HB 3934
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 unused portion of the estate tax exclusion that was previously available to the deceased spouse. Specifically, if the prior deceased spouse’s estate did not exceed $1 million, the surviving spouse can claim an exclusion amount up to $1 million, calculated as the difference between $1 million and the prior spouse’s estate value. This provision applies to estates of decedents who die on or after January 1, 2026, and takes effect 91 days after the legislative session concludes.
Key provisions
- Allows a surviving spouse to claim an unused portion of the prior deceased spouse’s estate tax exclusion.
- The exclusion amount is capped at $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 the death to claim the exclusion.
- The election to claim the exclusion is irrevocable.
- The bill applies to estates of decedents dying on or after January 1, 2026.
Who is affected
- Surviving spouses
- Heirs of deceased spouses
- Estate executors
- Oregon residents
- Individuals with estates
Notable changes
- Creates a new exclusion for surviving spouses based on the unused portion of the prior spouse’s estate tax exclusion.
- Establishes a specific dollar limit ($1 million) for the exclusion amount.
Sponsors
Official sponsors from legislative records.
Primary sponsors
Daniel Bonham
David Brock Smith
Arguments in favor
Reasons to support this legislation.
Supporters of HB 3934 generally agree that the bill would simplify estate planning for married couples by allowing a surviving spouse to transfer their unused exemption to them. This change is expected to benefit taxpayers with modest estates, typically those in the $1-5 million range, who currently face complex portability rules. Proponents argue that this provision would improve fairness and equity for all Oregonians, particularly those who are most vulnerable and may not have established an estate plan. By allowing a surviving spouse to use their deceased spouse's unused exemption, supporters believe that HB 3934 would help prevent missed opportunities in estate planning and make it easier for individuals with modest means to navigate the complex current law.
Source: Testimony Summaries
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