By Ryan W. Collier
Wes, a Collier Law client, recently contacted our office to say that Marion County Public Works would not issue an owner-occupied electrical permit because a trust owned his home. This was a considerable problem with the large number of Marion County citizens who owned their homes in a revocable living trust. The problem is not unique to Marion County but statewide.
Collier Law contacted a friend of the firm, Marion County Commissioner Kevin Cameron, who connected us to County Counsel Steve Elzinga. Credit goes to Steve Elzinga and our County Commissioners for working with our office and our client to find a common-sense solution.
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Why Trust-Owned Homes Face Unique Electrical Permit Hurdles in Oregon
If you own your home outright, you likely have the freedom to pull your electrical permit and do specific electrical work yourself—without needing to be a licensed electrician. But if a trust owns your home, you may not have that option. This issue is unique to electrical permits in Oregon and often catches homeowners by surprise. Here’s why this happens and what it means for property owners.
The Law: Who Can Pull an Electrical Permit?
Oregon law, specifically ORS 479.540, permits homeowners to perform electrical work on residential property they own, provided the property is not intended for sale, exchange, lease, or rent. The exemption applies to the homeowner or a member of their immediate family, and it means you don’t need a contractor’s license for this work. However, this exemption does not mean you can skip inspections or code requirements; safety remains paramount.
The Problem: Trust Ownership
The trouble arises when a trust owns a property. According to the Oregon Administrative Rule (OAR) 918-261-0040(1), the “owner” for this exemption must be a natural person—not a business entity, corporation, partnership, or similar legal structure. Under current Oregon Supreme Court jurisprudence, a trust is considered a legal entity, not a natural person, so when a trust owns a home, the trust is the legal owner, not the individual living in or managing the home. Estate Planning attorneys, such as those at Collier Law, point out that these Supreme Court cases refer to irrevocable trusts, not the traditional revocable trusts that own your residence. Unfortunately, most County Officials do not understand this difference.
This interpretation, as adopted by most or all Oregon counties, means that a homeowner cannot pull an electrical permit under the exemption if the home is held in a trust. This restriction does not typically apply to other types of permits (like plumbing or building permits), making it a unique issue for electrical work.
Why Does This Matter?
For many families, holding property in a trust is a key part of estate planning. Trusts can help avoid probate, protect assets, and facilitate the transfer of property after death. However, this legal structure can complicate matters when it comes to maintenance and improvements:
- Permit Denial: If you try to pull an electrical permit for work on a trust-owned home, you may be denied because you are not considered the “owner” under the law.
- Cost and Delay: You may need to hire a licensed electrical contractor to perform the work and obtain the permit, which can add to the cost and delay of your project.
- Limited Options: There are no exceptions for trust-owned homes under current rules, even if the individual applying for the permit is the sole beneficiary and trustee of the trust.
The Bigger Picture
This situation highlights a disconnect between modern estate planning practices and current permit regulations. While trusts are widely used for their legal and financial benefits, the law has not kept pace with this reality for electrical permits. Other types of permits may not have this restriction; however, for electrical work, the rule is clear: only a natural person can be considered the owner for exemption purposes.
The Solution
Marion County Counsel, with the authority of County Commissioners, directed Public Works staff to consider property owned by a “revocable living trust” to be owned by the natural person homeowner. The County is also requesting an Administrative Rule change to fix the issue statewide. Marion County Commissioners are recognized for working with citizens on common-sense solutions that cut through red tape.
What Can Homeowners Do?
- Check Ownership Structure: If you plan to perform electrical work, verify the title of your property. If it’s in a trust and the property is in Marion County, bring your certificate of trust that declares the trust is “revocable” to Marion County Public Works when applying for the permit. Otherwise, you may not be able to get a permit as an owner-occupant.
- Consult a Professional: You may need to hire a licensed electrician to obtain the permit and perform the work.
- Advocate for Change: If you believe the law should be updated to reflect modern ownership structures, consider reaching out to local officials or state legislators to express your concerns.
Conclusion
The law is designed to ensure safety and proper oversight of electrical work, but it can create unintended hurdles for families using trusts. Understanding these rules can help you avoid surprises and plan your home improvement projects more effectively. For now, if your home is in a trust and not located in Marion County, you will need to work with a licensed electrician for any electrical permits and installations.