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                                  Form OR-706 Instructions  
                                  Oregon Estate Transfer Tax                                                                                 2022

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

150-104-001-1 (Rev. 07-20-22)             Page 1                                                of 10                            Form OR-706 Instructions

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Purpose of Form OR-706                                           and add to the total value of the corresponding schedule as 
                                                                 reported on the federal Form 706 recapitulation schedule.
The executor of a decedent’s estate will use Form OR-706         Example: Federal schedule B reports total assets of $600,000 
to figure the estate tax imposed by ORS Chapter 118. This        but also includes an asset that’s deductible under IRC sec-
transfer tax is levied on the entire taxable estate and is paid  tion 2056 or 2056A,  Marital deduction property,   or under 
by the estate. This tax isn’t imposed on the heirs or beneficia-
                                                                 IRC section 2055(a), Charitable deduction property, which is 
ries of the estate. If the estate has assets outside of Oregon, 
                                                                 reported on line 10 of the federal Form 706 recapitulation. 
you’ll apportion the tax on part 2, lines 6–8.
                                                                 The estimated value of the asset is $250,000. For Oregon 
                                                                 purposes, the estate would provide the federal schedule B 
What’s new                                                       with the Oregon OR-706, and provide a separate schedule 
                                                                 listing the estimated value of the asset listed on schedule B. 
Due date                                                         The estate would then add the estimated value of $250,000 
                                                                 to the amount listed on the federal Form 706 recapitulation, 
The 2021 Oregon Legislature changed the due date in ORS 
                                                                 line 2 ($600,000), and report the total on the Oregon OR-706 
118.100 for filing Form OR-706. Estates of decedents dying on 
                                                                 recapitulation, line 502 ($850,000).
or after January 1, 2022 are required to file Form OR-706 and 
pay tax due within 12 months of the date of the decedent’s 
death. See HB 3138 (2021) for more details.                      Overview

Looking ahead                                                    Filing requirements
                                                                 A return must be filed if the value of the gross estate at the 
Senate Bill 1502 (2022) allows a tax credit to a small forest-   date of death is $1,000,000 or more. Form OR-706 must be 
land owner who chooses to follow timber harvest restric-         filed for dates of death on or after January 1, 2012; Oregon 
tions applicable to a large forestland owner. In return, the 
                                                                 Form IT-1, Oregon Inheritance Tax Return, must be filed for 
small forestland owner is allowed a tax credit equal to the 
                                                                 dates of death before January 1, 2012. 
stumpage value of timber left standing as a result of the 
small forestland owner’s decision to follow timber restric-      Gross estate is defined below in Part 2, line 1.
tions applicable to large forestland owners. This tax credit 
                                                                 All schedules referenced in these instructions are referring 
can be used on the small forestland owner’s estate transfer 
                                                                 to schedules included with federal Form 706, unless oth-
tax return if the small forestland owner dies on or after 
                                                                 erwise noted. Report the estate assets and deductions on 
January 1, 2023. 
                                                                 the federal schedules and include the schedules with your 
                                                                 Form OR-706.
Important
                                                                 Oregon filing requirements are different from the federal 
                                                                 filing requirements. Oregon requires the same forms, sched-
Request for Discharge from Personal Liability 
                                                                 ules, and supporting information (such as photocopy of 
Don’t include Form OR-706-DISC, Request for Discharge from       death certificate, Form 712, life insurance statement, will, 
Personal Liability,  with your Form OR-706. Send the OR-         trust documents, appraisals, etc.) that would have been 
706-DISC form separately. We’ll respond with a Certificate       required if the estate had filed a federal return.
of Discharge letter.  
                                                                 To help us to process your return more efficiently, assemble 
Federal schedules                                                your return in the order as outlined on page 8 in these 
                                                                 instructions. This will assist us in processing the return in 
Oregon doesn’t have our own schedules for the OR-706. 
                                                                 the most efficient and effective manner.
We ask that you attach the federal schedules. They can 
be found at  www.irs.gov/forms-instructions or by calling        Who must file the return 
800-829-3676.
                                                                 Executor(s) of the decedent’s estate must file Form OR-706. 
Estimated values                                                 The definition of “executor” is the executor, administra-
Did you use estimated values per Treas. Reg. 20.2010-2(a)(7)     tor, personal representative (PR), fiduciary, or custodian of 
(ii) when filing your federal Form 706? If so, attach a separate property of the decedent (ORS 118.005). For probate estates, 
schedule for Oregon listing the schedule, item number, and       the personal representative appointed or approved by the 
estimated value of the asset that’s deductible under IRC sec-    court has the duty to file the return. For non-probate estates, 
tion 2056 or 2056A, Marital deduction property, or under IRC     any person having actual or constructive possession of the 
section 2055(a), Charitable deduction property.                  property of the decedent must file the return.
When completing the Oregon recapitulation schedule in part       If two or more people must file a return, they should file one 
5 of the return, add the estimated values for each schedule      return together.
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When to file return—due date                                      Include on your check:
You must file Form OR-706 within twelve months of the date        • FEIN or Decedent’s SSN.
of the decedent’s death.                                          • Tax year.
                                                                  • Daytime phone.
Example: If the date of death is February 16, the due date to 
                                                                  • Form OR-706.
file Form OR-706 is February 16. See also “Extensions” below.
                                                                  We’re unable to acknowledge the receipt of tax returns or 
Payment                                                           payments. Don’t send an addressed envelope for acknowl-
Your tax payment is due within twelve months of the date of       edgements. If you want verification we received your enve-
the decedent’s death, unless you requested an extension of time   lope, you may send it by certified mail with a return receipt 
to pay and we approved your extension of time to pay. Your        requested. If you want to know if we cashed your payment 
request for extension of time to pay must be received by the      check, contact your bank.
department by the due date of the return. If the extension isn’t  Private delivery services require a physical address. 
received by the due date of the return the request will be denied.
                                                                     Use this address:
If the tax paid with the return is less than the balance due         Oregon Department of Revenue
shown on part 2, line 12, explain why you didn’t pay the             955 Center Street NE
full amount of tax in a statement included with the return.          Salem OR 97301-2555
If we approved your request for an extension of time to pay, 
include a copy of the approval with Form OR-706 and check         Your private delivery service will tell you how to get written 
the extension of time to pay box.                                 proof of mailing and delivery dates.

To assist us in posting your payment to your account if           Amended returns
mailed separate from your return, use Form OR-706-V, 
Oregon Estate Transfer Tax Payment Voucher, 150-104-172. Send     Do you need to amend your return? If yes, it’s the duty of 
the voucher with your payment; don’t send the voucher             the executor or other responsible person to file an amended 
without a payment.                                                return with us. Use Form OR-706 to prepare the amended 
                                                                  return using the amended figures and include a statement 
You may send payment prior to filing the return, with the         describing the reason for the amendment. Include any sched-
return, or after filing the return. Always include Form OR-       ules that have changed since your prior tax return was filed 
706-V with your payment if mailed separate from your              and check the amended return box in the upper left corner 
return. Don’t include Form OR-706-V with your return.             on page 1. If an asset value has changed, provide substantia-
Payments received after the original due date will be applied     tion, such as an appraisal, to establish the new value.
first to penalty, then to interest, and then to tax.              Did the IRS audit or another taxing authority make a change 
Important: Submit only one copy of your return. lf you are        or correction to the estate tax resulting in a change to the 
sending in a payment prior to or after filing your return,        Oregon estate tax? If yes, the executor or other responsible 
only include Form OR-706-V.                                       party must report the change or correction to us by amend-
                                                                  ing the estate return showing all the changes and how the 
Mailing addresses and payment instructions                        changes affect the Oregon estate tax.
Returns:                                                          If you owe more tax with your amended tax return or 
If you’re including a payment with your return, mail your         because of a change or audit to your estate tax return, 
return without a payment voucher, to:                             include Form OR-706-V with your payment. You will be 
                                                                  assessed interest on the additional tax owing calculated 
Oregon Department of Revenue                                      from the original due date of the return to the payment date.
PO Box 14555
Salem OR 97309-0940                                               Note: Also see instructions for part 2, line 11.

If you’re not including a payment with your return, mail          Forms and schedules 
your return to: 
                                                                  You may access our forms and instructions anytime on our 
Oregon Department of Revenue                                      website at  www.oregon.gov/dor.  
PO Box 14110
Salem OR 97309-0910.                                              On our website you may:
Payment only:                                                     • Download current forms, instructions, and publications.
                                                                  • Download prior year forms and instructions.
If you’re paying by mail, separate from your return, include 
a payment voucher, and mail it to:                                To request help for estate transfer tax via email, write to: 
                                                                    estate.help.dor@ dor.oregon.gov.
Oregon Department of Revenue
PO Box 14950                                                      Federal schedules are found at  www.irs.gov/forms-instructions 
Salem OR 97309-0950.                                              or by calling 800-829-3676.
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Professional tax preparers must research questions before We will contact you to work through the process of secur-
contacting us for assistance. ing acceptable collateral. An extension of time to pay the tax
doesn’t extend the time to file the tax return.
Part 1: Decedent and executor information Interest accrues on any unpaid tax during the extension
period per ORS 305.220.
Decedent
Are you making a payment with an approved extension
Decedent’s name and Decedent’s Social Security number to pay? Use Form OR-706-V and check the “Prepayment”
(DSSN). Enter the decedent’s name and SSN assigned to the checkbox when filing the form with your payment.
decedent. If the decedent didn’t have a SSN, the executor
should obtain one for the decedent by filing federal Form Separate election
SS-5, Application for Social Security Card, with the Social If the estate makes an election on the Oregon tax return
Security Administration. Don’t use the SSN assigned to the
which is different from the election made on the federal tax
decedent’s spouse.
return, check the box “A separate election is claimed” in the
Decedent’s domicile. Domicile is the place where the dece- upper right section of the form. Examples of separate elec-
dent had their fixed, permanent, principal home. The dece- tions are qualified terminable interest property (QTIP) and
dent is allowed only one domicile, though they may have Oregon special marital property (OSMP). See part 5, line 520.
had multiple residences.
Executor
Social Security numbers
Executor name and address. If there’s more than one
ORS 305.100 and Section 405, Title 42, of the United States executor, enter the name and the address of the executor we
Code, authorizes requests for SSNs. You must provide this should contact. List the other executors’ names, addresses,
information. The SSN will be used to establish both the
phone numbers, and SSNs on an attached sheet. Notify us
decedent’s and executors’ identities.
in writing of a change of address or phone numbers of any
Extensions executor(s) or authorized representative(s).
Important: Visit www.oregon.gov/dor for potential updates.
To request an extension of time to file or an extension of time Part 2: Tax computation
to pay, complete and submit federal Form 4768 to us by or
before the original due date of Form OR-706. Oregon doesn’t Rounding off to whole dollars
have its own extension form. Mail your completed form to On the return and schedules enter whole dollar amounts
the correspondence address at the end of these instructions.
only, don’t include cents, and round to the nearest dollar.
Mail payment separately to the payment only address above.
Don’t fax your extension. Example: $5,762.81 becomes $5,763 and $1,294.33 becomes
$1,294.
Two different types of extensions are available for an estate
transfer tax return using: Line 1. Total gross estate
1) Extension of time to file. We must receive your request The gross estate of the decedent is the value of all real and
for extension of time to file by the original due date of the tax
personal property, tangible or intangible, valued as of the
return. Once we receive your timely filed extension request,
date of death. Include all assets whether located inside or
you’ll have an automatic six-month extension of time to file.
outside of Oregon.
Include a copy of this extension with your Form OR-706. An
extension of time to file doesn’t extend the time to pay the Enter either:
tax. If your request isn’t received by the original due date • Amount from part 5, line 512, column (b) “Value at date
of the return, your request will be denied. of death,” or;
2) Extension of time to pay tax. We must receive your request • Amount from part 5, line 512, column (a) “Alternate
for extension of time to pay by the original due date of the value,” if the executor elected alternate valuation on part
tax return. You must include a written statement detailing 3, line 1, elections by the executor.
why the estate can’t pay the tax by the original due date. If
the estate doesn’t provide a written statement explaining Line 5. Oregon estate tax
why they can’t pay the tax, the request for extension of time Oregon estate tax is calculated based on the taxable estate
to pay will be denied. We’ll evaluate your request and send consisting of all of the decedent’s property wherever located.
you written approval or denial. Once your tax return is filed This amount is prorated on lines 6–8 if some property is
and an extension to pay is approved, if the request is for more located outside Oregon.
than 12 months after the original due date of the return, the
estate must provide collateral in an amount equal to twice To compute line 5, see part 6 of these instructions for the tax
the amount of unpaid tax to secure the debt (ORS 118.225). table, computation instructions, and an example.
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Line 6. Gross value of property located in Oregon [ORS 118.140(a)(L)]. The qualifying property also includes
property used in commercial fishing business operations
When the estate has property located outside of Oregon, use defined in ORS Chapter 508 and IRC Section 1301(b)(4). To
lines 6, 7, and 8 to compute the prorated Oregon tax. calculate the credit, see Schedule OR-NRC and instructions
On line 6, enter the gross value of estate assets taxable by at www.oregon.gov/dor.
Oregon. The taxability of the decedent’s property for Oregon
purposes depends on whether the decedent was a resident Line 11. Amount paid by the due date of the return
or nonresident of Oregon. For an original Form OR-706, enter the total of prior timely
Oregon resident decedent. For a resident decedent, prop- payments. For an amended return, enter the net payments
erty taxable by Oregon includes all real property located in (total payments made minus any refunds we paid to the
Oregon, tangible personal property located in Oregon, and estate) to date.
intangible personal property. Don’t include intangible per- Example: Estate tax payments made with the original return
sonal property taxed by another state or another country as = $105,000. Tax on the original return: $88,000. Original
a result of the decedent’s death. Enter the combined value refund paid to the estate: $17,000.
of these assets on line 6.
$88,000 is the amount of your prior payments reduced by
If the decedent was an Oregon resident and all assets were prior refunds ($105,000 − $17,000 = $88,000). Enter $88,000
located in Oregon, enter the gross estate amount from line on your amended return, line 11, as your net prior payments.
1 on line 6.
Line 14. Penalty due
Nonresident decedent. For a nonresident decedent, prop-
erty taxable by Oregon includes all real property located in A penalty of 5 percent of the tax will be imposed if the return
Oregon and tangible personal property located in Oregon. isn’t filed by the due date or by the extended filing date. A pen-
Enter the combined value of these assets on line 6. alty of 5 percent of the tax will be imposed if the tax isn’t paid
by the due date. If you have an approved extension of time to
Line 7. Oregon percentage pay, the tax must be paid by the extended payment date to avoid
Divide the amount on line 6 by the amount on line 1; round a penalty. Only one 5 percent penalty will be assessed, the 5
the decimal to six places. Convert the decimal to a percent- percent late filing penalty or the 5 percent late payment penalty.
age by multiplying the decimal by 100, or move the decimal If you file the tax return more than three months after the
two places to the right. For example, 0.551724 becomes due date (including extension), add an additional 20 percent
55.1724%. Write the percentage on line 7. Don’t enter more penalty, for a total of 25 percent penalty.
than 100 percent or less than -0-.
Line 15. Interest due
Line 8. Tax payable to Oregon
Interest is charged on tax not paid by the due date of the
Multiply Oregon estate tax on line 5 by the Oregon percent-
return, excluding extensions. Interest will accrue during
age on line 7 and enter the result.
the extension period. The interest rate may change once a
Example: calendar year. See ORS 305.222 for more information.
Line 1, gross estate = $1,450,000 If you file or pay after the due date, calculate and pay interest on
Line 2, deductions = $20,000 any unpaid tax or on tax paid after the original due date. Inter-
est is calculated daily. Here’s how to calculate the interest due:
Line 4, taxable estate = $1,430,000
Tax x Daily interest rate x Number of days.
Line 5, tax = $43,000
Line 6, gross value of assets located in Oregon = $800,000 For periods
beginning Annual Daily
The prorated estate tax is computed as follows:
January 1, 2023 6% 0.0164%
[Line 6 ÷line 1 = line 7 Oregon percentage] x line 5 = prorated
January 1, 2022 4% 0.0110%
tax for line 8.
January 1, 2021 4% 0.0110%
[$800,000 ÷ $1,450,000 = 0.551724] x $43,000 = $23,724
prorated tax, enter on line 8. Additional interest on deficiencies and delinquencies.
Interest will increase by one-third of 1 percent per month
Line 9. Natural resource and commercial fishing (4 percent yearly) on deficiencies or delinquencies if the
business credit following occurs:
ORS 118.140 provides a natural resource or commercial fish- • You file a return showing tax due, or we assess an existing
ing business credit. You may elect to take all, part, or none deficiency; and
of this credit, for which you qualify. Natural resource prop- • The assessment isn’t paid within 60 days after we issue the
erty is farm use and forestland, as defined in ORS 308A.056, notice of assessment; and
308A.250, and 321.201. Real property must be in Oregon • You haven’t filed a timely appeal with us.
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Exception to additional interest: If we approved your                with “Oregon Department of Revenue” and replace Form 706 
request for extension of time to pay and you’re in compliance        with Oregon Form OR-706. Search for the current year federal 
with the extension terms, the interest rate won’t increase by        Form 706 and instructions  at  www.irs.gov/forms-pubs (if the 
4 percent per year.                                                  current year isn’t available, use the prior year’s form).
Special instructions. Do you owe a penalty on part 2, line 14        Don’t complete the “Alternate valuation date” or “Alternate 
or interest on line 15 and have an overpayment on line 13? If        value” columns of any schedule unless the executor elected 
your overpayment is less than the total penalty and interest,        alternate valuation under elections.
you have an amount due. To calculate the amount due, on line 
16 fill in the result of line 14 plus line 15 minus line 13. If your Line 2. Special use valuation of Section 2032A
overpayment is more than the total penalty and interest, you         Refer to the federal Form 706 instructions for special use val-
have a refund. To calculate your refund, enter on line 17 the        uation of the Section 2032A election. In the federal instruc-
result of line 13 minus the sum of lines 14 and 15.                  tions, replace “IRS” with “Oregon Department of Revenue” 
                                                                     and replace Form 706 with Oregon Form OR-706. Search 
Line 16. Total due
                                                                     for the current year Form 706 and instructions  at  www.irs.
Enclose a check or money order for the total amount due (tax         gov/forms-pubs (if the current year isn’t available, use the 
plus any applicable penalty and interest) with your return or        prior year’s form).
pay using Revenue Online. An online payment can only be 
made if a filer has previously received correspondence and           Line 3. Reversionary or remainder interests
established an account number with us. If paying by mail,            For details of this election, see IRC Section 6163 and the 
see Mailing addresses and payment instructions.                      related regulations.
Don’t send cash or postdated checks. 
Executor signature                                                   Part 4: General information

The executor who files the return must sign the return               Line 2. Surviving spouse
under penalties of false swearing, per ORS 118.990. If  there’s 
more than one executor, all executors must provide their             Complete line 2 whether or not there is a surviving spouse 
full name, title (such as personal representative, trustee,          and whether or not the surviving spouse received any benefits 
etc.), address, phone number, and SSN on an attached page.           from the estate. If there was no surviving spouse on the date of 
It’s sufficient for only one executor to sign the return when        the decedent’s death, enter “None” on line 2a and leave lines 
there’s more than one executor. All executors are responsible        2b and 2c blank. The value entered on line 2c doesn’t need 
for the return as filed and are liable for penalties provided        to be exact. See the instructions for “Amount” under line 3.
for willfully filing erroneous or false returns, per ORS 
                                                                     Line 3. Beneficiary information
118.990. This also applies to amended returns.
                                                                     Name
All executors or authorized representatives must notify us in        On line 3a, enter the name of each individual, trust, or estate 
writing of any change of address or phone number.                    who received or will receive benefits of $5,000 or more from 
If you paid a tax preparer to complete this tax return, the          the estate directly as an heir, next-of-kin, devisee, or legatee; 
preparer must sign and date the return, and provide their            or indirectly (for example, as beneficiary of an annuity or 
identifying information.                                             insurance policy, shareholder of a corporation, or an heir 
                                                                     that is a partner in a partnership, etc.).
Authorization
                                                                     Note: If the estate has more than 7 beneficiaries, include a 
If you want the tax return preparer to discuss this tax return       free form continuation page and complete only those fields 
with us, check the box located between the signature line            relating to the beneficiaries.
for the executor and the preparer. This is a limited autho-
                                                                     Identifying number
rization. If you want to authorize a person other than the 
preparer, include a signed       Oregon Tax Information Authori-     Enter the SSN of each individual beneficiary listed. If the 
zation and Power of Attorney for Representation (POA) form,          number is unknown, or the individual has no number, 
150-800-005, with the tax return, or submit the POA form to          indicate “unknown” or “none.” For trusts and other estates, 
us separately. The POA form is available on our website at           enter the federal employer identification number (FEIN).
www.oregon.gov/dor/forms.                                            Relationship
                                                                     For each individual beneficiary, enter the relationship (if known) 
Part 3: Elections by the executor                                    to the decedent by reason of blood, marriage, or adoption. For 
                                                                     trust or estate beneficiaries, indicate TRUST or ESTATE.
Line 1. Alternate valuation                                          Amount
Refer to the federal Form 706 instructions for the alternate         Enter the value actually distributed (or to be distributed) to 
valuation election. In the federal instructions, replace “IRS”       each beneficiary, including transfers during the decedent’s 
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life, from Schedule G. This value is required to be included in contain any assets of the type specified by the separate
the gross estate. The value entered doesn’t need to be exact; a schedules, enter zero on that line. Entering zero on any lines
reasonable estimate is sufficient. For example, where precise 501 through 509 is a statement by the executor, made under
values can’t readily be determined, as with certain future penalties of false swearing, that the gross estate doesn’t
interests, a reasonable approximation should be entered. The contain any includible assets covered by that line.
total of these distributions should approximate the value
Don’t enter any amounts in the “Alternate value” column
of the gross estate reduced by funeral and administrative
unless you elected alternate valuation on elections by the
expenses, debts and mortgages, bequests to surviving spouse,
executor—part 3, line 1.
charitable bequests, and any federal estate and state inheri-
tance taxes paid (or payable) relating to the benefits received If you elect alternate value, list amounts in both the alternate
by the beneficiaries listed on lines 2 and 3. All distributions value column and value at date of death column. Per IRC
of less than $5,000 to specific beneficiaries may be included 2032(c), the election must decrease the value of the gross
with distributions to unascertainable beneficiaries on line 3b. estate and estate tax.
Line 4. Section 2044 property Schedules to include for lines 501 through 509. You must
include:
If you answered “Yes,” these assets must be shown on
Schedule F. • Schedules A, B, and C if the gross estate includes any real
estate; stocks and bonds; or mortgages, notes, and cash,
Section 2044 property is property for which a previous Section respectively.
2056(b)(7) election (qualified terminable interest property, or • Schedule D if the gross estate includes any life insurance
QTIP election) has been made, or for which a similar gift tax
or if you answered “Yes” to general information—part 4,
election (Section 2523) has been made. For more information,
question 5.
see the federal Form 706 instructions for Schedule F.
• Schedule E if the gross estate contains any jointly owned
Line 5. Insurance not included in the gross estate property or if you answered “Yes” to general informa-
tion—part 4, question 6.
If you checked “Yes” for either 5a or 5b, you must complete • Schedule F must be filed with every tax return. Answer
and include both Schedule D and Form 712, Life Insurance its questions, even if you report no assets on this schedule.
Statement, for each policy with an explanation of why the • Schedule G if the decedent made any of the lifetime trans-
policy or its proceeds are not includible in the gross estate. fers to be listed on that schedule or if you answered “Yes”
to general information—part 4, question 8 or 9a.
Line 7. Partnership interests and stock in closely
• Schedule H if you answered “Yes” to part 4, question 10.
held corporations • Schedule I if you answered “Yes” to part 4, question 11.
If you answered “Yes” to line 7, you must include full details
for partnerships and unincorporated businesses on Schedule Line 511. Conservation easement exclusion
F (Schedule E if the partnership interest is jointly owned). You must complete and include Schedule U (along with any
You must include full details for the stock of inactive or required attachments) to claim the exclusion on this line.
closely held corporations on Schedule B.
Lines 513 through 521. Deductions
Value these interests using the federal Regulations Section
20.2031-2 (stocks) or 20.2031-3 (other business interests). You must include schedules J, K, L, M, and O as applicable,
for the deductions you claim.
A “closely held corporation” is a corporation whose shares are
owned by a limited number of shareholders. Often, one family Line 517
holds the entire stock issued. As a result, little, if any, trading
If line 516 is less than or equal to the value (at the time of the
of the stock takes place. There is, therefore, no established mar-
decedent’s death) of the property subject to claims, enter the
ket for the stock, and those sales that do occur are at irregular
amount from line 516 on line 517.
intervals and seldom reflect all the elements of a representative
transaction as defined by the term “fair market value” (FMV). If the amount on line 516 is more than the value of the prop-
erty subject to claims, enter the greater of (a) the value of the
Line 9. Trusts property subject to claims, or (b) the amount actually paid
If you answered “Yes” to either 9a or 9b, you must include at the time the return is filed.
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.
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If the estate claims a marital deduction or a QTIP deduction, • Oregon Schedule OR-OSMP, if applicable.
complete and include an “Oregon-only” Schedule M. Iden- • Oregon Schedule OR-NRC, if applicable.
tify the specific property for the deduction. • Copy of extension request, if applicable.
• Death certificate.
An estate may elect to claim an Oregon special marital prop-
• Will.
erty (OSMP) deduction. The OSMP deduction is allowed by
• Trust documents, if applicable.
ORS 118.013 and 118.016. See ORS 118.010 and relevant rules
• Powers of appointment document.
for more detail and examples.
• A copy of the foreign country’s or other state’s Estate Tax
The Oregon estate transfer tax return for the second spouse Return if the estate is subject to estate tax in a foreign
to die must include any property previously claimed for the country or another state.
QTIP or OSMP deduction claimed on the Oregon estate or • A copy of property inventory, schedule of liabilities, claims
inheritance tax return for the first spouse to die. See ORS against the estate, and expenses of administration filed with
118.010 and relevant rules for details. a probate court, certified by an official of the court.
• Expert valuations (for example: business value, personal
property value, etc.).
Part 6: Tax table • Independent fee appraisals for real property, wherever
located, used to support reported value.
Compute your tax for part 2 line 5 by applying the rates in
the table below to the amount on part 2, line 4 (taxable estate). If the decedent was a U.S. citizen but not a resident of the
United States, you must include the following documents
Example: with the return:
• The taxable estate, part 2, line 4, is $1,700,000.
• Column 1, the taxable amount is equal to or more than • A copy of property inventory, schedule of liabilities, claims
$1,500,000. against the estate, and expenses of administration filed
• Column 2, the taxable amount is less than $2,500,000. with the foreign court of probate jurisdiction, certified by
• Column 3, tax on the amount in column 1 is $50,000. a proper official of the court;
• Column 4, tax rate of 10.25 percent; apply to the taxable • A copy of the return filed under the foreign inheritance,
estate amount which is more than the amount in column 1. estate, legacy, succession tax, or other death tax act, certi-
• $1,700,000 less $1,500,000 = $200,000 x 10.25% = $20,500 fied by a proper official of the foreign tax department, if
plus $50,000 = $70,500 total tax. the estate is subject to such a foreign tax; and
• Enter your Oregon estate transfer tax on part 2, line 5. • A photocopy of the will, if the decedent died testate.
• Copies of final statements from all accounts for checking,
Column 1 Column 2 Column 3 Column 4 saving, retirement, and other related accounts to support
Tax rate on taxable the amounts reported on Schedule B, C and G.
Taxable estate Tax on estate amount more
equal to or Taxable estate amount than the amount in Continuation schedules
more than: less than: in column 1: column 1 (percent):
$ 1,000,000 $ 1,500,000 $0 10.0% If there isn’t enough space on a schedule to list all the items,
1,500,000 2,500,000 50,000 10.25% include a continuation schedule:
2,500,000 3,500,000 152,500 10.5%
• Number the items you list on each schedule, beginning
3,500,000 4,500,000 257,500 11.0%
with the number “1” each time.
4,500,000 5,500,000 367,500 11.5%
• Total the items listed on each schedule and its attachments,
5,500,000 6,500,000 482,500 12.0%
and any continuation schedules.
6,500,000 7,500,000 602,500 13.0%
• Enter the total of all schedules and continuation schedules
7,500,000 8,500,000 732,500 14.0%
at the bottom of each schedule.
8,500,000 9,500,000 872,500 15.0%
• Don’t carry the totals forward from one schedule to the next.
9,500,000 1,022,500 16.0%
• Enter the total for each schedule on part 5—recapitulation.
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
pages together, without staples, in the following order: return?
• Payment, if including with return. Don’t include a Form
We’ll process your tax return in the order the returns are
OR-706-V.
received. We may contact you for additional information or doc-
• Form OR-706, pages 1, 2, and 3.
umentation in order to complete the processing of your return.
• Federal Form 706 (if required to file with IRS).
• Federal schedules in alphabetical order, with Forms 712 Once the return is processed and the account is paid in full,
or 706-CE, if applicable. we’ll issue the Oregon estate tax receipt as required by ORS
150-104-001-1 (Rev. 07-20-22) Page 8 of 10 Form OR-706 Instructions

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118.250. The receipt will identify the estate and show the You don’t need to furnish the required mortgage or bond
amount of tax, penalty, and interest paid to us. We’ll send at the time you file Form OR-706. We will contact you and
a copy of the receipt to the authorized representative, if the work through the process of securing acceptable collateral.
authorization box on part 2 of the form is checked, or if we Important: The interest paid on installment payments isn’t
have an Oregon POA form on file for a representative. deductible as an administrative expense of the estate.
The executor may request a discharge from personal liability
by completing the Oregon Form OR-706-DISC, Request for
Survivor information
Discharge from Personal Liability, 150-104-005. This form must
be filed separately from the Form OR-706.
The following information is designed to help if you’re set-
We have up to 18 months to respond to your request. During tling the finances of a deceased person. It’s not a complete
our review your return may be selected for an audit. We’ll statement of laws or rules.
issue the discharge after we have accepted the return and If you have questions after reading these instructions, see
the account is paid in full. your attorney. Some of these matters are complex and you
may need legal advice.

Installment payments Definitions
Does the estate include an interest in a closely held business? Beneficiary: One who will receive assets from an estate. The
Does the estate need to dispose of property for less than fair assets of an estate are distributed to beneficiaries after all
market value to pay the estate transfer tax? If you answered taxes and expenses are paid. The assets may be distributed
yes to either one of these questions and the estate wishes to pay under the terms of a will, or if there is no will, under the
the tax in installments under ORS 118.225, you must submit a provisions of state law. (Other terms: heirs at law, devisee,
request for extension of time to pay. We’ll issue a determina- legatee, and claiming successor.)
tion letter to inform the estate whether or not they qualified Decedent: A legal word for a person who has died.
for installment payments under ORS 118.225. The number of
Estate: All the property of the decedent. (See probate and small
payments can be up to 14 equal payments made up of annual
estate proceeding.) If an estate is probated, the court appoints
interest and principal.
a personal representative to be responsible for the property
The portion of tax which doesn’t qualify for the installment and finances of the estate. Any money the estate earns (such
plan must be paid by the original due date of the tax return. as rental income or stock dividends) must be reported on Form
The first of 14 installment payments will begin once the OR-41, Oregon Fiduciary Income Tax Return, 150-101-041.
extended payment period is approved by us, the total tax is Executor: An executor is a personal representative, admin-
determined, and collateral has been provided by the estate; istrator, trustee, fiduciary, or custodian of the property, or
see collateral required below. Other payment arrangements any person who has actual or constructive possession of the
may be available for your estate under ORS 118.225. decedent’s property.
Collateral required Fiduciary: An individual or legal group (such as a bank or
According to ORS 118.225 and corresponding rules, for us to corporation) that has financial responsibility for an estate or
agree to an installment payment of tax, the following must occur: a trust held for the benefit of others.
• Acceptable collateral must be provided. For real property, Personal property: All property that isn’t real property, such
a first mortgage, having a value of double the extended as money, stocks, bonds, machinery, or equipment. A mobile
tax. For personal property, a surety bond in double the home owned by the decedent, but located on rented or leased
amount of the extended tax, executed by a corporation land is also personal property.
licensed to do business in the State of Oregon. The bond Personal representative: The executor, administrator, or
must be renewed every five years. anyone in charge of the decedent’s property. The surviv-
• Executor is personally liable for payment of the tax to the ing spouse may or may not be the personal representative,
extent of the value of the property. depending on the will or the court appointment. The per-
• Annual statements of account will be sent to the executor. sonal representative is also the estate’s fiduciary.
• If your payment isn’t made timely, the installment pay-
ment arrangement is cancelled; a 5 percent late payment Probate: A formal court proceeding used when the dece-
penalty will be assessed; and the remaining liability of dent held property solely in the decedent’s name. Probate
penalty, interest, and tax is due and owing immediately. settles the decedent’s finances and distributes the property
• Interest on the Oregon Estate Transfer tax accumulates according to the will or state law. The probate court appoints
a personal representative.
from the day after the due date of the original return, to
the date your payment is received. Probate court: In Oregon, this is generally the circuit court.
• Oregon interest rates are shown in these instructions for In some cases it may be the county district court or the
part 2, line 15. county court.
150-104-001-1 (Rev. 07-20-22) Page 9 of 10 Form OR-706 Instructions

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Real property: Real property is land and stationary build- Correspondence
ings. For example, a residence or commercial building is
real property. Estate Tax Unit, Business Division
Small estate proceeding: A court procedure to transfer the title Oregon Department of Revenue
of solely owned property to heirs when the estate consists of: PO Box 14110
(a) The fair market value of the estate is $275,000 or less; Salem OR 97309-0910
(b) No more than $75,000 of the fair market value of the Fax: 503-945-8787, Estate Tax Unit
estate is attributable to personal property; and
(c) No more than $200,000 of the fair market value of the Phone
estate is attributable to real property.
503-378-4988 or 800-356-4222
Do you have questions or need help? Monday–Friday, 7:30 a.m.–5 p.m.
Closed Thursdays from 9–11 a.m. Closed holidays.
Internet Wait times may vary.
Contact us for ADA accommodations or assistance in other
www.oregon.gov/dor languages.
• Download forms, instructions, and publications.
• Search FAQ. In person

Email Find directions and hours on our website.
www.oregon.gov/dor.
estate.help.dor@ dor.oregon.gov
This email address isn’t secure and confidentiality can’t be ensured. Gen-
eral tax and policy questions only. We ask that professional tax preparers
and attorneys research questions before contacting us.

150-104-001-1 (Rev. 07-20-22) Page 10 of 10 Form OR-706 Instructions

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