The answer to your question is a multi-step process.
First of all, your Schedule K-1 (from federal Form 1041) income is taxable on a federal level by the IRS.
Second, because you are an Oregon resident, all of your (worldwide) income is taxable by Oreogn and the Oregon Department of Revenue, even if it is from a California source.
Third, California, unlike some other states, does not automatically consider income from the estate of a deceased California resident to be income "sourced" from that state. In other words, simply because the deceased's estate is administered in California does not make the income therefrom California-source income for tax purposes.
Instead, please look to your California Schedule K-1 (541) and the beneficiary's instructions for further information on what is, and what is not, California-source income here. In particular, please read the middle column on Page 1 of the following:
https://www.ftb.ca.gov/forms/2016/16_541k1ins.pdf
Fourth, if your California-source income (as determined by those rules) exceeds the filing threshold amount for California nonresidents, as shown and explained on this California Franchise Tax Board webpage, and accompanying income chart, then you will need to file a California nonresident tax return:
https://www.ftb.ca.gov/individuals/fileRtn/
Otherwise, if your California-source income does not exceed the filing threshold, then you do not have to file a California tax return.
Fifth, and finally, please remember as well that if you do have to file a tax return in California, to the extent that you are taxed on the same item(s) of income both by California and by Oregon, that you will be further eligible to claim a state taxes paid credit on your nonresident California tax return for such "double-taxed" income.
Thank you for asking this important question.
