The probate process can be lengthy - and costly. If you are concerned that your estate will be bogged down in the probate process, you need to act now to keep your estate out of probate. Contact an attorney who knows probate and estate administration law to learn more about the best methods to keep your estate out of probate.
Experienced Estate Planning and Probate Lawyer in Portland
Attorney Philip A. Hingson has been practicing estate and elder law in Oregon since 1992, developing in-depth knowledge that benefits clients financially and an advanced ability to explain estate planning, probate, trust administration, and related issues in plain English clients can understand. From basic wills and soundly constructed powers of attorney and advance directives to complex trusts that account for tax planning and business interests, Phil Hingson is well equipped to understand your needs and present strategically sound, practical options
People across the economic spectrum are encouraged to contact us at The Hingson Law Firm PC for a productive consultation leading to confident decisions that protect their assets and families' interests.
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Based in a convenient office location right off I-5 and Highway 217 in Portland, The Hingson Law Firm PC welcomes and serves clients from across much of Northern Oregon, including Multnomah, Washington, Clackamas, Marion, Linn, Hood River, Yamhill, Columbia, Polk, Tillamook, Clatsop and Lincoln counties.
A proven resource for people with straightforward or complex estate planning needs as well as those requiring trust administration or probate counsel, attorney Phil Hingson frequently serves clients from the Portland metro as well as communities such as Lake Oswego, West Linn, Wilsonville, Tigard, Tualatin, Astoria, Beaverton, Hillsboro, Saint Helens, Gresham, Woodburn, Canby, Newport, Depoe Bay and the Dalles.
Avoiding Probate
Assets disposed of outside the probate process are part of the non-probate estate. Because a probate proceeding is not required, these assets are distributed more quickly to the appropriate beneficiaries. Many people seek out these assets and ownership models to save their loved ones from the difficulties associated with going through probate. If you are interested in managing your finances and your property to avoid probate, contact Hingson Law Firm P.C. in Portland, Oregon, to schedule a consultation with an estate planning attorney.
Non-Probate Assets
Certain types of assets are part of the non-probate estate because of their contractual nature. These types of assets include:
- Life insurance proceeds: A life insurance policy is a contract with an insurance company that specifically states who will be paid after your death. Because payment of the life insurance proceeds to the named beneficiary is in the contract, there is no need for the life insurance policy to go through probate.
- IRAs, 401(k) accounts and other tax-deferred retirement plan proceeds: IRAs, 401(k) accounts and other tax-deferred retirement plan proceeds pass directly to the beneficiaries designated in the plans. Similar to a life insurance policy, the payment of the retirement fund to the named beneficiary is agreed upon in advance, and, like life insurance proceeds, there is no need to go through probate.
Ownership Models that Avoid Probate
Other types of assets only become non-probate assets if the owner or owners make certain decisions as to how those assets are held.
- Joint tenancy with right of survivorship: A joint tenancy with right of survivorship means that two or more owners hold title to an asset together. When one of the owners dies, that person's ownership interest automatically passes to the remaining owner or owners. Married couples typically hold assets such as real estate, automobiles and bank accounts in this way.
- Payment on Death (POD) bank accounts: Payment on Death bank accounts name contingent beneficiaries when the account is opened with the financial institution. The beneficiary possesses no ownership interest in the account until the account owner dies. At that time, the beneficiary receives full ownership of the money held in the account.
- Transfer on Death (TOD) securities: Transfer on Death stocks, bonds and brokerage accounts provide the same advantages as POD bank accounts. The account holder retains exclusive ownership rights while he or she is alive, and the named beneficiary receives the proceeds when the account holder dies.
- Revocable Living Trusts: A revocable living trust is a legal entity that holds title to property. Because the trustee, not the person who created the trust, has title to the trust, the property within the trust will pass outside probate. Because the trust is revocable, the person who created the trust has access to the property during his or her lifetime, almost as if he or she owned it outright. At the time of the trust creator's death, a trust document, similar to a will, directs the trustee as to the distribution of the trust property.
Although probate is avoided, holding assets jointly or with survivorship rights can create problems. For example, in the case of assets held in joint tenancy with right of survivorship, the owner gives up exclusive control of the assets. As a result, the owner may be at risk that the other owner will take all the assets, or that creditors of the joint owner will seek to satisfy their claims from the joint account. Experienced legal advice can help you determine the best model for your needs.
Conclusion
While non-probate assets are not subject to probate procedure, there are pros and cons to each model. To determine the best way for you to maintain your assets, contact Hingson Law Firm P.C. in Portland, Oregon, to schedule a consultation with an experienced estate planning attorney.
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