When most people think about a power of attorney, they picture someone paying bills, managing accounts, or stepping in to keep finances running smoothly during incapacity. But one area that often surprises clients — and creates major risk if not handled correctly — is gifting authority. Enlisting the help of a reputable Issaquah, WA power of attorney lawyer helps to make certain that this is done correctly.
Under Washington law, the ability for an agent to make gifts on your behalf is not automatic. In fact, it is considered a “hot power” under RCW 11.125.240, which means gifting must be expressly authorized in the document or your agent has no authority to do it at all — even if gifting would clearly benefit your estate plan or your tax situation.
At Eastside Estate Planning, we help Washington families understand when gifting authority makes sense, and more importantly, how to structure it safely.
What Washington Law Actually Allows — And Limits
Gifting authority under Washington’s Uniform Power Of Attorney Act (RCW 11.125) is spread across several statutes, and the default rules are narrow on purpose. Here’s what the law sets as the baseline:
- RCW 11.125.240 — Gifting is a “Hot Power”
This means it is not included by default. You must explicitly grant gifting authority to your agent in your power of attorney.
- RCW 11.125.390 — Limits on Gift Amounts
Even if gifting authority is granted, Washington law limits gifts to the annual federal exclusion amount (for 2025, that’s $19,000 per person). Gifts beyond that amount are not permitted unless the document clearly expands the authority.
- RCW 11.125.140 — Duty to Preserve Your Estate Plan
Your agent cannot use gifting power to undermine your estate plan. The law requires them to “attempt to preserve the principal’s estate plan” — meaning all gifting decisions must align with your overall planning strategy.
Why Gifting Authority Can Be Helpful — When Used Correctly
A carefully drafted gifting provision may allow your agent to:
- Make tax-efficient annual exclusion gifts
- Continue charitable giving you already intended
- Shift assets to reduce future Washington estate tax exposure
- Address Medicaid or long-term care eligibility planning if needed
- Keep your planning flexible without waiting for court intervention
However — and this is critical — broad gifting authority without guardrails can be dangerous, especially when family dynamics or blended family situations are involved.
Why Customized Gifting Language Matters In Your Power Of Attorney
At Eastside Estate Planning, we don’t simply check the box that says “Agent may make gifts.” We work with clients to decide which level of gifting authority makes sense for their situation:
- Conservative / Annual-Exclusion Gifting Only
For clients who want basic flexibility but do not want large transfers made during incapacity.
- Expanded Flexibility for Benefits and Long-Term Care Planning
For clients who may need Medicaid planning or strategic repositioning of assets to avoid recovery actions.
- High-Flexibility With Safeguards
For clients who trust their chosen agent to act creatively — but want clear standards tied to their existing estate plan and gifting history.
We also include built-in protections so that if a gift could personally benefit the agent, a neutral co-agent or temporary fiduciary must approve it. This protects both the principal and the agent from later accusations of misuse.
Planning For Today And Tomorrow With Intent
Gifting authority is powerful — and risky — if not drafted intentionally. Washington law gives us the framework, but it’s up to your estate planning attorney to apply that framework in a way that protects your intent, your assets, and your beneficiaries.
At Eastside Estate Planning, we design power of attorney documents tailored to Washington families, built not just to comply with the law — but to actually work in real life, without court intervention or family conflict. If you’re reviewing an old power of attorney or creating one for the first time, this is the time to make sure the gifting provisions reflect your actual goals. Our founder, Attorney Robert Franco, is a Bellevue native and attorney with over a decade of experience in estate planning and corporate law. Reach out to us today for all of your estate planning needs.
