[Real Estate] The Basics of Estate Planning: A Guide for Real Estate Agents in Portland, Oregon
Hey there, real estate agents! As an estate planning lawyer here in Portland, Oregon, I want to share some valuable insights with you about the basics of estate planning. Understanding this crucial aspect can help you guide your clients more effectively when it comes to taking title to real property. So, let's dive right in!
Why Estate Planning Matters: Estate planning is all about preparing for the future and ensuring that your assets and loved ones are protected. It involves making important decisions regarding the distribution of your property, healthcare wishes, and even the guardianship of minor children if necessary. As a real estate agent, you play a vital role in helping clients navigate through the process of taking title to their property, which is a key aspect of estate planning.
The Importance of Proper Title: Have you ever had clients ask you, "How should I take title to my property?" It's a common question, and it's crucial to be aware of the potential issues that can arise. While you can't provide legal advice, being knowledgeable about the topic allows you to guide your clients to seek professional counsel. This act alone can be a tremendous value-add and build trust with your clients.
Common Ways to Take Title: In Oregon, clients typically have several options for taking title to their property. These include:
Individual Ownership: This is when one person holds title in their name alone.
Tenancy by the Entirety: This option is available to married couples and offers certain protections.
Joint Tenancy with Rights of Survivorship: Suitable for multiple owners who are not married.
Co-tenancy without Rights of Survivorship: Also for multiple owners who are not married.
Trustee of a Trust: Holding title in a trust provides added flexibility and privacy.
Business Entity: Using entities like LLCs for investment properties can offer asset protection.
Pros and Cons of Different Title Options: Each way of taking title has its own advantages and disadvantages. For instance, joint tenancy with rights of survivorship ensures a seamless transfer of ownership upon death but may not allow control over property distribution. Co-tenancy without rights of survivorship lacks the automatic transfer feature, potentially leading to probate. It's important to discuss these options with your clients and encourage them to consult a qualified estate planning attorney.
The Power of Living Trusts: To avoid the probate process entirely, living trusts are an excellent choice. They provide a comprehensive solution for managing and distributing assets while offering increased privacy and flexibility. In a living trust, unrelated owners can hold their respective shares separately, preventing automatic transfer to another person's family. Encouraging clients to consider a living trust can be a game-changer for their estate planning needs.
The Role of an Estate Planning Attorney: As a real estate agent, you're not expected to provide legal advice on estate planning matters. However, you can be a valuable resource for your clients by recommending that they seek counsel from an experienced estate planning lawyer. By collaborating with a professional, clients can ensure their assets are properly titled, and their estate plans are comprehensive, up to date, and aligned with their unique circumstances.
👉 By understanding the basics of estate planning and the importance of proper title to real property, you can enhance your ability to guide your clients through their real estate transactions. Remember, always encourage clients to seek the advice of an estate planning attorney to ensure their plans are tailored to their specific needs. By providing this added value, you'll stand out among your competitors and foster long-term client relationships.
If you have any questions or want to learn more about estate planning, don't hesitate to reach out. I'm here to support you and provide the guidance you need. Happy planning!
Simply contact our office at (503) 235-5150 or fill out the Contact form to schedule an appointment.
If you want to get started on your estate plan, read about our estate planning services and schedule an appointment.
To your family's health + happiness.
~Candice N. Aiston
