Did you know that Washington State taxes you based on the total value of everything you own when you die? This includes your car, your home, your art collection, your retirement accounts, investments AND what is in the bank! If this amount totals over $2.19 million (which if you own your home in Western Washington you could be almost half way there) after you die your estate will be paying a tax of 10% or more to the State of Washington.

There are many wonderful and amazing things about living in Washington State – Mount Rainier and Mount St. Helens, Olympic National Park, the San Juan Islands, just to name a few – but our State’s Estate Tax is not one of them.  Our Washington State Estate Tax is just one of the reasons that I have every single potential client complete an asset inventory before our first session together. This asset inventory asks about every single asset you own – and often people say – why do you want to know about my car? Or my life insurance amounts? Or the value of my miscellaneous household goods? “I just want a Will, I’m simple.” They say.

Well, my friends, living in Washington means that dying could be very expensive if we own a lot of things. And in my practice, I want to identify immediately if they need to plan for Washington State Estate Tax so I can empower them with information. Like my favorite public service announcement – “The More You Know.”

 

Do I need to be a multi-millionaire to pay estate taxes?

A lot of people think you need to be a multi-millionaire to pay estate taxes.  Currently, the national Estate Tax Exemption from the IRS is set at over $10 million per person. There is a lot of talk about this going down in 2026 when the current laws sunset – but regardless, if you live in Washington State – the number we are talking about as a threshold for Estate Tax is $2.193 million.  And the law reads “everything you own when you die.” Which is why we need to talk about Estate Tax immediately when we first engage in planning. If you own your home in Washington, have been good at saving for retirement or investing, and/or have a decent amount of life insurance on yourself, the Estate Planning attorney you are discussing this with should be asking you about your assets in their entirety to determine if Washington Estate Tax will apply to you and your estate.

In my Washington based practice, I have just built this in.  Everyone I work with, as part of our initial complimentary estate assessment and planning session, is informed about their status in relation to Washington State Estate tax so they can make informed and empowered choices around how they plan.

I spend two hours of my time educating each individual or family that comes in my door about the current state of their “plan” before we build a new one.  Further, I’ve built tax planning into my estate plan packages. Individuals, couples and families who have over 2 million in assets can choose my Estate Tax Awareness Plan that includes, as part of the planning process, an Abundance Audit where we bring in a village of professionals to create a holistic strategy for reducing this tax. This village has included my client’s CPA and/or Financial Planners so that all of us can discuss, together from an estate planning perspective, a way to grow wealth but still reduce taxes at death.  If my clients do not already have tax or financial professionals they want as part of their village, I will find, vet, and bring them into the conversation as part of the process. I want to make sure there is no guesswork, we can all be informed and able to use all the tools Washington Estate Planning law has to offer in a holistic manner.

 

Work I’m Happy And Proud To Do To Save My Clients Money

It takes more work for me to practice this way, however, if I am not examining your situation holistically, taking every asset you have, and your family dynamics into consideration, I am not properly serving you.  And if you are coming to me to do your planning – you are expecting me to know the best path forward to create with you a comprehensive estate plan that serves your family if something happens to you.  Service in this instance means we have minimized bureaucratic hassles such as Probate Court, protected minor children from becoming wards of the state, and we have set up the transfer of assets in such a way as to pass as much as possible to your beneficiaries, and as little as possible to the government via taxation.

 

You Don’t Have To Have All The Answers Right Now, That’s Why I’m Here

When families come to me they do not have to know all the answers or any of the legal terminology – they just have to be able to express their goals in their own words and tell me about their family and their assets. It is my job to translate that into the legal tools and containers available.  So when I work with families with minor children we immediately discuss the need for a Treasure Chest Plan because a comprehensive plan for a family with minor children includes Child Protection Planning and Treasure Chest Trusts for the Kids.

Similarly, families who have over $2 million in assets need an Estate Tax Awareness Plan which automatically includes an Abundance Audit and discussion with an experienced team involving tax and holistic wealth professionals so we can identify the options available to reduce the tax burden on the estate and pass as much as possible to your chosen beneficiaries instead of the Government. All of this takes time and attention, but it is time well invested as it ensures that while you are alive, you are doing everything necessary to protect your children and family from additional expense and legal machinations upon your death.

 

Your Family Is Not A Transaction, Make Sure They’re Protected

Your family is not a transaction, but I admit the law can feel very transactional, especially in the area of taxation – but at the end of the day you are not just a number.  But numbers will affect your family – so we want to look at everything together and determine the best way forward so you can take empowered action and make empowered decisions.  If you want to take advantage of my comprehensive estate planning assessment and planning session, book a free call with me by clicking below.