What Is the Difference Between a Washington Probate Estate and a Taxable Estate?

When it comes to the estate tax, the law makes a clear distinction between a “probate” estate and a “taxable” estate. Essentially, there are assets that may be part of a deceased individual’s taxable estate that are not part of their probate estate. It is therefore important to consider the potential size of your taxable estate when it comes to estate planning, especially if you wish to minimize any potential estate tax liability.

What Is a Probate Estate?

In simple terms, a probate estate includes any property that will pass under the terms of your will–or if you do not leave a will, then according to Washington intestacy law. Basically, any property titled in your sole name at death is considered part of your probate estate. This can exclude a wide range of property you might still have an ownership or beneficial interest in.

What Is a Taxable Estate?

When it comes to the federal and Washington State estate tax, the term “estate” refers to a taxable estate, which can include many assets that are not part of the probate estate. The IRS includes the following non-probate assets in a deceased individual’s gross estate:

• the proceeds of any life insurance policy owned by the decedent and payable to their heirs;
• the value of any annuities, such as retirement accounts, payable to the decedent’s heirs;
• the decedent’s portion of any jointly owned property, including community property held under Washington law;
• certain gifts made by the decedent in the three years prior to their death; and
• any digital assets held by the decedent, including cryptocurrency and NFTs.

The final taxable estate is the gross estate less those deductions allowed by law. Common deductions from the gross estate include:

• any funeral or burial costs paid by the decedent’s estate;
• any lawful debts owed by the decedent at the time of their death;
• the value of any property passing from the decedent to their spouse; and
• the value of any property passing from the decedent to the federal, state, or local government, or to an IRS-recognized charitable organization.

Even when a sizable taxable estate remains, however, keep in mind that both federal and state law provide generous exemptions from the estate tax. In 2025, the federal estate tax exemption is $13,990,000. In Washington, the state estate tax exemption is $2,193,000. So unless you expect to leave a final taxable estate that exceeds either of those amounts, your estate will not need to file an estate tax return.

Contact a Spokane Estate Tax Lawyer Today

If you have questions or concerns regarding the estate tax, and how you can legally work to reduce your future estate’s potential liability for such taxes, it is important to seek out qualified legal advice as soon as possible. Our Spokane estate tax lawyers are happy to speak with you. Contact Moulton Law Offices, P.S., today to schedule a free consultation. We serve clients throughout the Spokane Valley, Kennewick, and Yakima area.