Estate tax exclusion amount

AN ACT Relating to updating the inflation adjustment for the 1
estate tax exclusion amount; reenacting and amending RCW 83.100.020; 2
and creating a new section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 83.100.020 and 2013 2nd sp.s. c 2 s 2 are each 5
reenacted and amended to read as follows: 6
The definitions in this section apply throughout this chapter 7
unless the context clearly requires otherwise. 8
(1)(a) "Applicable exclusion amount" means: 9
(i) ((One million five hundred thousand dollars for decedents 10
dying before January 1, 2006;11
(ii) Two million dollars for estates of decedents dying on or 12
after January 1, 2006, and before January 1, 2014; and13
(iii))) $2,193,000 for estates of decedents dying before January 14
1, 2026; and15
(ii) For estates of decedents dying in calendar year ((2014)) 16
2026 and each calendar year thereafter, the amount in (a)(((ii))) (i) 17
of this subsection must be adjusted annually, except as otherwise 18
provided in this subsection (1)(a)(((iii))) (ii). The annual 19
adjustment is determined by multiplying ((two million dollars )) 20
$2,193,000 by the sum of one plus the percentage by which the most 21
S-0309.1
SENATE BILL 5405
State of Washington 69th Legislature 2025 Regular Session
By Senators Schoesler, Christian, Dozier, and Warnick
Read first time 01/21/25. Referred to Committee on Ways & Means.
p. 1 SB 5405
recent October consumer price index exceeds the consumer price index 1
for October ((2012)) 2024, and rounding the result to the nearest one 2
thousand dollars. No adjustment is made for a calendar year if the 3
adjustment would result in the same or a lesser applicable exclusion 4
amount than the applicable exclusion amount for the immediately 5
preceding calendar year. The applicable exclusion amount under this 6
subsection (1)(a)(((iii))) (ii) for the decedent's estate is the 7
applicable exclusion amount in effect as of the date of the 8
decedent's death. 9
(b) For purposes of this subsection, "consumer price index" means 10
the consumer price index for all urban consumers, all items, for the 11
Seattle((-Tacoma-Bremerton)) metropolitan area as calculated by the 12
United States bureau of labor statistics or its successor agency. For 13
purposes of this subsection (1)(b), "Seattle metropolitan area" means 14
the geographic area sample that includes Seattle and surrounding 15
areas. 16
(2) "Decedent" means a deceased individual. 17
(3) "Department" means the department of revenue, the director of 18
that department, or any employee of the department exercising 19
authority lawfully delegated to him or her by the director.20
(4) "Federal return" means any tax return required by chapter 11 21
of the internal revenue code. 22
(5) "Federal tax" means a tax under chapter 11 of the internal 23
revenue code. 24
(6) "Federal taxable estate" means the taxable estate as 25
determined under chapter 11 of the internal revenue code without 26
regard to: (a) The termination of the federal estate tax under 27
section 2210 of the internal revenue code or any other provision of 28
law, and (b) the deduction for state estate, inheritance, legacy, or 29
succession taxes allowable under section 2058 of the internal revenue 30
code. 31
(7) "Gross estate" means "gross estate" as defined and used in 32
section 2031 of the internal revenue code. 33
(8) "Internal revenue code" means the United States internal 34
revenue code of 1986, as amended or renumbered as of January 1, 2005.35
(9) "Person" means any individual, estate, trust, receiver, 36
cooperative association, club, corporation, company, firm, 37
partnership, joint venture, syndicate, or other entity and, to the 38
extent permitted by law, any federal, state, or other governmental 39
p. 2 SB 5405
unit or subdivision or agency, department, or instrumentality 1
thereof. 2
(10) "Person required to file the federal return" means any 3
person required to file a return required by chapter 11 of the 4
internal revenue code, such as the personal representative of an 5
estate. 6
(11) "Property" means property included in the gross estate.7
(12) "Resident" means a decedent who was domiciled in Washington 8
at time of death. 9
(13) "Taxpayer" means a person upon whom tax is imposed under 10
this chapter, including an estate or a person liable for tax under 11
RCW 83.100.120. 12
(14) "Transfer" means "transfer" as used in section 2001 of the 13
internal revenue code and includes any shifting upon death of the 14
economic benefit in property or any power or legal privilege 15
incidental to the ownership or enjoyment of property. However, 16
"transfer" does not include a qualified heir disposing of an interest 17
in property qualifying for a deduction under RCW 83.100.046 or 18
ceasing to use the property for farming purposes. 19
(15) "Washington taxable estate" means the federal taxable estate 20
and includes, but is not limited to, the value of any property 21
included in the gross estate under section 2044 of the internal 22
revenue code, regardless of whether the decedent's interest in such 23
property was acquired before May 17, 2005, (a) plus amounts required 24
to be added to the Washington taxable estate under RCW 83.100.047, 25
(b) less: (i) The applicable exclusion amount; (ii) the amount of any 26
deduction allowed under RCW 83.100.046; (iii) amounts allowed to be 27
deducted from the Washington taxable estate under RCW 83.100.047; and 28
(iv) the amount of any deduction allowed under RCW 83.100.048.29
NEW SECTION. Sec. 2. RCW 82.32.805 and 82.32.808 do not apply 30
to this act.31
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