Oregon adopted the Uniform Trust Code in 2005, providing a modern framework for trust administration. The state's most distinctive feature is its estate tax: Oregon has the lowest estate tax exemption in the nation at just $1 million, with rates ranging from 10% to 16%. This means trust-based estate planning is relevant for a much broader group of Oregon families than in most other states. The Oregon Trust Code is found at ORS Chapter 130.
This guide applies to both revocable and irrevocable trusts in Oregon.
Where Oregon trust law lives
Oregon's trust statutes are codified in ORS Chapter 130. The code follows the standard UTC structure. Oregon has also adopted community property preservation provisions for assets imported from community property states.
Accounting and notice requirements
Oregon follows the standard UTC notice framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship of an irrevocable trust. Annual accounting to qualified beneficiaries is required under the default rules. While the trust is revocable and the trust creator is alive and competent, the trustee's duties run primarily to the trust creator.
Trustee duties
Oregon trustees must administer the trust in good faith, following the trust's terms and purposes, and in the interests of the beneficiaries. All standard UTC duties apply. Compensation follows the trust instrument first, with reasonable compensation as the default.
What makes Oregon different
Lowest estate tax exemption in the nation. Oregon's estate tax exemption is just $1 million, the lowest of any state. Rates range from 10% to 16% on estates exceeding this threshold. For context, a family home in the Portland metro area can easily push an estate over $1 million, meaning the Oregon estate tax affects far more families than just the wealthy. There has been active legislative discussion about raising this threshold, with proposals ranging from $2.5 million to $7 million, but as of this writing the $1 million threshold remains in effect. A ballot initiative to repeal the estate tax entirely may appear on the 2026 ballot.
No sales tax, but high income tax. Oregon has no sales tax, but it does have a state income tax that applies to trust income. Trusts that accumulate income in Oregon face state income tax on that income, which is an important planning consideration.
Community property preservation. Oregon is a common law property state but has adopted the Uniform Disposition of Community Property Rights at Death Act, preserving the character of community property imported from states like California, Washington, or Arizona.
Standard UTC modification tools. Oregon provides nonjudicial settlement agreements, court modification, and modification by consent.
TrustHelm tip: Oregon's $1 million estate tax exemption means trust-based planning is relevant for many more families than in other states. TrustHelm's asset tracking features can help you understand the total value of trust assets relative to Oregon's low threshold, so you can plan proactively with your attorney.
The most common Oregon trust mistakes
Not funding the trust. The most common trust mistake everywhere: assets not in the trust remain subject to probate.
Underestimating the estate tax impact. With a $1 million exemption, many middle-class Oregon families are affected by the state estate tax. Home appreciation in Portland and other Oregon cities can push estates over this threshold quickly.
Not providing annual accountings. Regular accountings start the statute of limitations clock and protect the trustee.
Not planning for state income tax on accumulated trust income. Oregon taxes trust income at state rates. Families should consider whether distributing income to beneficiaries in lower tax brackets makes more sense than accumulating it in the trust.
When to talk to an attorney
You should consult an Oregon trust attorney if you need help planning around the $1 million estate tax exemption, if you recently moved from another state and need to review your trust, if you have been named as trustee and need to understand your obligations, or if you are following the potential legislative changes to Oregon's estate tax.
If you need help finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney tool.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.