Happy New Year Central Oregon!
As we begin 2026, it’s a good time to review filing and exclusion thresholds. The federal estate tax filing threshold has once again risen, to $15,000,000 in 2026. Estates of values above that amount may be subject to federal estate tax of up to 40% upon your death and the estate’s passing to your heirs. For more information, see the IRS Frequently Asked Questions for estate taxes.
For gifting in 2026, the Annual Exclusion per Donee remains $19,000, meaning that you can generally gift up to that amount total during 2026 per individual without estate tax consequences. For a couple, each spouse is entitled to the full Annual Exclusion amount, so a couple can together gift $38,000 to each individual child or other heir—a potentially useful tool in reducing the gross estate subject to future taxes. The structure of gifts can make a big difference in whether what you plan to do will work as intended however, so you should always consult with an attorney regarding your specific situation before making such gifts. For more information, see the IRS Frequently Asked Questions for gift taxes.
In Oregon, the state estate tax filing threshold remains $1,000,000. Of states that impose estate taxes, that’s the lowest in the country, and many people are surprised to learn of this potential tax burden! Estates of values over $1,000,000 may be subject to Oregon estate tax of 10–16% upon your death and the estate’s passing to your heirs.
A comprehensive estate plan can be structured to include provisions that may aid in minimizing estate tax liability (including potentially “doubling” the value of assets to pass free of Oregon estate tax to $2,000,000). Circumstances vary though, so you should always consult an estate planning lawyer to ensure your plan is structured properly and will function as intended. Please contact us to set up an appointment to explore your options.