Oregon Estate Tax Portability & Marital Deduction

No portability — but a genuinely detailed Oregon-only marital election that even reaches multi-beneficiary trusts.

ORS §118.013, §118.016

Quick answer: no — Oregon does not let a surviving spouse add a deceased spouse's unused exemption to their own. Run your own numbers in the Oregon estate tax calculator.

One exemption per spouse, no exceptions

Each spouse has their own $1,000,000 Oregon exemption. If the first spouse to die doesn't use all of it, the unused portion simply disappears — there's no mechanism in ORS Chapter 118 to carry it forward to the survivor, the way federal portability works.

The Oregon special marital property election

It can even reach multi-beneficiary trusts

If a trust would otherwise qualify except that it allows distributions to other beneficiaries too, the executor can carve out a separate share or trust as Oregon special marital property — but only if every other permissible distributee, and the surviving spouse, sign a written consent agreeing to give up any current interest in that carved-out share during the spouse's lifetime.

A separate election, independent of the federal return

If the federal taxable estate is determined using certain elections under the Internal Revenue Code, or no federal return is required at all, the executor may make a separate Oregon-only election for state estate tax purposes under that same provision — the Oregon and federal marital deduction decisions don't have to match.

Facing probate in Oregon?

A local probate attorney can review your estate — many offer a free consultation.

Talk to an Oregon attorney

Every election under ORS 118.013 and 118.016 is irrevocable once the paperwork is filed with the estate tax return — have a licensed Oregon attorney confirm the trust language qualifies before committing to it.

Portability & marital deduction — frequently asked questions

Does Oregon offer estate tax portability between spouses?

No. Oregon does not allow a surviving spouse to inherit the unused portion of a deceased spouse's $1,000,000 exemption — each spouse's exemption stands alone.

What is Oregon special marital property?

A trust or property interest, elected under ORS 118.013 and 118.016, where income or principal may only go to the surviving spouse during their lifetime, and which the surviving spouse cannot redirect to anyone else — qualifying it for a marital deduction from the Oregon taxable estate.

Is the Oregon special marital property election separate from the federal marital deduction?

Yes — an executor can make a separate Oregon election under section 2056 of the Internal Revenue Code for state estate tax purposes, independent of what happens on the federal return.

Is the election reversible once made?

No — elections under ORS 118.013 and 118.016 are irrevocable once filed with the estate tax return.

This page provides general guidance only and is not legal or tax advice. Based on ORS §118.013, §118.016. Confirm current figures and planning options with the Oregon Department of Revenue or a licensed estate planning attorney before acting.