Estate planning is the process of arranging for the management and distribution of your assets during your lifetime and after death. It includes creating wills, trusts, powers of attorney, and healthcare directives. Every adult over 18 should have basic estate planning documents, regardless of wealth. Without proper planning, Oregon and Washington state laws determine who inherits your assets and who makes decisions if you become incapacitated. Parents with minor children especially need estate planning to designate guardians. Business owners require specialized planning to ensure smooth succession and protect their company’s value.

A will takes effect only after death and must go through probate court, which typically takes 6-12 months in Oregon and Washington. A living trust takes effect immediately and avoids probate entirely, providing privacy and faster asset distribution. Trusts allow you to maintain control of assets during your lifetime, provide clear instructions for incapacity, and can include specific conditions for distributions. While wills are less expensive to create initially, the probate costs and delays often make trusts more cost-effective overall, especially for estates over $275 000 in Oregon or $100 000 in Washington.

Probate is the court-supervised process of validating a will, paying debts, and distributing assets after someone dies. In Oregon, probate typically takes 6-12 months for straightforward estates, though complex estates can take longer. The process involves filing court documents, notifying creditors and beneficiaries, inventorying assets, paying debts and taxes, and obtaining court approval for final distribution. Oregon law requires a four-month waiting period for creditor claims. Probate costs typically range from 3-7 % of the estate value, including court fees, attorney fees, and personal representative compensation. Assets held in living trusts, with designated beneficiaries, or owned jointly can bypass probate entirely.

Trust administration begins immediately after the grantor’s death. The successor trustee must notify beneficiaries within 60 days under Oregon and Washington law, obtain the trust document and death certificate, identify and value all trust assets, pay outstanding debts and final expenses, file necessary tax returns, and distribute assets according to the trust terms. The trustee has fiduciary duties to act in beneficiaries’ best interests, keep accurate records, invest assets prudently, and provide accountings. Most trust administrations take 6-18 months depending on complexity. Unlike probate, trust administration is private and doesn’t require court supervision unless disputes arise.

Business succession planning ensures your company continues operating smoothly when you retire, become disabled, or pass away. Start by determining your exit goals: family transfer, key employee purchase, or outside sale. Create a buy-sell agreement that establishes business valuation methods, funding mechanisms through life insurance or installment sales, and transfer triggers. Update your operating agreement or corporate bylaws to address succession scenarios. Consider tax implications of different transfer methods—gifting shares over time, installment sales, or outright transfers each have distinct tax consequences. Most business owners need 3-5 years to implement a comprehensive succession plan, so starting early is crucial to maximize value and minimize disruption.

Oregon has an estate tax with a $1 million exemption—one of the lowest in the nation. Estates exceeding this threshold face Oregon estate tax rates from 10-16 %. Washington’s estate tax exemption is higher at $3.076 million (2026), with rates from 10-20 %. These state taxes apply in addition to the federal estate tax, which has a $15 million exemption (2026). Both states tax estate value, not inheritance, and taxes are due nine months after death in Washington and twelve months after death in Oregon. Proper planning using trusts, gifting strategies, life insurance, and charitable giving can significantly reduce or eliminate estate tax liability for many families.

Living trusts offer several key advantages: avoiding probate saves time and money, maintaining privacy since trust administration isn’t public record, providing seamless management if you become incapacitated, and offering greater control over asset distribution timing and conditions. Trusts allow you to specify exact ages or milestones for beneficiary distributions, protect assets from beneficiaries’ creditors or divorcing spouses, and consolidate management of property in multiple states. For Oregon and Washington residents, trusts are particularly valuable for estates approaching the state estate tax exemptions, families with minor children or special needs beneficiaries, and anyone who values privacy and efficient estate administration.

A power of attorney (POA) takes effect during your lifetime and terminates at death, while a will only takes effect after you die. A financial POA authorizes someone to manage your finances and property if you become incapacitated—paying bills, managing investments, filing taxes, and making financial decisions. A healthcare POA (also called healthcare directive or medical power of attorney) allows someone to make medical decisions on your behalf. Without these documents, your family must petition the court for guardianship or conservatorship, which is expensive, time-consuming, and public. Every adult needs both a financial POA and healthcare directive, regardless of whether they have a will or trust.