Disclaimer: This article is for informational purposes and is not legal advice. Consult a licensed attorney to address your specific situation.
Detailed Answer
Including real property in an Oregon estate ensures the court supervises its transfer to heirs or beneficiaries. Whether you use probate or a beneficiary (transfer-on-death) deed, follow these key steps.
1. Confirm Ownership and Title Structure
Review the deed to identify how the decedent held title: sole ownership, joint tenants, tenants in common, or community property. Oregon recognizes beneficiary deeds under ORS 105.984–105.986, which bypass probate if properly executed. If the property lacks a valid beneficiary deed, it must enter probate to transfer title.
2. Prepare and Record a Beneficiary Deed (If Desired)
Under ORS 105.984, a property owner may execute, notarize, and record a beneficiary deed that names who receives title on death. To be valid, it must:
- Contain a legal description of the property.
- Name one or more beneficiaries.
- Include an affidavit by witnesses as required by ORS 105.987.
- Be recorded in the county where the property lies before the owner’s death (ORS 105.984).
If you use this method, you still file an affidavit of death and deed after probate opens but avoid the full probate process for that asset.
3. Open Probate and File a Petition
If no beneficiary deed applies, you must file a petition for probate in the circuit court of the county where the decedent lived. Under ORS 111.005, the “probate estate” includes all real property owned solely by the decedent at death. Key steps include:
- File a petition for probate and nominate a personal representative (ORS 111.055).
- Post notice to heirs and creditors as required by ORS 111.045.
- Obtain letters testamentary or of administration.
4. Inventory, Appraise, and Notify
The personal representative must list and appraise the real property under ORS 113.095. The court uses this valuation to protect heirs and set bond amounts. You must also provide notice to all interested parties.
5. Settle Liabilities and Secure Court Approval
Before transferring title, the representative pays debts, expenses, and taxes. If selling property to pay debts, follow the procedures in ORS 116.105. To transfer property to beneficiaries, petition the court for a decree of distribution under ORS 116.005.
6. Transfer Title and Record Documents
Once the court approves distribution, prepare and record a new deed transferring title to beneficiaries. The county recorder will update the public record.
Helpful Hints
- Gather a certified copy of the death certificate early.
- Review existing estate planning documents, including wills and deeds.
- Obtain a professional real estate appraisal to ensure accurate valuation.
- Maintain clear communication with heirs to minimize disputes.
- Consult the Oregon Probate and Trust Practice Manual for additional procedural guidance.