The Cornerstone of Modern Estate Planning:
Your Revocable Living Trust

Your primary goal in estate planning is likely to make things as simple and secure as possible for the people you love. You want to ensure your assets are protected, your wishes are followed precisely, and your family is spared the stress of a public, costly court process. For most Oregon families, the single most effective tool to achieve all these goals is the Revocable Living Trust.

A Living Trust is a private legal document that allows you to control your assets during your lifetime, plan for potential incapacity, and direct the seamless transfer of your legacy after you are gone, all without court intervention. Think of it as the comprehensive rulebook for your family's future.

Beyond its core benefits, your Revocable Living Trust can be structured to strategically minimize or even eliminate state estate taxes. The state of Oregon imposes its own estate tax on any estate valued at over $1 million. Washington imposes its own estate tax on any estate valued at over $3 million. For many families, especially homeowners in the Portland metro area, their combined assets can easily exceed this threshold. This is where proper planning becomes essential. Let's look at a common example:

This foundational strategy is one of the most powerful ways to preserve your legacy. Estate tax laws are complex and also involve planning for Washington and federal taxes, which have different rules and exemption amounts.

To learn more about how these different tax systems can impact your estate, please visit our dedicated Estate Tax page.

A Foundation for Tax Savings: The A/B Trust

The Scenario: A married couple has a combined net worth of $2 million.

• Without an A/B Trust: When the first spouse passes away, their $1 million share typically goes directly to the surviving spouse. While this transfer is tax-free at the time, the surviving spouse now owns the entire $2 million estate. Upon their death, their estate is $1 million over the exemption limit, triggering a substantial Oregon estate tax bill.

• With an A/B Trust: With a strategically designed trust, when the first spouse passes away, their $1 million share is placed into a "Bypass" or "B" Trust. This legal structure makes full use of the first spouse's $1 million exemption. The surviving spouse can still benefit from these assets during their lifetime, but the assets are not legally part of their own estate. When the surviving spouse passes away, their own estate is valued at $1 million—exactly at the exemption amount.

The Result: The entire $2 million estate can pass to the couple's heirs completely free of Oregon estate tax. In this common scenario, proper A/B Trust planning saves the family $101,250 in estate taxes.

• Own real estate in Oregon.

• Wish for your family to avoid the probate court system.

• Value your financial privacy.

• Want to provide lasting protection for your beneficiaries after you are gone.

• Want to create a seamless plan for your own potential incapacity.

• Blended Families.

Is a Revocable Living Trust Right for You?

While every situation is unique, a trust-based plan is often the right choice if you:

Contact Us For A Free Consultation

Creating a trust is about more than just drafting a document; it's about thoughtfully designing a plan that protects you and your loved ones through all of life's transitions. Contact us today for a consultation to discover how a Revocable Living Trust can provide the foundation for your family’s security and peace of mind.

Learn More About Our Estate Planning Services

A well-crafted estate plan will help mitigate or eliminate the tax, so more of what you have built can get passed to your loved ones. See your potential estate tax with our estate tax calculator.

Strategic use of advanced tax planning tools, including specialized Irrevocable Trusts, designed to minimize exposure to estate, ensuring more of your wealth is preserved for your beneficiaries.

Establishes a clear plan for your medical and financial well-being, designating trusted individuals to make decisions on your behalf if you are unable to do so yourself.

The foundational document that outlines how your assets should be distributed, names guardians for minor children, and appoints a personal representative/executor to oversee the process.

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