Kennewick Estate Tax Lawyers
The rates for estate tax in Kennewick, and throughout the state of Washington, are progressive and they range between 10 and 20 percent. If you believe your estate may be subject to taxes, it is important to consult with both a financial advisor and a Kennewick estate tax lawyer. Below, our experienced attorney outlines everything you need to know about the estate tax in Washington.
What is an Estate Tax?
An estate tax is a form of taxation levied on an estate of a person who has recently passed away. The estate tax is applied before any property or funds are distributed to the beneficiaries. It is sometimes referred to as a ‘death tax’ because it is only applied when a person passes away. Estate taxes are distinct from inheritance taxes and gift taxes.
The Exemption to the Estate Tax in Washington
As of 2023, the threshold for the estate tax in Washington is $2.193 million, the same it has been since 2021. This threshold means that if the value of your estate is lower than $2.193 million, it is not subject to the estate tax. If the value of the estate is greater than $2.193 million, the first $2.193 million is not calculated into the estate tax. However, any value of the estate above that will be taxed.
The Rate of the Estate Tax in Washington
The estate tax rate in Washington is progressive, meaning that the rates increase as the value of the estate becomes higher. Base taxes are those that a person owes on any money that falls below their bracket. This is used to determine the taxable estate that exceeds the lowest limit of the bracket. That number is then multiplied by the marginal rate and the sum is added to the amount of the base tax. This calculation provides the total amount of the estate tax.
For example, a person with an estate valued at $7 million is exempt from the estate tax for the first $2.193 million. As such, only $4.807 million of the estate is subject to the estate tax. According to the progressive nature of the estate tax in the state, the base taxes would be $550,000. The lowest part of the threshold is $4 million, which is then subtracted from $4.807 million. This calculation amounts to $807,000, which is multiplied by the marginal rate of 18 percent. This sum is equivalent to $145,260. Added to the base tax of $550,000, the estate tax would be $695,260.
Our Kennewick Estate Tax Lawyer Can Help
Estate taxes can amount to very high values, but there are ways you can minimize the amount of tax an estate will have to pay. At Moulton Law Offices, P.S., our Kennewick estate tax lawyer can advise you of these and help you determine which option is right for you. Call us now at 1-509-328-2150, #9090 or fill out our online form to book an appointment with our experienced attorney and to learn more about how we can assist with your case.