From 24/7 Wall St. · Jake FitzGerald · · 1m 10s
Oregon Estate Tax Threshold Exposes Retired Couple
Oregon's $1 million estate tax threshold exposes $600,000 of a retired couple's $1.6 million estate.
In brief
Oregon's $1 million estate tax threshold exposes $600,000 of a retired couple's $1.6 million estate. Oregon taxes $600,000 of a retired couple's $1.6 million estate at death due to its $1 million threshold, while federal estate tax starts at $15 million. Originally reported by 24/7 Wall St..
Oregon's Estate Tax Threshold
Oregon requires an estate tax return once the gross estate at death reaches $1 million.
Federal Estate Tax Starts at $15 Million
The IRS sets the lifetime basic exclusion amount at $15,000,000 per person for 2026.
Retired Couple's Estate Value
A Salem couple owns a house bought in the 1990s, two retirement accounts, and a life insurance policy totaling $1.6 million.
Oregon Tax Exposure
$600,000 of the couple's $1.6 million estate sits above Oregon's $1 million threshold.
Oregon Has No Portability
Oregon has no portability between spouses, so the first spouse's unused threshold is gone for good.
Credit Shelter Trust Solution
A credit shelter trust preserves the first spouse's Oregon threshold by holding assets in the trust before death.
What Happens Next
Oregon couples should set up credit shelter trusts before either spouse dies to protect assets from state tax.
What matters most
Oregon taxes $600,000 of a retired couple's $1.6 million estate at death due to its $1 million threshold, while federal estate tax starts at $15 million.
