Washington Changed Its Estate Tax Again. Does Your Estate Plan Need an Update?

October 29, 2026

If you updated your estate plan after Washington’s 2025 estate tax changes, you may be wondering whether it is time to revisit it. The state changed the rules again in 2026, lowering tax rates and adjusting the amount an estate can exclude from taxation.

That does not automatically mean your documents need to be rewritten. It does make this a good time to check whether your plan still fits your family, your assets, and current law.

What changed in 2026?

Washington’s latest legislation rolled back the estate tax rate increases enacted in 2025. For people who die on or after July 1, 2026, graduated rates range from 10% to 20%, compared with 10% to 35% for deaths between July 1, 2025, and June 30, 2026. Washington Legislature’s 2026 summary

The filing threshold and exclusion amount also changed:

Date of death	Filing threshold and exclusion amount
January 1–June 30, 2026	$3,076,000
July 1, 2026, onward	$3,000,000

The Department of Revenue currently states that the $3 million amount is not scheduled to increase because the inflation index referenced in the statute has expired. The applicable rules depend on the date of death, rather than when the estate is settled. Washington Department of Revenue

Lower rates still leave reasons to review your plan

A lower top tax rate may reduce an estate’s eventual tax bill. But the exclusion also decreased slightly, and a plan written around earlier rules may deserve another look.

Your review should start with a practical question: What would happen under your existing documents today?

Consider whether the plan provides enough flexibility for a surviving spouse, treats children as intended, and leaves accessible funds for expenses. If your documents use formulas to divide assets among trusts, ask your attorney to explain how those formulas work under the current rules.

The goal is to understand what your family would receive and who would control it.

Your estate may include more than you expect

Estate tax calculations can reach beyond the assets passing through your will. Retirement accounts, business interests, jointly owned property, certain life insurance proceeds, and assets held in a revocable trust may be included.

There is also a difference between needing to file a return and owing tax. Filing generally depends on the gross estate before deductions, subject to applicable exceptions. Deductions may reduce or eliminate the eventual tax. Washington also provides a qualifying spousal personal residence exclusion when determining whether filing is required. Department of Revenue estate tax FAQ

That is why a rough estimate based only on your home equity and checking account may miss part of the picture.

What should you bring to an estate plan review?

You do not need a perfectly organized financial binder to get started. Gather:

• Your current will, trust, and any amendments.

• A recent list of assets, approximate values, and debts.

• Information showing how major accounts and property are owned.

• Current retirement account and life insurance beneficiary designations.

• Notes about changes in your marriage, family, health, or wishes.

Ask your attorney whether the tax changes affect your existing plan, whether its trust provisions still serve their purpose, and whether your account arrangements support the instructions in your documents.

Even when no tax changes are necessary, this conversation can uncover an outdated beneficiary, a successor who can no longer serve, or instructions that no longer reflect your priorities.

Make sure your plan still reflects your life

Washington’s changing estate tax rules offer a useful reason to revisit your planning. Your family’s needs should guide that review.

At Aster Law, we help individuals and families create wills and trusts that reflect their relationships, responsibilities, and wishes. Based in Spokane, we serve clients throughout Washington through secure virtual consultations.

Schedule a consultation with Aster Law to discuss whether your estate plan needs an update.

This article provides general information based on Washington guidance available as of October 29, 2026. It is not legal or tax advice and does not create an attorney-client relationship.