When it comes to planning for the future, you want to trust that the safety and security of you and your loved ones’ plans are as strong as possible. Interestingly, although the majority of adults recognize the importance of estate planning, the reality is that a mere one in three people has actually taken steps to create any type of estate plan. There could be a variety of reasons why so few Americans have an estate plan, some of which may stem from common misconceptions about who needs an estate plan (i.e., the mistaken belief that estate planning is only for older or for wealthy individuals). For other people, the reason for not having an estate plan may come down to simple procrastination – it may just never seem like the “right time” to devote the time or resources to establishing a will, creating a trust, or thinking about a future where you are no longer able to express your wishes or make significant decisions.
While there are several advantages to creating an estate plan, today we will focus on the tax implications of estate planning in Washington State and Oregon State. Estate taxes are a crucial component of both estate and tax planning, and these elements directly affect how individuals and families strategically plan to preserve and transfer their wealth. Let’s take a look at some of the most common estate planning mistakes to avoid and how investing in tax-efficient estate planning can keep your future and your legacy as bright and secure as possible.
Common Estate Planning Mistakes to Avoid in the Pacific Northwest
First, it’s important to recognize that both federal and state governments may impose estate taxes, but the rules and thresholds vary. In recent years, the federal estate tax threshold has risen considerably—so much so that few estates are subject to this tax (as of 2025, the federal estate tax only applies to estates whose value exceeds $13.99 million for individuals; $27,980,000 million for married couples). However, states like Oregon and Washington also have their own estate tax laws – and with lower exemption limits and additional tax rates. Let’s take a closer look at how these issues may affect your estate planning decisions in Oregon or Washington.
Not Understanding Oregon’s Low Estate Tax Exemption Threshold
Estate planning mistakes can arise when individuals are not aware of how Oregon’s low estate tax exemption threshold can affect their overall estate planning strategy. Without proper planning, individuals and families can face unexpected tax liabilities, which can reduce the assets that are intended for loved ones or charitable causes. In other words, neglecting to account for estate tax obligations could mean that fewer of your assets transfer to the intended beneficiaries. Oregon stands out as the state with the lowest estate tax exemption threshold in the country, which means that any estate whose value exceeds $1 million will be subject to Oregon’s estate tax. Moreover, it’s important to recognize that Oregon’s estate tax exemption was set in 2001 and is not pegged to inflation. The current rate and threshold will remain in effect until further revised or repealed by statute.
Not Accounting For the Impact of Washington’s Estate Tax Threshold
Like its neighbor to the south, Washington state imposes a relatively low estate tax exemption threshold. Additionally, the state has one of the highest estate tax rates in the nation, which can have considerable consequences for those who do not take these factors into account when creating an estate plan. According to the Washington State Department of Revenue, any estate with a value exceeding $2.193 million is subject to a considerable tax rate (ranging anywhere from 10 to 20 percent). Without a specifically tax-smart estate planning strategy, you could create long-term complications for your estate and your loved ones that compromises your efforts to preserve your wealth and legacy.
How to Create a Tax-Smart Estate Plan
Now that we’ve identified some common estate planning mistakes to avoid, let’s explore some strategies for creating a tax-smart estate plan that safeguards your assets and ensures your legacy. The first step is to discuss your options with a highly qualified and dedicated estate planning lawyer who can help you to articulate your goals and implement strategies that align with and support your vision. For instance, many tax-smart estate planning strategies include trusts, as these tools can minimize estate tax obligations and support a smooth and seamless transfer of assets when the time comes. There are several types of trusts to explore, such as irrevocable trusts, special needs trusts, or charitable trusts to name a few and can vary depending on your unique needs and goals. With a knowledgeable and experienced estate planning professional by your side, you can feel confident that you and your loved ones will enjoy a bright, secure, and supportive future, whatever it may hold.
Learn More About How to Reduce Estate Taxes
At Myatt & Bell, P.C., we believe in providing our clients with the information they need to make confident decisions about their future and legacy. That’s why we are proud to offer courtesy consultations to discuss your estate planning needs. During this meeting, we will explore how tools like wills and trusts can safeguard your assets, care for your loved ones, minimize tax obligations, and ensure that your wishes are honored. These meetings also provide an opportunity to ask questions, gain clarity about our estate planning process, and see how we can guide you in creating an estate plan that brings you the peace of mind you deserve. Additionally, our firm offers complimentary seminars that explore how wills and trusts work so that you can understand how these tools can help to protect you and your family. We will also discuss your applicable state estate tax and how you may be able to reduce your estate tax liability. Ultimately, our goal is to empower you to make important decisions about your future and legacy.
The dedicated legal team at Myatt & Bell, P.C., is committed to helping you and your family put protections and strategies in place to ease some of life’s most difficult transitions while preparing for the future. If you are interested in learning more about your estate planning options, we encourage you to contact our Portland, Oregon office at (503) 641-6262 or our Vancouver, Washington office at (360) 360-0212 to discuss your goals and concerns with a highly experienced estate planning attorney.
The content on this blog is for general informational purposes only and does not constitute legal advice. The author of this blog is not an attorney, and the views expressed are solely those of the author. Always seek the advice of a qualified attorney for legal guidance regarding your unique situation.
