Revocable Living Trusts in Oregon—What They Are and Why So Many People Use Them
In Oregon estate planning, no tool is requested—or misunderstood—more than the revocable living trust.
Some clients think it’s a tax dodge. Others assume it’s a secret will. Many have been told by a friend, neighbor, or overly enthusiastic trust mill that it’s “essential.” But a revocable living trust is none of those things—and it’s not always necessary. It’s just a tool. A flexible one, yes, but only powerful when used correctly.
Here’s what a revocable living trust is, how it works under Oregon law, and when it makes sense.
What Is a Revocable Living Trust?
A revocable living trust is a legal entity you create during your lifetime to hold title to your assets. You (usually) serve as your own trustee while you’re alive and competent, with a named successor trustee who steps in if you become incapacitated or die.
Key features:
Revocable: You can change or revoke it at any time while you’re alive and competent.
Living: It’s created during your lifetime—not at death like a testamentary trust.
Trust: It holds legal title to assets, but you maintain control over them.
Why Use One in Oregon?
The most common reason is to avoid probate.
Probate in Oregon is public, slow, and potentially expensive. A well-funded trust can transfer assets:
Privately
Efficiently
Without court supervision
Without notifying creditors via newspaper publication
Other reasons people use revocable trusts:
To avoid probate in multiple states (e.g., if you own property in Idaho or California)
To allow continuity of management during incapacity
To set up post-death distributions (e.g., staggered inheritance, delayed distributions for minors, etc.)
To reduce family conflict through clear, enforceable trustee instructions
What Does It Not Do?
Let’s clear up the myths. A revocable living trust:
Does not reduce estate taxes in Oregon
Does not protect assets from creditors during your lifetime
Does not avoid Medicaid look-back penalties
Does not eliminate the need for a will
Think of a trust as a replacement for probate, not for taxes or asset protection.
What Goes Into a Revocable Trust?
Almost anything:
Real estate
Bank and brokerage accounts
Business interests
Collectibles
Vehicles
Personal loans
Digital assets (with proper documentation)
But a trust only controls the assets that are actually retitled into it. That process is called funding the trust, and it’s where most DIY efforts fail.
If you sign a beautiful 30-page trust but never transfer title to your house or rename your accounts, your estate still goes through probate.
Do You Still Need a Will?
Yes. You’ll sign a pour-over will, which acts as a legal backstop. If any assets are left outside the trust, the pour-over will directs them back into the trust after death. That part will go through probate—but the rest of your estate can avoid court if the trust is properly funded.
What About Incapacity?
A trust provides continuity of control. If you become incapacitated, your successor trustee can step in without a court order. That makes trusts a powerful alternative to relying solely on a durable power of attorney, which is sometimes rejected by financial institutions.
This continuity is especially useful for:
Individuals with chronic health conditions
Married couples who travel or share financial responsibilities
Aging Oregonians who want a smooth, non-court-based plan for incapacity
Downsides and When Not to Use One
Revocable trusts are not always necessary. You might not need one if:
Your estate is below Oregon’s small estate affidavit threshold
You only own real estate jointly with a spouse and have simple beneficiary designations
You’re unlikely to become incapacitated and have solid powers of attorney in place
You’re comfortable with a basic will and the Oregon probate process
Also, trusts are more complex to set up and require more front-end attention: retitling deeds, updating account ownership, coordinating with financial institutions. If you’re not ready to maintain the structure, a simple will-based plan may serve you better.
Final Thought
Revocable living trusts are powerful. But they’re not magic. They’re a tool—like a scalpel, not a sledgehammer. Used properly, they can streamline your estate, minimize conflict, and keep your affairs private.
Used poorly—or left unfunded—they’re just expensive paperwork.
At Track Town Law, I offer flat-fee estate planning that includes funding guidance and plain-English explanations. If you’re wondering whether a trust makes sense in your situation, schedule a consultation. I’ll walk you through the pros, the cons, and whether it’s actually worth doing.
