What are the taxes on an estate?

In Washington, when an individual dies, their estate is subject to a variety of taxes. Depending on the size of the estate and the assets within it, federal, state, and local taxes may all be due. Federal estate tax is imposed at the federal level on all estates over and above a certain threshold, which is subject to change each year. As of 2021, the threshold is any estate valued at over $11.7 million. Any estate above this amount will be taxed at a rate of 40%. The state of Washington also imposes an estate tax, which applies to all estates over and above $2.193 million as of 2021. This is also a progressive tax, with rates increasing from 10% to as high as 20% for larger estates. In addition to these two taxes, local taxes may also be due, depending on the county of residence of the deceased. Some counties in Washington do not impose an additional estate tax, while others may. It’s important to check with the local tax authorities to determine if any additional taxes are due. It’s also important to note that the taxes described above are in addition to any taxes due on the income earned by the deceased prior to death, such as income tax. Consulting with a tax professional can help to ensure that all applicable taxes are accounted for.

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