Julia Rice advises clients regarding the estate tax implications of their estate and methods to minimize their federal and state estate tax exposure, including the creation of irrevocable trusts, such as spousal lead access trusts, gift trusts, charitable remainder trusts, and irrevocable life insurance trusts.
Estate Tax. The estate tax is a tax on your right to transfer property at your death. The fair market value of your gross estate is used to calculate the amount of tax due. A filing of the Federal estate tax is due for estates with combined gross assets and prior taxable gifts exceeding $12,060,000 in 2022. A filing of the Oregon estate tax return is due for estates with combined gross assets exceeding $1,000,000. Given Oregon’s threshold of $1,000,000 versus the federal threshold of $12,060,000, more clients are concerned about the Oregon estate tax than the federal estate tax. Julia prepares state estate tax returns (Form OR-706, Oregon Estate Transfer Tax Return).
Marital Deduction. The unlimited marital deduction allows an individual to transfer an unrestricted amount of assets to his or her spouse at any time, including at the death of the transferor, free from tax. Even though no tax is due, however, an estate tax return must be filed if the filing thresholds are met.