions without needing anyone's permission. Nothing changes in how you handle your day-to-day finances.

A revocable living trust also allows you to name a successor trustee who will step in and manage your affairs if you become incapacitated. This provides seamless management of your financial life without the need for a court-appointed guardian or conservator. Your chosen successor trustee can pay your bills, manage your investments, and handle your financial obligations according to your wishes.

C is for Caring for Your Loved Ones

A revocable living trust gives you tremendous flexibility in how you care for your beneficiaries. Unlike a simple will, a trust allows you to include detailed instructions about when and how your loved ones receive their inheritance.

For example, you can specify that funds be distributed gradually over time rather than in one lump sum. This can be especially helpful if you have young adult children who might not be ready to manage a large inheritance responsibly. You can also create provisions for loved ones with special needs, ensuring they receive support without jeopardizing their eligibility for government benefits.

A revocable living trust also protects your beneficiaries from creditors and provides some protection in the event of divorce. The assets held in trust are generally better protected than outright inheritances.

Is a Revocable Living Trust Right for You?

While revocable living trusts offer many advantages, they're not the right solution for everyone. The decision depends on your assets, your family situation, and your estate planning goals. Working with an experienced Portland, Oregon estate planning attorney can help you determine whether a revocable living trust fits your needs.

We can evaluate your unique circumstances and create a comprehensive estate plan that protects your assets, provides for your loved ones, and gives you peace of mind.

If you'd like to learn more about revocable living trusts and whether one is right for your family, please contact us at (503) 235-5150 to schedule a consultation with a Portland, Oregon estate planning attorney.