The loss of a loved one is heartbreaking and can leave the family with a multitude of questions. Trying to figure out all of Washington State inheritance laws is the last thing you want to think about. This guide will walk you through the inheritance laws in Washington state and answer those pressing questions.
What are the next steps?
How do we manage the estate?
Who inherits what?
Washington Inheritance LawsWhen a Will Is Involved
The best scenario is to have a will drawn up with an attorney’s help to ensure that all assets are allocated according to the decedent’s wishes. It is recommended that the testator, the writer of the will, name an executor of the estate, the person who will see that the decedent’s wishes are followed after their passing. Once the will is drafted, it must be signed in front of two witnesses and a public notary. After the decedent’s passing, it is required by Washington state law that the will be filed with the court in the county in which they passed away. These stipulations must be met for the will to be considered “testate” or valid.
Estate Value Determines If Probate Is Necessary
If the decedent was the sole owner of real property or had more than $100,000 in personal property, a probate proceeding will most likely need to be filed.
A probate court proceeding is an administrative process where the decedent’s assets are transferred to the people who will inherit them. When an estate is valued at less than $100,000, an heir can submit an affidavit to the court stating that they’ve inherited a particular asset. The executor of the estate can also petition the court to manage the estate without supervision. The court may allow this if the estate has more assets than debts, also known as being “solvent.” In these cases, probate may be avoided.
Asset Allocation Exceptions In Washington
Typically, a decedent may allocate their assets however they wish in a will, but there are a few exceptions under Washington state law. Because Washington is a community property state, if a decedent was married to a spouse, they will inherit half of the community property assets such as a home or bank account.
The other half of the community property assets may be given to anyone the decedent chooses. A spouse or heir is still entitled to their share of the estate, even if the will does not specifically allocate assets to them. This share of assets would be equal to what the spouse or heir would receive if the decedent did not have a will. The only time the court would grant an exception to this rule is if evidence shows the omission was not an error. If the heir dies without evidence that they survived the decedent by at least five days, they will not inherit their portion of the estate.
Washington Inheritance LawsWhen a Will Is NOT Involved
When a decedent passes without making a will, the court will allocate the assets through intestate succession.The court will appoint an executor who, ideally, has background knowledge of the family and the estate to allocate assets to the appropriate parties. During this process, the decedent’s spouse will inherit all communal property. Depending on whether the decedent has surviving children or parents, the spouse can inherit one half or the entirety of the deceased’s separate property.
What Is Considered Separate Property?
Separate property is property owned by only one spouse. Most married couples combine assets and don’t have individual property, but here is a list of what is generally considered separate property:
- Property that spouses agree in writing is individual through a post-nuptial agreement.
- Gifts received before or during the marriage by one spouse.
- Property owned by one spouse before marriage
- Inheritances received by one spouse before or during a marriage.
- Property that was acquired under one spouse’s name that was not used for the benefit of the marriage or the other spouse
Who Inherits The RestOf The Estate?
What remains of the estate, or the entirety if there is no spouse, will be divided equally among the children of the decedent. In the case that there are no children, the estate will be allocated to the parents and then the siblings if the parents are not surviving.
Assets not included in intestate succession are:
- Life insurance benefits
- IRA, 401(k), or other retirement funds
- Transfer-on-death account securities
- Bank accounts payable-on-death
- Property that has been transferred to a living trust
- Property owned in joint tenancy
What Taxes Must Be Paid
There is no inheritance tax in Washington; however, there are estate taxes at both the state and federal level to consider. At the federal level, estates valued at over $11.58 million can be taxed at a rate of up to 40%. The details of what assets are to be included in these calculations, finding their value, and determining the tax rate can be found inIRS Form 706. According to Washington State inheritance laws, if the estate is valued at more than $2.193, then the executor of the estate must file a state estate tax return within nine months of the decedent’s passing. If a federal estate tax return was filed, this must be included when filing the state estate tax return. You can find more information inthis guidefrom the Washington State Department of Revenue.
What To Consider When You Inherit Property in Washington
When you inherit a piece of real estate, all the associated costs of that property become your responsibility. This includes the maintenance costs, utilities, yearly property taxes, home insurance, and any applicable HOA fees. You have the option of making the inherited property your primary residence and selling your current home, but that comes with its own costs. The process of selling a home can include realtor fees, listing fees, and closing costs, among others.
Choosing To Sell The Inherited Property
Another option is to sell the inherited property, which can incur costs similar to those if you were to sell your current home. The home may also need repairs before you can sell it, and they can become expensive. If you choose to sell the property through a realtor, the home needs to be appraised first and then must sell for at least 90% of the appraised value. A 10% deposit will be required in the buyer’s offer, which will be subjected to confirmation by the court. The executor, along with their probate attorney, will then submit a statement to the court to confirm the sale. Once all parties agree, a future date will be set for the court to finalize the sale. When the offer is accepted, a Notice of Proposed Action will be mailed to all heirs. They will have 15 days to pose any objections upon review of the notice. If no objections are posed, the sale can proceed without a court hearing.
Selling The Property As-Is
If selling your current home or inherited property is not the best option for you, there is an alternative. You can sell the house as-is to a cash buyer likeKind Home Buyers. Using this option, you can sell the home without paying for a relator or the costs of repairing the property. You’ll receive a cash offer after the property has been inspected, taking into consideration the cost of potential repairs and what the house can be sold for after those repairs are made.
Can You Sell a Property In Probate?
Whether or not aproperty can be soldoutside of, or during, probate depends on a few stipulations. First and foremost, it is up to the estate executor to ensure that all of the estate’s debts have been settled. The selling of property may be necessary to pay creditors that have been notified by the court of the decedent’s passing.
Who Can Sell Inherited Property?
In Washington, the surviving spouse can sell the inherited property without going through probate according to the community property law. You can also avoid probate if you inherited the house through joint tenancy with survivorship rights or if you are the recipient of atransfer-on-death deed. You will most likely have to wait for probate to be concluded outside of these exceptions before the property can be sold. Because probate can be a lengthy and complicated process, it is always a good idea to speak with a real estate expert with probate experience.
What To Do Next
When it comes to inheritance laws, it is always best to consult an expert to go over all the available options. This guide touched on many Washington state inheritance laws‘ intricacies, but if you have any further questions, please reach out to a licensed attorney in your area. If youhave a property that you’ve inherited and wish to sell, contact us at Kind Home Buyers by calling (253) 216-2497 or by submitting the short form below. You can go from an offer to cash-in-hand in as little as 10-14 days.
Give us a call anytime at(253) 216-2497or
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FAQs
How does inheritance work in Washington state? ›
If you die intestate in Washington leaving a spouse but no children, parents or siblings, your spouse will inherit everything. However, if you die leaving a spouse and children, the spouse will inherit all your community property and one-half of your separate property.
How much can you inherit in Washington state without paying taxes? ›The threshold for the estate tax in Washington is $2.193 million as of 2021. So if a person's estate is equal to less than $2.193 million, then it won't be taxed by Washington state upon the person's death.
How long does an executor have to distribute assets in Washington state? ›Simpler estates can be closed within a matter or weeks or months, while the probate for complicated estates can drag out over a year or more. However, Washington state law does state that if there is a will, it must be filed with the Clerk's Office of the Superior court within 40 days of the person's death.
How much does an estate have to be worth to go to probate in Washington state? ›Legally, you will need a probate (either an adjudication or a traditional probate) if Decedent's probate assets include: A net value of over $100,000 of personal property, or. Any real property that you choose not to or cannot Administer by Affidavit.
Do I have to pay taxes on an inheritance in Washington state? ›Does the state of Washington have an inheritance or estate tax? Washington does not have an inheritance tax. Washington does have an estate tax. During a general election in November 1981, the voters repealed an inheritance tax and enacted an estate tax.
Is inheritance separate property in Washington state? ›Washington State law defines separate property as:
This means that in most cases, inheritance remains with the inheritor. When it comes to divorce, they aren't subject to distribution since the courts generally view them as separate, non-community property.
Inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.
Does the IRS tax on inheritance? ›What Is the Federal Inheritance Tax Rate? There is no federal inheritance tax—that is, a tax on the sum of assets an individual receives from a deceased person. However, a federal estate tax applies to estates larger than $11.7 million for 2021 and $12.06 million for 2022.
How much money can you gift in Washington state? ›As a matter of fact, Washington has no gift tax. If you live in the state, your gifts will only be subject to the federal gift tax on gifts you make throughout your life. Thanks to the “annual exclusion” provided under federal law, you can give up to $14,000 a year to discrete individuals without paying taxes.
Does an executor have to show accounting to beneficiaries in Washington state? ›To summarize, the executor does not automatically have to disclose accounting to beneficiaries. However, if the beneficiaries request this information from the executor, it is the executor's responsibility to provide it.
How much does an executor get paid in Washington state? ›
Executor Fees in Washington
For example, if in the last year, executor fees were typically 1.5%, then 1.5% would be considered reasonable and 3% may be unreasonable. But the court can take into account other factors such as how complicated the estate is to administer and may increase or decrease the amount from there.
Is There a Deadline for Filing the Will in Washington State? Under Washington probate law, any person who has the deceased person's will must turn it over either to the probate court or to the personal representative within 30 days of finding out about the death.
How do I avoid probate in WA? ›In Washington, you can make a living trust to avoid probate for virtually any asset you own -- real estate, bank accounts, vehicles, and so on. You need to create a trust document (it's similar to a will), naming someone to take over as trustee after your death (called a successor trustee).
What is the average cost of probate in Washington state? ›| Estate Value | Commission or Fee |
|---|---|
| $100K | $3,150 |
| $250K | $6,150 |
| $500K | $11,150 |
| $1M | $21,150 |
Probate may be necessary when a person dies leaving property in his or her own name (such as a house titled only in the name of the decedent) or having rights to receive property. Also if the estate is worth over $100,000. Yes, Washington has an estate tax.
Is the family home exempt from inheritance tax? ›Passing on a home
You can pass a home to your husband, wife or civil partner when you die. There's no Inheritance Tax to pay if you do this. If you leave the home to another person in your will, it counts towards the value of the estate.
Washington State Estate Tax Exemption for 2022
The federal annual gift tax exclusion amount will rise to $16,000 in 2022, up from $15,000. The federal estate and gift tax exemption amount will be increased from $11.7 million to $12.06 million per individual in 2022.
Inheritance Tax vs Estate Tax
Some countries put the sole responsibility of paying the inheritance tax on the lawful heirs, while the estate tax is paid out from the estate's funds.
As a result, a common question that attorneys are asked is whether or not all assets have to go through probate, so beneficiaries can receive assets earlier and without the extra time and expense of court. In the state of Washington, the answer is no.
How is next of kin determined in Washington state? ›(1) The surviving spouse or state registered domestic partner, or such person as he or she may request to have appointed. (2) The next of kin in the following order: (a) Child or children; (b) father or mother; (c) brothers or sisters; (d) grandchildren; (e) nephews or nieces.
Does Washington state have a transfer on death deed? ›
The Washington transfer-on-death deed form allows property to be automatically transferred to a new owner when the current owner dies, without the need to go through probate. It also gives the current owner retained control over the property, including the right to change his or her mind about the transfer.
Do I have to pay taxes on a $10 000 inheritance? ›In California, there is no state-level estate or inheritance tax. If you are a California resident, you do not need to worry about paying an inheritance tax on the money you inherit from a deceased individual.
Does inheritance affect Social Security? ›Social Security is not a means-tested program, which means that your eligibility for Social Security is not affected by any receipt of assets or income that you receive from an inheritance. Therefore, if you are receiving Social Security, receipt of inheritance will not have an effect on your Social Security payments.
How much money can be legally given to a family member as a gift? ›For 2018, 2019, 2020 and 2021, the annual exclusion is $15,000. For 2022, the annual exclusion is $16,000.
What is considered a large inheritance? ›What Is Considered a Large Inheritance? There are varying sizes of inheritances, but a general rule of thumb is $100,000 or more is considered a large inheritance. Receiving such a substantial sum of money can potentially feel intimidating, particularly if you've never previously had to manage that kind of money.
Do you have to pay taxes on money received as a beneficiary? ›Beneficiaries generally don't have to pay income tax on money or other property they inherit, with the common exception of money withdrawn from an inherited retirement account (IRA or 401(k) plan). The good news for people who inherit money or other property is that they usually don't have to pay income tax on it.
When should I give my child inheritance money? ›If you want to make sure your children use the money wisely, consider putting it in trust with a few strings attached. Many estate planning attorneys recommend distributing the assets in chunks (typically one-third at age 25, one-third at age 30 and one-third at age 35).
Can you gift a home in Washington State? ›Gifts. (1) Introduction. Generally, a gift of real property is not a sale, and is not subject to the real estate excise tax. A gift of real property is a transfer for which there is no consideration given in return for granting an interest in the property.
What expenses can be deducted from an estate? ›- Funeral and Burial Expenses. ...
- Estate Administration Expenses. ...
- Outstanding Debts Left by the Deceased. ...
- Charitable Donations Made After Death. ...
- Death Tax Deductions: State Inheritance Tax and Estate Taxes.
While beneficiaries don't owe income tax on money they inherit, if their inheritance includes an individual retirement account (IRA) they will have to take distributions from it over a certain period and, if it is a traditional IRA rather than a Roth, pay income tax on that money.
What an executor Cannot do? ›
An executor must be impartial. Neither he/she, nor his/her family, friends, may benefit unfairly (for example from the sale of an asset). He/She must carry out the instructions in the will, as well as reasonable instructions of the heirs. Quarrels with heirs should not interfere with his or her duties.
Can beneficiaries demand to see deceased bank statements? ›Can Beneficiaries Demand to See Deceased Bank Statements? No, generally, beneficiaries cannot demand to see the decedent's bank statements unless they are also a personal representative of the estate. However, it is within the executor's discretion to share bank statements with beneficiaries upon request.
What information are beneficiaries entitled to? ›A beneficiary's right to information
Generally speaking, beneficiaries have a right to see trust documents which set out the terms of the trusts, the identity of the trustees and the assets within the trust as well as the trust deed, any deeds of appointment/retirement and trust accounts.
When can an executor who is engaged in business rely upon a professional charging clause in a Will? If you are appointed an executor/trustee by a Will, the general rule is that you will not be entitled to be paid for the time you spend in administering the estate.
How do executors pay beneficiaries? ›Before the estate is distributed, costs such as funeral, debts, legal fees, executors' expenses and inheritance tax (if applicable) are paid. The balance is then paid out to the beneficiaries of the will/intestacy. As a beneficiary, you do not usually incur costs personally.
Is probate expensive in Washington state? ›Here's an overview of the approximate costs of Washington probate: Court costs for various filing fees will total approximately $225. Attorney fees vary. Hourly fees for attorneys can range from $150 to $300 per hour.
Can an administrator of an estate take everything? ›To sum up, the administrator of an estate cannot take everything. The administrator should place all estate funds into an estate account. The administrator can only use estate funds to pay the legitimate expenses of the estate, taxes and legal fees.
Is Washington state a probate state? ›Probate in Washington State is a court supervised process by which the ownership of property of a deceased person (the decedent) is administered and determined. Probate cases or opened in Superior Courts of each county across Washington State.
How long do creditors have to collect a debt from an estate in WA? ›...
Notice to creditors—Form.
| CAPTION | ) | No. |
|---|---|---|
| ) | CREDITORS | |
| . . . . | ) | RCW 11.40.030 |
Whose responsibility is it to get probate? If the person who died left a valid will, this will name one or more executors, and it is their responsibility to apply for probate. If there isn't a will, then inheritance rules called the rules of intestacy will determine whose responsibility it is to get probate.
Can property be transferred without probate? ›
Probate is not required to deal with the property but may be needed if the deceased's estate warrants it. Much will depend on what the deceased owned and what the beneficiaries intend to do with the property.
Is Washington a right of survivorship state? ›In some states, the living owner automatically gains the deceased person's property under the right of survivorship. Washington, however, does not extend survivorship to community property.
Does an executor have to show accounting to beneficiaries in Washington state? ›To summarize, the executor does not automatically have to disclose accounting to beneficiaries. However, if the beneficiaries request this information from the executor, it is the executor's responsibility to provide it.
What are the inheritance laws in Washington state? ›Children in Washington Inheritance Law
In this case, your spouse is entitled to your half of the community property and half of your separate property. Your children are allotted the other half of your separate property. Biological children remain the most common type of child in intestate succession law.
Probate is a certificate granted by the Probate Office of the Supreme Court of Western Australia. It means that the deceased's Will has been proved as valid and registered, and that the executor has been granted authority to administer the deceased estate.
How much does an executor get paid in Washington state? ›Executor Fees in Washington
For example, if in the last year, executor fees were typically 1.5%, then 1.5% would be considered reasonable and 3% may be unreasonable. But the court can take into account other factors such as how complicated the estate is to administer and may increase or decrease the amount from there.
A Washington small estate affidavit, known as the State of Washington Affidavit of Successor, is used to expedite the probate process for an estate worth less than $100,000.
Who inherits when there is no will in Washington State? ›The order is: the surviving spouse, children, parents, siblings, grandchildren and nieces and nephews. RCW 11.28. 120.
Do you have to report inheritance money to IRS? ›Inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.
How much does an executor get paid in Washington state? ›Executor Fees in Washington
For example, if in the last year, executor fees were typically 1.5%, then 1.5% would be considered reasonable and 3% may be unreasonable. But the court can take into account other factors such as how complicated the estate is to administer and may increase or decrease the amount from there.
Does a will avoid probate in Washington state? ›
As a result, a common question that attorneys are asked is whether or not all assets have to go through probate, so beneficiaries can receive assets earlier and without the extra time and expense of court. In the state of Washington, the answer is no.
Do you have to go through probate in Washington state? ›Washington State law DOES NOT REQUIRE Probate. Probate is discretionary. Practically speaking only a small percent of deaths in Washington result in a Probate being filed.
Do I have to pay taxes on a $10 000 inheritance? ›In California, there is no state-level estate or inheritance tax. If you are a California resident, you do not need to worry about paying an inheritance tax on the money you inherit from a deceased individual.
How much can you inherit from your parents without paying taxes? ›What Is the Federal Inheritance Tax Rate? There is no federal inheritance tax—that is, a tax on the sum of assets an individual receives from a deceased person. However, a federal estate tax applies to estates larger than $11.7 million for 2021 and $12.06 million for 2022.
Does inheritance affect Social Security? ›Social Security is not a means-tested program, which means that your eligibility for Social Security is not affected by any receipt of assets or income that you receive from an inheritance. Therefore, if you are receiving Social Security, receipt of inheritance will not have an effect on your Social Security payments.
What an executor Cannot do? ›An executor must be impartial. Neither he/she, nor his/her family, friends, may benefit unfairly (for example from the sale of an asset). He/She must carry out the instructions in the will, as well as reasonable instructions of the heirs. Quarrels with heirs should not interfere with his or her duties.
What is the average cost of probate in Washington state? ›| Estate Value | Commission or Fee |
|---|---|
| $100K | $3,150 |
| $250K | $6,150 |
| $500K | $11,150 |
| $1M | $21,150 |
When can an executor who is engaged in business rely upon a professional charging clause in a Will? If you are appointed an executor/trustee by a Will, the general rule is that you will not be entitled to be paid for the time you spend in administering the estate.
Who decides if probate is needed? ›Whose responsibility is it to get probate? If the person who died left a valid will, this will name one or more executors, and it is their responsibility to apply for probate. If there isn't a will, then inheritance rules called the rules of intestacy will determine whose responsibility it is to get probate.
Is Washington a right of survivorship state? ›In some states, the living owner automatically gains the deceased person's property under the right of survivorship. Washington, however, does not extend survivorship to community property.
What is the penalty for not filing a will in Washington State? ›
The late filing penalty is equal to five percent of the tax due for each month during which the state return has not been filed, inclusive of the filing date, and not to exceed the lesser of twenty-five percent of the tax or one thousand five hundred dollars. RCW 83.100. 070.
What debts are forgiven at death? ›- Secured Debt. If the deceased died with a mortgage on her home, whoever winds up with the house is responsible for the debt. ...
- Unsecured Debt. Any unsecured debt, such as a credit card, has to be paid only if there are enough assets in the estate. ...
- Student Loans. ...
- Taxes.
The Small Estate Affidavit. Washington law permits the use of a small estate affidavit in certain circumstances. Before using a small estate affidavit, you should first ask whether the deceased person had less than $100,000 in probate assets.
Who is next of kin in Washington state? ›(1) The surviving spouse or state registered domestic partner, or such person as he or she may request to have appointed. (2) The next of kin in the following order: (a) Child or children; (b) father or mother; (c) brothers or sisters; (d) grandchildren; (e) nephews or nieces.