Marriage offers many benefits in life and love—and it can also provide distinct advantages when planning your estate in Washington State. From simplifying the transfer of assets to offering potential tax savings, tying the knot can strengthen your estate plan in ways you might not have considered. Here’s why marriage might be one of the smartest estate planning strategies in Washington.
1. Community Property Simplifies Asset Management
Washington is a community property state. This means most assets acquired during the marriage are considered equally owned by both spouses, regardless of who earned or purchased them. Community property can simplify estate planning because:
Automatic Inheritance: Upon death, the surviving spouse generally inherits the deceased spouse's share of the community property without the need for probate.
Tax-Friendly Transfers: Community property enjoys a full step-up in basis on all community assets at death, potentially minimizing capital gains taxes if the surviving spouse sells the asset later.
2. Estate Tax Exemptions for Spouses
Washington imposes an estate tax on estates valued over $2.193 million (as of 2024). However, transfers between spouses are exempt from this tax. Here’s how this works:
Unlimited Marital Deduction: Spouses can transfer an unlimited amount of assets to each other, free of estate tax.
Preservation of Estate Tax Exemption: If proper planning steps are taken, married couples can effectively double their exemption. If one spouse dies and doesn’t use their full estate tax exemption, proper planning can enable the surviving spouse to apply the unused portion to their own estate.
3. Streamlined Trust Planning
For married couples, trusts can be designed to maximize tax benefits and ensure asset protection.
Examples include:
Credit Shelter Trusts: These trusts preserve the estate tax exemption of the first spouse to die, while allowing the surviving spouse to continue using the assets.
Qualified Terminable Interest Property (QTIP) Trusts: These provide income for the surviving spouse while preserving the remaining principal for children or other beneficiaries designated by the first spouse to die.
4. Community Property Agreements Provide Additional Peace of Mind
In Washington, married couples can create a Community Property Agreement to ensure all assets automatically pass to the surviving spouse. This document can simplify probate and clarify ownership, providing peace of mind for both partners.
When Marriage Might Not Be the Best Strategy
While marriage offers compelling estate planning benefits, it isn’t for everyone. For couples in second marriages or those with complex financial arrangements, careful planning is essential to balance the needs of blended families or separate property. Tools like cohabitation agreements, prenuptial agreements, or individual trusts can ensure fairness while preserving flexibility.
How We Can Help
At Wysocki Law, we specialize in helping Washington State families navigate their unique estate planning challenges. Whether you’re newly married, considering marriage, or simply exploring your options, we’ll guide you in creating a plan that protects your loved ones and aligns with your values.
Plan for tomorrow, today. Contact us to schedule a consultation and start building your estate plan.
The information provided in this blog post is for general informational purposes only and should not be construed as legal, financial, or tax advice. Laws and regulations vary by jurisdiction and may change over time, affecting the accuracy and applicability of the information provided. Always consult with a qualified attorney, accountant, or financial advisor to discuss your specific situation before making any decisions. This post does not create an attorney-client relationship between the reader and the author or their firm.
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