For those Oregon residents who have a mind towards and plan for the future, retirement savings and estate planning are two essential components. An IRA is a popular choice to save and grow retirement funds. The funds designated for the IRA are pre-tax dollars, which saves on present tax, allows the invested money to grow, and defers the tax until the money is withdrawn in retirement, typically at a lower tax rate. A trust provides a way to control one's assets during life, distribute to beneficiaries after death, and potentially do so without the need for probate.
Why should new parents set up an estate plan?
New parents have plenty of things to worry about. You are trying to adjust to a new sleep schedule (or lack thereof), setting up a new routine and getting to know your new favorite person. Even if you have started thinking your baby's college fund, you probably have not considered what will happen to your child if you and your spouse are no longer around. That just seems a long way off.
Predicting the amount and length of alimony
When going through a divorce, it's important to remember that it is not only the division of assets that can determine your future quality of life, but also the income that you earn and the expenses that you owe. Even if one spouse gets the lion's share of marital assets, they may still be ordered to pay a significant amount of alimony to the other spouse in the months and years to come.
About trusts
Oregon residents who are developing their estate plans should know that the inclusion of a trust could be beneficial to their plans. A trust is a legal agreement between a settlor and a trustee; the agreement is for the trustee to receive, protect and manage the assets that the settlor delivers. The trustee also agrees to administer the assets in adherence to the trust's provisions and to distribute the principal and income of the trust as directed by the trust's instructions and only in benefit of the parties indicated in the trust.
