Estate Planning Law in Washington: Overview
Washington imposes a state estate tax with a $2.193 million exemption (indexed for inflation) and graduated rates from 10% to 20%. The state is one of nine community property states, which significantly affects estate planning. Washington has no income tax. The state has its own probate code (not the UPC). Holographic wills are not recognized. Transfer-on-death deeds are available through the Washington TOD Deed Act. The small estate threshold is $100,000.
Key Statutes & Deadlines
State Estate Tax
$2.193 million exemption (indexed); rates 10-20%
RCW § 83.100.020
Community Property
Community property state
RCW § 26.16.030
Small Estate Threshold
$100,000 for small estate affidavit
RCW § 11.62.010
Will Execution
Two witnesses; no holographic wills
RCW § 11.12.020
Transfer-on-Death Deed
Available for real property
RCW § 64.80.010
Washington Estate Tax
Washington's estate tax applies to estates exceeding $2.193 million (indexed), with graduated rates from 10% to 20%. This is one of the lower exemptions nationally. The high rate of 20% is the highest state estate tax rate in the country. Washington does not allow portability of the state exemption between spouses. Given high property values in the Seattle metro area, many Washington families are affected. Estate tax planning through trusts, lifetime gifting, and charitable strategies is essential.
Community Property
Washington is a community property state. Property acquired during marriage is owned equally. Both halves receive a full stepped-up basis at the first death. Washington also offers a community property agreement, which can direct that all community property passes to the surviving spouse at death without probate. This is a popular and simple estate planning tool.
Non-Probate Transfers
Washington allows community property agreements, TOD deeds, POD designations, and trusts for probate avoidance. The community property agreement is a particularly efficient tool—it can avoid probate on all community property by directing it to the surviving spouse. For non-spouse beneficiaries, trusts and TOD deeds are used.
Washington Court System
Washington probate is handled by Superior Courts in each of its 39 counties. King County (Seattle) handles a large volume of probate cases. The process involves filing the will, appointing a personal representative, inventorying assets, notifying creditors (four-month claims period), and distributing the estate. Washington allows nonintervention administration (similar to independent administration). Appeals go to the Court of Appeals and Supreme Court.
Damages & Penalties
Washington's estate tax rate of 20% is the highest in the nation. The exemption ($2.193 million, indexed) is not portable. Washington has no income tax. Fiduciaries face liability for breach. Courts can remove and surcharge fiduciaries.
Recent Legislative Changes
Washington has enacted TOD deed legislation and indexed its estate tax exemption for inflation. The exemption has been gradually increasing.
Key Takeaways
- State estate tax with $2.193 million exemption and rates up to 20% (highest in nation).
- Community property state with no income tax.
- Community property agreements can avoid probate on all community property.
- Transfer-on-death deeds available.
- Holographic wills not recognized.
- Estate tax exemption not portable between spouses.
- Small estates under $100,000 qualify for affidavit.
Frequently Asked Questions
Does Washington have a state estate tax?
Yes, with a $2.193 million exemption (indexed) and rates from 10% to 20%. The 20% rate is the highest in the nation.
Is the exemption portable?
No, Washington does not allow portability. Bypass trust planning is important for married couples.
What is a community property agreement?
An agreement directing all community property to the surviving spouse at death without probate. It is a simple and effective estate planning tool for married couples.
Are holographic wills valid?
No, Washington requires two witnesses.
Does Washington allow transfer-on-death deeds?
Yes, TOD deeds are available for real property.
How does community property affect planning?
Community property is owned equally by both spouses and receives a full stepped-up basis at the first death. The estate tax, however, applies to the deceased spouse's total taxable estate.
This guide is provided for general informational purposes only and does not constitute legal advice. Washington laws may change, and the information here may not apply to your specific situation. For advice tailored to your circumstances, consult with a qualified Washington attorney.