Family Farms get estate tax relief under new law
Governor Tina Kotek signed SB 498 into law on July 13, 2023, providing a new Oregon estate tax exemption of up to $15 million for natural resource property used in farming, forestry, or fishing businesses. Effective September 24, 2023, the law applies to decedents who died after July 1, 2023, potentially saving families up to $2.4 million in estate taxes. Decedents must have owned the Natural Resource Property for at least five years and a family member must have materially participated in the business for at least 75% of the days in each of the five calendar years prior to death. The NR Property must be transferred to family members who continue ownership for five consecutive years after death, with ongoing material participation in the business. Failure to meet these conditions may result in additional taxes. This law presents a planning opportunity for eligible families to minimize estate taxes, necessitating a review of estate and succession plans.
