Should you open a living trust in Oregon?

On Behalf of | Apr 26, 2022 | Estate Planning |

Living trusts could help you save on estate taxes and speed up the probate process in Oregon. Trusts are also a way of keeping some of your wealth a secret when you pass it on to beneficiaries. You should understand what’s suitable to deposit into a trust before opening one.

Retirement accounts

You shouldn’t put retirement accounts in a trust because it causes extra taxes. What you could do, however, is name a trust a beneficiary of your retirement account. If the majority of your assets are in your retirement account, then opening a living trust might not be the most cost-effective option for you. It would depend on the value of your other assets that are suitable for putting into a trust.

Bank accounts

You should keep bank accounts that you use for paying bills out of a trust. Some banks will ask you to change the name associated with your account if you put it into a trust. This could thus prevent you from paying your bills.

Stocks and bonds

Transferring stocks and bonds to a trust is often a good idea because it could reduce how much paperwork your beneficiaries have to go through after your death to receive these assets. When you transfer stocks and bonds to a trust, you may have to work with a stock transfer agent or bond issuer to change the ownership. This step is still worth taking during the estate planning process if you’d like beneficiaries to receive their assets faster.

Other assets

Real estate is a great asset to deposit in a living trust because it helps you pass on properties without your beneficiaries going through probate. If you have real estate in other states, setting up a trust is even more ideal. When you leave out-of-state real estate in a will, then the executor needs to go through probate in each state. This is time-consuming and delays beneficiaries receiving their assets because the executor can’t finalize probate in the home state until they complete all other state probates.

When you’re estate planning, make a list of all of your assets to help you decide whether or not opening a trust makes sense in your situation. If the cost or the privacy you’ll enjoy are worth it to you, then you may want to follow through on setting up a living trust.