Do middle class families need a will or trust?

The short answer is "Yes!" everyone needs to have a will or trust in place if they want to have any control over what happens after they die or if they want to make the process of distributing their house, money, and things easier for their family.

The longer answer is whether you need a will or trust depends on a lot of factors.
To start with, do you own a house or have more than $75,000 in assets? In Oregon, people with less than $75,000 in assets and no real property (i.e. a house or land) can avoid probate with a small estate affidavit. These can be done without an attorney, although they can be tedious and challenging to get approved without any legal knowledge. We can help with small estate affidavits or help you decide if you qualify for one. For more information reach out to us or check out the ORS 114.515 law and document from the Oregon Judicial Department - https://www.courts.oregon.gov/courts/washington/programs-services/Documents/WSH-SmallEst-2006to2009.pdf

With that said, most people should invest in a will if they own a home or have over $75,000 in assets. This is because a person with over $75,000 in money or assets (like a house) will likely have to have their estate go through probate. Probate is the court process of deciding who your successors are and how your estate will be divided up. In some counties you can file probate, issue notices, etc. on your own, but in others you will need to hire an attorney which can cost your family more time and money than creating a trust would have. If you do not own a house or are worried about avoiding probate; a simple will package will be just fine. In addition, if you want to avoid the house going through probate with your will you could get a Transfer on Death Deed. There are draw backs to this, which include but are not limited to the house cannot be sold for 18 months after your death, any liens or mortgages or debts on the home will transfer to the new owner, and they will suddenly have an increase in their worth which could affect their medical insurance or any state provided benefits. Under the federal Garn-St. Germain Act, a lender generally cannot call the loan due when a mortgaged home passes to a relative upon the death of the borrower — your spouse, child, or other family member can keep the existing loan and continue the payments on the original terms. A will is generally a one time use document. So, unlike a trust that can space out inheritance, have multiple people own the home, etc. a will just distributes the assets one time. (https://www.congress.gov/bill/97th-congress/house-bill/6267)

Trusts are ideal for middle class families that are home-owners or those with children who want to avoid probate, have more privacy, or have more control over how their estate is distributed. A trust can be on going, it can make payments to your children for certain life events like to buy a house or when they reach certain ages. It can allow for you to keep a property in the family and avoid selling it or provide money for the care of a beloved pet. It used to be that trusts were "for the rich," but in today's world trusts are for everyone. We charge less for a trust than for probate and encourage anyone that owns a home to consider a trust to simplify the distribution of your property and assets after your passing and let your grieving loved ones avoid any additional hassle or cost.