ESTATE PLANNING BASICS IN OREGON

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1 Most people know they need to create an estate plan. However, knowing you need to create one, and knowing where to start, are two entirely different things. RICHARD B. SCHNEIDER OREGON ESTATE PLANNING ATTORNEY ESTATE PLANNING BASICS IN OREGON - WHERE TO BEGIN

2 Most people know they need to create an estate plan; however, knowing you need to create one, and knowing where to start, are two entirely different things. Though a Last Will and Testament serves as the foundation of most estate plans, a comprehensive estate plan typically includes much more than just a basic Will. A well drafted plan can accomplish a variety of objectives, above and beyond simply creating a roadmap for the division of your estate assets after death. Estate Planning Basics in Oregon Where to Begin 2

3 A few of the common considerations involved in making a comprehensive estate plan include probate, tax avoidance and asset protection, as well as incapacity, retirement, and business succession planning. Given the unique nature of an estate plan, a consultation with an experienced estate planning attorney is necessary when you decide to create your plan. By contemplating some estate planning basics ahead of time, you will be better prepared to get started creating your plan when the time comes. Estate Planning Basics in Oregon Where to Begin 3

4 POSITIONS AND ROLES IN YOUR ESTATE PLAN Estate plans require the creator of the plan, to appoint certain people to important positions within the plan. These positions are often fiduciary positions that come with important duties and responsibilities. Selecting the right person for the position can dramatically increase the chance of creating a successful estate plan. Some common positions include: Executor appointed in your Last Will and Testament, your executor is responsible for overseeing the probate of your estate. As such, the executor must locate, inventory and manage all probate assets. Probate documents must be prepared and filed with the court. Beneficiaries must be located. Challenges to the estate must be defended by the executor. Bills of the estate are paid by the executor, often requiring the sale of assets if sufficient liquid assets are not available. Finally, taxes must be prepared and paid by the executor before he or she transfers the remaining assets to the intended beneficiaries or heirs. Trustee appointed in a trust agreement, the trustee is responsible for managing trust assets and administering the terms of a trust. Your trustee has a fiduciary responsibility to the trust and trust beneficiaries. Ideally, your trustee will grow the trust assets and manage those assets wisely for the benefit of the beneficiaries. Agent an agent is someone to whom you grant power or authority under a power of attorney or similar document. You might also appoint a health care representative who can make medical decisions for you in the event you are unable to do so because of incapacity. Guardian named in your Will, a guardian is your choice to take over the care and custody of your minor children should you, and the children s other parent, be unable or unwilling to do so. Estate Planning Basics in Oregon Where to Begin 4

5 COMPONENTS OF YOUR ESTATE PLAN An estate plan can be as simple, or as complex, as your needs dictate. Your Will is limited to the disposition of estate assets and the nomination of a guardian for minor children. Most people have additional goals and objectives they wish to incorporate into their estate plan. Deciding ahead of time which of these you wish to incorporate into your plan will help provide direction during your plan creation. Some common additions to an estate plan include: Medicaid planning Incapacity planning Probate avoidance Tax avoidance Pet planning Trust creation and administration Asset protection Business succession planning Retirement planning LGBT planning Special needs planning Long-term care planning Estate Planning Basics in Oregon Where to Begin 5

6 BENEFICIARIES The primary goal in estate planning is to provide for family members and loved ones in the event of the plan creator s death. Therefore, deciding who your plan beneficiaries will be, is an important step when creating your plan. Some beneficiaries are obvious choices, such as a spouse or children. However, taking the time to contemplate who needs to be included as a beneficiary ensures that no one is left out. Along with more distant relatives, do not forget yet-to-be-born beneficiaries, friends, and charities. You will also need to decide how you plan to gift assets to the beneficiaries you have chosen. For example, will you split assets evenly among children? Will you make direct gifts to grandchildren, or count on your children to leave assets to them down the road? Do you want to make a one-time donation to a charity, or create a trust that will provide for ongoing gifts? Estate Planning Basics in Oregon Where to Begin 6

7 ASSETS Most of us have a number of assets that we forget about or do not even consider to be an asset. Property can be real or personal, tangible or intangible, and may include, but is not limited to: House Land Vehicle, boat, RV, motorcycle, airplane, any other motorized toy Bank accounts Cash Investment accounts Stocks and bonds Retirement accounts Life insurance polices Trademarks, copyrights, other intellectual property Interest in a business Inventory Licenses Equipment or tools of the trade Notes receivable or debts owed to you Collectibles Guns, jewelry, furs Household furnishings Estate Planning Basics in Oregon Where to Begin 7

8 By taking the time now to consider some of these estate planning basics, you will find yourself better prepared to move forward with your plan creation when you a sit down with your Oregon estate planning attorney to work on your plan. Elder Law Answers, The Five Components of a Good Estate Plan Artisan Wealth Management, Understanding the Fiduciary Roles in and Estate Plan Estate Planning Basics in Oregon Where to Begin 8

9 About the Author Richard B. Schneider Before devoting his professional efforts primarily to estate planning, Mr. Schneider spent over fifteen years working on Wall Street for major law firms and investment banks. After graduating from law school, he practiced general civil law in New York City for five years, specializing in business transactions, financings and corporate matters. He also represented major investment banking firms in mortgage trading and real estate-related matters. Among his clients were international shipping companies, commercial and investment banks and institutional lenders, including General Electric Capital Corporation, Salomon Brothers and Merrill Lynch. For the next ten years Mr. Schneider served as Senior Vice President at the investment banking firm of Kidder, Peabody, where he managed outside legal counsel for a variety of large financial transactions between major institutions. He played a central role in the creation of Kidder, Peabody s mortgage trading subsidiary and advised and executed transactions with insurance companies, pension funds and government agencies, including the Resolution Trust Company. In 1996 Mr. Schneider established a residence in Portland, Oregon and began his law practice there in He has made a long-term commitment to providing first-class estate planning legal services to families and individuals within the Portland metropolitan area and the surrounding SW Washington region. His motivations for moving to the Northwest were several: the natural scenic beauty of the Northwest landscape, the clean air and streets, the healthy, diversified economy and the overall high quality of life. Mr. Schneider is very grateful for the warm reception he has received from Portland/Vancouver and is pleased to have become a respected member of the Portland/Vancouver legal and business community. Mr. Schneider is a member of the American Academy of Estate Planning Attorneys, the National Academy of Elder Law Attorneys, the Estate Planning Council of Portland and is on the board of directors of the the Rental Housing Association of Greater Portland. He is admitted to practice in Oregon, Washington and New York. Law Offices of Richard B Schneider, LLC NW Marshall St, Suite 11 Portland, OR Phone: (503) Estate Planning Basics in Oregon Where to Begin 9