Ten Fun Facts About the Washington Estate Tax Return!

We’ve blogged about the Washington estate tax, which applies to estates with at least $3 million in assets.  But what about the Washington estate tax return? Here are ten fun facts:

• What does the Washington estate return look like? See: https://dor.wa.gov/sites/default/files/2022-02/85_0050e.pdf. 
• When is the Washington estate tax return due? The Washington estate tax return is due nine months after the date of death.
• Can you apply for an extension? If nine months isn’t enough time, you can apply for a six-month extension. But the extension only applies to the obligation to file the return – it doesn’t apply to the obligation to pay the tax. You still need to pay the estimated estate tax amount by the due date to avoid interest.
• Who is authorized to sign a Washington estate tax return? For Washington residents, the executor appointed by a Washington superior court is the person who is authorized to sign the state estate tax return. 
• Does the Washington estate tax return allow any deductions? Yes. Certain deductions may be allowed from the “gross estate,” including funeral expenses and mortgages and liens upon real property. If the decedent was married or had a registered domestic partner at the time of death, the deductible funeral expenses are one-half of the total since Washington is a community property state. 
• How are the Washington estate tax obligations impacted if a deceased Washington resident owned real property in another state? WAC 458-57-125 sets forth an apportionment formula for this scenario. 
• Can Washington estate tax be owed by someone who isn’t a Washington resident? Yes, if that person owns assets exceeding the filing threshold and those assets include real property or tangible personal property in Washington.  
• Are there any special rules if the decedent had a closely held business? Yes. Installment payments of the tax owed may be allowed in certain circumstances. Also see the rules regarding qualified family-owned business interests.
• How do you find a certified public accountant who can assist with a Washington estate tax return? A good place to start is to check with a few accountants who are members of the Seattle Estate Planning Council.
• After Washington estate taxes are paid, what are those funds used for? Washington estate taxes are designated specifically for the Education Legacy Trust Fund.