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Hello Colleagues,</div>
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I've been "dark" for a while on the list -- you're welcome -- but this morning I believe I have found the final bill passed by the Legislature for the estate tax. I'm hoping Liberty Upton -- our diligent Reporter -- can confirm:
<a href="https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Senate%20Passed%20Legislature/6347.PL.pdf#page=1" rel="noreferrer noopener">
https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Senate%20Passed%20Legislature/6347.PL.pdf#page=1</a>.</div>
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Assuming the Governor's signature, what I "think" they did (with a tiny exception for January-June 2026 deaths) is:</div>
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--keep the exemption at $3 million starting January 1, 2025;</div>
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--revert, as of July 1, 2026, to the exact rate table we used for years, which maxes out at a 20% top tax rate; and </div>
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--very intentionally change the CPI index to add "Bremerton" (as Brett -- our fearless Paul Revere -- pointed out in the last email I saw on our list) . . . providing courts near perfect evidence that the legislature endorsed (rather bluntly) DOR's long-held
view that there is IN EFFECT (now, literally legislatively <u>intended</u>) <b><u>no</u></b> upward indexing of the $3 million exemption amount for 2027 onward . . .
<u>if it remains correct that</u> there is still no Seattle-Tacoma-Bremerton CPI index to be found somewhere in the American economic information compendium.</div>
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(Who knows? Maybe the legislators know that Bremerton is making an epic comeback of CPI inclusivity! Stay tuned, people -- especially people of Bremerton!)</div>
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So, for 2025 deaths <u>on or after July 1</u>, the exemption is $3 million, and the rate table is the one implemented last year that maxes out at 35%. </div>
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For deaths from January 1 through June 30, 2026, the indexed exemption is $3,0<u>76</u>,000, and the rate table is the one implemented last year that maxes out at 35%. </div>
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Starting July 1, 2026, the exemption reverts back to an even $3,000,000, and the rate table reverts back to the one we all lived with for years that maxes out at 20%.</div>
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What could be confusing about this? Come now, gentle folk.</div>
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Jesting aside, <b><u>phenomenal work to everyone who got the exemption to $3 million and not reverted to $2.193 million</u></b>. 🎉👏🏻 The indexing battle can be fought another day.</div>
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Enjoy your weekend, all you lawyers who must surely -- "They're <i><u>lawyers</u></i>!" -- be millionaires, and thus, in a few years, barring initiative or judicial intervention, being taxed for 10% of your annual income over $1 million (but now I'm egregiously
mixing engrossed bills...).</div>
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Happy Saturday! Best, Josh </div>
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<span style="color: black;"><b>Joshua McKarcher</b></span></p>
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<span style="color: black;"><i>Attorney, Owner</i><br>
McKarcher Law PLLC<br>
o: </span><span style="color: currentcolor;">(509) 758-3345</span><span style="color: black;"><br>
</span><span style="color: rgb(70, 158, 245);"><u><a href="mailto:josh@mckarcherlaw.com" class="outlook-break-word-in-links" data-outlook-id="4dfa75f5-a8c0-4cd4-b421-11237d5e2d46" data-linkindex="0" style="color: rgb(70, 158, 245); margin-top: 0px; margin-bottom: 0px;">josh@mckarcherlaw.com</a></u></span></p>
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<div id="divRplyFwdMsg" dir="ltr"><span style="font-family: Calibri, sans-serif;"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Liberty Upton <liberty@bc-estatelaw.com><br>
<b>Sent:</b> Wednesday, March 11, 2026 1:21 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] WA legislature voting to reduce WA Exemption back to $2.193M and get rid of inflation adjustments - act ASAP</span>
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<span style="color: black;">If you have not already reached out to your legislators, please do so ASAP! I have learned that House will be voting today on the striker amendment to revert the WA Estate Tax Exemption to $2.193M
<b>“indexed” for inflation to the CPI for Seattle-Tacoma-<u>Bremerton</u>, which no longer exists</b> (for more information see below and attached documents).
<b>This will essentially freeze the exemption at $2.193M again</b>. It is unclear if the Senate will concur in the House striker amendment. Please reach out immediately, or SB 6347 will likely pass with the striker amendment. Information on how to reach out
to express your opinion is detailed below.</span></p>
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<span style="color: rgb(0, 112, 192);">______________________________________________</span></p>
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<span style="color: rgb(0, 112, 192);">Message originally sent on 3/6/26:</span></p>
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<span style="color: rgb(0, 112, 192);">TLDR: Senate Bill 6347 was introduced to undo the changes to the estate tax that passed last year (increased tax rates and increased exemption to $3M and indexed for inflation). The bill seeks to revert the tax rates
to 10-20% and also reduce the exemption back down to $2.193M <u>tied to an inflation index that the legislature knows no longer exists.</u> We are attempting to get people to reach out to their legislators to encourage them to keep the exemption at $3M indexed
for inflation with the Seattle-Tacoma-Bellevue index or a comparable index. For more information on how you can help, please see below.</span></p>
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<span style="color: rgb(0, 112, 192);">The legislature proposed a striker amendment to ESB 6347 on Monday (attached). This is the bill that was attempting to revert estate tax rates to 10-20% (from the increase last year to 10-35%). In a surprise move on Monday,
they added an amendment to drop the estate tax exemption back to $2.193M and to switch the CPI reference back to Seattle-Tacoma-Bremerton. That CPI no longer exists (and hasn’t since 2017, we switched to Seattle-Tacoma-Bellevue in 2018). In the hearing on
Monday, Representative Orcutt clearly stated that the CPI for Seattle-Tacoma-Bremerton no longer exists. This was ignored and the amendment passed anyway.</span></p>
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<span style="color: rgb(0, 112, 192);">The WSBA RPPT executive committee is asking for a technical correction to Seattle-Tacoma-Bellevue, or whatever CPI references the Seattle metropolitan area. Since this is a technical correction only, we are allowed to
ask for such change in our position as the WSBA RPPT executive committee. We are not allowed to advocate to keep the exemption at $3M though, that is not a technical correction.</span></p>
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<span style="color: rgb(0, 112, 192);">If you oppose either of these changes, PLEASE reach out to your own legislators. If you don’t know who they are, you can find them here:
<u><a href="https://app.leg.wa.gov/districtfinder" style="color: rgb(0, 112, 192); margin-top: 0px; margin-bottom: 0px;">https://app.leg.wa.gov/districtfinder</a></u></span></p>
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<span style="color: rgb(0, 112, 192);">When you click on your legislators, you can email them. You can also click a box to email all of your legislators at the same time. You may also want to consider adding Representative Street (as he is the one who proposed
the striker amendment) and Representatives Walen and Orcutt as two who are opposed to this amendment.</span></p>
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<span style="color: rgb(0, 112, 192);">Please feel free to send whatever email you choose. If possible, it would be best to send it ASAP as there may be votes today or this weekend. As inspiration for what you may want to say, I have attached (1) the letter
we sent last year in support of changing the CPI reference and adjusting the exemption for 8 years of inflation, and (2) a letter that was sent today by several estate planners (in their own individual capacity) asking the legislature not to move forward with
the striker amendment. Also, I sent the following email to my legislators this morning, if it is helpful to not start from scratch (highlighting things you will certainly want to change to be specific to you):</span></p>
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I am a member of the <span style="background-color: yellow;">___</span> legislative district, and I am an
<span style="background-color: yellow;">Estate Planning Attorney</span>. It was disappointing to see that the legislature is seeking to unwind the increased Estate Tax Applicable Exclusion Amount implemented by ESSB 5813 in 2025.
<span style="background-color: yellow;">I continue to support the inflation adjustment change to the Exclusion Amount for the reasons expressed in the attached letter, which I signed on to last year.</span> Unfortunately, on Monday March 2, 2026, the legislature
proposed and passed a striker amendment to ESB 6347, which will revert the Exclusion Amount back to $2.193M, ignoring eight years of inflation. The amendment also changes the inflation index to Seattle-Tacoma-Bremerton which is a non-existent CPI reference.
During the hearing for this bill on Monday, this point was made by Senator Orcutt, and it was ignored. I hope the legislature will abandon this attempt to revert to the Exclusion levels first set in place nearly a decade ago (which removes the previously enacted
increase to account for the substantial rise in cost of living since that time). Since the legislature is expressly aware that the reference to the Seattle-Tacoma-Bremerton CPI in ESB 6347 is nonexistent, I feel it sends a poor message to Washington state
voters that lawmakers will knowingly enact legislation intended to confuse taxpayers and frustrate previously stated legislative intent. I respectfully request that any reference to the CPI in any legislation related to estate taxes be revised to cover the
current applicable index (<i>e.g.</i>, “the then-current index applicable to the Seattle metropolitan area”). Please do not implement the changes in the striker amendment. Please keep the Exclusion Amount at $3M indexed for inflation that covers the Seattle
metropolitan area. Respectfully submitted.</p>
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<span style="color: rgb(0, 112, 192);">Best,</span></p>
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<span style="color: rgb(0, 112, 192);"> </span></p>
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<span style="color: rgb(0, 112, 192);">Liberty</span></p>
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Liberty Upton</p>
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Attorney</p>
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<img src="cid:image001.png@01DCB157.658D6A70" id="Picture_x0020_1" width="163" height="50" style="width: 1.7083in; height: 0.525in; max-width: 100%; margin-top: 0px; margin-bottom: 0px;"></p>
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F.K.A. KHBB Law PLLC</p>
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Tel (206) 382-4414 / Fax (206) 382-4412 <span style="color: rgb(21, 96, 130);"><u><a href="mailto:liberty@bc-estatelaw.com" style="color: rgb(21, 96, 130); margin-top: 0px; margin-bottom: 0px;">liberty@bc-estatelaw.com</a></u></span></p>
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1000 Second Avenue / Suite 3670 / Seattle, WA 98104 /<span style="color: rgb(47, 84, 150);">
</span><span style="color: rgb(21, 96, 130);"><u><a href="http://www.bc-estatelaw.com/" style="color: rgb(21, 96, 130); margin-top: 0px; margin-bottom: 0px;">www.bc-estatelaw.com</a></u></span></p>
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<span style="color: rgb(47, 84, 150);"><u> </u></span></p>
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<span style="color: red;"><i>Please note our new firm name and address.</i></span></p>
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<span style="color: red;"><i> </i></span></p>
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<span style="color: red;"><i>Vacation Notice: I will be out of the office April 13, 2026 – April 17, 2026.</i></span></p>
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