Estate planning rules in Washington
Key takeaway
Washington estate planning rules address wills, nonprobate assets, fiduciary authority, trust administration and estate tax. Owners of businesses, real estate and private investments, their spouses and adult children encounter distinct rules governing estate documents, digital asset access, trustee conduct and the treatment of property on an estate tax return.
Wills and property passing at death
Washington defines a will that modifies or partially revokes an earlier will as a codicil.
Washington permits witnesses to attest in the testator's electronic presence.
Washington defines heirs as people entitled to a decedent's real and personal property under intestate succession. Washington's definition includes a surviving spouse or domestic partner.
Washington defines a nonprobate asset by reference to a written instrument or arrangement other than a will, including survivorship interests.
Digital asset authority and access
Washington permits a user to authorize or prohibit fiduciary disclosure of digital assets in a will, trust, power of attorney or other record when no applicable online-tool direction exists.
Washington gives a custodian discretion to grant a fiduciary or designated recipient full access, partial access sufficient for their tasks, or a copy in a record of digital assets the user could have accessed.
Washington treats a fiduciary with authority over a decedent's, incapacitated person's, principal's or settlor's tangible personal property as authorized to access digital assets stored in that property.
Washington applies duties of care, loyalty and confidentiality to fiduciaries managing digital assets. Washington subjects fiduciary authority over a user's digital asset to the applicable terms-of-service agreement, except as RCW 11.120.040 provides.
Trustee succession, conduct and powers
Washington permits a named or properly selected willing successor trustee to serve after notice to each permissible distributee, subject to good cause or disqualification.
Washington treats a trustee's self-interested or conflict-affected transaction involving trust investment or management as voidable by an affected beneficiary unless an exception applies. Washington permits a trustee to rebut a presumption of conflict by establishing that the conflict did not adversely affect beneficiaries' interests.
Washington directs a trustee of a trust with two or more beneficiaries to act impartially in administration and distributions, with due regard to each beneficiary's interests.
Washington permits a trustee to participate in establishing and operating a business. Washington retains the trustee's duty to diversify.
Washington permits a trustee to terminate a trust by distributing to current income beneficiaries if the trustee is neither grantor nor beneficiary and the trust has no charitable beneficiary.
Estate tax reporting and survival provisions
Washington includes a decedent's property in the estate tax return and apportions tax between Washington and out-of-state property based in part on domicile and property location.
Washington generally treats outright gifts made before death as not taxable for estate tax. Washington includes federal gift tax paid or payable within three years of death as an estate asset on Schedule G.
Washington treats each spouse as the survivor when spouses die within the governing document's specified survival period. Washington values assets on each death date and disallows the marital deduction and qualified terminable interest property election in those circumstances.
Thresholds and rates change. Check the state's own current figures.
Thresholds and rates change. Check the state's own current figures.
Common questions
Does Washington define a codicil through attachment or reference?
Washington's definition permits a codicil to exist separately from the earlier will, without attachment to that document and without a reference in the codicil identifying the earlier document.
How does Washington treat electronic counterparts?
Washington counts counterparts executed, attested or acknowledged electronically together as one document.