Major Changes to Washington Estate Law Are In Effect: What Residents Need to Know

At Brothers Henderson Durkin, we are committed to keeping our community informed about the legal shifts that impact their families and legacies. Recently, Washington state has seen two major developments that impact estate planning and probate law: a landmark fraud case that serves as a warning to everyone regarding the importance of having a Will; and legislative updates that change how estates are taxed, which started July 1, 2025.

Here is how these updates affect you.

1. The Warning: Protecting Against "Probates for Profit"

A high-profile case in King County, Washington v. Elliott, Sunde, et al., recently concluded with a judge ordering over $7 million in penalties against a group that operated a "probates for profit" scheme, to gain control of deceased strangers’ estates and divert money away from their rightful heirs.

Between 2019 and 2024, these individuals identified 200 deceased strangers, who had no Wills—and maneuvered to be appointed as administrators (executors) of the estates of those strangers. They then sold at least 90 estate homes collectively worth more than $28 million, collecting large and unjustified commissions and fees for themselves, sometimes moving money between various trust accounts to cover their tracks. They also took or sold multiple personal items from the estates, including a Jaguar sedan, a Mazda Miata, a Rolex, jewelry, firearms, furs, and furniture. Rightful heirs were often unaware of these probate cases and the associated profits the defendants were deriving from them. 

This case highlights the danger of "intestacy" (dying without a Will). When there is no clear plan or designated executor, the door is left open for third-party strangers to petition the court for control of your assets.

2. Legislative Reform: The Estate Tax 

A Higher Estate Tax Exclusion (The Good News)

Beginning July 1, 2025, the individual estate tax exclusion amount—the amount you can pass on before the state begins to tax your estate—rose from $2.193 million to $3 million.

• Automatic Inflation: Starting in 2026, this $3 million floor will be adjusted annually for inflation.

The Nation’s Highest Estate Tax Rate (The Caution)

While the exclusion is rising, so is the tax rate for larger estates. The top estate tax rate is jumping from 20% to 35%—currently the highest in the United States. This rate applies to the portion of a taxable estate valued over $9 million above the exclusion amount.

3. "No Portability" 

Perhaps the most important thing for married couples to remember is that Washington still does not allow "portability." In federal law, if one spouse dies and doesn't use their full tax exemption, the surviving spouse can use that unused portion when they pass. Washington state does not allow this. If you do not use your $3 million exemption at the time of the first spouse's death, it is lost forever.

For many married couples, a Credit Shelter Trust (often called a Bypass Trust) remains the gold standard. This allows you to "capture" the first spouse's $3 million exclusion, effectively allowing a couple to pass down $6 million tax-free instead of just $3 million.

Is Your Plan Ready?

These changes represent both an opportunity to shelter more of your assets, and a risk of higher taxes if your estate is large.  If you are a Washington resident and curious how these new estate laws will impact your family’s financial future, contact our Seattle-based estate planning attorneys at Brothers Henderson Durkin today.