Oregon Statutes 130.518 – Creditor protections retained upon conveyance of property held as tenants by the entirety to revocable trust
(1) Real property of spouses married to each other that was held as tenants by the entirety and subsequently conveyed to the trustee or trustees of the joint revocable trust of the spouses or of the separate revocable trust of each spouse shall have the same immunity from the claims of a spouse’s creditors as would exist if the spouses had continued to hold the property as tenants by the entirety, if:
Terms Used In Oregon Statutes 130.518
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Tenancy by the entirety: A type of joint tenancy between husband and wife that is recognized in some States. Neither party can sever the joint tenancy relationship; when a spouse dies, the survivor acquires full title to the property.
- Trustee: A person or institution holding and administering property in trust.
(a) The spouses remain married to each other;
(b) The real property continues to be held in trust by the trustee or trustees or the successor trustee or trustees; and
(c) Both spouses are beneficiaries of the trust or trusts, including where both spouses are current beneficiaries of one trust that holds the entire property or each spouse is a current beneficiary of a separate trust and the two separate trusts together hold the entire property, whether or not other persons are also current or future beneficiaries of the trust or trusts.
(2) The protection from the claims of separate creditors under this section may be waived as to any specific creditor, including any separate creditor of either spouse, or any specifically described property, including any former tenancy by the entirety property conveyed into trust, by the trustee acting under the express provision of a trust instrument or with the written consent of both spouses. [2021 c.272 § 7]
Section 12, chapter 272, Oregon Laws 2021, provides:
Section 7 of this 2021 Act [130.518] and the amendments to ORS § 130.315 by section 8 of this 2021 Act apply to tenancy by the entirety property conveyed to a trustee or trustees of a trust or trusts on or after the effective date of this 2021 Act [January 1, 2022]. [2021 c.272 § 12]
130.518 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS Chapter 130 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.