[WSBARP] Estate Tax Update - BREAKING NEWS

[Paul Neumiller]

Did the Bill address the portability issue similar to the federal taxations we don't need to play the disclaimer trust in a Will game??


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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Thursday, April 24, 2025 10:17 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>; WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBARP] Estate Tax Update - BREAKING NEWS

Greetings List Members -

Last night the Washington House of Representatives passed SB 5813, with two amendments.  It is NOT YET signed by the Governor....but here is what has been agreed to between the House and the Senate:

1) The Estate Tax Exemption Level will be adjusted to $3,000,000, to be adjusted annually with the CPI report that includes the City of Seattle....hopefully forever preventing a future "stall" in adjustments when the CPI report changes its name.

2) The Tax Brackets remain the same.

3) The Tax Rates for the respective brackets will change, with the top effective tax rate being 35%, here is the table:
Washington Taxable Estate, the Current Rate, and the New Rate

$0 to $1,000,000, old rate 10%, new rate 10%
$1,000,000 to $2,000,000, old rate 14%, new rate 15%
$2,000,000 to $3,000,000, old rate 15%, new rate 17%
$3,000,000 to $4,000,000, old rate 16%, new rate 19%
$4,000,000 to $6,000,000, old rate 18%, new rate 23%
$6,000,000 to $7,000,000, old rate19%, new rate 26%
$7,000,000 to $9,000,000, old rate 19.5%, new rate 30%
 $9,000,000 and up, old 20%, new rate 35%

What is NOT yet agreed to.....
When this will take effect. Senate version has it go back to January 1, 2025 (good for those over 2.193, and below $3,000,000......bad for those in the top two tack brackets).   The House version has this taking effect on July 1, 2025.

Also, the house version included the qualified non-familial heir.

It is my personal belief that both of these house amendments will pass the Senate version....

Please note that the Governor has not weighed in on this specific topic (publically)....but I believe that this will be signed into law.

To everyone who helped us lobby in our PERSONAL capacities as practitioners and citizens. Thank you. When we went to Olympia in support of the first bill that simply sought to fix the inflation indexing, the comments and support of the over 200 signatories to our letter made an impact.

Should I be re-elected to the RPPT Executive Committee again, I will propose a prospective plan where those who wish to follow legislation can "opt-in" and be kept appraised.  The bill that passed both the House and Senate was made public last week (during Spring Break and Easter Holiday) and the Senate hearing was given less than 24 hours notice.

For future bills and laws, we will want to put into place a rapid response plan.

Thank you and stay tuned for the final update after the Governor takes action!

Brent



Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

Mailing Address: PO BOX 3319; Federal Way, WA 98063

Office/Scheduling Phone: (253) 285-7751

For All Meetings & Scheduling: info at williams-ruthlaw.com<mailto:info at williams-ruthlaw.com>

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.williams-ruthlaw.com/> / facebook<http://www.facebook.com/bwrlaw> /
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