For 2026, the federal estate and gift tax exemption has increased to $15 million per person, or $30 million for married couples who engage in proper planning.

This exemption represents the amount that can be transferred during life or at death without triggering federal estate tax. For many families, this means:

• No federal estate tax exposure at all
• Greater flexibility in lifetime gifting
• New opportunities to shift wealth to children or trusts while exemption levels are high

Importantly, exemption amounts are set by federal law and can change in the future, so proactive planning remains critical.

Washington State Estate Tax: Incremental but Important Growth

Washington has its own estate tax system, separate from the federal rules—and the exemption is much lower.

For deaths occurring in 2026, the Washington estate tax exemption is $3,076,000, up from $3,000,000 in 2025.

This increase is the result of recent legislative changes:

• Washington raised its estate tax exemption from $2.193 million to $3 million for deaths occurring on or after July 1, 2025
• The law includes an annual inflation adjustment, which is why we now see the $3,076,000 exemption for 2026

Even with this increase, Washington estates can face estate tax liability well before any federal tax applies.

Why These Changes Matter for Estate Planning

These updated exemption amounts create both opportunity and risk:

• Many Washington residents may owe state estate tax even when no federal estate tax is due
• Married couples who rely on outdated plans may fail to fully use both exemptions
• Trust structures, beneficiary designations, and gifting strategies should be revisited to ensure they still make sense under current law

If your estate plan hasn’t been reviewed recently—or was created when exemption amounts were lower—it may not be optimized for today’s landscape.

A Good Time to Review (or Start) Your Estate Plan

Estate tax laws continue to evolve, and exemption amounts are only one piece of the puzzle. A thoughtful estate plan can help:

• Minimize Washington estate tax exposure
• Preserve family wealth
• Ensure your wishes are carried out efficiently and privately

At Limitless Law PLLC, we help clients design estate plans that are tailored to current law while remaining flexible for future changes.

If you’d like to review your existing plan or explore whether these 2026 changes affect you, we’re happy to help.

Call 360-685-0145 or click here to learn more about how we can help!