A trust is a legal arrangement in which one person (the trustee) holds property for the benefit of another (the Beneficiary). Whether to make it revocable or irrevocable is one of the most consequential decisions in your plan.
What a Revocable Living Trust does.
A Revocable Living Trust is the workhorse of modern Oregon estate planning. You create the Trust, transfer your assets into it, and serve as your own trustee during your lifetime, meaning nothing about how you use those assets changes day-to-day. You can amend, restate, or revoke the Trust at any time.
On your death, the assets in the Trust pass to your Beneficiaries through the successor trustee you've named, no probate, no public filings, and no court supervision. For most Oregon families, this is the centerpiece of the plan.
What an irrevocable trust does differently.
An irrevocable trust is one you generally cannot change after signing. Why would anyone give that up? Because in exchange, you get tools the revocable trust can't offer: assets removed from your taxable estate, protection from future creditors, eligibility planning for long-term care, and the ability to keep specific assets in a defined family line.
Where they differ, at a glance.
- Control. Full with revocable; significantly limited with irrevocable.
- Probate. Both avoid it when properly funded.
- Estate tax. Revocable: no reduction. Irrevocable: can remove assets from taxable estate.
- Creditor protection. Revocable: none against your creditors. Irrevocable: substantial when properly structured.
- Flexibility. Revocable: amend anytime. Irrevocable: limited; usually requires court or trust-protector mechanisms.
Which one is right for you?
For most Oregon families with estates between $1M and $5M, a Revocable Living Trust paired with a pour-over will is the right answer. It avoids probate, keeps things private, and remains entirely flexible while life unfolds.
Irrevocable trusts come into the picture when there are specific goals: estate tax reduction above the Oregon $1M threshold, long-term care planning, asset protection for high-risk professions, or special-needs Beneficiaries. Often the right plan uses both, a Revocable Living Trust as the foundation, with one or more targeted irrevocable trusts layered on for specific assets or Beneficiaries.
Oregon's $1M estate tax threshold makes irrevocable planning relevant earlier than most expect.
Above $1M (counting life insurance, retirement accounts, and home equity), Oregon estate tax kicks in. That's a much lower threshold than the federal exemption, and it's the reason careful planning often pays for itself many times over.
If you have questions about how this fits into your own plan, the right next step is a focused two-hour consultation to design your plan with a clear flat-fee quote before any work begins.