If you own a home and a retirement account in Oregon or Washington, your family may already owe estate taxes — even if you've never thought of yourself as wealthy. In this episode, Tammi breaks down Oregon's frozen $1 million exemption, Washington's rapidly shifting exemption and tax rate, why owning property in a state you don't live in can trigger taxes there too, and the planning tools (marital deduction, QTIP trusts, exemption trusts, gifting, and LLCs) that can meaningfully reduce or eliminate the bill. She also unpacks Washington's newer capital gains tax and the upcoming "millionaire's tax." Key Definitions Gross estate — everything a person owns at death: home, investment accounts, retirement accounts, life insurance. Exemption — the amount that passes free of estate tax. Taxable estate — the value above the exemption; this is what determines whether a return must be filed and tax paid. The Two Numbers That Matter Oregon Washington (post 7/1/2026) Exemption $1,000,000 (unchanged since deaths after 1/1/2012) $3,000,000 (frozen) Top tax rate 16% (range 10–16%) 20% Washington's exemption and rate have moved several times in the last two years: the top rate spiked to 35% for one year before dropping back to 20% and freezing the exemption at $3 million as of July 1, 2026. Estates of people who died before that date may fall under different numbers — the exemption and rate depend on date of death. Key Takeaways / Action Items Know your number: $1M (Oregon), $3M (Washington), $15M (federal, ~$30M married). Add up everything — home, retirement accounts, investments, and life insurance — to see where you land. Leaving everything outright to a spouse can waste an exemption; proper planning (exempt trusts) can fix this. Gifting is an underused tool, but get professional input on which assets to gift. If you own property in more than one state, review your plan for cross-state exposure. If your plan is more than a few years old, or assets have appreciated significantly, revisit it now — Oregon's exemption hasn't moved, and Washington's is now frozen at $3M. Business owners with income near/over $1M (or Washington-sourced income) should start planning for the 2028 millionaire's tax now. All of this planning only works before death — once someone has passed, it's simply a tax calculation. Resources & Contact Free blogs, on-demand webinars, monthly live webinars, and downloadable e-books on estate planning, wills, trusts, taxes, and fiduciary responsibilities. Consultations available for estate planning tax questions and guidance on moving into/out of state jurisdictions. Website: caresslaw.estate. https://caresslaw.estate/ Caress Law, PC is a boutique estate planning, probate, trust administration, and tax law firm serving clients in Oregon and Washington. Follow the podcast in Apple Podcasts or Spotify https://podcasts.apple.com/us/podcast/navigating-estate-planning-with-caress-law/id1576876621 https://open.spotify.com/show/4iGJ7mtWDeqgHExxPqKeKp
