Estate Administration
After the death of a loved one, their debts must be settled and their property must be distributed. Depending on the type of property the deceased person owned and how it was titled, a probate through the court may be necessary to legally transfer title to the person’s heirs or beneficiaries. This process can be confusing and overwhelming while you are grieving. Your attorney can help guide you through the legal process.
Estate Administration can occur whether the deceased person had a will or not. If they did not have a will, the administration is called “intestate.” Intestate estates are administered according to Oregon law. Oregon law specifies how a deceased person’s estate will be divided if there is no will. It is a common misconception that without a will, a person’s estate will go “to the state.” If the person was on Medicaid, the state may be entitled to some “estate recovery” funds to compensate the state for funds paid for the person’s health care. If no legal heirs can be located, the estate will go to the state (this is called “escheat”). But the state will not take an estate in full simply because a person dies without a will.
Sometimes property can be transferred without any court action. Sometimes an estate qualifies for a simpler administration process through the court called a “Small Estate Affidavit.” Sometimes a full probate is necessary to administer the estate. Your attorney can help you determine which process will best administer your loved one’s estate.
If the deceased person had a revocable living trust, the estate may be able to avoid probate but the trustee must still take actions to pay the deceased person’s debts and to distribute the trust assets according to the terms of the trust. This process is called trust administration. Your attorney can help advise you about trust administration.
Probate is the legal process by which a decedent’s estate is settled. During the probate process, the Court appoints a personal representative (in other states, this person is called an “executor”). The personal representative is usually the person the decedent appointed in their will to serve in that capacity. In the event that the decedent died intestate (or without a will), Oregon law dictates whom has priority to serve as personal representative.
In the event that a decedent dies intestate or did not waive the bond requirement in his or her will, Oregon law requires that the personal representative obtain a bond for the value of the estate. This bond helps protect the creditors and heirs or beneficiaries of the estate.
What is a Small Estate Affidavit?
In some cases, a less expensive and time-consuming process is available to administer simpler estates. If a decedent’s probate assets (excluding accounts passing by beneficiary designation, such as, retirement accounts, life insurance policies, and some bank accounts) fall within the small estate requirements, a full probate may not be necessary to distribute the decedent’s assets. The small estate requirements for 2019 in Oregon are:
(1) Less than $75,000 in personal property; and
(2) Less than $200,000 in real property.
Your attorney can help you determine whether an estate meets the requirements for a small estate affidavit and whether a small estate affidavit would be appropriate for a loved one’s estate. Sometimes an estate falls within the small estate limits but a probate is necessary or advisable. Your attorney can help you determine whether a probate makes sense for a particular estate.
What to expect at an Estate Administration intake appointment
When you schedule your complimentary intake appointment, the attorney will send you an Intake Form. You can choose whether to receive this form by mail or email. You will complete this form prior to your Intake Appointment and bring it with you to your appointment. Expect that this form will take some time to complete. The information in the form is important so that your Intake Appointment is as productive as possible and you can discuss which Estate Administration services will best meet your needs. The Intake Appointment is important because it allows you and the attorney to evaluate whether she is the right fit for you as an attorney and you are the right fit for her as a client. Even if either of you decides not to move forward with representation, any information shared during the consultation remains strictly confidential. After the appointment, if you both agree to proceed with representation, the attorney will send you an Engagement Letter and Fee Agreement.
Probate, Small Estate and other Estate Administration clients have a wide variety of needs. Each estate is unique as to how complicated they will be to administer, and often the complexity of the estate is not apparent at the beginning of the process. For this reason, an hourly rate provides the best billing option for estates. Estates that are simpler to administer and consequently take fewer attorney hours, will result in a smaller overall attorney fee. Conversely, estates that end up being more complex and will take more attorney hours, will result in an appropriately larger overall attorney fee. Your hourly fee and projected costs will be explained to you both at your intake appointment and in a written Fee Agreement.
The link below takes you to a third-party website that is not affiliated with this law practice. The linked website provides helpful resources for Oregon families about funerals in Oregon.
www.oregonfuneral.org