OREGON ESTATE TAX PLANNING WITH GIFTS – BE CAREFUL

Oregon’s estate tax only applies to the decedent’s wealth on the date of death. ORS 118.010. And Oregon has no gift tax. Thus, if assets are given away before death, by even one day, the tax is zero. But gifts can backfire. Here’s why. Continue reading

A/B TRUSTS ARE OBSOLETE IN OREGON AND WASHINGTON- USUALLY

General Overview.  For the last 20 years, variations of the A/B Trust have been the cornerstone of estate tax planning for married couples.  In a nutshell, the A/B Trust structure prevents all or a portion of the wealth from the first spouse to die from being included in the surviving spouse’s estate — even though she has the use of the money for the rest of her life.
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HOW MUCH IS WASHINGTON’S ESTATE TAX?

The big difference between Oregon and Washington is that Oregon’s estate tax covers all wealth in excess of $1M, while Washington’s tax only applies to wealth in excess of $2M. In the table below, I have summarized the Washington tax payable on estates of various sizes. Continue reading