Federal And Washington Estate Taxes For 2020
Posted Feb 20, 2020
By Washington State Estate Planning and Probate Lawyer Per E. Oscarsson
The “basic exclusion amount” is the amount of a deceased person’s estate that passes free of federal estate tax. This differs from the unlimited marital deduction that applies when one spouse dies and transfers all of his or her interest in property to the surviving spouse. There is a basic exclusion amount for federal estate tax purposes and an applicable exclusion amount for the state of Washington’s estate tax purposes. Under federal law, the basic exclusion amount is subject to adjustment. Under Washington law, the applicable exclusion amount is subject to adjustment. For federal estate taxes, the basic exclusion amount is $11,580,000 for 2020, a slight increase over the amount for 2019. The applicable exclusion amount for Washington estate taxes in 2020 is $2,193,000, the same amount as in 2019 and in 2018.
The lack of change in the Washington amount is due to a change in the geographic area used by the U.S. Bureau of Labor Statistics for determination of the applicable consumer price index that has not been reflected in Washington law. Washington law still refers to the former geographic area used by the Bureau of Labor Statistics. If the state of Washington amends the law to identify the current geographic area used for determination of the applicable consumer price index, Washington’s applicable exclusion amount for 2020 may change.
If you need assistance with your estate planning, contact Per Oscarsson or one of the other attorneys in Beresford Booth’s Estate Planning and Probate Group.
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