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ESTATE TAX
The following is a chart showing the amount that can pass free from estate tax if you reside in Washington State. With proper planning a married couple will be able to utilize two exemptions. Without proper planning, the exemption of the first spouse to die is often lost.
For all individuals there are a variety of techniques for limiting or eliminating the imposition of estate tax. If your estate is large enough to be subject to estate tax, you may want to contact me to review your situation and the options available for reducing or eliminating your estate tax liability.
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According to current law, the exemptions from estate tax are as follows:
|
Year of death |
Federal Exemption Amount |
Washington Exemption Amount |
|
2010 |
Repeal of estate tax or $5,000,000* |
$2,000,000 |
|
2011 |
$5,000,000 |
$2,000,000 |
|
2012 |
$5,000,000 |
$2,000,000 |
|
2013 |
Unknown at this time |
$2,000,000 |
*An election is available for 2010 deaths to select the more favorable tax system.
For the purpose of calculating the size of your estate that may be subject to Federal estate tax, assets on hand at date of death are added with gifts made during your lifetime that exceed the Federal annual gift tax exclusion amount. Such exclusion amounts, which apply for each of your gift recipients, are as follows:
(The above should not be construed as specific legal advice and is intended for general information purposes only. The information contained herein was posted February 2012. Please be aware that tax law changes frequently.)
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I have been helping Clark County residents with their estate planning and probate needs since 1976. I give frequent seminars in the community to help increase understanding of estate planning issues. My practice emphasizes probate, Medicaid issues, wills, trusts, incapacity issues, guardianships and durable powers of attorney. Phone: (360) 816-2485 Fax: (360) 816-2486 |
