When clients hire us to advise them about their estate plans, they are often worried about estate taxes. Without a plan, it is much more likely that estate taxes will apply at death. For many, however, state and federal estate taxes can be minimized or avoided altogether by building an estate plan that includes the right building blocks and strategies. Married couples with assets over the Washington State exemption amount ($2.193 million per person as of 2022) can utilize trust strategies to allow the up to twice the exemption (nearly $4.4 million) to pass without estate taxation. This has become increasingly important for couples who own homes in Washington, where values have skyrocketed in our hot real estate market.
Individuals and couples may also consider lifetime gifting strategies as part of their estate plan, to direct assets to their loved ones even before death. At the federal level, the exemption level is much higher ($12.06 million per person, or $24.12 million for a married couple, as of 2022), but planning strategies can help clients make decisions now to reduce the taxation that will be applied in the future.
We can review your overall estate — both now and as it will likely change over time — to identify opportunities to include tax planning in your estate plan. Please feel free to contact us at 253.858.5434 for guidance and assistance. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.