Signed by Governor Jay Inslee

Vote Smart's Synopsis:

Vote to pass a bill that repeals the marital trust estate tax exemption.

Highlights:

• Specifies that the stand-alone estate and transfer tax applies to all property transfers retroactive to May 17, 2005, including, but not limited to, the following transfers (Secs. 1 & 2):
• A transfer of property between married individuals;
• A transfer of qualified terminable interest property (QTIP); and
• A shifting upon death of an economic or legal benefit that comes from the ownership or “enjoyment” of property.

• Amends the definition of “applicable exclusion amount” for the purposes of determining estate tax to be as follows (Sec. 2):
• $1.5 million for estates of decedents dying before January 1, 2006;
• $2 million for estates of decedents dying on or after January 1, 2006 and before January 1, 2014; and
• $2 million multiplied by 1 plus the percentage of the most recent consumer price index for estates of decedents dying on or after January 1, 2014.

• Authorizes an estate tax deduction of up to $2.5 million for a decedent’s qualified family-owned business if certain conditions are met including, but not limited to, the condition that the decedent’s interest in the business was no more than $6 million (Sec. 3).

• Amends the tax rates on Washington taxable estates that are at least $9 million in the following ways (Sec. 4):
• Increases the initial tax amount from $1.44 million to $1.49 million; and
• Increases the added tax rate from 19 percent to 20 percent.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that repeals the marital trust estate tax exemption.

Highlights:

• Specifies that the stand-alone estate and transfer tax applies to all property transfers retroactive to May 17, 2005, including, but not limited to, the following transfers (Secs. 1 & 2):
• A transfer of property between married individuals;
• A transfer of qualified terminable interest property (QTIP); and
• A shifting upon death of an economic or legal benefit that comes from the ownership or “enjoyment” of property.

• Amends the definition of “applicable exclusion amount” for the purposes of determining estate tax to be as follows (Sec. 2):
• $1.5 million for estates of decedents dying before January 1, 2006;
• $2 million for estates of decedents dying on or after January 1, 2006 and before January 1, 2014; and
• $2 million multiplied by 1 plus the percentage of the most recent consumer price index for estates of decedents dying on or after January 1, 2014.

• Authorizes an estate tax deduction of up to $2.5 million for a decedent’s qualified family-owned business if certain conditions are met including, but not limited to, the condition that the decedent’s interest in the business was no more than $6 million (Sec. 3).

• Amends the tax rates on Washington taxable estates that are at least $9 million in the following ways (Sec. 4):
• Increases the initial tax amount from $1.44 million to $1.49 million; and
• Increases the added tax rate from 19 percent to 20 percent.

Full Bill Text