What is the Inheritance Tax?

The Inheritance Tax is a tax paid by individuals who inherit a large sum or property when someone dies. In Washington, inheritance taxes apply to estates of individuals who die with a net worth of over $2 million. Inheritance taxes are imposed by the state and are determined by the relationship of the heir to the deceased. When a spouse passes away, the surviving spouse is exempt from the inheritance tax. However, if the inheritance is from another person, such as a parent or sibling, the heir must pay a percentage of the inheritances value to the state. The tax rate ranges from 11 percent to 20 percent, depending on the size of the inheritance. The state also levies a number of additional taxes, such as property taxes and excise taxes, that may be applicable to the inheritance. The Inheritance Tax is an important source of revenue for the state of Washington and helps fund important public services. For example, the money collected from the Inheritance Tax is used to fund public schools and universities, health care, transportation, and other vital services of the state. In some cases, the Inheritance Tax can be reduced or avoided by making charitable donations or setting up trusts. An experienced estate attorney can help individuals understand their inheritance tax liability and provide advice on how to reduce it.

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What is the Inheritance Tax?

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