Text Size:   A+ A- A   •   Text Only
Find     
Site Image
Estate and trust taxes (Home)
What changed in 2012?
Estate Transfer tax - (for date of death on or after January 1, 2012)
 
In 2012, the Oregon Inheritance tax changed to the Oregon Estate Transfer tax. For deaths on or after January 1, 2012, you'll file Form OR 706, Oregon Estate Transfer tax return, 150-104-001, instead of Form IT-1, Oregon Inheritance tax return.
 
The 2011 Oregon House Bill 2541 amended Oregon Revised Statute Chapter 118. Below is a summary of Oregon House Bill 2541. For complete details of the changes, see ORS Chapter 118.
 
House Bill 2541 summary: 
  • Filing requirement - The filing threshold remains at $1 million gross estate value, all assets valued as of the date of death on or after January 01, 2012.
  • Name - Change of name from Oregon inheritance tax to Oregon estate tax. Although the name changed, the type of tax did not.
  • Effective dates - Changes are effective for a date of death on or after January 01, 2012.
  • Tie to federal law - Oregon estate tax is tied to federal estate tax as the federal tax existed on December 31, 2010.
  • Proration of tax - An Oregon nonresident decedent will include only real property located in Oregon and tangible personal property located in Oregon in the numerator to determine the Oregon percentage computation for tax proration.
  • Tax table and exemption - Uses only one tax table and built into the tax table is an exclusion from tax on the first $1 million of taxable estate.
  • Unified credit - Eliminates the need to compute a tentative tax and eliminates the use of the unified credit.
  • Natural resource credit - For natural resource credit (NRC) property, each transferee receiving NRC property must report to us annually by filing form Annual Certification for Natural Resource Credit Property or Commercial Fishing Business Credit Property, 150-104-008, to confirm the NRC assets continue to qualify for the credit.



Inheritance tax - (for 2011 and prior dates of death)


What is estate income tax?
An estate with property that continues to earn income or incur expenses after the decedent’s death may be required to file an estate income tax return (Form 41, Oregon Fiduciary Income Tax Return).
 
The estate tax laws may be found in Chapter 316 of the Oregon Revised Statutes, from 316.267 to 316.317, and the corresponding Oregon Administrative Rules.



What is trust income tax?
A trust is an arrangement by which trustees take title to property for the purpose of protecting it for the beneficiaries.  If this property earns income, an income tax return may be required (Form 41, Oregon Fiduciary Income Tax Return). 
 
The trust tax laws may be found in Chapter 316 of the Oregon Revised Statutes, from 316.267 to 316.317, and the corresponding Oregon Administrative Rules.



Consent to transfer stock (or Stock Waiver Certificate)
Do you need our consent to transfer stock or a stock waiver certificate?
  • Is the date of death on or after January 1, 1987? If so, you no longer need our consent to transfer stocks, bonds, or mutual funds. Oregon Revised Statute 118.230 was repealed, effective September 27, 1987, no longer requiring us to provide a release for transferring the above-mentioned assets for deaths in 1987 and later.
  • Is the date of death before 1987? Please contact us for the application for consent to transfer stock.



Laws, rules, and forms


Tax professionals and estate attorneys
To efficiently assist you, we ask tax professionals and estate attorneys to research law questions before contacting us. Please allow a minimum of two business days for us to respond.
 
For up-to-the-minute information, subscribe to Revenews for Tax Professionals (all we need is your email address). To see our collection of prior postings, visit Revenews Archives (no subscription needed).