Washington State Department of Revenue

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If you reside in Washington State, you reside in among a handful of states that still collect an estate tax The estates of Washington homeowners-- along with the estates of nonresidents who own real estate and/or tangible personal effects located there-- are subject to a state estate tax under the following guidelines.

Washington State Department of Revenue

When Is an Estate Topic to the Washington State Department of Revenue?

An estate is subject to the Washington State Department of Revenue if the decedent died to own property situated in the state and his gross estate surpasses a value of $2,129,000 as of 2017.

In June 2013, a law signed by Guv Jay Isle triggered the former estate tax exemption of $2 million to be changed for inflation on a yearly basis start in 2014. This implies that the exemption can be expected to increase incrementally from year to year to equal the economy.

When Does a Washington Estate Have to File a State Estate Tax Return?

It used to be that some Washington estates needed to file an estate tax return even if they did not owe an estate tax because their values fell listed below the exemption amount. The value threshold for needing to file a return was just $2 million since October 22, 2016. That law has actually since been reversed. The exclusion quantity and the filing requirement threshold have been the very same-- presently $2,129,000-- considering that October 23, 2016.

How Is the Washington State Department of Revenue Determined and What Is the Tax Rate?

The Washington estate tax is calculated using the worth of the taxable estate and Table W The "Washington taxable estate" suggests the federal taxable estate prior to subtracting state estate, succession, inheritance, or tradition taxes, less the suitable estate tax exemption of $2.129 million and the amount of any genuine or concrete personal property that receives a farm reduction.

The tax rate is a progressive one that maxes out at 20 percent for estates valued at $9 million or more as of 2017. The lowest rate for estates that inch just over the exemption amount is 10 percent since 2017.

Are Transfers to an Enduring Spouse Taxable?

Straight-out transfers to surviving partners are exempt from Washington's estate tax.
Couples who have utilized AB Trust planning to reduce their federal estate tax expense may find that a Washington estate tax is due on the B Trust as an outcome of a gap in between the Washington exemption and the federal exemption. The federal estate tax exemption is $5.49 million since 2017, so the gap comes out to an extremely significant $3,361,000.

Nonetheless, a married decedent's estate can make a Washington-only election to treat a trust as a "certified terminable interest property" or "QTIP" trust if the surviving partner is the sole recipient. When there's a space in between the Washington estate tax exemption and the federal exemption and a state-only QTIP election is allowed, wed Washington homeowners can defer payment of both Washington and federal death taxes up until after the death of the making it through partner using an ABC trust.

When Are the Washington Estate Tax Return and Tax Payment Due?

The Washington State estate tax return must be filed and any estate tax that's due should be paid within 9 months of the decedent's date of death. Payment of any Washington State estate tax after the initial due date will accrue interest.

Extension requests, Washington State estate tax returns and payments are all sent by mail to the Washington State Department of Earnings at P. Box 47488, Olympia, Washington 98504-7488.
Where Can I Find Extra Information About Washington Estate Taxes?
What Are Washington State Estate Taxes Utilized For?

Keep in mind:

State laws can alter often and the following information might not reflect the most current changes. For current tax advice, please talk to a local accountant. The information included in this short article is not tax suggestions and is not an alternative to tax suggestions.