Newsletter 2011
Newsletter 2011
Gift Tax
Gift Tax
Print Full ArticleLast Reviewed: Jan 2012
Last Modified: Jan 2012
Gift and Inheritance Tax Update
Legislative Changes. During 2011 the Oregon legislature tackled some significant changes to our inheritance tax. The exemption was left at $1 million, but the tax rates were adjusted to remove higher rates at the lower end of the scale. The current lowest rate is now 10% on assets valued over $1 million. The rates climb to 16% for assets valued over $9.5 million. Another important change exempts non-Oregon residents with intangible personal property from the inheritance tax. Real and personal property located in Oregon and owned by non-residents will still be subject to tax. Examples of intangible personal property are cash, stocks, bonds and contract rights.
Gifting Opportunity. Oregon still does not add life-time gifts to the taxable estate. With the federal exemption at $5 million for 2012 this gives estates with total assets below this amount the opportunity to escape both estate and gift taxation by making life-time gifts to reduce the estate below $1 million (Oregon's exemption amount). Making substantial gifts of this nature should be approached with caution and only done after consulting an estate planning attorney and tax professional.
