What is a Will, and What is a Trust in Portland, OR?
- Chad Fuss, Esq.
- Aug 23
- 2 min read
No matter where we go, people ask us about the difference between a will and a trust. Lots of people we meet with, whether it's Lake Oswego, West Linn, Tualatin, Portland, Gresham, or anywhere else in the area, aren't sure what they need or why they need it. So, we thought we would share a brief explanation:
A will is a legal document that outlines how you want your assets distributed after you pass away. It also lets you name guardians for minor children and an executor or personal representative to manage your estate. Learn more about wills.
A living trust allows your assets to be managed during your lifetime and transferred without probate after death, unlike a will, which only takes effect after you die. A trust can help avoid probate and give you more control over how your assets are distributed, especially for families, who would not like beneficiaries to receive everything in one large sum. Learn more about trusts.
An irrevocable trust is a document that cannot be easily altered or changed. This is usually only a good option for people with $15 million+ in assets. So, for most people, there is no real benefit to this trust. You probably want a revocable or living trust.
Now comes the question of whether you need a will or a trust. A few questions to ask yourself are:
Do you want to avoid probate? (Your beneficiaries have to hire an attorney and wait months for money or to sell the home, etc.)
Is anyone relying on you for money to pay for college, life expenses, mortgage, etc.?
Do you care about your estate being private? (Wills are publicly recorded in probate.)
Do you want to set parameters for your assets? (You want your child to be 20 before they receive money from your life insurance, the beach house can't be sold for 20 years, money is put aside for a child's first home, etc.)
Do any beneficiaries have addiction issues or receive disability support?
Are you married and have more than $1 million in assets when you add up the value of the house, investments, retirement accounts, etc.?
If you answered yes to any of these questions, you may want to consider a trust.
Today, trusts are not for the wealthy; they're for the savvy.
Let’s talk. Schedule your free consultation with Affordable Estate Planning and take the first step toward protecting your legacy.
We are licensed to practice law in Oregon, California, Washington, Florida, Nevada, and Nebraska. We will meet on weekends, in the evenings, and virtually, so you don’t need to take off work or get a babysitter to get your estate in order. 503-908-5457, chad@AffordableEstatePNW.com
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