Oregon City, OR asked in Tax Law for Oregon

Q: Resident of Oregon. International inheritance of roughly $1.1m from Switzerland. Subject to OR State tax?

A little more detail ... Grandmother passed away, grandfather years back. My parents are deceased. My 2 cousins and I are receiving the proceeds of the sales of all properties and accounts split 3 equal ways in accordance with Swiss law. My portion is estimated at roughly $1,085,000.

Oregon has a confusing set of laws regarding residents, non-residents, tax law, etc. Are we subject to inheritance/estate tax when the originating source of the inheritance is International and they did not live in Oregon (ever)?

Thank you.

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: Federally no tax will be owed since you're receiving the funds and the estate was outside the US.

Oregon taxes estates not inheritance, just like federal.

Because your Grandmother was not a resident of Oregon (or the US) the state (and IRS) can't tax her estate. As the recipient of the inheritance you're not taxed when you receive the money. Some states do tax the inheritance (Pennsylvania) but Oregon and the IRS do not.

Once you receive the funds you will be taxed on any related income.

Given the amount it is probably time to seek out professional advice on how to minimize income tax and estate taxes.

1 user found this answer helpful

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