If you’ve recently moved to Oregon from another state and you have an estate plan (even just a will) that you created in that state, one of the things you’ll want to do relatively soon after getting settled is review your estate plan with a professional.
While the bulk of your current estate plan would likely still be valid if you passed away before you had a chance to update it, you want to ensure that it’s in full compliance with Oregon law. You also want to make sure that you’re minimizing any potential tax liability for the estate and continuing to maximize its value for your beneficiaries.
Oregon has an estate tax
Oregon is among the minority of states that has its own estate tax. Under Oregon law, the amount up to $1 million of an estate is exempt from this tax. That’s the lowest state estate tax threshold in the country.
The amounts above that are taxed on a graduated scale from 10% up to 16%. Note that state estate taxes are separate from and in addition to any federal estate tax that might be due on a high-value estate.
If your estate plan was created in a state without its own estate tax, you’ll likely want to explore various strategies for avoiding that tax to prevent it from unnecessarily lowering the amount of your estate that will go to your beneficiaries.
Oregon isn’t a community property state
Unlike our neighboring states of Washington, California and Idaho, Oregon is not a community property state. While most people associate community property with divorce, the difference in the ownership of spousal property can make a difference in people’s estate plans.
These are just two factors to consider as you review your estate plan after your move. You’ll also want to make sure that all of your estate plan documents are valid and determine whether any Oregon laws can be advantageous to you and your beneficiaries.