What property does not pass under a will in Oregon?
When it comes to estate planning in Oregon, it's crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in Oregon, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Oregon is joint property. When property is held jointly with rights of survivorship, it means that when one owner passes away, the surviving owner automatically inherits the deceased owner's share of the property. This transfer of ownership occurs outside of the probate process and is not governed by the terms of the deceased owner's will.
Life Insurance Policies
Life insurance policies are another example of assets that bypass a will in Oregon. The proceeds from a life insurance policy are paid directly to the named beneficiaries upon the policyholder's death. These funds are not considered part of the deceased individual's estate and are not subject to probate. It's essential to keep beneficiary designations up to date to ensure that the policy proceeds are distributed according to your wishes.
Trusts
Assets held in a trust are also exempt from probate and do not pass under a will in Oregon. A trust is a legal arrangement where a trustee holds and manages assets on behalf of the beneficiaries. When assets are placed in a trust, they are no longer considered part of the individual's probate estate. Trusts offer privacy, flexibility, and control over how assets are distributed after death.
Legal Code Reference
For more detailed information on the laws governing property that does not pass under a will in Oregon, you can refer to the Oregon Revised Statutes, specifically Title 12 (Decedents' Estates and Fiduciary Relations) and Title 13 (Conveyancing and Recording).
Final Considerations on Estate Planning in Oregon
Understanding which assets do not pass under a will is essential for effective estate planning in Oregon. By being aware of how joint property, life insurance policies, and trusts operate outside of the probate process, individuals can ensure that their assets are distributed according to their wishes. Consulting with a qualified estate planning attorney can provide further guidance on navigating the complexities of estate planning and asset distribution.
Buried in Work's Additional Resources
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