How New Washington State Estate Tax May Affect You
By Marcia K. Fujimoto
April 28, 2005
On April 24, 2005, the Washington state legislature passed Engrossed Senate Bill 6096, a bill creating a stand-alone state estate tax. Governor Gregoire is expected to sign the bill into law. The new state estate tax applies to estates of $1.5 million or more this year (for deaths occurring after enactment of the tax) and estates of $2 million or more beginning next year.
Here is a sample of estate taxes that will be payable under the new Washington state estate tax once the Governor signs the bill into law:
| 2005 Tax Obligation | |||
| Federal Taxable Estate | Federal | State | Total |
| $2,500,000 | $413,000 | $100,000 | $513,000 |
| $3,000,000 | $615,100 | $170,000 | $785,100 |
| $5,000,000 | $1,414,100 | $470,000 | $1,884,100 |
| $10,000,000 | $3,351,675 | $1,347,500 | $4,699,175 |
| 2006 Tax Obligation | |||
| Federal Taxable Estate | Federal | State | Total |
| $2,500,000 | $207,000 | $50,000 | $257,000 |
| $3,000,000 | $414,000 | $100,000 | $514,000 |
| $5,000,000 | $1,200,600 | $390,000 | $1,590,600 |
| $10,000,000 | $3,102,700 | $1,255,000 | $4,357,700 |
Make sure that the new State of Washington estate tax does not adversely affect your wealth management plans. Graham & Dunn's wealth management experts can review your current estate plans and wills to make sure that each is written in a flexible format that works to your advantage.
For more information, please contact Marcia K. Fujimoto (206.340.9637 or mfujimoto@grahamdunn.com) or Wendy S. Goffe (206.340.9633 or wgoffe@grahamdunn.com).
