PSU Magazine Spring 1988

ANSWERS TO YOUR ESTATE PLANNING QUESTIONS As a service to Portland State University's alumni and friends, the PSU Foundation has asked J. Peter Wakeman, a managing partner of Helm & Purcell, to answer questions on estate planning. Mr. Wakeman's practice is concentrated in the areas of charitable giving, taxation, estate planning, and real estate. Q: What Is "estate planning"? A: Estate planning means putting your property to the best possible use for your benefit during your lifetime and for the use of your "beneficiaries" after your death. In many cases, sound real estate planning can reduce the taxes and other costs that must be paid during your lifetime and when you pass your property on to others. Q: What Is a "w/11"? A: Your will is a written legal document. It names the people and organizations, such as Portland State University, that you choose to receive your property when you die. Your will designates who will serve as your "executor." This is the person, bank, or corporation that handles your affairs after you die. It may also name a guardian for your minor children . Q: What If I die without a will? A: First, it is not true that your property automatically will go to the state if you die without a will. This happens only if you have no "heirs" (a spouse, children, or relatives) to inherit your property. But it is true that your property cannot go to friends, PSU, or any other organization if you do not leave a will. If you do not leave a valid will, the court distributes your property to your heirs in a certain order set out by law. This is called " intestate succession." Think of it this way: The law gives you many choices if you make a will, but none at all if you do not. Q: What Is "probate"? A: "Probate" is a court procedure that provides for the change of legal ownership of your property when you die, regardless of whether or not you have a will. If your estate is small, it may qualify for "summary probate." In most cases, summary probate does not require court supervision and takes less time and costs less money than the formal probate required for larger estates. Q: What Is a "trust"? A: A living trust, also called an "inter vivos" trust, operates during your lifetime and can be part of your overall estate plan. For example, you may set up a living trust that lets you receive the income from the trust principal and then transfers that income to your beneficiary when you die. Further, a living trust also allows you to avoid probate. You might also set up a living trust so that a professional can manage your investments if you do not have - Reservation Form - ESTATE PLANNING WORKSHOP Complete and mail to: PSU Foundation, P.O. Box 243, Portland, OR 97207 __ Please reserve __ place(s) for the Estate Planning Workshop, May 4, at 6 p.m. Coffee and sandwiches will be served. _ _ Please send me your brochure, The Personal Rewards of Giving to PSU. __ Please contact me for a personal consultation. Name------------------------------ Address ----------------------------- City _____________ State______ Zip_______ _ Daytime phone-------------------------- PSU MAGAZINE PAGE 28 the time or expertise, or the professional may take over managementofyourfinancesifyou become physically or mentally incapacitated. A charitable trust is a trust that pays you and a survivor income for life. Upon the expiration of the trust, the property is distributed to one or more charitable organizations, such as Portland State University. This type of trust avoids probate and can achieve substantial tax savings during your lifetime. A testamentary trust starts after your death. You might prefer this type of trust if you do not want your cash, stocks, or other property held in trust during your lifetime. However, a testamentary trust, unlike a living trust, is delayed by probate because it is part of your will. This means your beneficiaries might not receive income from the trust until probate is completed. Q: Can I change my trust? A: Living trusts can be " revocable" or "irrevocable." You can change and even cancel a revocable trust but not an irrevocable one. In most states, the person who sets up the trust can revoke a living trust unless the trust agreement says that no changes can be made. Since a testamentary trust is part of your will it can be changed or cancelled only if you write a new will or a "codicil." A codicil is a document that amends your will. This type of trust generally cannot be changed after your death. Q: How can Portland State help? A: As a community service, the Portland State University Foundation is hosting an Estate Planning Workshop on Wednesday, May 4, 1988, at 6 p.m. This workshop will be held in 338 Smith Memorial Center on the University campus and will feature J . Peter Wakeman, Attorney, as the speaker. You are Invited to attend this valuable session without cost or obligation. If you are interested in attending, or want some additional information, please return the coupon on this page or call the Foundation office at (503) 464-4478.