4 Jun

How to Avoid Washington State Estate Tax by Moving Out of State

Estate Planning, June 4, 2025

Washington residents face a unique challenge when it comes to estate taxes. If your estate exceeds the state’s exemption threshold, Washington’s estate tax can take a significant chunk of your assets. But there is a straightforward legal strategy that might help you avoid this tax altogether: moving out of Washington state.

Why Moving Out of Washington Can Help You Avoid Estate Tax

Hi, I’m Christopher Small, owner of CMS Law Firm. We specialize in estate planning and probate, helping families protect their assets and plan for the future. One of the simplest, and often cheapest, ways to avoid Washington state estate taxes is to change your state residency.

Here’s how it works:

  • Washington’s estate tax applies only to residents and owners of Washington real estate.
  • If you move out of Washington and establish residency in another state, and do not own any real estate in Washington, you are no longer subject to Washington’s estate tax.
  • Your financial accounts, retirement plans, and life insurance policies move with you—so they won’t be taxed by Washington anymore.

It’s important to note that owning property in Washington after you move may still subject your estate to state taxes on that property. But if you sell or transfer those assets before moving, your estate could avoid that tax burden.

What to Consider Before Moving

While this sounds simple, changing your residency has legal and tax implications beyond just estate taxes. It’s not just about physically moving; you need to:

  • Establish clear ties to your new state (driver’s license, voter registration, etc.).
  • Close or transfer financial accounts appropriately.
  • Ensure you don’t maintain significant connections to Washington that could affect your residency status.

Final Thoughts

If you’re facing potential Washington state estate taxes, moving out of state can be an effective strategy to reduce or eliminate that tax. It’s a legally sound option, but one that requires careful planning and timing.

If you want to explore whether this approach fits your situation, or if you have questions about estate planning or probate, I recommend speaking with a professional. You can schedule a free consultation with us at cmsawfirm.com.

Thanks for reading! If this helped you, please like and subscribe for more estate planning tips.

I’m Christopher Small, owner of CMS Law Firm — we do estate planning, probate, and we do it well.