HB 3688
Allows an exclusion from the Oregon taxable estate of a surviving spouse for the unused portion of exclusion that applied to the prior deceased spouse of the decedent.
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Sign in to take actionPublic sentiment
Support
100%
Oppose
0%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows a surviving spouse to claim an estate tax exclusion in Oregon that was not fully used by the deceased spouse. Specifically, if the prior deceased spouse’s estate was under $1 million, the surviving spouse can claim the remaining unused portion of the $1 million exclusion. This applies to estates of decedents who die on or after January 1, 2026, and requires the personal representative of the prior deceased spouse to file a return within 12 months of their death.
Key provisions
- Allows a surviving spouse to claim an unused portion of the prior deceased spouse’s estate tax exclusion.
- The exclusion amount cannot exceed $1 million.
- The exclusion is available only if the prior deceased spouse’s estate did not exceed $1 million.
- The personal representative of the prior deceased spouse must file a return within 12 months of their death.
- The bill applies to estates of decedents dying on or after January 1, 2026.
- The exclusion is calculated by subtracting the prior deceased spouse’s estate value from $1 million.
Who is affected
- Surviving spouses
- Heirs and beneficiaries of estates
- Personal representatives of estates
- Oregon taxpayers
Notable changes
- Creates a new exclusion for surviving spouses based on the unused portion of the prior deceased spouse’s estate tax exclusion.
- Establishes a $1 million limit on the exclusion amount.
Sponsors
Official sponsors from legislative records.
Primary sponsor
E. Werner Reschke
Cosponsor
Arguments in favor
Reasons to support this legislation.
Supporters of the legislation acknowledge that it provides benefits for families maintaining business operations and allows for flexibility in settling an estate after a spouse passes away. They advocate for simplifying the process of navigating complex tax laws, particularly for those with modest means, and support measures like HB 3688 and HB 3934, which implement fixes to Oregon's estate tax system by allowing surviving spouses to claim unused exemptions. Additionally, they propose changes to the current law regarding married couples' estates, enabling more protection for surviving spouses. By implementing these changes, supporters believe the legislation can provide relief and support for families in need, particularly those with modest means navigating the complex tax laws.
Source: Testimony Summaries
Arguments opposed
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