Estate Tax Attorneys

Washington State Estate Tax Attorneys

The Washington State Estate Tax is assessed on every dollar of your estate over $2,193,000. This number is indexed for inflation and therefore rises each year. The estate tax is imposed at graduated rates from 10% to 20%.

Work with an experienced financial planning attorney to resolve your own tax issues. Contact us today for more information.

Read our helpful Guide to Washington Estate Planning.

washington state estate taxes

Federal Estate Tax

Historically speaking, the federal estate tax is an excise tax levied on the transfer of a person’s assets after death. In actuality, it is neither a death tax nor an inheritance tax, but more accurately a transfer tax. There are three distinct aspects to federal estate taxes that comprise what is called the Unified Transfer Tax: Estate Taxes, Gift Taxes, and Generation-Skipping Transfer Taxes. Legal planning to avoid or minimize federal estate taxes is both a prudent and an important aspect of comprehensive estate planning.

The most recent iteration of the federal estate tax was signed into law on January 2, 2013, as part of the American Taxpayer Relief Act of 2012 (ATRA 2012). There are a few things you ought to know about this law, as regarding your estate planning. Specifically, you should know the “numbers” governing transfers subject to estate, gift and generation-skipping transfer taxation.

Federal Estate Tax Exemption

The $5 million exemption signed into law on December 17, 2010, under the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 (TRA 2010), is now permanent under ATRA 2012, as indexed for inflation. Accordingly, the federal estate tax exemption for 2013 was $5.25 million, 2014 was $5.34 million, 2015 was $5.43 and for 2016 is $5.45 million, thanks to that inflation indexing (and a nearly “automatic”* $10.9 million for married couples who follow very specific requirements at the death of the first spouse).

Annual Gift Tax Exclusion and Lifetime Gift Tax Exemption

The ATRA 2012 continues the concept of a unified exemption that ties together the gift tax and the estate tax. This means that, to the extent you utilize your lifetime gift tax exemption while living, your federal estate tax exemption at death will be reduced accordingly. Your unified lifetime gift and estate tax exemption in 2016 is $5.45 million, as indexed for inflation up from $5.43 million in 2015. Likewise, the top tax rate is 40%. Note: Gifts made within your annual gift exclusion amount do not count against your unified lifetime gift and estate tax exemption.

The annual gift exclusion is currently $14,000 for 2016, just as it was for 2013, 2014 and 2015. Married couples can combine their annual gift exclusion amounts to make tax-exempt gifts totaling $28,000 to as many individuals as they choose each year, whether both spouses contribute equally, or if the entire gift comes from one spouse. In the latter instance, the couple must file an IRS Form 709 Gift Tax return and elect “gift-splitting” for the tax year in which such gift was made.

Generation-Skipping Transfer Tax Exemption

The amount that can escape federal estate taxation between generations, otherwise known as the Generation-Skipping Transfer Tax Exemption (GSTT) is unified with the federal estate tax exemption and the lifetime gift tax exemption at $5.45 million, as indexed for inflation up from $5.43 in 2015. As with estate and gift taxes, the top tax rate is 40%.

So, what is this GSTT? Basically, it is a transfer tax on property passing from one generation to another generation that is two or more generational levels below the transferring generation. For instance, a transfer from a grandparent to a grandchild or from an individual to another unrelated individual who is more than 37.5 years younger than the transfer-or.

Properly done, this can transfer significant wealth between generations.

Washington State Estate Tax *Portability

The ATRA 2012, makes “permanent” a new concept in estate planning for married couples, ostensibly rendering traditional estate tax planning unnecessary. This concept, called “portability,” means that a surviving spouse can essentially inherit the estate tax exemption of the deceased spouse without use of “A-B Trust” planning. As with most tax laws, however, the devil is in the details. For example, unless the surviving spouse files a timely (within nine months of death) Form 709 Estate Tax Return and complies with other requirements, the portability may be unavailable.

In addition, married couples will not be able to use the GSTT exemptions of both spouses if they elect to use “portability” as the means to secure their respective estate tax exemptions. Furthermore, reliance on “portability” in the context of blended families may result in unintentional disinheritance’s and other unpleasant consequences.

If you are concerned about how your current estate and gift planning may function in light of ATRA 2012, and thereafter, then we encourage you to schedule a consultation.

How can we help?

Our firm is dedicated to providing you with quality estate planning resources, so you can become familiar with all of the existing options.

Jeff Hughes
Jeff Hughes
13:58 10 Feb 23
My wife and I met with Matt Luedke of Moulton Law yesterday for a full hour. Introductory call but I had prepared them that I had many specific legal topics to cover and that it was OK to charge me for the time. Matt was very professional and knowledgeable and he freely shared his advice regarding the legal issues we are struggling with. We are looking at very specific legal structures for our businesses and it turns out this is not an area where Moulton Law operates. Despite this, I felt the guidance Matt offered was outstanding and I got a lot of value out of our discussion. He did not charge us for his time. I have nothing but great things to say about Matt and I am very likely to work with Moulton Law in the future when we update estate plans.
Henry C. Stevens
Henry C. Stevens
19:17 20 Jan 23
This firm truly cares about their clients and it shows in the quality of their work. They were very thorough and made sure that my trust was tailored to my specific needs (I have special needs children). I would highly recommend them .
Angelina Patrícia
Angelina Patrícia
00:39 05 Jan 23
Matt went above and beyond to ensure that my parents' estate was properly taken care of. He took the time to explain everything in detail and made sure that all of our questions were answered. I highly recommend Moulton for anyone in need charged with administering an estate.
Diane Cook
Diane Cook
17:18 18 Nov 22
On a recent visit to Moulton Law Offices,Matt. Luedke answered questions, with clarity and satisfaction, that my son and I had asked. I always take away ,from meetings with Matt, a feeling of satisfaction and that he is doing his best for me.
Mark Ballard
Mark Ballard
17:05 10 Nov 22
Matthew was a great help getting a Medicaid application processed for my wife. Very professional, not sure if I could have done it without him and his team. I have and will recommend him to anyone in similar circumstances to mine. Thanks for all your help.
Deb powell
Deb powell
22:27 21 Sep 22
Diana was so professional and personable. She had everything in order and spent time explaining and answering any questions we had. She made both of us feel like a friend helping a friend. If we have any questions we will definitely contact her.
Cherry Wiest
Cherry Wiest
21:01 16 Aug 22
Moulton Law office has helped us with legal matters for many years. We’ve let things slide and have come back to the same helpful, knowledgeable and pleasant people who know their job and do it well. A cutting edge firm in my opinion!
Pam Black
Pam Black
00:20 06 Aug 22
Working with Jenny Hubbard at the Kennewick office of Moulton Law Offices was perfect for what I needed help with. She explained all the questions I had about writing a trust that would make my wishes easy to understand for my sons when the time comes. They also felt comfortable asking her questions. I especially like that the office is in Kennewick so I don’t have to travel far when I have questions. Jenny and her lawyer are here to help you with your questions.
Stephen A
Stephen A
22:30 19 Jul 22
My family has worked with Mr. Gunning at Moulton Law for over 10 years. I am retired and have worked with many attorneys in my business career. Mr. Gunning is by far, the best attorney I have ever been associated with:1. He clearly explains complex legal issues2. He is an excellent listener and offers focused solutions3. He has always treated my 97 year old Mother with kindness and respect.4. The resulting Trusts/Wills have been very detailed and comprehensive.In my opinion, you will be very satisfied working with Mr. GunningAlso the support team is great to work with. Very Upbeat. Our favorite is Holly who has been there for a long time. She is very sharp, confidential, and quick to get to the bottom line in getting things done. Moulton Law is fortunate to have Holly on the Team!
Deb Wilcox
Deb Wilcox
16:35 03 Jul 22
My husband and I met with Diana Davis, a Paralegal from Moulton Law Offices. She has been there for awhile and we have met with her before. She is very professional but personable and totally knows the details that she is there to explain to us. Our Estate Plan needed updates, and Moulton Law Offices efficiently and thoroughly advised us of this, undertook the appropriate revisions, contacted us to discuss and schedule a followup meeting, and then Diana came with all the updates. She went through all the relevant changes and sections, replaced all the previous ones in our copy, obtained our signatures where needed, and all the while answered any questions we had. It was a very pleasant exchange and only took us about 1/2-hour. We are very glad we made the decision 8 years ago to contact Moulton Law Offices to help us prepare an appropriate (to our circumstances) Estate Plan. Diana is a real asset and someone good to know when we don’t need to speak directly with the lawyers (all of whom we also like and appreciate. Highly recommend them all.
Susan Paysse
Susan Paysse
01:00 26 May 22
We had a very good experience working with Moulton Law for our Trust. It's complicated work, and it was great to have a local office to visit for our appointments. Jenny went over all of the documents thoroughly and efficiently. She answered our questions, made changes as needed, and made sure we understood and were comfortable with the documents we were signing. She is a great resource!
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Kimm Minkler
Kimm Minkler
04:57 19 Jan 23
My husband and I attended a Moulton Law Office presentation about Trusts and Wills. We chose to have Moulton prepare our Trust. At the signing, we received a very large package of documents, including medical directives, and a Trust/Will that will serve our children well upon our demise. Jenny was outstanding and very knowledgeable.
Alison Sizemore
Alison Sizemore
02:55 17 Jan 23
Mike Gunning was professional, kind and very knowledgeable. On top of that, our signing experience with Jenny at the Kennewick office was first class! Moulton Law was able to get all of our needs completed in a very timely manner, and on budget.Thank you so much for helping our family!
Brian Harding
Brian Harding
23:59 14 Dec 22
We have been working with Moulton Law Offices in the effort of updating an existing family trust. We have been extremely satisfied at the timely responses and the caring manner of Moulton Law Offices in guiding us through the process. We are extremely grateful to the Kennewick office and especially to Jenny Hubbard. Jenny has been so kind and caring throughout the process and has constantly encouraged us to contact her if we have any questions. On behalf of the family, thank you.
marlo scott
marlo scott
23:48 22 Sep 22
Jenny was great! The entire Moulton law team have been very efficient and we had no surprise on the final price or finished product. Attorney Mike Gunning did an outstanding job of explaining the entire process, advantages and issues if you choose not to get a living trust. To us it was no question that it was the right thing! The local Kennewick office was perfect for us, because I don’t think we would have made it to Spokane and we need a local contact.
amie & brad green
amie & brad green
03:39 17 Sep 22
Jenny Hubbard was very helpful in setting up our Trust, and she answered all questions. She is an expert in inheritance issues.Our session was a lot more than just signing papers. We really got good help.
Jenine Moore
Jenine Moore
21:20 12 Aug 22
Jenny, thank you for all you time, patience and understanding during our visit with you today. It was a bit overwhelming going over all our Final Wishes, etc. But you kindness and concern were very evident. I especially appreciate all you patience and understanding with my husband as well.I would recommend Moulton Law Offices, Kennewick Branch, to anyone looking for Family Estate Planning.SincerelyJenine
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