.
 

Oregon residents are subject to an estate tax for estates of more than $1 million. This tax falls on the estate of the person who died, the beneficiaries or heirs inherit what's left.

(There is no inheritance tax in Oregon, this would be the tax that falls on the heirs and beneficiaries, not on the estate of the person who died.)

This state-specific estate tax is in addition to the federal estate tax, and that tax also falls on the estate of the person who died, not on the people who inherit that property.

There is an exemption of $13.610,000, and only people who die with an estate larger than that exemption will have to pay federal estate tax, which means that it is estimated that only the richest .14% of Americans will be subject to the estate tax at all, or only 2 out of every 1,000 people who die.

If someone dies in Oregon with less than the exemption amount (currently $13.610,000), their estate doesn't owe any federal estate tax,

If someone dies in Oregon with an estate worth less than $1 million, there is no Oregon estate tax, either. The heirs and beneficiaries inherit the property free of tax, and don't pay income tax on it, either, because inherited property is not ordinary income. The only exception to this are inherited retirement accounts, which are subject to income tax as the assets are withdrawn.

If the deceased person's total estate assets in Oregon exceed $ 1 million. The estate must file an estate tax return within 12 months. 

Your gross estate will include just about all of the property you own at your death:

  • Real estate
  • Bank and investment accounts—retirement and non-retirement
  • Vehicles and other items of personal property
  • Proceeds from any life insurance policies on your life, if you owned the policies
  • Your business interests (sole proprietorship, limited liability company, or closely held corporation)
  • Any property you hold in a revocable living trust

If you own assets with someone else, generally only your share will be included in your estate. In other words, if you and your spouse own your house, half of its value would be included in your estate.

Don't forget that your gross estate also includes non-probate assets. For example, the property you hold in a revocable living trust avoids probate, but it does not avoid estate taxes, and is counted in your gross estate.

Portability. The federal estate tax regime allows a surviving spouse to use the deceased spouse's unused portion of the exemption—a feature called "portability." However, Oregon's estate tax does not offer portability between spouses; each spouse has an exemption amount of $1 million.

Information about the Oregon estate tax and the forms necessary to file it can be found at Oregon's Department of Revenue website.


ADVERTISEMENT -

Free Probate Case Evaluation For Oregon

Do you have questions about your inheritance or need help with probate in Oregon?

Since 2016, LegalConsumer.com has connected thousands of consumers with lawyers who can help them.

Use the form below to connect with a lawyer through the Nolo / Martindale network of probate lawyers.

SPONSORED FORM - Nolo/Martindale Attorney Network



Jurisdictional relevance: ST

There are versions of this article for each State.



Connect with a Probate Lawyer 855-324-7891Ads by +Nolo/Martindale Lawyer Network