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WASHINGTON STATE ESTATE TAX LAW RULES--EFFECTIVE
MAY 17, 2005!
WASHINGTON STATE ESTATE TAXATION
Death in Year
“Applicable exclusion”
Amount
2001-2004
$1,000,000
2005 $1,500,000
2006 & forward $2,000,000
What are the tax rates of the new estate tax?
The rates range from 10 percent to 19 percent, as shown in the table below:
Note: You may NO LONGER take a credit
for Washington State estate taxes paid
on the federal tax return.
This means there are really two taxes!
Contact your tax professional about a possible deductions.
For more information go
to:
http://dor.wa.gov/Docs/Pubs/SpecialNotices/2005/sn_05_NewEstateTaxLaw.pdf
Brief Estate Tax Summary-2006
¨
The tax is
levied on the transfer of all property
¨
The tax is
due
nine (9) months
after death
Three Rules to Remember:
1) Married persons can give an unlimited
amount to a US citizen spouse
2) Each person has a certain amount that may
pass free of tax
(This “Applicable Exclusion” amount has
changed: see state above and fed. below)
3) The rates are STEEP!
You may be taxed at state and federal levels!
Economic Growth & Tax Relief
Reconciliation Act
[Enacted into Federal Law
in June 7, 2001]
Death in Year
“Exclusion”
2002-2003 $1,000,000
2004-2005 $1,500,000
2006-2008 $2,000,000
2009
$3,500,000
2010
Unlimited!
2011 & forward
$1,000,000
Federal Estate Taxation Rates
|
Estate at Death |
Federal Estate Tax Due |
|
$950,000 |
$0 |
|
$1,000,000 |
$0 |
|
$1,500,000 |
$0 |
|
$1,750,000 |
$0 |
|
$2,000,000 |
$0 |
|
$3,000,000 |
$460,000 |
|
$4,000,000 |
$920,000 |
We realize these laws, and charts, are hard to
understand. For an analysis of your particular situation and to plan to lessen
your family’s tax burden or calculate the tax owed on an estate, please contact
this law office at 425-455-6788.
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