What are the tax implications of estate planning?

Tax implications are a key factor to consider when engaging in estate planning. In Washington, estate planning is subject to both state and federal taxes. The federal estate tax applies to estates worth more than $11.7 million. This means that estates valued over this amount could be subject to a tax rate as high as 40%. In Washington, estates are subject to the Washington Estate Tax, which applies to estates valued at over $2.193 million. The tax rate on these estates ranges from 10% to 20%. In addition to the estate tax, other taxes may apply when estate planning. For instance, the Washington Inheritance Tax applies to estates valued over $2.193 million and can be as high as 19.8%. Depending on the size and structure of the estate, the Washington Real Estate Excise Tax may also be applicable. This taxes the transfer of real estate at a rate of 1.78%. When considering estate planning, it is important to understand the taxes that may apply. Consulting with a qualified lawyer and financial advisor can help you to understand the tax implications of your estate plan and ensure that you are making the best decision for you and your beneficiaries.

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What are the tax implications of estate planning?

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