Tools for Heirs and Beneficiaries in Washington

Washington levies an estate tax above $3,000,000 (top rate 20%) and no inheritance tax; the federal estate tax applies above $15,000,000.

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6 tools for Washington

Who Inherits Without a Will?

Washington is a community property state, so the surviving spouse already owns half of what the couple acquired during the marriage. Without a will in Washington, descendants divide what passes to them per capita with representation, and an heir must survive the decedent by 120 hours to inherit.

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How Much Are Estate & Inheritance Taxes?

Washington levies an estate tax above $3,000,000 (top rate 20%) and no inheritance tax; the federal estate tax applies above $15,000,000.

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What Taxes Apply to My Inheritance?

In Washington, beneficiaries owe no inheritance tax and the estate pays any estate tax above $3,000,000; probate assets arrive when the estate closes, 4 months to 6 months for a simple estate.

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How Does Step-Up in Basis Work?

Inherited assets in Washington take a basis reset to fair market value on the date of death, and the gain on a later sale faces a 7% excise tax above $278,000, rising to 9.9% above $1,000,000; individuals only — estates and trusts are not subject to it.

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When Do I Have to Withdraw an Inherited IRA?

See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.

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Do I Have to File Tax Returns for Someone Who Died?

Washington has no state income tax, so only the federal final Form 1040 is due for the decedent; a federal estate tax return (Form 706) is required only for estates above $15,000,000.

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Yes. Washington imposes a state estate tax on an estate above $3,000,000, separate from and in addition to the federal estate tax. Washington has no inheritance tax on the beneficiary.

The Washington estate tax exemption is $3,000,000; an estate below it owes no state estate tax. The exemption is a fixed amount set by statute. A taxable estate faces graduated rates up to 20%.

No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Washington does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.

When someone dies, the cost basis of the property they leave is reset to its fair market value on the date of death under IRC § 1014. A later sale is taxed on the gain above that stepped-up basis, not above what the original owner paid, so the appreciation of the owner's lifetime is never taxed. The rule is federal and applies in Washington as in every state.

Washington intestacy law decides. As a community property state, Washington distinguishes community property (acquired during the marriage) from separate property (owned before it, or received as a gift or inheritance), and the surviving spouse's share differs for each. The estate passes to the closest surviving relatives, in most cases the spouse and children first, then in order: Parents; Issue of parents; Grandparents; Issue of grandparents; Escheat to the state.

Tools for Heirs and Beneficiaries in Washington

Estate taxes are paid by the estate before anything is distributed; inheritance taxes are paid by the person who receives the property. In 2026 the federal estate tax reaches only estates above $15 million per person, and there is no federal inheritance tax. 12 states plus the District of Columbia levy their own estate tax at lower thresholds, and 5 states levy an inheritance tax whose rate depends on the beneficiary's relationship to the person who died.

Beneficiaries in Washington owe no inheritance tax; the estate pays any estate tax before distribution; inherited assets take a basis reset to fair market value on the date of death, and the gain on a later sale faces a 7% excise tax above $278,000, rising to 9.9% above $1,000,000; individuals only — estates and trusts are not subject to it. Probate assets arrive when the estate closes: a simple estate closes in 4 months to 6 months.

SimplyTrust Editorial·Updated September 15, 2026

Legal Sources

Data sourced from Washington statutes and official state code. How we research.