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.

More info

Please contact your County Assessor's office for assistance in completing this form. Findings—2021 c 290: "The legislature finds that the homestead exemption is intended to protect the homeowner's equity in a home against unsecured creditors.Property Held in Trust. If your home is in a trust, you must provide documentation with your application. You may be eligible if you have limited income and you're at least 61 years old in the year you apply for the exemption. Please navigate to MyTax. DC.gov to begin the application process. You can use the Washington homestead exemption to protect a house, condominium, mobile, or manufactured home serving as your principal residence. If you are living in your home under the terms of an irrevocable trust or life estate, you may qualify for the exemption. The exemption is available for single family dwellings only.

Homestead Exemption With Trust In Washington

Description

Related forms

Show more info

Form Rating

Form popularity

FAQ

Do I need a trust to avoid probate in Washington state?

What are the requirements for homestead exemption in Washington state?

Does a trust eliminate estate tax?

What is a homestead trust?

How do I avoid estate taxes in Washington state?

How are trusts taxed in Washington state?

At what age do you stop paying property taxes in Washington state?

More info

Trusted and secure by over 3 million people of the world’s leading companies