Estate tax alert for state of Oregon
By Skip Rapp
Change is on the way for your clients that reside in the state of Oregon or are non-residents who own property in the state of Oregon. The time is now to contact clients to encourage an estate plan review with a qualified estate attorney.
On Jan. 1, 2012, Oregon's current inheritance tax will change in several ways. According to About.com's Wills & Estate Planning expert Julie Garber, three primary changes will occur:
1) The name of the tax will change from "inheritance" tax to "estate" tax. This brings Oregon's law in line with the majority of the states and the federal government which define an estate tax as one that applies to the entire value of the estate versus a tax that is applicable only to select beneficiaries of an estate.
2) The second change is in how the exemption amount of $1,000,000 (amount to remain the same) is applied. Presently, once an estate's value exceeds $1,000,000, the entire value is taxed. Post-Jan. 1, 2012, the tax will only apply to the amount of the estate that exceeds $1,000,000.
3) New rates will be in effect after Jan. 1, 2012, the net result being that estates valued between $1,000,000 and $2,000,000 will experience a decrease versus current day rates, and those valued over $2,000,000 will experience an increase.
Ms. Garber provides a link to a table outlining the new rates here as well as an updated version of state estate tax and exemption chart. If you are uncertain about the laws that govern in your clients’ states of residence (or in a state where they own property), it's worth a read now to be fully informed.
Remember, the changes occurring in Oregon are distinct and separate from the body of law that governs the federal estate tax.