How Does the “Big, Beautiful Bill” Affect Estate Taxes in Washington?

In May of 2025, the “Big, Beautiful Bill” passed the House, and this new set of laws could have significant implications for federal estate taxes across the nation. Whether you already have an estate plan or you’re in the process of creating one, you might need to take a moment to review these coming changes. How might this affect your estate taxes, and what kind of changes do you need to make? Could a Yakima estate planning lawyer help you answer these questions?

What the Big, Beautiful Bill Says About the Estate and Gift Tax 

The bill states that the estate and lifetime gift tax exemption will be permanently extended. In addition, the exemption amount will increase to $15 million for individuals and $30 million for married couples. Inflation indexes will continue to increase the exemption amount every subsequent year.

Note that this exemption doesn’t affect most families. It only really matters if your estate is worth more than $15 million, at which point this new law becomes very useful. For the average family, however, nothing has really changed since 2017.

Washington’s Estate Taxes Still Apply

It is also worth noting that this new bill does not affect Washington’s existing estate taxes. These taxes continue to affect many families in Washington, and they fall under state law rather than federal law.

Again, one might argue that Washington’s estate tax only affects relatively wealthy families. However, the exemption amount is much lower. If your family estate is worth more than about $2 million, you may need to speak to a lawyer about strategies to plan for these taxes. This is especially true if you face the maximum state tax rate of 20%.

Consider the Other Effects of the Big, Beautiful Bill 

The Big, Beautiful Bill has many aspects, and some of these other changes could affect your estate plan in different ways. For example, you might have dual citizenship with significant investments and real estate holdings in Canada. Since Washington is a border state, this situation is quite common for many retirees. You might want to speak with your estate planning lawyer about how new laws affect your foreign investments, passive income, real estate, and many other forms of wealth people often take into retirement.

Can an Estate Planning Lawyer in Yakima Help Me? 

An estate planning lawyer in Yakima may be able to help you review the coming changes to federal estate taxes in the United States. Although the Big, Beautiful Bill has not yet passed the Senate, there is a strong likelihood that these changes will become a reality. That being said, you also need to consider the separate estate tax in Washington. To discuss these subjects and many others, contact Moulton Law Offices today.

Sources: 

kiplinger.com/taxes/big-gop-tax-bill-could-change-your-estate-planning

waysandmeans.house.gov/wp-content/uploads/2025/05/The-One-Big-Beautiful-Bill-Section-by-Section.pdf

theguardian.com/us-news/2025/may/24/trump-tax-bill-analysis#:~:text=The%20bill%20established%20a%2020,an%20aid%20to%20wealthy%20families.