Homestead Exemption With Trust In Washington
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FAQ
You want to avoid probate A key advantage of establishing a living trust in Washington is that you can bypass the often lengthy and costly probate process. Probate involves the court-supervised settlement and distribution of your estate, a process that can take months or even years.
Qualifying activity: Own and occupy a primary residence in the State of Washington; have enough equity to secure the interest of the State of Washington in the property; and have a combined disposable income equal to or less than the Deferral Threshold for your county. See income thresholds.
Assets in an irrevocable trust do not contribute to the overall value of your estate which, for a particularly large estate, can shield those assets from potential estate taxes.
A trust can hold and manage the homestead for minor beneficiaries under the guidance of a designated guardian until they reach adulthood, ensuring financial security. It also allows you to set specific conditions for asset distribution, giving you control over their financial well-being as they mature.
If you're married, you can potentially avoid the Washington estate tax by leveraging the marital deduction. The marital deduction allows you to leave an unlimited amount of assets to your spouse without incurring estate taxes.
Trusts and estates are not subject to the Washington capital gains tax because neither qualifies as an “individual” under the statute. “Individual” is defined at RCW 82.87. 020 to mean “a natural person.”
By December 31 of the assessment year, you must be any of the following: At least 61 years of age. At least 57 years of age and the surviving spouse or domestic partner of a person who was an exemption participant at the time of their death. Unable to work because of a disability.
