Each year both state and federal governments benefit heavily through taxing the estates of deceased individuals. The amount of the taxes taken is usually based on the size of the estate. This means that if you do not take the time to properly plan for estate taxations leaving your Oregon heirs a large estate could do them more harm than good.
Downside of Building Large Estates
Many people in the world would think that there is absolutely nothing wrong with working hard to build a large estate to pass on to children and grandchildren. There are some people who live frugally in life to save as much as they possibly can never once thinking that they will be penalizing their children. The larger an estate is the more your family can expect to pay in estate taxes and probate fees. Instead of trying to save everything and distribute it through a will try to find ways to pass money to your heirs without penalizing them.
Helping Heirs Prepare for Taxes
Being prepared is sometimes the best defense in any situation. Take the time to explain the taxes and fees that the government might extract from an estate with heirs and get feedback from them. If possible attempt to save money that will be used to offset the expenses of taxes and that will cover fees that are charged by courts.
Ways to Pass Assets Along Without a Will
Since a public will created and signed in front of witnesses is usually used to help determine Oregon estate taxes it is important to find ways to leave money to heirs that do not involve a will. There are many, perfectly legal, ways to pass on assets that do not need to involve a will or probate.
The first thing you can do is hold property in common with your children or other family members that will be your beneficiaries. Make sure assets are hold with rights of survivorship which will automatically transfer assets to the surviving owner after you have passed. Also place money into personal bank accounts that are Payable on Death or that will Transfer on Death. These accounts will simply pass right on the beneficiary without any government involvement.
The last, and most popular, way to leave money without fearing heavy taxation is life insurance. Life insurance policies will be distributed tax free to beneficiaries and are often extremely affordable for individuals of all backgrounds.
