| Estate and Trust Taxes (Home) |
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| What's new for 2012? |
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Estate Transfer tax - (for date of death on or after January 1, 2012)
In 2012, the Oregon Inheritance tax will change to Oregon Estate Transfer tax. For deaths on or after January 1, 2012, our new Form OR 706, Oregon Estate Transfer tax return (currently under construction),* will need to be filed instead of Form IT-1, Oregon Inheritance tax return, which will only be filed for 2011 and prior dates of death.
The 2011 Oregon House Bill 2541 amends Oregon Revised Statute Chapter 118. Below is a summary of House Bill 2541, for more detailed information see Oregon House Bill 2541.
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.
- 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 on our new Schedule NRC, Form OR-706,* to confirm the NRC assets continue to qualify for the credit.
*Note: The new 2012 Form OR 706, Oregon Estate Transfer tax return is currently under construction and will be available soon. For form availability and other up-to-date information, subscribe to ReveNews for Tax Professionals.
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| Inheritance tax - (for 2011 and prior dates of death) |
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For more information see Inheritance Tax (Home).
Form IT-1, Oregon Inheritance Tax Return, will continue to be used for 2011 and prior dates of death.
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| What is estate income tax? |
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An estate that has 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.
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| What is trust income tax? |
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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.
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| Consent to transfer stock (or Stock Waiver Certificate) |
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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. You may e-mail us at: estate.help.dor@state.or.us
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| Laws, rules, and forms |
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| Tax professionals and estate attorneys |
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In order to assist you efficiently, please include your name and daytime telephone number if you are e-mailing us a question. We require all tax professionals and estate attorneys to research questions before contacting us for assistance.
Important note: We're currently creating the 2012 Form OR 706, Oregon Estate Transfer tax return and related forms and instructions. For form availability and other up-to-date information, subscribe to ReveNews for Tax Professionals.
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