Answering Your Questions About Oregon’s Estate Tax Filing Deadline Change

Answering Your Questions About Oregon’s Estate Tax Filing Deadline Change

Understanding estate planning can be difficult enough as it is. When major changes happen, however, things can suddenly become a lot more complicated. This is especially true for the many people who don’t necessarily have a solid grasp on the impact legislative changes such as filing deadlines can have on their planning. At J Mishkin Law, we consider it our duty to help inform and educate clients about legal changes that may affect their estate plans. Continue reading to keep up to date on this policy update, and gain a better understanding of what it may mean for your estate planning.

This blog outlines the key details of Oregon’s 2021 legislative change regarding estate tax filing deadlines. For more personalized advice regarding your own estate planning, contact J Mishkin Law today.

 

What Did Oregon Change? 

The essential fact you need to know is that in 2021, Oregon legislature made an important shift in their estate planning requirements. The due date for filing Form OR-706, the Oregon Estate Tax Return, officially changed and extended. Estates of decedents who passed on or after January 1st, 2022, are now required to complete and file Form OR-706 within 12 months of the date of death. This includes paying any taxes due as a part of the return. For any decedents who may have died prior to January 1st, 2022, the original nine-month deadline is still applicable.

 

Who Needs to File the OR-706 Form? 

Responsibility typically falls on the fiduciary of the decedent’s estate. The fiduciary may be people such as the executor, personal representative, estate administrator, or trustee.

 

Are There Further Extensions Available? 

Yes! If you find you need more time to get your affairs in order and file Form OR-706, there is an extension that may be granted. You are able to apply for a six-month extension on top of the twelve-month original timeline. However, it is important to note that this extension does not apply to paying the taxes themselves. Taxes are still due within the original deadline, but the filing of the Estate Tax Return will be pushed back. Extensions for tax payment are only granted under very special circumstances.

 

What is an ‘Estate Transfer Tax’?

An ‘estate transfer tax’ is a tax that is imposed when assets are transferred to the decedent’s heirs and beneficiaries from an estate. A tax return form must be filed if the gross value of the estate upon the date of death reaches $1,000,000 or more. Though, this only applies if the estate itself contains property taxable by the state of Oregon.

 

How Will This Affect State Planning?

Having a few extra months to file an estate tax return is going to offer plenty of positive benefits for many citizens of Oregon. There are, however, going to be negative consequences involved that cannot be overlooked. This is not a federal change – though the State of Oregon has extended its deadline to file, the Federal Government still requires the estate to file its tax return within the original nine months from the date of death. Inconsistencies between these requirements pose a risk of confusion and missed timelines, and the 12-month extension may easily lead to further delays.

It’s worth noting, too, that requiring the estate to remain open for a few extra months until the tax return is paid and filed may add unnecessary costs to the estate. The pushbacks and delays that we believe will inevitably come from this change may likewise cause the distribution of assets to loved ones to be drawn out, making the entire process longer, more difficult, and all around more confusing than it ever needs to be.

 

Contact J Mishkin Law for Further Information and Support 

If you or your family is based in Oregon, this change by the legislature may very well affect you and your estate planning. But, there’s never any need to feel overwhelmed or disheartened by the delays or confusion this change may cause. Having experienced experts on your side as you navigate estate tax return filings will make your journey endlessly easier, and we believe we’re the team you could be looking for.

If you’re on the hunt for a swift-acting and highly knowledgeable legal team to help you understand how these changes may affect you, reach out to J Mishkin Law today. We’re ready to lend a hand.

 

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Jonathan Mishkin

Jonathan D. Mishkin focuses his practice on tax/trust controversy, estate planning, taxation and closely-held business advisory services with offices in Portland, Bend and West Linn. Drawing on deep experience gained inside both large accounting firms and large law firms, Mr. Mishkin capably advises and counsels individuals, families and their businesses, and trusts/trustees.

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