Revocable Trusts in Washington Versus Nevada
Discover the differences between revocable trusts in Washington versus Nevada, including the tax implications.
Curious how revocable trusts in Washington versus Nevada compare? Both states make revocable living trusts a practical way to organize assets and help avoid probate. Yet their rules diverge in subtle, important ways—especially around community property, creditor reach, and state-level taxes.
The day-to-day benefits are similar—control now, smoother administration later. In either state, a revocable trust lets you keep control while you’re living and designate who steps in later. Properly funded trusts can keep most assets out of probate, which can save time and reduce paperwork for loved ones.
The standout differences between revocable trusts in Washington versus Nevada come from Washington’s estate tax and Nevada’s specific community-property title tools. In short, Washington has an estate tax (although no inheritance tax) while Nevada doesn’t. And while both states are community property states, Nevada goes one better by adding a statutory form for right of survivorship in a deed.
Example:
A Seattle homeowner makes her trust the beneficiary of her house and investment account. Years later, her trustee settles affairs without probate because major assets were already in the trust. Therefore, no court order to retitle the house is needed. Same scenario with a Reno homeowner, same result.
Community Property and Title Choices
Revocable trusts in Washington versus Nevada share a big theme. Both are community property states. Community status affects who owns what’s inside the trust and can influence income-tax basis at a spouse’s passing under federal rules.
Nevada goes a step further with a statutory form—“community property with right of survivorship”—that you can elect in the deed. When properly used, it can streamline succession for real estate.
Example:
Spouses in Las Vegas place their home—titled as community property with right of survivorship—into a shared revocable trust. When one spouse passes, the survivor typically keeps the home without probate and may benefit from community-property basis rules under federal law. Spokane couples can pursue similar outcomes using community property concepts and a joint revocable trust funded with community assets.
State Taxes and Revocable Trusts in Washington Versus Nevada
Washington imposes a state levy. A Washington resident’s estate must count all assets, including those held in a revocable trust; nonresidents owe Washington tax only on Washington-sited real estate and tangible property.
Nevada has no state estate tax, so Nevada domiciles avoid that layer. Although federal estate tax rules can still apply to larger estates. This difference is often the biggest practical divider when comparing revocable trusts in Washington versus Nevada.