Options in estate plans

Your estate plan will take the shape that fits you, whether that’s a will, trust, health care directive, power of attorney, other tools, or—very likely—a combination of these elements.

About wills

A will directs what happens to your worldly goods after you die, and it can create a trust for the family members or other loved ones you designate.

Wills often work well for people with assets less than $1 million (including life insurance), property in only one state, and fairly simple family structures.

It usually takes careful planning in a will to avoid the probate process, the court-supervised transfer of your assets according to the will. Probate typically costs three to five percent of the value of your estate.

Federal estate taxes apply to amounts over about $11 million dollars. Oregon taxes are imposed on estates over $1 million.

About trusts

A revocable living trust is the cornerstone in estate plans for more complex or highly valuable estates. A trust is more likely than a will to avoid probate and preserve high-value assets.

You can create a Revocable Living Trust and transfer some assets, such as a home, to the trust while you are alive. At the end of life, the assets can pass to your loved ones without the costly probate process.

Trusts are good for people with complex assets—like property in more than one state or owning a business—or blended families. They also are good for accommodating your charitable giving or preserving the privacy around your estate plans.

More tools in estate planning

• A durable power of attorney allows someone you trust to manage your finances during any period of incapacity

• A HIPAA release allows your loved ones to get information about your physical and medical condition during any period of incapacity

• An advance health care directive names a medical decision-maker for you and outlines your preferences regarding end-of-life care

• An advance directive addendum or health care power of attorney expands the authority of your medical decision-maker to include hospice or long-term care, and other key choices