Article | April 08, 2025
Oregon residents considering transferring wealth should act now to take advantage of the federal estate tax exclusion, currently set at $13.99 million per individual. This exclusion is scheduled to be halved on December 31, 2025, creating a significant reduction in gifting opportunities. While Oregon does not impose a gift tax, gifted assets retain their original cost basis, which has implications for the recipient if the asset is sold later. Importantly, any amount gifted reduces the donor’s federal estate tax exclusion. The chart below illustrates how gifting up to the full 2025 exclusion can leave your heirs with a far greater benefit compared to waiting until the exclusion drops in 2026. For example, gifting $27.98 million in 2025 could result in $41.19 million net to heirs, compared to just $35.6 million if the 2026 exclusion is used. To navigate these complexities and make the most of current laws, consult your CPA or Isler Wealth Management for tailored strategies.
Joseph Lewis CPA, JD
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