The information provided in this web site is for your convenience, and is merely a summary. To truly understand the benefits of an estate plan and the consequences of procrastination, we strongly encourage you to attend one of our free educational seminars, or come in to talk to us.
What is Estate Planning?
Estate Planning is the creation of a plan for managing your estate while you are alive and distributing it after your death. Your estate plan should protect you, your family and property from conservatorships, death probate and death taxes, and provide for the distribution of your property upon your death.
What if I don't have an Estate Plan?
The failure to plan can result in substantial financial loss to your estate during your life and upon your death. The three principal obstacles that affect all of our estate plans are:
Conservatorship -
a legal process in which the probate court takes control of your property when you are unable to manage your own affairs. The fees and court costs for this process are paid from your assets. Consider the enormous costs to your estate if the conservatorship continues for years. Conservatorship robs you of control of your affairs. You will have no control over whom the court will appoint as your conservator. As a public proceeding, conservatorship opens up your financial affairs to public scrutiny. The circumstances which lead to the conservatorship were already a difficult time for your family. Dealing with conservatorship proceedings can be humiliating and frustrating.
Death Probate -
a legal process in the probate court designed to change title to the property of a deceased person into the names of the deceased person's heirs. Your estate will go through probate whether or not you have a will. Upon your death a lengthy process begins to determine the value of the estate, and what expenses need to be paid before any distribution is made to your family. This can be an extremely expensive process including expenses for filing fees, court costs, publication and advertising expenses, appraisal costs, bond fees, attorney and personal representative fees. This process may be repeated in every other state where you own real property.
Death Taxes -
upon your death the federal government imposes a death tax called the Federal Estate Tax. On May 26, 2001, Congress passed the Economic Growth and Tax Reconciliation Act (EGTRA) of 2001, which changes the tax laws regarding not only death taxes, but also gift taxes, Capital Gains taxes and other deductions, such as the Qualified Small Business deduction, which can affect you. The death tax changes apply to all estates that exceed a specified asset level, which changes over the next ten years. The rates also change over the next ten years. In year 2010, estate taxes are repealed; in year 2011, they come back. The value of your estate is determined by adding the value of all your property including your home, stocks, bonds, bank accounts, life insurance on your life, pension and profit sharing benefits, IRA benefits and any other benefit or property in which you have an interest. Although this Federal Tax does not apply to property you leave your spouse upon your death, the tax is postponed and your property is taxed when your spouse dies. Oregon has its own separate inheritance tax, which has a much lower threshold and is in addition to any federal tax.
