Estate and gift planning doesn’t have to feel daunting. Think of it as shaping your financial legacy with purpose—and taking advantage of valuable tax opportunities along the way. Below are the key updates for 2025, along with what you should prepare for as we approach 2026.
Annual Gift Tax Exclusion
One of the easiest ways to transfer wealth tax-efficiently is through annual exclusion gifts.
- 2025 Annual Gift Tax Exclusion: $19,000 per donor, per recipient.
- 2026 Annual Gift Tax Exclusion: Remains $19,000 (no increase projected).
- Married couples: You count as two separate donors, allowing you to jointly gift $38,000 per recipient in 2025.
Consistent annual gifting can make a meaningful impact over time, reducing your taxable estate while supporting the people you care about.
Federal Estate & Gift Tax Exclusion
The federal lifetime exclusion continues to remain high:
- 2025 Federal Estate Exclusion: $13.99 million per person
- 2026 Federal Estate Exclusion: $15 million per person with inflation indexing starting in 2027.
These figures create a substantial window for estate planning—especially if your net worth is at or near these thresholds.
Washington State Estate Tax
Washington State continues to have a lower estate tax threshold:
- WA Exclusion up to 6/30/2025: $2.193 million
- WA Exclusion starting 7/1/2025: $3 million
- For 2026: the amount is expected to be available around mid-December 2025 and may increase for inflation.
Residents should pay particular attention to state-level planning—especially homeowners, business owners, and those with rapidly appreciating assets.
Review Your Estate Plan
The start of a new year is a great time to revisit your overall plan. Consider reviewing your:
- Will and trust documents
- Beneficiary designations
- Gifting strategy
- Asset titling
- Business succession plans
Ensuring these elements align with current tax laws can help avoid surprises and keep your legacy intact.
We recommend you reach out to us and your estate planning attorney to discuss gift planning strategies. Given the upcoming changes—especially at the state level in Washington and the federal exclusion projection for 2026—planning proactively is a wise move.
