Here's a Breakdown of the Key Changes in the Washington State Estate Tax:

• Increased Exemption: The estate tax exemption rises from $2.193 million to $3 million. This means estates valued at $3 million or less will not be subject to the Washington state estate tax.
• Inflation Adjustment: The $3 million exemption amount will be adjusted annually for inflation, starting January 1, 2026.
• Increased Tax Rates: While the exemption is higher, the estate tax rates have also been increased for estates exceeding $1 million. The top marginal rate is now 35% for estates over $9 million.
• Qualified Family-Owned Business Interest Deduction: The deduction for qualified family-owned business interests has also been increased to $3 million. 

What Do These Changes Mean For You?

• Reduced Tax Burden for Some: Estates valued between $2.193 million and $3 million will now be exempt from the Washington estate tax.
• Higher Taxes for Larger Estates: Estates exceeding $3 million will face higher taxes due to the increased tax rates. For example, estates over $9 million will be taxed at a top rate of 35%, up from 20%.
• Estate Planning Implications: Individuals with estates potentially subject to the Washington estate tax should review their estate plans to account for these changes. 

These changes to the Washington State estate tax represent a significant shift. While the increased exemption provides relief for some, the higher tax rates on larger estates mean that careful estate planning is more crucial than ever. 

If you’d like to learn more about how the new estate tax laws recently enacted in Washington State may impact you and your loved ones, or if you need help creating an estate plan tailored to your goals, contact our office. Limitless Law's experienced estate planning team is ready to guide you every step of the way. You are welcome to contact us to schedule your strategy session with our attorney. Call 360-685-0145 or click here to learn more.

This blog post is for informational purposes only and does not constitute legal advice. If you have questions about your own legal rights and options, please contact the knowledgeable team at Limitless Law PLLC to schedule a strategy session with our attorney. Call 360-685-0145 or click here to learn more.