Estate & Gift Tax
If an Oregon residence dies with more than a gross estate of $1 million, the Oregon Department of Revenue requires the fiduciary (personal representative or trustee) to file an Oregon Estate Tax Return within 9 months of the date of death.
Our CPA can assist you with preparing these returns on a timely manner. This involves verifying all accounts and values of real estate at the date of death. The first step is to make a list of all the assets owned by the decedent and locate bank statements and stock values on the date of death. This may involve a real estate appraisal or a broker’s opinion of value. Our CPA can determine whether your estate will be taxable and estimate the amount of taxes due.
Since the federal exemption is so much larger than the Oregon estate exemption, a federal return may not be required. However, for tax planning, it may be beneficial to file a federal return to preserve the first spouse’s unused federal Estate and Gift Tax Exemption for the surviving spouse to utilize if we project that there could be estate taxes due on the second spouse to die.
Non-residents of Oregon may also be subject to OR estate taxes if a decedent owns real property or personal property in Oregon if his or her gross estate is more than $1 million. A non-resident is not taxed on intangible assets, such as bank accounts, but are taxes on real and personal property located in Bend, Oregon. A non-resident is taxed on a fraction portion that reflects the amount of Oregon property to the non-resident gross estate, which includes all his or her assets in other states.
Since the federal exemption is so much larger than the Oregon estate exemption, a federal return may not be required. However, for tax planning purposes, it may be beneficial to file a federal return to preserve the first spouse’s unused federal Estate and Gift Tax Exemption. Under portability, the unused federal Estate and Gift Tax Exemption can be used by the surviving spouse, if there is a probability that the second spouse to die may incur estate taxes or if the law is uncertain.
Talk with one of our Bend attorneys in a free initial consultation. You can reach out via our contact form or by phone at (541) 933-4688.
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Hurley Re in Bend will coordinate with your CPA or tax preparer to determine who will prepare the Estate Tax Returns and also determine whether the attorney fees and tax preparation fee deduction will be taken on the income tax returns or the estate tax returns.
If you are a Trustee or a personal representative of an estate you are liable to the taxing authorities to file an estate tax return concerned about federal or Oregon estate taxes, call (541) 933-4688 to contact an Estate and Gift Tax Planning Attorney, in Bend, Oregon.