They will if you leave a lot of money because Oregon has one of the lowest thresholds in the country for owing estate taxes. Oregon also has higher than average state-level income taxes, which can cause capital gains tax issues. Taxes. It’s why I often tell clients that Oregon is one of the worst places to die.

The federal threshold for estate taxes is high; over $11 million as of 2018 (though it is scheduled to sunset back to the $6 million-range in 2026.
On the other hand, Oregon has a very low threshold for estate taxes. Only $1 million per deceased person or married couples dying at separate times.

It gets worse when you learn what it all means.

This includes all assets – real estate, cash and bank accounts, investments, retirement accounts, personal property and life insurance policies.
Over the $1 million threshold, the tax is 10-16%.
If you’re immediately contemplating moving to Washington state, the exemption is just over $2 million, but the tax rate goes up to 20%.

Basic estate planning again can come to the rescue.

A married couple has the flexibility to shield an additional $1 million for their children from Oregon estate taxes, and there are additional strategies available to further reduce them.

My take is simple: You already paid income tax on the money you earned.

Don’t pay estate taxes that you don’t have to.

To learn more, visit us online, reach out with an email, or fill out our online questionnaire.
Thanks for reading and all the best to you and yours.

Aaron

About the Decoding the Law Series –
We know the law can be complex and confusing. So, we’ve written this
continuing series to replace mystery with clarity, and to explain the
basic facts of estate planning in a straightforward, easy-to-understand
way. Every client deserves to know what we’re doing and why, so our
transparent process is designed for your peace of mind. It’s the HLO
difference: Estate Planning to Business Counsel to Wealth Preservation.
The law decoded, giving clients a secure future, a lawyer to believe in.