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                                  Form OR-706 Instructions  
                                  Oregon Estate Transfer Tax                                                                                  2024

 This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).  
         For possible updates and more information, refer to the laws and rules on our website,  www.oregon.gov/dor.

                                         Contents

Purpose of Form OR-706 ......................................................2                     Forest Conservation Tax Credit ...........................................5 
                                                                                                   Amount paid by the due date of the return ......................6
What’s new ...............................................................................2        Penalty due .............................................................................6
                                                                                                   Interest due .............................................................................6
Important .................................................................................2       Total due .................................................................................6
                                                                                                   Executor signature .................................................................6
Overview ...................................................................................2      Authorization .........................................................................6
  Filing requirements ...............................................................2
  Who must file the return ......................................................2               Part 3: Elections by the executor .......................................7
  When to file return—due date ............................................2                       Alternate valuation ................................................................7
                                                                                                   Special use valuation of Section 2032A ..............................7
Return mailing addresses and payment instructions ...3                                              Reversionary or remainder interests ..................................7
  Returns ....................................................................................3
  Payment only..........................................................................3        Part 4: General information ................................................7
  Private delivery services .......................................................3               Surviving spouse ...................................................................7
  Amended returns ..................................................................3              Beneficiary information........................................................7
  Forms and schedules ............................................................3                Section 2044 property ...........................................................7
                                                                                                   Insurance not included in the gross estate ........................7
Part 1: Decedent and executor information ..................4                                      Partnership interests and stock in closely 
  Decedent name and SSN ......................................................4                    held corporations ...................................................................7
  Decedent domicile .................................................................4             Trusts .......................................................................................8
  Extensions ...............................................................................4
                                                                                                 Part 5: Recapitulation ...........................................................8
  Separate election checkbox ..................................................4
  Executor name and address  ................................................4                     Conservation easement exclusion .......................................8
                                                                                                   Deductions ..............................................................................8
Part 2: Tax computation ...................................................... 4                   Marital deduction—Schedule M .........................................8
  Rounding off to whole dollars ............................................ 4
                                                                                                 Part 6: Tax table ......................................................................8
  Total gross estate ...................................................................4
  Natural resource property exemption ................................4                            Assembly and processing.....................................................9
  Disposition of qualifying property and additional                                                Filing checklist for Form OR-706 .........................................9
  tax due .....................................................................................5   What happens after you file the tax return? .....................9
  Oregon estate tax. ..................................................................5         Installment payments ...........................................................9
  Gross value of property located in Oregon .......................5
  Oregon percentage ................................................................5            Survivor information .......................................................... 10
  Tax payable to Oregon ..........................................................5                Definitions ............................................................................ 10
  Natural resource and commercial 
  fishing business credit ..........................................................5            Do you have questions or need help? ............................ 10

                                  Visit  www.oregon.gov/dor for potential updates.

150-104-001-1 (Rev. 07-16-24)                       Page 1 of 10                                                            2024 Form OR-706 Instructions

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Purpose of Form OR-706                                            estimated value of $250,000 to the amount listed on the federal 
                                                                  Form 706 recapitulation, line 2 ($600,000), and report the total 
The executor of a decedent’s estate will use Form OR-706          on the Oregon OR-706 recapitulation, line 502 ($850,000).
to figure the estate tax imposed by ORS Chapter 118. This 
transfer tax is levied on the entire taxable estate and is paid 
by the estate. This tax isn’t imposed on the heirs or beneficia-  Overview
ries of the estate. If the estate has assets outside of Oregon, 
                                                                  Filing requirements
you’ll apportion the tax on part 2, lines 6–8.
                                                                  A return must be filed if the value of the gross estate at the 
What’s new                                                        date of death is $1,000,000 or more. Form OR-706 must be 
                                                                  filed for dates of death on or after January 1, 2012; Oregon 
Natural resource property exemption                               Form IT-1, Oregon Inheritance Tax Return, must be filed for 
ORS 118.145 provides an Oregon estate transfer tax exemp-         dates of death before January 1, 2012. 
tion from the taxable estate that applies to estates of dece-     Gross estate is defined below in Part 2, line 1.
dents who pass away on or after July 1, 2023. The exemption 
is reported on Oregon Schedule OR-NRE,          Oregon Natural    All schedules referenced in these instructions are referring to 
Resource Property Exemption,      150-104-009. An estate can’t    schedules included with federal Form 706, unless otherwise 
claim the natural resource property exemption (line 3) and        noted. Report the estate assets and deductions on the federal 
the natural resource credit (line 9) on the same return. See      schedules and include the schedules with your Form OR-706.
instructions for line 3 below for more details.                   Oregon filing requirements are different from the federal 
                                                                  filing requirements. Oregon requires the same forms, sched-
Important                                                         ules, and supporting information (such as photocopy of 
                                                                  death certificate, Form 712, life insurance statement, will, 
Visit  www.oregon.gov/dor for potential updates 
                                                                  trust documents, appraisals, etc.) that would have been 
to instructions.                                                  required if the estate had filed a federal return.
Request for Discharge from Personal Liability                     To help us to process your return more efficiently, assemble 
Don’t include Form OR-706-DISC, Request for Discharge from        your return in the order as outlined on page 9 in these 
Personal Liability, with your Form OR-706. Send the OR-           instructions. This will assist us in processing the return in 
706-DISC form separately. We’ll respond with a Certificate        the most efficient and effective manner.
of Discharge letter.  
                                                                  Who must file the return 
Federal schedules                                                 Executor(s) of the decedent’s estate must file Form OR-706. 
Oregon doesn’t have our own schedules for the OR-706. We          The definition of “executor” is the executor, administra-
ask that you attach the federal schedules. They can be found      tor, personal representative (PR), fiduciary, or custodian of 
at  www.irs.gov/forms-instructions or by calling 800-829-3676.    property of the decedent (ORS 118.005). For probate estates, 
                                                                  the personal representative appointed or approved by the 
Estimated values                                                  court has the duty to file the return. For non-probate estates, 
Did you use estimated values per Treas. Reg. 20.2010-2(a)(7)      any person having actual or constructive possession of the 
(ii) when filing your federal Form 706? If so, attach a separate  property of the decedent must file the return.
schedule for Oregon listing the schedule, item number, and 
                                                                  If two or more people must file a return, they should file one 
estimated value of the asset that’s deductible under IRC sec-
                                                                  return together.
tion 2056 or 2056A, Marital deduction property, or under IRC 
section 2055(a), Charitable deduction property.                   Due date—When to file
When completing the Oregon recapitulation schedule in part        You must file Form OR-706 within twelve months of the date 
5 of the return, add the estimated values for each schedule       of the decedent’s death. 
and add to the total value of the corresponding schedule as 
reported on the federal Form 706 recapitulation schedule.         Example: If the date of death is February 16, the due date to 
                                                                  file Form OR-706 is February 16. See also “Extensions” below.
Example: Federal schedule B reports total assets of $600,000 
but also includes an asset that’s deductible under IRC section    Payment
2056 or 2056A, Marital deduction property, or under IRC section 
2055(a), Charitable deduction property, which is reported on line Your tax payment is due within twelve months of the date of 
10 of the federal Form 706 recapitulation. The estimated value    the decedent’s death, unless you requested an extension of time 
of the asset is $250,000. For Oregon purposes, the estate would   to pay and we approved your extension of time to pay. Your 
provide the federal schedule B with the Oregon OR-706, and        request for extension of time to pay must be received by the 
provide a separate schedule listing the estimated value of        department by the due date of the return. If the extension isn’t 
the asset listed on schedule B. The estate would then add the     received by the due date of the return the request will be denied.
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If the tax paid with the return is less than the balance due       Private delivery services require a physical address. 
shown on part 2, line 13, explain why you didn’t pay the           Use this address:
full amount of tax in a statement included with the return. 
                                                                   Oregon Department of Revenue
If we approved your request for an extension of time to pay, 
                                                                   955 Center Street NE
include a copy of the approval with Form OR-706 and check          Salem OR 97301-2555
the extension of time to pay box.
                                                                   Your private delivery service will tell you how to get written 
To assist us in posting your payment to your account if            proof of mailing and delivery dates.
mailed separate from your return, use Form OR-706-V, 
Oregon Estate Transfer Tax Payment Voucher, 150-104-172. Send      Amended returns
the voucher with your payment; don’t send the voucher 
                                                                   Do you need to amend your return? If yes, it’s the duty of 
without a payment. 
                                                                   the executor or other responsible person to file an amended 
You may send payment prior to filing the return, with the          return with us. Use Form OR-706 to prepare the amended 
return, or after filing the return. Always include Form OR-        return using the amended figures and include a statement 
706-V with your payment if mailed separate from your               describing the reason for the amendment. Include any sched-
return. Don’t include Form OR-706-V with your return.              ules that have changed since your prior tax return was filed 
                                                                   and check the amended return box in the upper left corner 
Payments received after the original due date will be applied      on page 1. If an asset value has changed, provide substantia-
first to penalty, then to interest, and then to tax.               tion, such as an appraisal, to establish the new value.
Important: Submit only one copy of your return. lf you are         Did the IRS audit or another taxing authority make a change 
sending in a payment prior to or after filing your return,         or correction to the estate tax resulting in a change to the 
only include Form OR-706-V.                                        Oregon estate tax? If yes, the executor or other responsible 
                                                                   party must report the change or correction to us by amend-
Mailing addresses and payment instructions
                                                                   ing the estate return showing all the changes and how the 
Returns:                                                           changes affect the Oregon estate tax.
If you’re including a payment with your return, mail your          If you owe more tax with your amended tax return or 
return without a payment voucher, to:                              because of a change or audit to your estate tax return, 
Oregon Department of Revenue                                       include Form OR-706-V with your payment. You will be 
PO Box 14555                                                       assessed interest on the additional tax owing calculated 
Salem OR 97309-0940                                                from the original due date of the return to the payment date.
                                                                   Note: Also see instructions for part 2, line 12.
If you’re not including a payment with your return, mail 
your return to:                                                    Forms and schedules 
Oregon Department of Revenue                                       You may access our forms and instructions anytime on our 
PO Box 14110                                                       website at  www.oregon.gov/dor.  
Salem OR 97309-0910.
                                                                   On our website you may:
Payment only:
                                                                   • Download current forms, instructions, and publications.
If you’re paying by mail, separate from your return, include       • Download prior year forms and instructions.
a payment voucher, and mail it to:
                                                                   To request help for estate transfer tax via email, write to: 
Oregon Department of Revenue                                         estate.help.dor@ dor.oregon.gov.
PO Box 14950
Salem OR 97309-0950.                                               Federal schedules are found at  www.irs.gov/forms-instructions 
                                                                   or by calling 800-829-3676.
Include on your check:
                                                                   Professional tax preparers must research questions before 
• FEIN or Decedent’s SSN.                                          contacting us for assistance.
• Tax year.
• Daytime phone.
                                                                   Part 1: Decedent and executor information
• Form OR-706.
We’re unable to acknowledge the receipt of tax returns or          Decedent
payments. Don’t send an addressed envelope for acknowl-            Decedent’s name and Decedent’s Social Security number 
edgements. If you want verification we received your enve-         (DSSN). Enter the decedent’s name and SSN assigned to the 
lope, you may send it by certified mail with a return receipt      decedent. If the decedent didn’t have a SSN, the executor 
requested. If you want to know if we cashed your payment           should obtain one for the decedent by filing federal Form 
check, contact your bank.                                          SS-5, Application for Social Security Card, with the Social 
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Security Administration. Don’t use the SSN assigned to the and check the “Prepayment” checkbox when filing the form
decedent’s spouse. with your payment.

Decedent’s domicile. Domicile is the place where the dece- Separate election
dent had their fixed, permanent, principal home. The dece-
dent is allowed only one domicile, though they may have If the estate makes an election on the Oregon tax return
had multiple residences. which is different from the election made on the federal tax
return, check the box “A separate election is claimed” in the
Social Security numbers upper right section of the form. Examples of separate elec-
tions are qualified terminable interest property (QTIP) and
ORS 305.100 and Section 405, Title 42, of the United States
Oregon special marital property (OSMP). See part 5, line 520.
Code, authorizes requests for SSNs. You must provide this
information. The SSN will be used to establish both the Executor
decedent’s and executors’ identities.
Executor name and address. If there’s more than one
executor, enter the name and the address of the executor we
Extensions should contact. List the other executors’ names, addresses,
To request an extension of time to file or an extension of phone numbers, and SSNs on an attached sheet. Notify us
time to pay, complete and submit federal Form 4768 to us in writing of a change of address or phone numbers of any
by or before the original due date of Form OR-706. Oregon executor(s) or authorized representative(s).
doesn’t have its own extension form. Mail your completed
form to the correspondence address at the end of these Part 2: Tax computation
instructions. Mail payment separately to: Oregon Depart-
ment of Revenue, PO Box 14950, Salem OR 97309-0950. Don’t Rounding off to whole dollars
fax your extension.
On the return and schedules enter whole dollar amounts
Two different types of extensions are available for an estate only, don’t include cents, and round to the nearest dollar.
transfer tax return using:
Example: $5,762.81 becomes $5,763 and $1,294.33 becomes
1) Extension of time to file. We must receive your request $1,294.
for extension of time to file by the original due date of the tax
return. Once we receive your timely filed extension request, Line 1. Total gross estate
you’ll have an automatic six-month extension of time to file. The gross estate of the decedent is the value of all real and
Include a copy of this extension with your Form OR-706. An personal property, tangible or intangible, valued as of the
extension of time to file doesn’t extend the time to pay the date of death. Include all assets whether located inside or
tax. If your request isn’t received by the original due date outside of Oregon.
of the return, your request will be denied.
Enter either:
2) Extension of time to pay tax. We must receive your request • Amount from part 5, line 512, column (b) “Value at date
for extension of time to pay by the original due date of the of death,” or;
tax return. You must include a written statement detailing • Amount from part 5, line 512, column (a) “Alternate
why the estate can’t pay the tax by the original due date. If value,” if the executor elected alternate valuation on part
the estate doesn’t provide a written statement explaining 3, line 1, elections by the executor.
why they can’t pay the tax, the request for extension of time
to pay will be denied. We’ll evaluate your request and send Line 3. Natural resource property exemption
you written approval or denial. Once your tax return is filed ORS 118.145 provides an exemption for natural resource or
and an extension to pay is approved, if the request is for more
commercial fishing business property. It applies to estates
than 12 months after the original due date of the return, the
of decedents dying on or after July 1, 2023. Natural resource
estate must provide collateral in an amount equal to twice
property is farm use and forestland, as defined in ORS
the amount of unpaid tax to secure the debt (ORS 118.225).
308A.056, 308A.250, and 321.201. Real property must be in
We will contact you to work through the process of secur-
Oregon [ORS 118.140(a)(L)]. The qualifying property also
ing acceptable collateral. An extension of time to pay the tax
includes property used in commercial fishing business
doesn’t extend the time to file the tax return.
operations defined in ORS Chapter 508 and IRC Section
This extension information may change. See www.oregon. 1301(b)(4).
gov/dor.
To determine the exemption, see Schedule OR-NRE and
Interest accrues on any unpaid tax during the extension instructions at www.oregon.gov/dor.
period per ORS 305.220.
Important: An estate cannot claim both the natural resource
Are you making a payment with an Oregon Department property exemption on line 3, and the natural resource credit
of Revenue approved extension to pay? Use Form OR-706-V on line 9, on the same Estate Transfer Tax Return.
150-104-001-1 (Rev. 07-16-24) Page 4 of 10 2024 Form OR-706 Instructions

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Disposition of qualifying property and Line 8. Tax payable to Oregon
additional tax due Multiply Oregon estate tax on line 5 by the Oregon percent-
An additional tax may be imposed per ORS 118.005 to age on line 7 and enter the result.
118.540 in two situations. One, if the qualifying property is Example:
disposed of or is transferred to a person other than a fam-
ily member or another eligible entity, before the property is Line 1, gross estate = $1,450,000
used for five years after the date of death. Two, if the mate- Line 2, deductions = $20,000
rial participation requirements described above are not met. Line 4, taxable estate = $1,430,000
The additional tax liability is the amount of the additional Line 5, tax = $43,000
tax that would have been imposed had the disqualified Line 6, gross value of assets located in Oregon = $800,000
property not been excluded from the taxable estate. The
additional tax will be paid as provided by ORS 118.210. The prorated estate tax is computed as follows:
[Line 6 ÷line 1 = line 7 Oregon percentage] x line 5 = prorated
The payment of federal estate taxes, state inheritance, or
tax for line 8.
estate taxes from cash or other assets for which a natural
resource exemption was claimed, shall be a disposition and [$800,000 ÷ $1,450,000 = 0.551724] x $43,000 = $23,724
an additional tax shall be imposed. prorated tax, enter on line 8.
Line 9. Natural resource and commercial fishing
Line 5. Oregon estate tax
business credit
Oregon estate tax is calculated based on the taxable estate
consisting of all of the decedent’s property wherever located. ORS 118.140 provides a natural resource or commercial fish-
This amount is prorated on lines 6–8 if some property is ing business credit. You may elect to take all, part, or none
located outside Oregon. of this credit, for which you qualify. Natural resource prop-
erty is farm use and forestland, as defined in ORS 308A.056,
To compute line 5, see part 6 of these instructions for the tax 308A.250, and 321.201. Real property must be in Oregon
table, computation instructions, and an example. [ORS 118.140(a)(L)]. The qualifying property also includes
Line 6. Gross value of property located in Oregon property used in commercial fishing business operations
defined in ORS Chapter 508 and IRC Section 1301(b)(4). To
When the estate has property located outside of Oregon, use calculate the credit, see Schedule OR-NRC and instructions
lines 6, 7, and 8 to compute the prorated Oregon tax. at www.oregon.gov/dor.
On line 6, enter the gross value of estate assets taxable by Important: An estate can’t claim both the natural resource
Oregon. The taxability of the decedent’s property for Oregon property exemption on line 3, and the natural resource credit
purposes depends on whether the decedent was a resident on line 9, on the same Estate Transfer Tax Return.
or nonresident of Oregon.
Line 10. Forest Conservation Tax Credit
Oregon resident decedent. For a resident decedent, prop-
erty taxable by Oregon includes all real property located in Important: This credit is certified by the Oregon Depart-
Oregon, tangible personal property located in Oregon, and ment of Forestry (ODF). Visit www.oregon.gov/odf for more
intangible personal property. Don’t include intangible per- detailed information.
sonal property taxed by another state or another country as
Senate Bill 1502 (2022) allows a tax credit to a small forest-
a result of the decedent’s death. Enter the combined value
land owner who chooses to follow timber harvest restric-
of these assets on line 6.
tions applicable to a large forestland owner. Additionally,
If the decedent was an Oregon resident and all assets were House Bill 2161 (2023) amends the tax credit to increase the
located in Oregon, enter the gross estate amount from line credit amount under certain conditions.
1 on line 6.
To obtain the credit, a forest conservation area must be cre-
Nonresident decedent. For a nonresident decedent, prop- ated and the standard practice harvest restrictions must be
erty taxable by Oregon includes all real property located in followed for 50 years. The owner must record an irrevocable
Oregon and tangible personal property located in Oregon. deed restriction prohibiting a harvest in the forest conserva-
Enter the combined value of these assets on line 6. tion area during that time.
Line 7. Oregon percentage The tax credit can be used on the small forestland owner’s
Estate Transfer Tax Return if the small forestland owner dies
Divide the amount on line 6 by the amount on line 1; round
on or after January 1, 2023.
the decimal to six places. Convert the decimal to a percent-
age by multiplying the decimal by 100, or move the decimal Certification is required. The owner must have obtained
two places to the right. For example, 0.551724 becomes certification from ODF indi cating the amount of the tax
55.1724%. Write the percentage on line 7. Don’t enter more credit. Don’t include the certification with the tax return. The
than 100 percent or less than -0-. amount used can’t be more than the tax liability shown on
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the return. Any unused credit will carry forward and pass            • You haven’t filed a timely appeal with us.
to the owner’s heirs.
                                                                     Exception to additional interest: If we approved your 
Repayment. If a timber harvest is conducted in the forest            request for extension of time to pay and you’re in compliance 
conservation area before the restriction has expired, the            with the extension terms, the interest rate won’t increase by 
credit used must be repaid.
                                                                     4 percent per year.
Line 12. Amount paid by the due date of the return                   Special instructions. Do you owe a penalty on part 2, line 15 
For an original Form OR-706, enter the total of prior timely         or interest on line 16 and have an overpayment on line 14? If 
payments. For an amended return, enter the net payments              your overpayment is less than the total penalty and interest, 
(total payments made minus any refunds we paid to the                you have an amount due. To calculate the amount due, on line 
estate) to date.                                                     17 fill in the result of line 15 plus line 16 minus line 14. If your 
Example: Estate tax payments made with the original return           overpayment is more than the total penalty and interest, you 
= $105,000. Tax on the original return: $88,000. Original            have a refund. To calculate your refund, enter on line 18 the 
refund paid to the estate: $17,000.                                  result of line 14 minus the sum of lines 15 and 16.
$88,000 is the amount of your prior payments reduced by 
                                                                     Line 17. Total due
prior refunds ($105,000 − $17,000 = $88,000). Enter $88,000 
on your amended return, line 12, as your net prior payments.         Enclose a check or money order for the total amount due (tax 
                                                                     plus any applicable penalty and interest) with your return or 
Line 15. Penalty due
                                                                     pay using Revenue Online. An online payment can only be 
A penalty of 5 percent of the tax will be imposed if the return      made if a filer has previously received correspondence and 
isn’t filed by the due date or by the extended filing date. A 
                                                                     established an account number with us. If paying by mail, 
penalty of 5 percent of the tax will be imposed if the tax isn’t 
                                                                     see Mailing addresses and payment instructions above.
paid by the due date. If you have an Oregon Department of 
Revenue approved extension of time to pay, the tax must be           Don’t send cash or postdated checks. 
paid by the extended payment date to avoid a penalty. Only 
one 5 percent penalty will be assessed, the 5 percent late fil-      Executor signature  
ing penalty or the 5 percent late payment penalty. 
                                                                     The executor who files the return must sign the return 
If you file the tax return more than three months after the          under penalties of false swearing, per ORS 118.990. If  there’s 
due date (including extension), add an additional 20 percent         more than one executor, all executors must provide their 
penalty, for a total of 25 percent penalty.
                                                                     full name, title (such as personal representative, trustee, 
Line 16. Interest due                                                etc.), address, phone number, and SSN on an attached page. 
                                                                     It’s sufficient for only one executor to sign the return when 
Interest is charged on tax not paid by the due date of the 
return, excluding extensions. Interest will accrue during            there’s more than one executor. All executors are responsible 
the extension period. The interest rate may change once a            for the return as filed and are liable for penalties provided 
calendar year. See ORS 305.222 for more information.                 for willfully filing erroneous or false returns, per ORS 
                                                                     118.990. This also applies to amended returns.
If you file or pay after the due date, calculate and pay interest on 
any unpaid tax or on tax paid after the original due date. Inter-    All executors or authorized representatives must notify us in 
est is calculated daily. Here’s how to calculate the interest due:   writing of any change of address or phone number. 
Tax  x  Daily interest rate  x  Number of days.                      If you paid a tax preparer to complete this tax return, the 
          For periods                                                preparer must sign and date the return, and provide their 
          beginning              Annual    Daily                     identifying information.
        January 1, 2025          9%        0.0247%
                                                                     Authorization
        January 1, 2024          8%        0.0219%
        January 1, 2023          6%        0.0164%                   If you want the tax return preparer to discuss this tax return 
Additional interest on deficiencies and delinquencies.               with us, check the box located between the signature line 
Interest will increase by one-third of 1 percent per month           for the executor and the preparer. This is a limited autho-
(4 percent yearly) on deficiencies or delinquencies if the           rization. If you want to authorize a person other than the 
following occurs:                                                    preparer, include a signed Oregon Tax Information Authori-
• You file a return showing tax due, or we assess an existing        zation and Power of Attorney for Representation (POA) form, 
deficiency; and                                                      150-800-005, with the tax return, or submit the POA form to 
• The assessment isn’t paid within 60 days after we issue the        us separately. The POA form is available on our website at 
notice of assessment; and                                            www.oregon.gov/dor/forms.
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Part 3: Elections by the executor Relationship
For each individual beneficiary, enter the relationship (if
Line 1. Alternate valuation known) to the decedent by reason of blood, marriage, or
Refer to the federal Form 706 instructions for the alternate adoption. For trust or estate beneficiaries, indicate TRUST or
valuation election. In the federal instructions, replace “IRS” ESTATE.
with “Oregon Department of Revenue” and replace Form 706 Amount
with Oregon Form OR-706. Search for the current year federal Enter the value actually distributed (or to be distributed)
Form 706 and instructions at www.irs.gov/forms-pubs (if the to each beneficiary, including transfers during the dece-
current year isn’t available, use the prior year’s form). dent’s life, from Schedule G. This value is required to be
included in the gross estate. The value entered doesn’t need
Don’t complete the “Alternate valuation date” or “Alternate
to be exact; a reasonable estimate is sufficient. For example,
value” columns of any schedule unless the executor elected
where precise values can’t readily be determined, as with
alternate valuation under elections. certain future interests, a reasonable approximation should
Line 2. Special use valuation of Section 2032A be entered. The total of these distributions should approxi-
mate the value of the gross estate reduced by funeral and
Refer to the federal Form 706 instructions for special use val- administrative expenses, debts and mortgages, bequests to
uation of the Section 2032A election. In the federal instruc- surviving spouse, charitable bequests, and any federal estate
tions, replace “IRS” with “Oregon Department of Revenue” and state inheritance taxes paid (or payable) relating to the
and replace Form 706 with Oregon Form OR-706. Search benefits received by the beneficiaries listed on lines 2 and 3.
for the current year Form 706 and instructions at www.irs. All distributions of less than $5,000 to specific beneficiaries
gov/forms-pubs (if the current year isn’t available, use the may be included with distributions to unascertainable ben-
prior year’s form). eficiaries on line 3b.

Line 4. Section 2044 property
Line 3. Reversionary or remainder interests
If you answered “Yes,” these assets must be shown on
For details of this election, see IRC Section 6163 and the
Schedule F.
related regulations.
Section 2044 property is property for which a previous
Section 2056(b)(7) election (qualified terminable interest
Part 4: General information property, or QTIP election) has been made, or for which a
Line 2. Surviving spouse similar gift tax election (Section 2523) has been made. For
more information, see the federal Form 706 instructions for
Complete line 2 whether or not there is a surviving spouse Schedule F.
and whether or not the surviving spouse received any
benefits from the estate. If there was no surviving spouse Line 5. Insurance not included in the gross estate
on the date of the decedent’s death, enter “None” on line 2a If you checked “Yes” for either 5a or 5b, you must complete
and leave lines 2b and 2c blank. The value entered on line 2c and include both Schedule D and Form 712, Life Insurance
doesn’t need to be exact. See the instructions for “Amount” Statement, for each policy with an explanation of why the
under line 3. policy or its proceeds are not includible in the gross estate.

Line 3. Beneficiary information Line 7. Partnership interests and stock in closely
Name held corporations
On line 3a, enter the name of each individual, trust, or estate If you answered “Yes” to line 7, you must include full details
who received or will receive benefits of $5,000 or more from for partnerships and unincorporated businesses on Schedule
the estate directly as an heir, next-of-kin, devisee, or legatee; F (Schedule E if the partnership interest is jointly owned).
or indirectly (for example, as beneficiary of an annuity or You must include full details for the stock of inactive or
insurance policy, shareholder of a corporation, or an heir closely held corporations on Schedule B.
that is a partner in a partnership, etc.). Value these interests using the federal Regulations Section
Note: If the estate has more than 7 beneficiaries, include a 20.2031-2 (stocks) or 20.2031-3 (other business interests).
free form continuation page and complete only those fields A “closely held corporation” is a corporation whose shares
relating to the beneficiaries. are owned by a limited number of shareholders. Often, one
family holds the entire stock issued. As a result, little, if any,
Identifying number
trading of the stock takes place. There is, therefore, no estab-
Enter the SSN of each individual beneficiary listed. If the lished market for the stock, and those sales that do occur
number is unknown, or the individual has no number, are at irregular intervals and seldom reflect all the elements
indicate “unknown” or “none.” For trusts and other estates, of a representative transaction as defined by the term “fair
enter the federal employer identification number (FEIN). market value” (FMV).
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Line 9. Trusts property subject to claims, or (b) the amount actually paid
at the time the return is filed.
If you answered “Yes” to either 9a or 9b, you must include
a copy of the trust instrument for each trust. You must com- Don’t enter more on line 517 than the amount on line 516.
plete Schedule G if you answered “Yes” to 9a and Schedule See IRC Section 2053 and the related regulations for more
F if you answered “Yes” to 9b. information.

Line 520. Marital deduction—Schedule M
Part 5: Recapitulation
Oregon allows elections, including but not limited to Section
Lines 501 through 510—gross estate: You must make an
2056—Bequests to surviving spouse. See ORS 118.010 and
entry on each line 501 through 509. If the gross estate doesn’t
relevant rules for details and examples.
contain any assets of the type specified by the separate
schedules, enter zero on that line. Entering zero on any lines If the estate claims a marital deduction or a QTIP deduction,
501 through 509 is a statement by the executor, made under complete and include an “Oregon-only” Schedule M. Iden-
penalties of false swearing, that the gross estate doesn’t tify the specific property for the deduction.
contain any includible assets covered by that line.
An estate may elect to claim an Oregon special marital prop-
Don’t enter any amounts in the “Alternate value” column erty (OSMP) deduction. The OSMP deduction is allowed by
unless you elected alternate valuation on elections by the ORS 118.013 and 118.016. See ORS 118.010 and relevant rules
executor—part 3, line 1. for more detail and examples.
If you elect alternate value, list amounts in both the alternate
The Oregon estate transfer tax return for the second spouse
value column and value at date of death column. Per IRC
to die must include any property previously claimed for the
2032(c), the election must decrease the value of the gross
QTIP or OSMP deduction claimed on the Oregon estate or
estate and estate tax.
inheritance tax return for the first spouse to die. See ORS
Schedules to include for lines 501 through 509. You must 118.010 and relevant rules for details.
include:

• Schedules A, B, and C if the gross estate includes any real Part 6: Tax table
estate; stocks and bonds; or mortgages, notes, and cash,
respectively. Compute your tax for part 2 line 5 by applying the rates
• Schedule D if the gross estate includes any life insurance in the table below to the amount on part 2, line 4 (taxable
or if you answered “Yes” to general information—part 4, estate).
question 5. Example:
• Schedule E if the gross estate contains any jointly owned • The taxable estate, part 2, line 4, is $1,700,000.
property or if you answered “Yes” to general informa- • Column 1, the taxable amount is equal to or more than
tion—part 4, question 6.
$1,500,000.
• Schedule F must be filed with every tax return. Answer
• Column 2, the taxable amount is less than $2,500,000.
its questions, even if you report no assets on this schedule.
• Column 3, tax on the amount in column 1 is $50,000.
• Schedule G if the decedent made any of the lifetime trans-
• Column 4, tax rate of 10.25 percent; apply to the taxable
fers to be listed on that schedule or if you answered “Yes”
to general information—part 4, question 8 or 9a. estate amount which is more than the amount in column 1.
• Schedule H if you answered “Yes” to part 4, question 10. • $1,700,000 less $1,500,000 = $200,000 x 10.25% = $20,500
• Schedule I if you answered “Yes” to part 4, question 11. plus $50,000 = $70,500 total tax.
• Enter your Oregon estate transfer tax on part 2, line 5.
Line 511. Conservation easement exclusion
Column 1 Column 2 Column 3 Column 4
You must complete and include Schedule U (along with any Tax rate on taxable
required attachments) to claim the exclusion on this line. Taxable estate Tax on estate amount more
equal to or Taxable estate amount than the amount in
Lines 513 through 521. Deductions more than: less than: in column 1: column 1 (percent):
$ 1,000,000 $ 1,500,000 $0 10.0%
You must include schedules J, K, L, M, and O as applicable,
1,500,000 2,500,000 50,000 10.25%
for the deductions you claim. 2,500,000 3,500,000 152,500 10.5%
Line 517 3,500,000 4,500,000 257,500 11.0%
4,500,000 5,500,000 367,500 11.5%
If line 516 is less than or equal to the value (at the time of the 5,500,000 6,500,000 482,500 12.0%
decedent’s death) of the property subject to claims, enter the 6,500,000 7,500,000 602,500 13.0%
amount from line 516 on line 517. 7,500,000 8,500,000 732,500 14.0%
If the amount on line 516 is more than the value of the prop- 8,500,000 9,500,000 872,500 15.0%
erty subject to claims, enter the greater of (a) the value of the 9,500,000 1,022,500 16.0%
150-104-001-1 (Rev. 07-16-24) Page 8 of 10 2024 Form OR-706 Instructions

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Assembly and documentation required Note: Processing delays may occur if you don’t provide the
required documents with your tax return.
Filing checklist for Form OR-706
When you complete the return, assemble all the required What happens after you file the tax return?
pages together, without staples, in the following order: We’ll process your tax return in the order the returns are
• Payment, if including with return. Don’t include a Form received. We may contact you for additional information or doc-
OR-706-V. umentation in order to complete the processing of your return.
• Form OR-706, pages 1, 2, and 3. Once the return is processed and the account is paid in full,
• Federal Form 706 (if required to file with IRS). we’ll issue the Oregon estate tax receipt as required by ORS
• Federal schedules in alphabetical order, with Forms 712 118.250. The receipt will identify the estate and show the
or 706-CE, if applicable. amount of tax, penalty, and interest paid to us. We’ll send
• Oregon Schedule OR-OSMP, if applicable. a copy of the receipt to the authorized representative, if the
• Oregon Schedule OR-NRC, if applicable. authorization box on part 2 of the form is checked, or if we
• Copy of extension request, if applicable. have an Oregon POA form on file for a representative.
• Death certificate.
• Will. The executor may request a discharge from personal liability
• Trust documents, if applicable. by completing the Oregon Form OR-706-DISC, Request for
• Powers of appointment document. Discharge from Personal Liability, 150-104-005. This form must
• A copy of the foreign country’s or other state’s Estate Tax be filed separately from the Form OR-706.
Return if the estate is subject to estate tax in a foreign We have up to 18 months to respond to your request. During
country or another state. our review your return may be selected for an audit. We’ll
• A copy of property inventory, schedule of liabilities, claims issue the discharge after we have accepted the return and
against the estate, and expenses of administration filed with the account is paid in full.
a foreign probate court, certified by an official of the court.
• Expert valuations (for example: business value, personal
property value, etc.). Installment payments
• Independent fee appraisals for real property, wherever Does the estate include an interest in a closely held business?
located, used to support reported value. Does the estate need to dispose of property for less than fair
If the decedent was a U.S. citizen but not a resident of the market value to pay the estate transfer tax? If you answered
yes to either one of these questions and the estate wishes
United States, you must include the following documents
to pay the tax in installments under ORS 118.225, you must
with the return:
submit a request for extension of time to pay. We’ll issue a
• A copy of property inventory, schedule of liabilities, claims determination letter to inform the estate whether or not they
against the estate, and expenses of administration filed qualified for installment payments under ORS 118.225. The
with the foreign court of probate jurisdiction, certified by number of payments can be up to 14 equal payments made
a proper official of the court; up of annual interest and principal.
• A copy of the return filed under the foreign inheritance,
The portion of tax which doesn’t qualify for the installment
estate, legacy, succession tax, or other death tax act, certi-
plan must be paid by the original due date of the tax return.
fied by a proper official of the foreign tax department, if
The first of 14 installment payments will begin once the
the estate is subject to such a foreign tax; and
extended payment period is approved by us, the total tax is
• A photocopy of the will, if the decedent died testate.
determined, and collateral has been provided by the estate;
• Copies of final statements from all accounts for checking,
see collateral required below. Other payment arrangements
saving, retirement, and other related accounts to support
may be available for your estate under ORS 118.225.
the amounts reported on Schedule B, C and G.
Collateral required
Continuation schedules
According to ORS 118.225 and corresponding rules, for us to
If there isn’t enough space on a schedule to list all the items, agree to an installment payment of tax, the following must occur:
include a continuation schedule:
• Acceptable collateral must be provided. For real property,
• Number the items you list on each schedule, beginning a first mortgage, having a value of double the extended
with the number “1” each time. tax. For personal property, a surety bond in double the
• Total the items listed on each schedule and its attachments, amount of the extended tax, executed by a corporation
and any continuation schedules. licensed to do business in the State of Oregon. The bond
• Enter the total of all schedules and continuation schedules must be renewed every five years.
at the bottom of each schedule. • Executor is personally liable for payment of the tax to the
• Don’t carry the totals forward from one schedule to the next. extent of the value of the property.
• Enter the total for each schedule on part 5—recapitulation. • Annual statements of account will be sent to the executor.
150-104-001-1 (Rev. 07-16-24) Page 9 of 10 2024 Form OR-706 Instructions

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• If your payment isn’t made timely, the installment pay- Probate: A formal court proceeding used when the dece-
ment arrangement is cancelled; a 5 percent late payment dent held property solely in the decedent’s name. Probate
penalty will be assessed; and the remaining liability of settles the decedent’s finances and distributes the property
penalty, interest, and tax is due and owing immediately. according to the will or state law. The probate court appoints
• Interest on the Oregon Estate Transfer tax accumulates a personal representative.
from the day after the due date of the original return, to
Probate court: In Oregon, this is generally the circuit court.
the date your payment is received.
In some cases it may be the county district court or the
• Oregon interest rates are shown in these instructions for
county court.
part 2, line 16.
Real property: Real property is land and stationary build-
You don’t need to furnish the required mortgage or bond
ings. For example, a residence or commercial building is
at the time you file Form OR-706. We will contact you and
real property.
work through the process of securing acceptable collateral.
Simple estate proceeding: A court procedure to transfer
Important: The interest paid on installment payments isn’t
the title of solely owned property to heirs when the estate
deductible as an administrative expense of the estate.
consists of:
(a) The fair market value of the estate is $275,000 or less;
Survivor information (b) No more than $75,000 of the fair market value of the
The following information is designed to help if you’re set- estate is attributable to personal property; and
tling the finances of a deceased person. It’s not a complete (c) No more than $200,000 of the fair market value of the
statement of laws or rules. estate is attributable to real property.

If you have questions after reading these instructions, see Do you have questions or need help?
your attorney. Some of these matters are complex and you
may need legal advice. Internet

Definitions www.oregon.gov/dor
Beneficiary: One who will receive assets from an estate. The • Download forms, instructions, and publications.
assets of an estate are distributed to beneficiaries after all • Search FAQ.
taxes and expenses are paid. The assets may be distributed
under the terms of a will, or if there is no will, under the Email
provisions of state law. (Other terms: heirs at law, devisee,
legatee, and claiming successor.) estate.help.dor@ dor.oregon.gov
This email address isn’t secure and confidentiality can’t be ensured. Gen-
Decedent: A legal word for a person who has died.
eral tax and policy questions only. We ask that professional tax preparers
Estate: All the property of the decedent. (See probate and small and attorneys research questions before contacting us.
estate proceeding.) If an estate is probated, the court appoints
a personal representative to be responsible for the property Correspondence
and finances of the estate. Any money the estate earns (such
as rental income or stock dividends) must be reported on Form Estate Tax Unit, Business Division
OR-41, Oregon Fiduciary Income Tax Return, 150-101-041. Oregon Department of Revenue
PO Box 14110
Executor: An executor is a personal representative, admin- Salem OR 97309-0910
istrator, trustee, fiduciary, or custodian of the property, or Fax: 503-945-8787, Estate Tax Unit
any person who has actual or constructive possession of the
decedent’s property. Phone
Fiduciary: An individual or legal group (such as a bank or 503-378-4988 or 800-356-4222
corporation) that has financial responsibility for an estate or
a trust held for the benefit of others. Monday–Friday, 7:30 a.m.–5 p.m.
Closed Thursdays from 9–11 a.m. Closed holidays.
Personal property: All property that isn’t real property, such Wait times may vary.
as money, stocks, bonds, machinery, or equipment. A mobile
home owned by the decedent, but located on rented or leased Contact us for ADA accommodations or assistance in other
land is also personal property. languages.

Personal representative: The executor, administrator, or In person
anyone in charge of the decedent’s property. The surviv-
Find directions and hours on our website.
ing spouse may or may not be the personal representative,
www.oregon.gov/dor.
depending on the will or the court appointment. The per-
sonal representative is also the estate’s fiduciary.
150-104-001-1 (Rev. 07-16-24) Page 10 of 10 2024 Form OR-706 Instructions

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