Estate tax planning in Washington can be more complex than many realize—which is why taking the time to understand recent changes and how they affect married couples is so important. Below, we explore why married couples in Washington need special estate planning. If you have questions about this or other estate planning matters, our Kirkland, WA estate planning lawyer is available to talk.
1. Updated Exemption And Tax Rates (Effective July 1, 2025)
As of July 1, 2025, Washington’s estate tax exemption increases to $3 million per person, up from $2.193 million. This means each individual can leave up to $3 million to heirs without owing Washington estate tax.
At the same time, the state increased its tax rates on estates above the exemption. For estates over $3 million, tax rates now range from 10% to as high as 35% for very large estates.
2. Washington Does Not Allow “Portability”
Under federal law, a surviving spouse can often use any unused exemption from the first spouse to die. Washington does not follow that rule.
What this means in practice is that when one spouse dies, their exemption can be lost unless the plan is designed to preserve it. Later, when the second spouse dies, the estate could be taxed on everything above a single $3 million exemption—even if the couple’s combined assets are well below $6 million.
3. Why Careful Planning Is Essential For Couples
Without planning, it’s easy for a surviving spouse to assume “everything just transfers” and that no tax issues exist. But because of Washington’s rules, families can end up paying unnecessary estate tax if both spouses’ exemptions are not used.
The good news is that this problem can be avoided with a carefully crafted marital or spousal trust built into your estate plan. These trusts are designed to be flexible, preserve the first spouse’s exemption, and still allow the survivor full access to resources during their lifetime.
This approach ensures that both spouses’ $3 million exemptions are available to protect assets, rather than losing one.
4. Real-Life Impact For Families
Consider two scenarios:
- Without Planning: A couple has $5 million in assets. The first spouse dies, and everything passes outright to the survivor. When the second spouse dies, the estate exceeds the single $3 million exemption, and tax may be owed on $2 million.
- With Proper Planning: The same couple uses a marital trust structure. Each spouse’s $3 million exemption is preserved. The full $5 million passes free of Washington estate tax.
That’s the difference between a surviving spouse and children keeping more of the family’s legacy—or losing a portion unnecessarily to taxes.
5. Bringing It All Together
With Washington’s updated estate tax rules, married couples need more than a basic will. A well-designed estate plan can:
- Use both spouses’ exemptions effectively.
- Provide flexibility for the surviving spouse.
- Prevent unnecessary estate tax liability.
- Ensure assets pass smoothly to children or other heirs.
The Bottom Line
Washington’s estate tax system is unique—and less forgiving than federal law. Because the state does not allow portability, special planning is needed to protect both spouses’ exemptions. By creating a flexible marital trust as part of your estate plan, you can make sure your spouse is cared for and your family keeps more of what you’ve built. If you would like to learn more, Eastside Estate Planning is here to help. Reach out to us whenever you are ready.
