Helping Our Clients Maintain Their Finances
Estate and gift taxes are an important aspect of estate planning, and it’s important that you understand how these taxes may impact you and your family. At Pacific Cascade Legal, our lawyers can walk you through this process to effectively protect your estate.
Call our firm at (503) 573-5566 to schedule your appointment today!
Your estate is made up of any assets that you own- this can include bank accounts, personal belongings, stocks, real property, and life insurance. An estate tax is charged to the estate of a person recently deceased, and is owed before any money is dispersed to any living heirs stated in a will.
How Estate Taxes Work
Under federal law, estate taxes will not be owed on property up to $11.58 million—anything above this price will be subject to a tax rate of up to 40%. In addition to federal estate taxes, some states also impose a state-level tax, which includes Oregon. Oregon does have systems in place to help manage this tax and provides exemptions to those who have an estate that is worth under $1 million, however any estates above this price point can be subject to estate taxes, ranging from 10%-16%, depending on your bracket.
Gift taxes are applied to any gift that is transferred from a donor to another person during their lifetime. Oregon does not have a state gift tax, so these are only applied at a federal level. A person’s estate may be subject to a gift tax if over $15,000 has been donated to a single individual in one year. Even so, there are situations that may exempt a person from having to pay these taxes, such as gifts to medical, political, or educational organizations, charity, or a gift to a spouse.
Contact Our Firm Today
If your estate is subject to estate and gift taxes, it’s important to be prepared, and to have a comprehensive understanding of how these tax laws work to ensure that you and your family can plan accordingly, and there are no surprises along the way. Our attorneys have extensive experience with these types of taxes, and can help you navigate even the most complex of scenarios.
For your consultation, call us today at (503) 573-5566 or contact us online.