Estate and Gift Tax Planning

For 2026, the federal estate tax exemption has risen to $15 million for an individual and $30 million for a married couple (utilizing "portability" elections or specific trust planning). Because of this historically high threshold, many families believe they are "safe" from estate taxes.

However, if you reside in Washington, you face one of the most progressive state-level estate taxes in the country. After years of being "frozen" at $2.193 million, in 2025 the state exclusion was increased to $3 million to be adjusted annually for inflation. As of January 6, 2026 the Washington Department of Revenue had not announced what the 2026 inflation-adjusted exclusion will be; however, it is estimated it will be around $3.1 million. We will update that figure once it is published.

Crucially, Washington does not allow "portability" between spouses. Without a tax-sensitive estate plan, a married couple may unintentionally waste one spouse's exclusion, leaving the survivor's estate exposed to Washington's graduated tax rates, which now reach as high as 35%.

Disclaimers: This material is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this material does not create an attorney-client relationship. The opinions expressed here are the opinions of the individual author and may not reflect the opinion of the firm or any other individual attorney. Any tax advice contained in this communication is not intended to be sided, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties.