Part of the process of planning your estate in Oregon is understanding the impact of taxes after your death. If you really want to focus on ensuring your estate leaves your loved ones in a good position financially, you cannot forget to account for the taxes the state and federal government will take from your estate.
It is essential to include taxes in your estate plan, but first, you need to understand what taxes you could have to pay. According to Oregon.gov, after your death, your estate may pay the estate transfer tax. There are two points concerning this tax and a third point about other taxes that you should keep in mind when creating your plans.
- Who is responsible
Someone must file the tax after your death. This can be almost anyone associated with your estate, such as the executor, administrator or personal representative. Anyone who inherits or otherwise has possession of your assets may also file.
- When you pay
It is important to note that you may not have to pay the estate transfer tax. Your estate will only pay it if your estate has a value of $1 million or more. Also, you need to have property taxable in the state or be a resident of the state. If you paid estimated taxes when you did not have to, then your heirs may file for a refund instead.
- What other taxes may apply
You also need to note that there may be additional state taxes on your estate. For example, if you have trusts and they made money, then income taxes are due for them. Also, if you own a business, your heirs will have to pay estate income tax on that business if it generated income.
Taxes are one thing that never go away, even if you die. It is helpful to everyone if you plan for the taxes on your estate as part of your overall estate planning.
