Washington Estate Tax Planning for Seattle LGBTQ+ households
Washington has one of the more aggressive state estate taxes in the country, kicking in at a much lower exemption than federal and topping out at 20%. For Seattle LGBTQ+ households with a paid-down home + concentrated tech equity, planning around WA estate tax is often the highest-leverage estate move on the board.
Schedule a free intro callWhy Seattle LGBTQ+ households approach wa estate tax planning differently
The Washington estate-tax exemption ($3M per person, indexed from 2027) sits far below the federal exemption, and the state's tax rates climb to 20% on the top bracket. A Seattle same-sex couple with a $1.5M Ballard home and $2M in Microsoft or Amazon stock is already inside the WA estate-tax zone even though they're nowhere near federal exposure.
The main planning tool is a credit-shelter (bypass) trust structure that uses each spouse's WA exemption at first death — Washington does not have portability between spouses at the state level. Without a properly funded bypass trust, the surviving spouse can end up with a WA estate-tax bill that a couple with the same net worth in a portability state would not face.
Aequitas coordinates the trust structure, the funding decisions (which assets go where), and the beneficiary designations so the bypass actually works as intended — not just on paper.
WA estate tax planning rolls up into the broader Seattle city plan, which covers city, state, and federal tax and legal context in more depth.
What we plan for Seattle wa estate tax planning
Credit-shelter (bypass) trust structure
Uses each spouse's WA exemption at first death because WA has no portability — often saves the surviving spouse six figures.
Asset funding & titling decisions
Which assets go into the bypass trust vs. survivor's trust vs. joint — determines whether the exemption is actually used.
Federal exemption overlay (OBBBA)
Under the OBBBA (2025), the federal estate & gift exemption is $15M per person for 2026 (permanent, indexed). The state and federal plans still have to be consistent — the WA exemption is roughly 1/7th of federal and doesn't port.
Beneficiary designations for LGBTQ+ households
401(k), IRA, HSA, and life-insurance beneficiaries audited so nothing bypasses the trust and defaults to biological family.
Related planning pages
- LGBTQ+ financial advisor in Seattle
The city-wide overview: how Aequitas works with Seattle LGBTQ+ households across cash flow, tax, investing, and estate.
- LGBTQ+ tax & cost-of-living guide: Seattle
State income tax, property tax, estate tax, and LGBTQ+ planning overlays specific to Seattle.
- Same-sex couples planning in Seattle
Marriage-penalty math, benefits coordination, and two-career planning for Seattle same-sex households.
- LGBTQ+ estate planning in Seattle
Trust structure, healthcare directives, and beneficiary audits specific to Seattle.
- See all services →
From the blog
Washington Estate Tax Planning FAQs — Seattle
About the advisor
Aequitas Financial was founded by Taylor Bell, a fee-only fiduciary planner. LGBTQ+ planning isn't a side specialty here — it's the practice.
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