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How do I know if my heirs will pay an estate tax?

On Behalf of | Mar 10, 2020 | Estate Planning |

Oregon does have an estate tax, but not every estate must pay that tax. When planning your estate plan, there are ways to determine whether or not your loved ones will pay the tax. There are other considerations that can help limit the amount owed upon your passing. 

According to, Oregon estates over $1 million pay an estate tax. If your estate falls below $1 million, it is not taxable. Once it exceeds that threshold, the estate faces a tax from 10% to 16% depending on the estate’s value. 

Keep in mind that the estate tax only affects the taxable amount of the estate which is anything over $1 million. On top of the state estate tax, estates valued over $11.8 million faces a federal estate tax as well. There are exemptions for spouses that affect the taxable value. 

As of 2018, the federal gift tax only steps in for those gifts over $15,000, but there is no state gift tax. Gifting assets below that amount while you are alive can help avoid some estate taxes upon your death. You can gift money or property annually to lower the value of your estate while living. 

The Oregon estate tax only affects property and assets within the state. For those estates inherited in other states, those state laws apply to whether or not heirs pay an estate tax and how much. 

For additional ways to lower the tax burden faced by your loved ones, contact an estate planning attorney or financial planner for advice.