An Assumption That Costs Families Real Money
Many married couples assume that whatever exemption applies to one spouse simply carries over to the other, the way it does under federal estate tax law. Washington does not work that way, and couples who plan around that assumption often discover the gap only after it is too late to fix.
What Washington’s Exemption Actually Looks Like
Washington imposes its own estate tax under RCW 83.100, separate from the federal estate tax, which most families will never owe given its much higher threshold. As of 2026, Washington’s exclusion amount sits at $3,076,000 for deaths through June 30, then drops to a flat $3,000,000 for deaths on or after July 1 following a recent legislative change. Estates above that threshold owe Washington estate tax even when no federal tax is due at all.
- 2026 exclusion amount: $3,076,000 through June 30, then $3,000,000 after
- No portability between spouses under Washington law
- Married couples can shelter up to roughly $6,000,000 with proper planning
- The tax is paid by the estate before assets pass to heirs
Why Portability Does Not Exist Here
Federal estate tax law allows a surviving spouse to inherit whatever exemption their deceased spouse did not use, a feature called portability. Washington offers no equivalent. If the first spouse to die leaves everything outright to the surviving spouse using the unlimited marital deduction, that spouse’s own exclusion amount simply goes unused and disappears. The surviving spouse is then left relying on a single exclusion when they eventually pass, rather than two.
How a Credit Shelter Trust Solves This
A credit shelter trust, sometimes called a bypass trust, addresses this gap directly. Instead of leaving everything outright to the surviving spouse, the estate plan directs an amount up to the state exclusion into a trust at the first spouse’s death. That amount uses the deceased spouse’s exclusion before it can disappear, while still providing for the surviving spouse’s needs during their lifetime through the trust’s terms.
The surviving spouse typically retains meaningful access to the trust, including income generated by its assets and, depending on how the trust is drafted, the ability to reach principal for health, education, maintenance, or support needs. The goal is not to restrict the surviving spouse’s quality of life, but to make sure the first spouse’s exclusion gets used rather than wasted.
What This Means in Practical Terms
A married couple with a combined estate worth $4,000,000 might owe no Washington estate tax at all with a properly structured credit shelter trust, since the plan captures both spouses’ exclusions. Without that structure, the same couple could face estate tax at the second spouse’s death on everything above a single $3,000,000 exclusion, a meaningful and avoidable cost.
Why This Applies to More Families Than Expected
Home values in the Kent area and across the greater Seattle region have climbed steadily, and a paid off house combined with retirement accounts and other savings can push a couple’s combined estate past the threshold more easily than people assume. A Kent estate planning lawyer reviewing a family’s full financial picture often finds that a credit shelter trust is worth considering well before an estate feels large enough to worry about.
Reviewing an Existing Plan
Couples who set up an estate plan years ago, before recent changes to Washington’s exclusion amount and tax rates, should have that plan reviewed to confirm it still reflects current law. A Kent estate planning lawyer can identify whether an older plan still uses outdated figures or misses this kind of trust planning entirely.
Building a Plan That Protects Both Exclusions
Every family’s situation is different, and the right structure depends on the specific assets involved and how a couple wants to provide for each other. Eastside Estate Planning works with Washington families to build plans that make full use of both spouses’ exclusions rather than letting one quietly go to waste.
