75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 582
Senate Bill 236
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Committee on
Judiciary for Oregon State Bar Estate Planning Section)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Provides that contract is against public policy and void if
personal representative, heir or devisee agrees to pay fee for
locating heir or devisee of estate that is subject to probate in
Oregon, or agrees to pay fee to assist heir or devisee to receive
share of estate that is subject to probate in Oregon. Specifies
exceptions.
Allows distributee of estate to assign all or part of
distributee's interest by assignment of interest.
A BILL FOR AN ACT
Relating to estates.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2009 Act is added to and made
a part of ORS chapter 113. + }
SECTION 2. { + (1) Except as provided in subsections (2) to
(7) of this section, a contract is against the public policy of
the State of Oregon and void if by the terms of the contract a
personal representative, heir or devisee agrees to pay a fee for
locating an heir or devisee of an estate that is subject to
probate in Oregon, or agrees to pay a fee to assist an heir or
devisee to receive a share of an estate that is subject to
probate in Oregon.
(2) Subsection (1) of this section does not apply to a contract
if the fees payable under the contract do not exceed:
(a) 25 percent of the first $10,000 of the value of the share
of an heir or devisee who is located or assisted;
(b) 10 percent of the next $40,000 of the value of the share of
an heir or devisee who is located or assisted; and
(c) 5 percent of the excess over $50,000 of the value of the
share of an heir or devisee who is located or assisted.
(3) Subsection (1) of this section does not apply to a contract
that is approved by the probate court after the court has
determined that the services to be provided are needed and that
the fees provided for in the contract constitute reasonable
compensation for the labor required to provide the services.
(4) Subsection (1) of this section does not apply to a contract
that is entered into by the personal representative or by the
Department of State Lands, or by a person reasonably expecting to
be appointed personal representative of the estate, if:
(a) The services provided under the contract are for the
purpose of identifying and locating all heirs of a decedent
required by ORS 113.035 (6);
(b) The contract provides for payment of a reasonable fixed fee
or a reasonable hourly fee for the services; and
(c) The fees are payable regardless of whether an heir or
devisee is found.
(5) Subsection (1) of this section does not apply to a contract
if the contract is in writing, the contract is entered into by
the heir or devisee more than one year after the death of the
decedent, and the contract by its terms may be rescinded without
cause at any time during the 10-day period immediately following
execution of the contract.
(6) Subsection (1) of this section does not apply to:
(a) A contract between an attorney and a personal
representative, or between an attorney and an heir or devisee,
for legal services provided by the attorney; or
(b) A contract for genealogical research not related to
administration of a decedent's estate in Oregon.
(7) Subsection (1) of this section does not apply to a contract
for a fee payable to a person to locate an heir or devisee who
was omitted from a petition filed under ORS 113.035 by reason of
a willful failure or reckless disregard of the person signing the
petition. The fee payable under a contract described in this
subsection may not exceed one-third of the value of the interest
of the omitted heir or devisee, and the person who signed the
petition is liable to the person who pays the fee for the amount
of the fee. + }
SECTION 3. { + Section 4 of this 2009 Act is added to and made
a part of ORS chapter 116. + }
SECTION 4. { + (1) A distributee may assign all or part of the
interest of the distributee under a general judgment of final
distribution by an assignment of interest signed by the
distributee. The signature of the distributee must be
acknowledged by a notary public, and the assignment must be filed
in the estate proceeding. The assignment may be signed and filed
before or after the general judgment of final distribution is
entered.
(2) An assignment of interest under this section is void to the
extent that the assignment is made in payment or partial payment
of a contract that violates section 2 (1) of this 2009 Act, or to
secure payment of a contract that violates section 2 (1) of this
2009 Act. + }
SECTION 5. { + Section 2 of this 2009 Act applies only to
contracts entered into on or after the effective date of this
2009 Act. + }
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