Legal Question in Wills and Trusts in Oregon

Re: Oregon State Inheritance Tax Law

Inheritance taxes are a function of both state and federal law. The following answer to your question is a VERY simplified version of a complicated area of law and is not meant to be specific legal advice.

The form of the inheritance (real property, cash, securities, payable on death account (POD), life insurance, IRA's, etc.) generally does not matter. All the assets of the decedent are all added together to determine whether the decedent had a taxable estate. Some things that are no longer part of the estate can sometimes be included, such as gifts that are made shortly before death.

The tax burden is based on the total amount of the estate and is a bill of the estate (rather than the heirs). Transfers to a spouse are generally not taxed, even when they exceed the exempt amount.

Federal taxes are due on a gross estate that exceeds $675,000 (this amount is changing over the next several years and is expected to ultimately reach $1,000,000). There may also be Oregon Sate taxes due.