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                                  Form OR-706 Instructions  
                                  Oregon Estate Transfer Tax                                                                                 2023

 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                    Penalty due .............................................................................6
                                                                                                  Interest due .............................................................................6
What’s new ...............................................................................2       Total due .................................................................................7
                                                                                                  Executor signature .................................................................7
Important .................................................................................2
                                                                                                  Authorization .........................................................................7

Overview ...................................................................................2   Part 3: Elections by the executor .......................................7
  Filing requirements ...............................................................2            Alternate valuation ................................................................7
  Who must file the return ......................................................2                Special use valuation of Section 2032A ..............................7
  When to file return—due date ............................................2                       Reversionary or remainder interests ..................................7

Return mailing addresses and payment instructions ...3                                          Part 4: General information ................................................7
  Returns ....................................................................................3   Surviving spouse ...................................................................7
  Payment only..........................................................................3         Beneficiary information........................................................7
  Private delivery services .......................................................3              Section 2044 property ...........................................................8
  Amended returns ..................................................................3
                                                                                                  Insurance not included in the gross estate ........................8
  Forms and schedules ............................................................3
                                                                                                  Partnership interests and stock in closely 
Part 1: Decedent and executor information ..................4                                     held corporations ...................................................................8
  Decedent name and SSN ......................................................4                   Trusts .......................................................................................8

  Decedent domicile .................................................................4          Part 5: Recapitulation ...........................................................8
  Extensions ...............................................................................4
                                                                                                  Conservation easement exclusion .......................................8
  Separate election checkbox ..................................................4
                                                                                                  Deductions ..............................................................................8
  Executor name and address  ................................................4
                                                                                                  Marital deduction—Schedule M .........................................9
Part 2: Tax computation ...................................................... 4
                                                                                                Part 6: Tax table ......................................................................9
  Rounding off to whole dollars ............................................ 4
  Total gross estate ...................................................................4         Assembly and processing.....................................................9
  Natural resource property exemption ................................4                           Filing checklist for Form OR-706 .........................................9
  Oregon estate tax. ..................................................................5          What happens after you file the tax return? ................... 10

  Gross value of property located in Oregon .......................5                            Installment payments ......................................................... 10
  Oregon percentage ................................................................6
  Tax payable to Oregon ..........................................................6             Survivor information .......................................................... 10
  Natural resource and commercial 
                                                                                                  Definitions ............................................................................ 10
  fishing business credit ..........................................................6
  Amount paid by the due date of the return ......................6                             Do you have questions or need help? ............................ 11

150-104-001-1 (Rev. 07-28-23)                    Page 1                                         of 11                      2023 Form OR-706 Instructions

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Purpose of Form OR-706 Example: Federal schedule B reports total assets of $600,000
but also includes an asset that’s deductible under IRC section
The executor of a decedent’s estate will use Form OR-706 2056 or 2056A, Marital deduction property, or under IRC section
to figure the estate tax imposed by ORS Chapter 118. This 2055(a), Charitable deduction property, which is reported on line
transfer tax is levied on the entire taxable estate and is paid 10 of the federal Form 706 recapitulation. The estimated value
by the estate. This tax isn’t imposed on the heirs or beneficia- of the asset is $250,000. For Oregon purposes, the estate would
ries of the estate. If the estate has assets outside of Oregon, provide the federal schedule B with the Oregon OR-706, and
you’ll apportion the tax on part 2, lines 6–8. provide a separate schedule listing the estimated value of
the asset listed on schedule B. The estate would then add the
estimated value of $250,000 to the amount listed on the federal
What’s new Form 706 recapitulation, line 2 ($600,000), and report the total
on the Oregon OR-706 recapitulation, line 502 ($850,000).
Natural resource property exemption

Senate Bill 498 (2023) creates an Oregon estate transfer tax Overview
exemption from the taxable estate that applies to estates of
decedents who pass away on or after July 1, 2023. An estate Filing requirements
can’t claim the natural resource property exemption (line 3)
and the natural resource credit (line 9) on the same return. A return must be filed if the value of the gross estate at the
See instructions for line 3 below for more details. 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
Forest Conservation Tax Credit Form IT-1, Oregon Inheritance Tax Return, must be filed for
Senate Bill 1502 (2022) allows a tax credit to a small forest- dates of death before January 1, 2012.
land owner who chooses to follow timber harvest restric- Gross estate is defined below in Part 2, line 1.
tions applicable to a large forestland owner.
All schedules referenced in these instructions are referring to
Additionally, House Bill 2161 (2023) amends the tax credit to schedules included with federal Form 706, unless otherwise
increase the credit amount under certain conditions. This noted. Report the estate assets and deductions on the federal
credit is certified by the Oregon Department of Forestry schedules and include the schedules with your Form OR-706.
(ODF). Visit www.oregon.gov/odf for details.
Oregon filing requirements are different from the federal
This tax credit can be claimed on the small forestland owner’s filing requirements. Oregon requires the same forms, sched-
Estate Transfer Tax Return if the small forestland owner dies on ules, and supporting information (such as photocopy of
or after January 1, 2023. See the instructions for line 10 below. death certificate, Form 712, life insurance statement, will,
trust documents, appraisals, etc.) that would have been
Important 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
your return in the order as outlined on page 9 in these
Don’t include Form OR-706-DISC, Request for Discharge from instructions. This will assist us in processing the return in
Personal Liability, with your Form OR-706. Send the OR- the most efficient and effective manner.
706-DISC form separately. We’ll respond with a Certificate
of Discharge letter. Who must file the return
Federal schedules Executor(s) of the decedent’s estate must file Form OR-706.
The definition of “executor” is the executor, administra-
Oregon doesn’t have our own schedules for the OR-706. We tor, personal representative (PR), fiduciary, or custodian of
ask that you attach the federal schedules. They can be found property of the decedent (ORS 118.005). For probate estates,
at www.irs.gov/forms-instructions or by calling 800-829-3676. the personal representative appointed or approved by the
Estimated values court has the duty to file the return. For non-probate estates,
any person having actual or constructive possession of the
Did you use estimated values per Treas. Reg. 20.2010-2(a)(7) property of the decedent must file the return.
(ii) when filing your federal Form 706? If so, attach a separate
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
Due date—When to file
section 2055(a), Charitable deduction property.
You must file Form OR-706 within twelve months of the date
When completing the Oregon recapitulation schedule in part
of the decedent’s death.
5 of the return, add the estimated values for each schedule
and add to the total value of the corresponding schedule as Example: If the date of death is February 16, the due date to
reported on the federal Form 706 recapitulation schedule. file Form OR-706 is February 16. See also “Extensions” below.
150-104-001-1 (Rev. 07-28-23) Page 2 of 11 2023 Form OR-706 Instructions

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Payment                                                            We’re unable to acknowledge the receipt of tax returns or 
                                                                   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 
to pay and we approved your extension of time to pay. Your         lope, you may send it by certified mail with a return receipt 
request for extension of time to pay must be received by the       requested. If you want to know if we cashed your payment 
department by the due date of the return. If the extension isn’t   check, contact your bank.
received by the due date of the return the request will be denied. Private delivery services require a physical address. 
If the tax paid with the return is less than the balance due          Use this address:
shown on part 2, line 13, explain why you didn’t pay the 
                                                                      Oregon Department of Revenue
full amount of tax in a statement included with the return. 
                                                                      955 Center Street NE
If we approved your request for an extension of time to pay, 
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, 
                                                                   Amended returns
Oregon Estate Transfer Tax Payment Voucher, 150-104-172. Send 
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 
first to penalty, then to interest, and then to tax.               on page 1. If an asset value has changed, provide substantia-
                                                                   tion, such as an appraisal, to establish the new value.
Important: Submit only one copy of your return. lf you are 
sending in a payment prior to or after filing your return,         Did the IRS audit or another taxing authority make a change 
only include Form OR-706-V.                                        or correction to the estate tax resulting in a change to the 
                                                                   Oregon estate tax? If yes, the executor or other responsible 
Mailing addresses and payment instructions                         party must report the change or correction to us by amend-
Returns:                                                           ing the estate return showing all the changes and how the 
If you’re including a payment with your return, mail your          changes affect the Oregon estate tax.
return without a payment voucher, to:                              If you owe more tax with your amended tax return or 
Oregon Department of Revenue                                       because of a change or audit to your estate tax return, 
PO Box 14555                                                       include Form OR-706-V with your payment. You will be 
Salem OR 97309-0940                                                assessed interest on the additional tax owing calculated 
If you’re not including a payment with your return, mail           from the original due date of the return to the payment date.
your return to:                                                    Note: Also see instructions for part 2, line 12.
Oregon Department of Revenue
                                                                   Forms and schedules 
PO Box 14110
Salem OR 97309-0910.                                               You may access our forms and instructions anytime on our 
Payment only:                                                      website at  www.oregon.gov/dor.  
If you’re paying by mail, separate from your return, include       On our website you may:
a payment voucher, and mail it to:
                                                                   • Download current forms, instructions, and publications.
Oregon Department of Revenue                                       • Download prior year forms and instructions.
PO Box 14950
Salem OR 97309-0950.                                               To request help for estate transfer tax via email, write to: 
                                                                     estate.help.dor@ dor.oregon.gov.
Include on your check:
                                                                   Federal schedules are found at  www.irs.gov/forms-instructions 
• FEIN or Decedent’s SSN.                                          or by calling 800-829-3676.
• Tax year.
• Daytime phone.                                                   Professional tax preparers must research questions before 
• Form OR-706.                                                     contacting us for assistance.
150-104-001-1 (Rev. 07-28-23)                         Page 3       of 11                             2023 Form OR-706 Instructions

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Part 1: Decedent and executor information the amount of unpaid tax to secure the debt (ORS 118.225).
We will contact you to work through the process of secur-
ing acceptable collateral. An extension of time to pay the tax
Decedent
doesn’t extend the time to file the tax return.
Decedent’s name and Decedent’s Social Security number
This extension information may change. See www.oregon.
(DSSN). Enter the decedent’s name and SSN assigned to the
gov/dor.
decedent. If the decedent didn’t have a SSN, the executor
should obtain one for the decedent by filing federal Form Interest accrues on any unpaid tax during the extension
SS-5, Application for Social Security Card, with the Social period per ORS 305.220.
Security Administration. Don’t use the SSN assigned to the
Are you making a payment with an Oregon Department
decedent’s spouse.
of Revenue approved extension to pay? Use Form OR-706-V
Decedent’s domicile. Domicile is the place where the dece- and check the “Prepayment” checkbox when filing the form
dent had their fixed, permanent, principal home. The dece- with your payment.
dent is allowed only one domicile, though they may have
had multiple residences. Separate election
If the estate makes an election on the Oregon tax return
Social Security numbers
which is different from the election made on the federal tax
ORS 305.100 and Section 405, Title 42, of the United States return, check the box “A separate election is claimed” in the
Code, authorizes requests for SSNs. You must provide this upper right section of the form. Examples of separate elec-
information. The SSN will be used to establish both the tions are qualified terminable interest property (QTIP) and
decedent’s and executors’ identities. Oregon special marital property (OSMP). See part 5, line 520.

Executor
Extensions
Executor name and address. If there’s more than one
Important: Visit www.oregon.gov/dor for potential updates executor, enter the name and the address of the executor we
including extension requirements for estate returns where a should contact. List the other executors’ names, addresses,
decedent’s date of death is late in 2023. phone numbers, and SSNs on an attached sheet. Notify us
in writing of a change of address or phone numbers of any
To request an extension of time to file or an extension of executor(s) or authorized representative(s).
time to pay, complete and submit federal Form 4768 to us
by or before the original due date of Form OR-706. Oregon
doesn’t have its own extension form. Mail your completed Part 2: Tax computation
form to the correspondence address at the end of these
instructions. Mail payment separately to: Oregon Depart- Rounding off to whole dollars
ment of Revenue, PO Box 14950, Salem OR 97309-0950. Don’t
On the return and schedules enter whole dollar amounts
fax your extension.
only, don’t include cents, and round to the nearest dollar.
Two different types of extensions are available for an estate
Example: $5,762.81 becomes $5,763 and $1,294.33 becomes
transfer tax return using:
$1,294.
1) Extension of time to file. We must receive your request
for extension of time to file by the original due date of the tax Line 1. Total gross estate
return. Once we receive your timely filed extension request, The gross estate of the decedent is the value of all real and
you’ll have an automatic six-month extension of time to file. personal property, tangible or intangible, valued as of the
Include a copy of this extension with your Form OR-706. An date of death. Include all assets whether located inside or
extension of time to file doesn’t extend the time to pay the outside of Oregon.
tax. If your request isn’t received by the original due date
Enter either:
of the return, your request will be denied.
• Amount from part 5, line 512, column (b) “Value at date
2) Extension of time to pay tax. We must receive your request of death,” or;
for extension of time to pay by the original due date of the • Amount from part 5, line 512, column (a) “Alternate
tax return. You must include a written statement detailing value,” if the executor elected alternate valuation on part
why the estate can’t pay the tax by the original due date. If 3, line 1, elections by the executor.
the estate doesn’t provide a written statement explaining
why they can’t pay the tax, the request for extension of time Line 3. Natural resource property exemption
to pay will be denied. We’ll evaluate your request and send
Important: For estate transfer tax questions, write to: estate.
you written approval or denial. Once your tax return is filed
help.dor@ dor.oregon.gov.
and an extension to pay is approved, if the request is for more
than 12 months after the original due date of the return, the Senate Bill 498 (2023) provides an exemption for natural
estate must provide collateral in an amount equal to twice resource or commercial fishing business property. It applies
150-104-001-1 (Rev. 07-28-23) Page 4 of 11 2023 Form OR-706 Instructions

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to estates of decedents dying on or after July 1, 2023. Natural equals a maximum of $15 million and is claimed on line 3
resource property is farm use and forestland, as defined in of Form OR-706.
ORS 308A.056, 308A.250, and 321.201. Real property must
Important: An estate cannot claim both the natural resource
be in Oregon [ORS 118.140(a)(L)]. The qualifying property
property exemption on line 3, and the natural resource credit
also includes property used in commercial fishing business
on line 9, on the same Estate Transfer Tax Return.
operations defined in ORS Chapter 508 and IRC Section
1301(b)(4). Disposition of qualifying property and
This exemption is only allowed if you meet the following additional tax due
requirements:
An additional tax may be imposed per ORS 118.005 to
• The natural resource property is located in this state. 118.540 in two situations. One, if the qualifying property is
• The total value of the exemption may not exceed $15 disposed of or is transferred to a person other than a fam-
million. ily member or another eligible entity, before the property is
• An exemption is allowed for the following real property used for five years after the date of death. Two, if the mate-
only if the real property was owned by the decedent dur- rial participation requirements described above are not met.
ing an aggregate period of five years before the decedent’s
death and used in a business described in ORS 118.140(3) The additional tax liability is the amount of the additional
(d): tax that would have been imposed had the disqualified
a. Real property used as forestland or as forestland home- property not been excluded from the taxable estate. The
sites, not to exceed 5,000 acres. additional tax will be paid as provided by ORS 118.210.
b. Real property used in farm use. The payment of federal estate taxes, state inheritance, or
• An exemption is allowed for property used in the opera- estate taxes from cash or other assets for which a natural
tion of a fishing business only if the decedent or a family resource exemption was claimed, shall be a disposition and
member, during a period of years before the decedent’s an additional tax shall be imposed.
death:
a. Owned a vessel used in taking food fish or shellfish Line 5. Oregon estate tax
for commercial purposes (ORS 506.006);
Oregon estate tax is calculated based on the taxable estate
b. Held a boat license (ORS 508.260);
consisting of all of the decedent’s property wherever located.
c. Held a commercial fishing license (ORS 508.235); and
This amount is prorated on lines 6–8 if some property is
d. Held one or more restricted fisheries permits (ORS 508)
located outside Oregon.
or an equivalent restricted vessel permit system under
the laws of another state. To compute line 5, see part 6 of these instructions for the tax
table, computation instructions, and an example.
Oregon will allow an exemption for property that meets
the above requirements if the decedent or a family member Line 6. Gross value of property located in Oregon
materially participated in the farm, forestry, or fishing busi-
ness at least 75% of the days in the five years prior to the When the estate has property located outside of Oregon, use
death of the decedent. lines 6, 7, and 8 to compute the prorated Oregon tax.
In addition, at least one family member must materially par- On line 6, enter the gross value of estate assets taxable by
ticipate in the farm, forestry, or fishing business at least 75% Oregon. The taxability of the decedent’s property for Oregon
of the days of in the five years after the death of the decedent. purposes depends on whether the decedent was a resident
“Materially participate” means to engage in active manage- or nonresident of Oregon.
ment (IRC 2032A), of the farm business, forestry business, Oregon resident decedent. For a resident decedent, prop-
or fishing business.
erty taxable by Oregon includes all real property located in
A “family member” is a person within the third degree Oregon, tangible personal property located in Oregon, and
of relation, by blood, marriage, adoption, civil union, or intangible personal property. Don’t include intangible per-
domestic partnership, to another person. Examples of per- sonal property taxed by another state or another country as
sons within the third degree of relation include the follow- a result of the decedent’s death. Enter the combined value
ing: parents, grandparents, great-grandparents, siblings, of these assets on line 6.
first cousins, children, grandchildren, great-grandchildren,
If the decedent was an Oregon resident and all assets were
aunts, uncles, great-aunts, great-uncles, nieces, nephews,
located in Oregon, enter the gross estate amount from line
great-nieces, and great nephews.
1 on line 6.
Exemption computation Nonresident decedent. For a nonresident decedent, prop-
The natural resource exemption equals the value of the erty taxable by Oregon includes all real property located in
natural resource property otherwise included in the federal Oregon and tangible personal property located in Oregon.
taxable estate. The natural resource property exemption Enter the combined value of these assets on line 6.
150-104-001-1 (Rev. 07-28-23) Page 5 of 11 2023 Form OR-706 Instructions

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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
the return. Any unused credit will carry forward and pass
Line 8. Tax payable to Oregon to the owner’s heirs.
Multiply Oregon estate tax on line 5 by the Oregon percent- Repayment. If a timber harvest is conducted in the forest
age on line 7 and enter the result.
conservation area before the restriction has expired, the
Example: credit used must be repaid.

Line 1, gross estate = $1,450,000 Line 12. Amount paid by the due date of the return
Line 2, deductions = $20,000
For an original Form OR-706, enter the total of prior timely
Line 4, taxable estate = $1,430,000 payments. For an amended return, enter the net payments
Line 5, tax = $43,000 (total payments made minus any refunds we paid to the
Line 6, gross value of assets located in Oregon = $800,000 estate) to date.
The prorated estate tax is computed as follows: Example: Estate tax payments made with the original return
[Line 6 ÷line 1 = line 7 Oregon percentage] x line 5 = prorated = $105,000. Tax on the original return: $88,000. Original
tax for line 8. refund paid to the estate: $17,000.
[$800,000 ÷ $1,450,000 = 0.551724] x $43,000 = $23,724 $88,000 is the amount of your prior payments reduced by
prorated tax, enter on line 8. prior refunds ($105,000 − $17,000 = $88,000). Enter $88,000
Line 9. Natural resource and commercial fishing on your amended return, line 12, as your net prior payments.

business credit Line 15. Penalty due
ORS 118.140 provides a natural resource or commercial fish- A penalty of 5 percent of the tax will be imposed if the return
ing business credit. You may elect to take all, part, or none isn’t filed by the due date or by the extended filing date. A
of this credit, for which you qualify. Natural resource prop- penalty of 5 percent of the tax will be imposed if the tax isn’t
erty is farm use and forestland, as defined in ORS 308A.056, paid by the due date. If you have an Oregon Department of
308A.250, and 321.201. Real property must be in Oregon Revenue approved extension of time to pay, the tax must be
[ORS 118.140(a)(L)]. The qualifying property also includes paid by the extended payment date to avoid a penalty. Only
property used in commercial fishing business operations one 5 percent penalty will be assessed, the 5 percent late fil-
defined in ORS Chapter 508 and IRC Section 1301(b)(4). To
ing penalty or the 5 percent late payment penalty.
calculate the credit, see Schedule OR-NRC and instructions
at www.oregon.gov/dor. If you file the tax return more than three months after the
due date (including extension), add an additional 20 percent
Important: An estate can’t claim both the natural resource
penalty, for a total of 25 percent penalty.
property exemption on line 3, and the natural resource credit
on line 9, on the same Estate Transfer Tax Return. Line 16. Interest due
Line 10. Forest Conservation Tax Credit Interest is charged on tax not paid by the due date of the
Important: This credit is certified by the Oregon Depart- return, excluding extensions. Interest will accrue during
ment of Forestry (ODF). Visit www.oregon.gov/odf for more the extension period. The interest rate may change once a
detailed information. calendar year. See ORS 305.222 for more information.
Senate Bill 1502 (2022) allows a tax credit to a small forest- If you file or pay after the due date, calculate and pay interest on
land owner who chooses to follow timber harvest restric- any unpaid tax or on tax paid after the original due date. Inter-
tions applicable to a large forestland owner. Additionally, est is calculated daily. Here’s how to calculate the interest due:
House Bill 2161 (2023) amends the tax credit to increase the Tax x Daily interest rate x Number of days.
credit amount under certain conditions.
For periods
To obtain the credit, a forest conservation area must be cre-
beginning Annual Daily
ated and the standard practice harvest restrictions must be
January 1, 2024 8% 0.0219%
followed for 50 years. The owner must record an irrevocable
deed restriction prohibiting a harvest in the forest conserva- January 1, 2023 6% 0.0164%
tion area during that time. January 1, 2022 4% 0.0110%
150-104-001-1 (Rev. 07-28-23) Page 6 of 11 2023 Form OR-706 Instructions

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Additional interest on deficiencies and delinquencies.               150-800-005, with the tax return, or submit the POA form to 
Interest will increase by one-third of 1 percent per month           us separately. The POA form is available on our website at 
(4 percent yearly) on deficiencies or delinquencies if the           www.oregon.gov/dor/forms.
following occurs:

• You file a return showing tax due, or we assess an existing        Part 3: Elections by the executor
deficiency; and
• The assessment isn’t paid within 60 days after we issue the 
                                                                     Line 1. Alternate valuation
notice of assessment; and
• You haven’t filed a timely appeal with us.                         Refer to the federal Form 706 instructions for the alternate 
Exception to additional interest: If we approved your                valuation election. In the federal instructions, replace “IRS” 
request for extension of time to pay and you’re in compliance        with “Oregon Department of Revenue” and replace Form 706 
with the extension terms, the interest rate won’t increase by        with Oregon Form OR-706. Search for the current year federal 
4 percent per year.                                                  Form 706 and instructions  at  www.irs.gov/forms-pubs (if the 
                                                                     current year isn’t available, use the prior year’s form).
Special instructions. Do you owe a penalty on part 2, line 15 
or interest on line 16 and have an overpayment on line 14? If        Don’t complete the “Alternate valuation date” or “Alternate 
your overpayment is less than the total penalty and interest,        value” columns of any schedule unless the executor elected 
you have an amount due. To calculate the amount due, on line         alternate valuation under elections.
17 fill in the result of line 15 plus line 16 minus line 14. If your 
overpayment is more than the total penalty and interest, you         Line 2. Special use valuation of Section 2032A
have a refund. To calculate your refund, enter on line 18 the        Refer to the federal Form 706 instructions for special use val-
result of line 14 minus the sum of lines 15 and 16.
                                                                     uation of the Section 2032A election. In the federal instruc-
Line 17. Total due                                                   tions, replace “IRS” with “Oregon Department of Revenue” 
                                                                     and replace Form 706 with Oregon Form OR-706. Search 
Enclose a check or money order for the total amount due (tax 
                                                                     for the current year Form 706 and instructions  at  www.irs.
plus any applicable penalty and interest) with your return or 
                                                                     gov/forms-pubs (if the current year isn’t available, use the 
pay using Revenue Online. An online payment can only be 
                                                                     prior year’s form).
made if a filer has previously received correspondence and 
established an account number with us. If paying by mail,            Line 3. Reversionary or remainder interests
see Mailing addresses and payment instructions above.
                                                                     For details of this election, see IRC Section 6163 and the 
Don’t send cash or postdated checks. 
                                                                     related regulations.
Executor signature  
The executor who files the return must sign the return               Part 4: General information
under penalties of false swearing, per ORS 118.990. If  there’s 
more than one executor, all executors must provide their             Line 2. Surviving spouse
full name, title (such as personal representative, trustee, 
etc.), address, phone number, and SSN on an attached page.           Complete line 2 whether or not there is a surviving spouse 
It’s sufficient for only one executor to sign the return when        and whether or not the surviving spouse received any 
there’s more than one executor. All executors are responsible        benefits from the estate. If there was no surviving spouse 
for the return as filed and are liable for penalties provided        on the date of the decedent’s death, enter “None” on line 2a 
for willfully filing erroneous or false returns, per ORS             and leave lines 2b and 2c blank. The value entered on line 2c 
118.990. This also applies to amended returns.                       doesn’t need to be exact. See the instructions for “Amount” 
                                                                     under line 3.
All executors or authorized representatives must notify us in 
writing of any change of address or phone number.                    Line 3. Beneficiary information
If you paid a tax preparer to complete this tax return, the          Name
preparer must sign and date the return, and provide their            On line 3a, enter the name of each individual, trust, or estate 
identifying information.                                             who received or will receive benefits of $5,000 or more from 
Authorization                                                        the estate directly as an heir, next-of-kin, devisee, or legatee; 
                                                                     or indirectly (for example, as beneficiary of an annuity or 
If you want the tax return preparer to discuss this tax return       insurance policy, shareholder of a corporation, or an heir 
with us, check the box located between the signature line            that is a partner in a partnership, etc.).
for the executor and the preparer. This is a limited autho-
rization. If you want to authorize a person other than the           Note: If the estate has more than 7 beneficiaries, include a 
preparer, include a signed      Oregon Tax Information Authori-      free form continuation page and complete only those fields 
zation and Power of Attorney for Representation (POA) form,          relating to the beneficiaries.
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Identifying number family holds the entire stock issued. As a result, little, if any,
Enter the SSN of each individual beneficiary listed. If the trading of the stock takes place. There is, therefore, no estab-
number is unknown, or the individual has no number, lished market for the stock, and those sales that do occur
indicate “unknown” or “none.” For trusts and other estates, are at irregular intervals and seldom reflect all the elements
enter the federal employer identification number (FEIN). of a representative transaction as defined by the term “fair
market value” (FMV).
Relationship
For each individual beneficiary, enter the relationship (if Line 9. Trusts
known) to the decedent by reason of blood, marriage, or If you answered “Yes” to either 9a or 9b, you must include
adoption. For trust or estate beneficiaries, indicate TRUST or a copy of the trust instrument for each trust. You must com-
ESTATE. plete Schedule G if you answered “Yes” to 9a and Schedule
Amount F if you answered “Yes” to 9b.
Enter the value actually distributed (or to be distributed)
to each beneficiary, including transfers during the dece- Part 5: Recapitulation
dent’s life, from Schedule G. This value is required to be
included in the gross estate. The value entered doesn’t need Lines 501 through 510—gross estate: You must make an
to be exact; a reasonable estimate is sufficient. For example, entry on each line 501 through 509. If the gross estate doesn’t
where precise values can’t readily be determined, as with contain any assets of the type specified by the separate
certain future interests, a reasonable approximation should schedules, enter zero on that line. Entering zero on any lines
be entered. The total of these distributions should approxi- 501 through 509 is a statement by the executor, made under
mate the value of the gross estate reduced by funeral and penalties of false swearing, that the gross estate doesn’t
administrative expenses, debts and mortgages, bequests to contain any includible assets covered by that line.
surviving spouse, charitable bequests, and any federal estate
and state inheritance taxes paid (or payable) relating to the Don’t enter any amounts in the “Alternate value” column
benefits received by the beneficiaries listed on lines 2 and 3. unless you elected alternate valuation on elections by the
All distributions of less than $5,000 to specific beneficiaries executor—part 3, line 1.
may be included with distributions to unascertainable ben-
If you elect alternate value, list amounts in both the alternate
eficiaries on line 3b.
value column and value at date of death column. Per IRC
Line 4. Section 2044 property 2032(c), the election must decrease the value of the gross
estate and estate tax.
If you answered “Yes,” these assets must be shown on
Schedule F. Schedules to include for lines 501 through 509. You must
include:
Section 2044 property is property for which a previous
Section 2056(b)(7) election (qualified terminable interest • Schedules A, B, and C if the gross estate includes any real
property, or QTIP election) has been made, or for which a estate; stocks and bonds; or mortgages, notes, and cash,
similar gift tax election (Section 2523) has been made. For respectively.
more information, see the federal Form 706 instructions for • Schedule D if the gross estate includes any life insurance
Schedule F. or if you answered “Yes” to general information—part 4,
question 5.
Line 5. Insurance not included in the gross estate • Schedule E if the gross estate contains any jointly owned
If you checked “Yes” for either 5a or 5b, you must complete property or if you answered “Yes” to general informa-
and include both Schedule D and Form 712, Life Insurance tion—part 4, question 6.
Statement, for each policy with an explanation of why the • Schedule F must be filed with every tax return. Answer
policy or its proceeds are not includible in the gross estate. its questions, even if you report no assets on this schedule.
• Schedule G if the decedent made any of the lifetime trans-
Line 7. Partnership interests and stock in closely fers to be listed on that schedule or if you answered “Yes”
held corporations to general information—part 4, question 8 or 9a.
• Schedule H if you answered “Yes” to part 4, question 10.
If you answered “Yes” to line 7, you must include full details
• Schedule I if you answered “Yes” to part 4, question 11.
for partnerships and unincorporated businesses on Schedule
F (Schedule E if the partnership interest is jointly owned). Line 511. Conservation easement exclusion
You must include full details for the stock of inactive or
closely held corporations on Schedule B. You must complete and include Schedule U (along with any
required attachments) to claim the exclusion on this line.
Value these interests using the federal Regulations Section
20.2031-2 (stocks) or 20.2031-3 (other business interests). Lines 513 through 521. Deductions
A “closely held corporation” is a corporation whose shares You must include schedules J, K, L, M, and O as applicable,
are owned by a limited number of shareholders. Often, one for the deductions you claim.
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Line 517 4,500,000 5,500,000 367,500 11.5%
5,500,000 6,500,000 482,500 12.0%
If line 516 is less than or equal to the value (at the time of the 6,500,000 7,500,000 602,500 13.0%
decedent’s death) of the property subject to claims, enter the 7,500,000 8,500,000 732,500 14.0%
amount from line 516 on line 517. 8,500,000 9,500,000 872,500 15.0%
If the amount on line 516 is more than the value of the prop- 9,500,000 1,022,500 16.0%
erty subject to claims, enter the greater of (a) the value of the
property subject to claims, or (b) the amount actually paid Assembly and documentation required
at the time the return is filed.
Don’t enter more on line 517 than the amount on line 516. Filing checklist for Form OR-706
See IRC Section 2053 and the related regulations for more When you complete the return, assemble all the required
information. pages together, without staples, in the following order:
Line 520. Marital deduction—Schedule M • Payment, if including with return. Don’t include a Form
Oregon allows elections, including but not limited to Section OR-706-V.
2056—Bequests to surviving spouse. See ORS 118.010 and • Form OR-706, pages 1, 2, and 3.
relevant rules for details and examples. • Federal Form 706 (if required to file with IRS).
• Federal schedules in alphabetical order, with Forms 712
If the estate claims a marital deduction or a QTIP deduction, or 706-CE, if applicable.
complete and include an “Oregon-only” Schedule M. Iden- • Oregon Schedule OR-OSMP, if applicable.
tify the specific property for the deduction. • Oregon Schedule OR-NRC, if applicable.
An estate may elect to claim an Oregon special marital prop- • Copy of extension request, if applicable.
erty (OSMP) deduction. The OSMP deduction is allowed by • Death certificate.
ORS 118.013 and 118.016. See ORS 118.010 and relevant rules • Will.
• Trust documents, if applicable.
for more detail and examples.
• Powers of appointment document.
The Oregon estate transfer tax return for the second spouse • A copy of the foreign country’s or other state’s Estate Tax
to die must include any property previously claimed for the Return if the estate is subject to estate tax in a foreign
QTIP or OSMP deduction claimed on the Oregon estate or country or another state.
inheritance tax return for the first spouse to die. See ORS • A copy of property inventory, schedule of liabilities, claims
118.010 and relevant rules for details. against the estate, and expenses of administration filed with
a foreign probate court, certified by an official of the court.
• Expert valuations (for example: business value, personal
Part 6: Tax table property value, etc.).
• Independent fee appraisals for real property, wherever
Compute your tax for part 2 line 5 by applying the rates located, used to support reported value.
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.
150-104-001-1 (Rev. 07-28-23) Page 9 of 11 2023 Form OR-706 Instructions

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• Total the items listed on each schedule and its attachments, Collateral required
and any continuation schedules. According to ORS 118.225 and corresponding rules, for us to
• Enter the total of all schedules and continuation schedules agree to an installment payment of tax, the following must
at the bottom of each schedule. occur:
• Don’t carry the totals forward from one schedule to the
• Acceptable collateral must be provided. For real property,
next.
a first mortgage, having a value of double the extended
• Enter the total for each schedule on part 5—recapitulation.
tax. For personal property, a surety bond in double the
Note: Processing delays may occur if you don’t provide the amount of the extended tax, executed by a corporation
required documents with your tax return. licensed to do business in the State of Oregon. The bond
must be renewed every five years.
• Executor is personally liable for payment of the tax to the
What happens after you file the tax extent of the value of the property.
return? • Annual statements of account will be sent to the executor.
• If your payment isn’t made timely, the installment pay-
We’ll process your tax return in the order the returns are ment arrangement is cancelled; a 5 percent late payment
received. We may contact you for additional information or penalty will be assessed; and the remaining liability of
documentation in order to complete the processing of your penalty, interest, and tax is due and owing immediately.
return. • Interest on the Oregon Estate Transfer tax accumulates
from the day after the due date of the original return, to
Once the return is processed and the account is paid in full, the date your payment is received.
we’ll issue the Oregon estate tax receipt as required by ORS • Oregon interest rates are shown in these instructions for
118.250. The receipt will identify the estate and show the part 2, line 16.
amount of tax, penalty, and interest paid to us. We’ll send
a copy of the receipt to the authorized representative, if the You don’t need to furnish the required mortgage or bond
authorization box on part 2 of the form is checked, or if we at the time you file Form OR-706. We will contact you and
have an Oregon POA form on file for a representative. work through the process of securing acceptable collateral.
The executor may request a discharge from personal liability Important: The interest paid on installment payments isn’t
by completing the Oregon Form OR-706-DISC, Request for deductible as an administrative expense of the estate.
Discharge from Personal Liability, 150-104-005. This form must
be filed separately from the Form OR-706. Survivor information
We have up to 18 months to respond to your request. During
The following information is designed to help if you’re set-
our review your return may be selected for an audit. We’ll
tling the finances of a deceased person. It’s not a complete
issue the discharge after we have accepted the return and
statement of laws or rules.
the account is paid in full.
If you have questions after reading these instructions, see
your attorney. Some of these matters are complex and you
Installment payments may need legal advice.

Does the estate include an interest in a closely held business? Definitions
Does the estate need to dispose of property for less than fair
Beneficiary: One who will receive assets from an estate. The
market value to pay the estate transfer tax? If you answered
assets of an estate are distributed to beneficiaries after all
yes to either one of these questions and the estate wishes
taxes and expenses are paid. The assets may be distributed
to pay the tax in installments under ORS 118.225, you must under the terms of a will, or if there is no will, under the
submit a request for extension of time to pay. We’ll issue a provisions of state law. (Other terms: heirs at law, devisee,
determination letter to inform the estate whether or not they legatee, and claiming successor.)
qualified for installment payments under ORS 118.225. The
number of payments can be up to 14 equal payments made Decedent: A legal word for a person who has died.
up of annual interest and principal. Estate: All the property of the decedent. (See probate and small
The portion of tax which doesn’t qualify for the installment estate proceeding.) If an estate is probated, the court appoints
plan must be paid by the original due date of the tax return. a personal representative to be responsible for the property
The first of 14 installment payments will begin once the and finances of the estate. Any money the estate earns (such
extended payment period is approved by us, the total tax is as rental income or stock dividends) must be reported on Form
OR-41, Oregon Fiduciary Income Tax Return, 150-101-041.
determined, and collateral has been provided by the estate;
see collateral required below. Other payment arrangements Executor: An executor is a personal representative, admin-
may be available for your estate under ORS 118.225. istrator, trustee, fiduciary, or custodian of the property, or
150-104-001-1 (Rev. 07-28-23) Page 10 of 11 2023 Form OR-706 Instructions

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any person who has actual or constructive possession of the
Do you have questions or need help?
decedent’s property.
Fiduciary: An individual or legal group (such as a bank or
corporation) that has financial responsibility for an estate or Internet
a trust held for the benefit of others.
www.oregon.gov/dor
Personal property: All property that isn’t real property, such
• Download forms, instructions, and publications.
as money, stocks, bonds, machinery, or equipment. A mobile
• Search FAQ.
home owned by the decedent, but located on rented or leased
land is also personal property.
Email
Personal representative: The executor, administrator, or
anyone in charge of the decedent’s property. The surviv- estate.help.dor@ dor.oregon.gov
ing spouse may or may not be the personal representative,
depending on the will or the court appointment. The per- This email address isn’t secure and confidentiality can’t be ensured. Gen-
sonal representative is also the estate’s fiduciary. eral tax and policy questions only. We ask that professional tax preparers
and attorneys research questions before contacting us.
Probate: A formal court proceeding used when the dece-
dent held property solely in the decedent’s name. Probate
settles the decedent’s finances and distributes the property Correspondence
according to the will or state law. The probate court appoints
a personal representative. Estate Tax Unit, Business Division
Oregon Department of Revenue
Probate court: In Oregon, this is generally the circuit court. PO Box 14110
In some cases it may be the county district court or the Salem OR 97309-0910
county court. Fax: 503-945-8787, Estate Tax Unit
Real property: Real property is land and stationary build-
ings. For example, a residence or commercial building is Phone
real property.
503-378-4988 or 800-356-4222
Small estate proceeding: A court procedure to transfer the title
of solely owned property to heirs when the estate consists of: Monday–Friday, 7:30 a.m.–5 p.m.
(a) The fair market value of the estate is $275,000 or less; Closed Thursdays from 9–11 a.m. Closed holidays.
(b) No more than $75,000 of the fair market value of the Wait times may vary.
estate is attributable to personal property; and Contact us for ADA accommodations or assistance in other
(c) No more than $200,000 of the fair market value of the languages.
estate is attributable to real property.
In person

Find directions and hours on our website.
www.oregon.gov/dor.

150-104-001-1 (Rev. 07-28-23) Page 11 of 11 2023 Form OR-706 Instructions

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