2026 Washington Estate Tax Planning: Why Advanced Tax Knowledge MattersEstate planning is about much more than deciding who receives your assets. In Washington State, thoughtful planning will minimize estate taxes, preserve family wealth, and ensure your wishes are carried out efficiently. Because Washington State has its own estate tax system, separate from the federal estate tax, understanding the tax rules is an essential part of a comprehensive estate plan in addition to simple wills or trusts.
Beginning in 2026, Washington's estate tax exemption has increased from approximately $2.2M up to $3M per person, allowing more estates to pass free of Washington estate tax before tax is imposed. Estates exceeding the exemption may face significant state estate taxes. The applicable exemption amount, tax rates, and planning opportunities should all be considered when preparing or updating an estate plan. Additionally, if a decedent resides outside of Washington but owns property located in Washington, or has a Washington State estate of under $3M, but owns additional property outside of Washington, a more complicated formula applies to their estate in order to calculate whether taxes are owed and how much of an exemption applies to their estate. Although the Washington State estate tax exemption in 2026 is $3M per person, a spouse cannot transfer unused exemption credit to their surviving spouse. One of the most effective planning strategies for married couples may be the use of a Credit Shelter Trust (also known as a bypass trust). Properly drafted and funded, these trusts can preserve each spouse's Washington estate tax exemption, potentially reducing or eliminating estate tax at the surviving spouse's death while also providing asset protection and flexibility for beneficiaries. Utilizing this technique, a couple may collectively be able to transfer up to $6M free of Washington state estate assets. Another important concept is the step-up in basis. In general, appreciated assets included in a person's taxable estate receive a new income tax basis equal to their fair market value at death. This adjustment can significantly reduce or eliminate capital gains taxes if heirs later sell those assets. Balancing estate tax planning with income tax planning is often critical, as strategies that reduce estate taxes may affect whether assets receive a full step-up in basis. An attorney with advanced tax training, like Megan M. Lewis with Megan Lewis Law, PLLC, can help evaluate these competing considerations. A complete estate plan also includes documents beyond a will or trust. Depending on your circumstances, these may include:
Estate planning has become increasingly sophisticated as tax laws continue to evolve. Working with an estate planning attorney licensed in Washington State who holds an LL.M. in Taxation provides the added benefit of advanced graduate-level education focused specifically on federal and state tax law. This specialized knowledge can be especially valuable when developing strategies that coordinate estate, gift, income, and capital gains tax considerations to achieve your family's goals. Every family and estate is unique. While general information can help you understand the planning process, the appropriate strategies depend on your assets, family circumstances, and long-term objectives. If you would like personalized guidance from Megan Lewis Law, PLLC on Washington estate tax planning or updating your estate plan for 2026, contact our office to schedule a consultation or call (509) 242-3432.
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Estate planning (wills, powers of attorney and other documents) in Washington state is important for everyone over 18 and it is especially vital for young adults with divorced parents. When a young adult becomes incapacitated or dies, even if assets are limited, an individual must be appointed as a Guardian or Executor of the estate (or Personal Representative in Washington) to consolidate assets, sell certain items, pay off debts, and make decisions about how to handle remains. In the case of incapacity, without effective health care and financial powers of attorney, a parent may need to petition the court to obtain Guardianship over an adult child. If a young adult has a preference of who makes health care and financial decisions for them if they can't do it for themselves, then it is essential that they have proper legal documents in place to provide their first, second and third choice for those agent roles. These decisions are best made with the advice and consultation of an estate planning attorney who can explain the various choices and scenarios that may play out in the future. In the case of death, without a Last Will and Testament, certain Washington state probate statutes provide a path by which the "next of kin" may request to fill the role of Personal Representative. If parents of young adults are married and/or on the same page about how to handle the situation, the process may be emotional, but not complex. However, if parents are divorced, don't get along, or disagree over specific asset distribution, debt payment, or other estate administration issues, then it is vital that the adult child, or individual over 18, have their own Last Will and Testament to indicate their own preference of who should serve as Personal Representative. Estate planning and probate issues vary state by state, so best estate planning techniques vary state to state as well. When high school graduates head off to college, it's a great time for young adults to contact an attorney in the state they will attend college in to be sure they have health care power of attorney, financial power of attorney and a will in place that will be most effective for their state of residence. Documents from their home state would be valid as well, so discussing the various residency factors with the estate planning lawyer is also important. We love to educate our clients about the options and techniques available to them as well as how estate planning, trusts and estates work. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with wills, revocable living trusts, powers of attorney, living wills, health care directives, community property agreements, and other estate planning issues, contact Megan Lewis Law, PLLC. Ah, the sweet scent of spring is in the air, and the promise of summer fun is just around the corner. We’re all dreaming of long days at the lake, family BBQs, and maybe even a well-deserved vacation on the coast or abroad. But before you pack away those schoolbooks and dive into summer mode, there’s one important task that deserves your attention: estate planning.
Yes, we know, estate planning might not sound as thrilling as a beach day or a trip to Disneyland, but hear us out. Taking care of your estate planning now means you can fully enjoy your summer without a care in the world. Imagine the peace of mind knowing your affairs are in order while you soak up the sun and make unforgettable memories with your loved ones. Let’s dive into why now is the perfect time to tackle this essential task. The Perfect Timing: Wrapping Up Before the Break The school year is winding down, and things are finally slowing to a manageable pace. Between school projects, extracurricular activities, and work commitments, life has been hectic. But right now, you have a window of opportunity before the whirlwind of summer activities begins. Think of estate planning as your homework for adulthood. Just like you encourage your kids to finish their school projects on time, setting aside a little time now to handle your estate planning can save you from stress and uncertainty later. Plus, completing it now means one less thing to worry about when summer kicks into high gear. Estate Planning: Not as Scary as It Sounds Many people avoid estate planning because it sounds complicated or even a bit morbid. But it doesn’t have to be that way! Here at Megan Lewis Law, PLLC, we strive to make the process as smooth and straightforward as possible. Let’s break it down into manageable steps: 1. Inventory Your Assets: List your properties, investments, savings, and personal valuables. 2. Designate Beneficiaries: Decide who gets what, ensuring your loved ones are taken care of. 3. Create a Will or Trust: A legal document that spells out your wishes clearly and designates who will be the decisionmakers. 4. Assign Guardians: If you have minor children, decide who will care for them. 5. Healthcare Directives: Specify your medical care preferences if you can’t make decisions yourself. 6. Power of Attorney: Choose someone to manage your finances if you’re unable to. See? It’s just a few straightforward steps to protect your family’s future. And we’ll be with you every step of the way to answer questions and provide guidance. You don't need to know all answers to get started, we'll lead you through it all. Enjoy a Carefree Summer Once your estate planning is complete, you’ll feel a huge weight lifted off your shoulders. With your affairs in order, you can embrace the summer fully. Picture yourself lounging by the pool, knowing your family’s future is secure. Enjoy that ice cream cone at the park without any lingering worries about unfinished business. Estate planning is your ticket to a truly carefree summer. Our Commitment to You At Megan Lewis Law, PLLC, we understand that life is busy, and estate planning often falls to the bottom of the to-do list. That’s why we’re committed to making the process as convenient and stress-free as possible. We offer flexible scheduling options to fit into your busy life. Whether it’s before you head to work in the morning, a quick lunchtime consultation or an evening meeting after the kids are in bed, we’re here to accommodate you. We do all initial planning sessions by phone or video conference, so you don't even have to leave the comfort of your own home or office to get the ball rolling. Don’t Delay – Start Today! So, before you dive headfirst into a wonderful Washington state summer, take a moment to plan for your family’s future. Trust us, it’s worth it. Contact information is on our website to schedule your consultation today. Let’s get your estate planning done now (or at least scheduled) so you can enjoy a worry-free summer filled with fun and relaxation. Remember, the best time to plan for tomorrow is today. We look forward to helping you protect what matters most. Happy Planning, and Here’s to a Fantastic Summer Ahead!  Attorney Megan Lewis discussing estate planning with client Estate planning is often associated with the wealthy, conjuring up images of luxurious mansions and substantial fortunes. However, the truth is that estate planning is crucial for individuals at all income and asset levels. It is not just about leaving a legacy or dividing assets; it's about ensuring that your wishes are carried out, protecting your loved ones, and maintaining control over your affairs, regardless of your financial standing. Below are some factors people from all walks of life should consider.
1. Control and Decision-Making. Estate planning provides you with control over your affairs, irrespective of your income or asset level. It allows you to make important decisions regarding your healthcare, finances, and the distribution of your assets. Through essential documents such as wills, living wills, and powers of attorney, you can clearly state your wishes and appoint trusted individuals to carry them out. This control ensures that your desires are respected, even if you are incapacitated or unable to communicate them and the individuals you want to be in charge have the tools and directions necessary to do so. Often, many family members express the desire to be in charge of a situation at the same time and having appropriate estate planning in place with named trustees, personal representatives, executors, and agents will provide clarity for all involved in a difficult situation during trying times. 2. Protecting Minor Children. Estate planning becomes even more critical for individuals with minor children. Regardless of your income or assets, determining guardianship for your children is a significant aspect of estate planning. By appointing a guardian through your will, you can ensure that your children will be raised by someone you trust and who shares your values and beliefs. Additionally, you can establish a trust to provide for their financial needs and specify how those assets will be managed and distributed as they grow older. Not only does this protect your children, but allows for more positive future relationships among family members who may otherwise argue about who should serve in various roles. 3. Minimizing Probate and Legal Hassles. Estate planning can help minimize probate and legal challenges, regardless of the size of your estate. Probate is the legal process through which a deceased person's assets are distributed. Without a proper estate plan, the probate process can be lengthy, expensive, and subject to court decisions. By utilizing tools such as revocable living trusts, beneficiary designations, and joint ownership, you can bypass probate and ensure a smoother transfer of assets to your loved ones, saving them from unnecessary legal hassles and delays. Additionally, in Washington state where probate isn't necessarily as bad as many other states and can even be helpful, appropriate last will and testaments with clear directions written by an experienced estate planning attorney, like Megan Lewis, as part of a cohesive plan will streamline the process, whether utilizing probate or not. 4. Healthcare and End-of-Life Planning. Estate planning encompasses more than just distributing assets. It includes planning for healthcare and end-of-life decisions as well. Documents such as living wills and healthcare powers of attorney allow you to express your wishes regarding medical treatments, life support, and end-of-life care. These documents are important for individuals of all income levels as they provide guidance to family members and healthcare professionals during challenging times. Estate planning enables you to maintain control over your medical decisions and ensure your desires are respected. An experienced estate planning attorney will be able to direct you in a conversation about potential issues you should consider in moving forward with your planning. 5. Maximizing Asset Protection. Asset protection is not just for the wealthy. Regardless of your income or asset level, estate planning can help protect your hard-earned assets from potential creditors, lawsuits, or unforeseen financial challenges. By utilizing strategies like trusts, gifting, and insurance, you can shield your assets and provide for your loved ones even in difficult circumstances. Estate planning ensures that your assets are distributed according to your wishes while minimizing the risk of loss due to unforeseen events. Another element of asset protection is minimizing estate tax, including both federal and Washington state estate tax. Conclusion. Estate planning is not a luxury reserved for the wealthy; it is a responsible step for individuals at all income and asset levels. By engaging in estate planning, you gain control over your affairs, protect your loved ones, minimize legal complications, and make important decisions regarding your healthcare and end-of-life preferences. Regardless of your financial standing, estate planning offers peace of mind and ensures that your wishes are respected when it matters most. So, don't delay—consult with an experienced estate planning attorney like Megan Lewis of Megan Lewis Law, PLLC to create a comprehensive plan tailored to your specific needs and circumstances. We love to educate our clients about the options and techniques available to them as well as how trusts and estates work. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with wills, revocable living trusts, powers of attorney, living wills, health care directives, community property agreements, and other estate planning issues, contact Megan Lewis Law, PLLC.  Welcome to 2023! We have some new changes in the firm and in our work approach. Megan will be working primarily virtually for estate planning, probate, business and tax issues with limited in person meetings and will be working while traveling with her young family. She will return to Spokane, Bellingham, and other Washington state home bases periodically for work, family, and friends. She will continue to serve current, ongoing, and new clients, but will do so utilizing primarily phone, online conferencing, email and our secure online portal. Kelli and Seth, our fantastic paralegals will continue to meet with clients in Spokane to sign documents if necessary and will otherwise provide documents to client by our portal, email, or U.S. mail for signature. Megan will be accessible on a regular basis, but when she is out of reach, clients will still be able to reach the staff and they will have full access to client information, documents, estate planning records, and everything necessary to provide top level service.
The last couple of years has shown us and our clients that we can accomplish client goals of creating wills, powers of attorney, trusts, and other estate planning documents through phone and web options as easily, or more easily, than we can in person. We already have clients in Seattle, Bellingham, and across Washington state who we work with virtually and look forward to streamlining our process to provide all clients with stellar virtual and online service. We love to educate our clients about the options and techniques available to them as well as how trusts and estates work. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with Spokane and Washington state wills, trusts, probate, trust administration, and business formation and succession, contact Megan Lewis Law, PLLC.  A common misconception in Washington state estate planning is that all assets will automatically transfer from one spouse to the other immediately upon the first death simply because we live in a community property state.
We often work with surviving spouses who are surprised to learn that they do in fact often need to go through probate to clear titles, transfer assets, deal with creditor claims, or work through inheritance rights of step-children after their spouse passes away. When we work with new estate planning clients, we get an opportunity to review their family situation including asset mix, blended family issues, separate versus community property assessment, future inheritances, past gifts, and a variety of other factors affecting the type of planning necessary for their specific case. Sometimes we really can eliminate the need for probate after the first death with the use of a community property agreement in conjunction with various beneficiary designations, but it may not always be the best plan. Probate can actually be a helpful part of the process when issues like Washington state estate tax or special needs trusts are involved. During our estate planning meetings with clients, we review the pros and cons of various options and let the client decide on the final best course of action. We love to educate our clients about the options and techniques available to them as well as how trusts and estates work. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with Spokane and Washington state wills, trusts, probate, trust administration, and business formation and succession, contact Megan Lewis Law, PLLC.  Once you have estate planning documents place, make sure you read them fully from time to time to digest the terms of your documents. Let all your agents/fiduciaries/executors know, as well, so they will be prepared when they need to step in to assist you or process your estate.
Review a few paragraphs at a time and make sure it captures your intent. Draw out a flow chart of what assets you have and, if everything goes according to the written plan, where your assets would end up. If that's all too confusing, invest in a meeting with your estate planning attorney to do it with you. If you don't like the result, work with your attorney to update your plan. Estate plans, like lives in general, are not static and need regular tweaking to meet our goals. Life changes, laws change, assets change, relationships change, so make sure your plan changes as well. We love to educate our clients about the options and techniques available to them as well as how trusts and estates work. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with Spokane and Washington state wills, trusts, probate, trust administration, and business formation and succession, contact Megan Lewis Law, PLLC.  Establishing a will or trust and other associated estate planning tools, is not a once-in-a-lifetime process. Laws and circumstances change making the documents inappropriate. If your will or trust is over 10 years old (and a good idea at 5 years), you NEED to pull it out and give it a thorough review. After you read it, ask yourself these questions:
If you answered yes to any of the above, you should have your estate planning attorney review the documents and suggest appropriate updates. Even if your trust is irrevocable, you may have options to decant (distribute the assets to a new, but similar trust) or make amendments to it under your particular state laws, like Washington. We love to educate our clients about the options and techniques available to them as well as how trusts and estates work. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with Spokane and Washington state wills, trusts, probate, trust administration, and business formation and succession, contact Megan Lewis Law, PLLC. We are moving to our new office (905 S. Monroe) this week! The new space is coming along, with plenty of work to do still, but we should be in and operational by the end of the week. Here's a few interior sneak peaks and a view from the upper deck out across to Huckleberry's Natural Market and Ace Hardware on the South Hill in Spokane. We are excited for more space, easier handicap access, and better parking. Hopefully, as covid concerns continue to decline, we can have a grand opening celebration at some point this spring or summer. We're moving, but not far and not quite yet! The new address will be 905 S. Monroe, directly across the street from the Huckleberry's, Ace Hardware, and Swinerton Builders on the south hill of Spokane. It's scary to make a big commitment during these uncertain times and we love our beautiful current space, but are outgrowing it a little and would love dedicated client parking and better handicap accessibility (a short walk or roll around the veranda from the parking in the back). The location couldn't be better for the clients we work with and only a few blocks from our current location! With covid-19, we want the flexibility to meet clients outside for document signings, but still be somewhat protected from the elements, which we will have the option to do immediately. We don't have a timeline yet for a full move, but hope to complete it at the end of the year or early next year after it receives a little renovation and set up. Until then, if we need a covered outdoor space to sign documents, we will begin using our new wrap-around veranda for that, which is on the same level as the parking in the back! For now, we will remain where we are (and often working from home) and still primarily meet with clients by phone, Zoom, Facetime, or whatever other mechanism we can to accommodate safe interactions. Stay tuned for updates and progress news! We are excited to accommodate more clients since we are feeling the community's need to prepare for or deal with the inevitable, particularly with the recent record numbers positive tests and hospital admissions due to covid-19 in our area. We love to educate our clients about the options and techniques available to them. See some of our answers to frequently asked questions and common misconceptions on our website. For assistance with Spokane wills, trusts, probate, trust administration, and business formation and succession, contact Megan Lewis Law, PLLC.  |
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