Washington residence and Washington property owners would be wise to consider the impact of the Washington Estate Tax when completing their estate planning, regardless of whether it is a will or a trust-based plan. As an initial concept, your “estate” can be thought of as everything that is own, including things like your house, bank accounts and life insurance.
The Washington Estate Tax is tax that applies on the right to transfer property at the time of death. On common misconception is that using things like deeds upon death or a beneficiary designation can avoid this estate tax. While that may be true in other places, it is not true in Washington.
The Washington Estate Tax applies to estates worth $2.193 million and up, with the first $2.193 million exempt from taxation.[1] After that point, the tax rates are progressive, ranging from 10% to 20%.[2] More and more Washington residents are finding out they may be subject to an estate tax which can leave their loved ones with a significant tax bill within months of them passing away. Solid estate planning help reduce the impact of this tax on your loved ones and also ensure that more of your legacy can pass onto them.