[WSBAPT] Important 2025 Washington Estate Tax Bulletin re New Legislation

[Joshua McKarcher]

See below for deaths on and after 1/1/25. Best, Josh

From: Washington Department of Revenue <WADOR at public.govdelivery.com>
Sent: Thursday, January 2, 2025 10:18 AM
Subject: Estate Tax New Legislation


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[Washington State Department of Revenue]
Estate Tax - New Special Exemption for a Spousal Decedent's Gross Estate Calculation
FILING THRESHOLD CALCULATION EXCLUSION FOR SPOUSAL COMMUNITY
A married or registered domestic partnership couple (spouses), where one spouse passes on or after January 1, 2025, may be able to exclude their qualifying personal residence from determining if they need to file.
A decedent's gross estate includes one-half of all community assets plus all separately-owned assets. When spouses have a qualifying personal residence included in the gross estate, the decedent's estate can exclude their portion of the personal residence when determining if the decedent's estate is required to file a return. If the decedent's gross estate value is below the filing threshold, currently $2,193,000, then no return is required to be filed with Washington state.
The exemption is only used for determining if a return needs to be filed.  For a decedent's gross estate, without the qualifying personal residence, that meets the $2,193,000 filing threshold, a return will need to be filed.  When a return is required to be filed, the decedent's share of the personal residence will need to be included in the gross estate. The exemption is only for determining if the return needs to be filed; the residence is not excluded when filing the return. A filing is required any time the gross estate meets the filing threshold, even if no tax is due.
Special elections.  For a decedent's estate that wishes or needs to make elections, be sure to file a return, even if the gross estate is below the filing threshold. This is true if the estate is making a qualified terminable interest property (QTIP) election. If the estate wants the QTIP election made, including a zero QTIP, a filing must be made with Washington state.
Additional information and general questions.  If you are wondering if you have a qualifying personal residence see the items linked below. If have additional or other questions please send an email to the estate tax team at estates at dor.wa.gov<mailto:estates at dor.wa.gov>.
Resources
RCW 83.100.050 - Exemption (see section 7)<https://links-2.govdelivery.com/CL0/https:%2F%2Fapp.leg.wa.gov%2FRCW%2Fdefault.aspx%3Fcite=83.100.050/1/01010194280699a9-538502eb-b5d2-42ea-a631-8f66fa2408d6-000000/0YkWyMRbkfxUpMKVuSiEQDENzaRM1FocHbNPJmwuUjg=386>
WAC 458-57-135 - Exemption - Qualifying family residence (see section 9)<https://links-2.govdelivery.com/CL0/https:%2F%2Fapp.leg.wa.gov%2Fwac%2Fdefault.aspx%3Fcite=458-57-135/1/01010194280699a9-538502eb-b5d2-42ea-a631-8f66fa2408d6-000000/br_C4lSot1hHiJZ1SB1KwIqON8N1p170Gh91rLle71M=386>
Estate tax spousal personal residence exclusion<https://links-2.govdelivery.com/CL0/https:%2F%2Fdor.wa.gov%2Ftaxes-rates%2Fother-taxes%2Festate-tax%2Festate-tax-spousal-personal-residence-exclusion/1/01010194280699a9-538502eb-b5d2-42ea-a631-8f66fa2408d6-000000/VRywZK2TSfOSkS_6HySb6otEBfbG1Rz1xuaXMoIVxpw=386>
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