topic About Washington State estate tax return with 529 college fund in State tax filing

About Washington State estate tax return with 529 college fund

april4mar — Tue, 19 Nov 2024 05:24:46 GMT

Hi,

How are you? Thanks for your help

Washington state has $2.193M estate tax exemption in 2024. Let's make it easy for me to explain my question. Say Washington state estate tax exemption is $2M rather than $2.193M.

Hypothetically, say I contribute $600,000 to my 3 grandkids 529 college fund. I also have real estate $700,000 and financial investment & retirement $1.4M. Add it up, I leave behind $2.7M if I die suddenly.

In that scenario, do I pay estate tax based on the $700,000 which exceeds $2M or I just need to pay estate tax based on the $100,000?

In other words, can 529 college fund be excluded from my net worth since it is contribution or gift? If not, would it be better off I give them tax-free annual gift ($18K) to reduce my net worth over time.

Please shed light for me. Thank you for your knowledge.

Re: About Washington State estate tax return with 529 college fund

Anonymous_ — Fri, 13 Dec 2024 16:17:03 GMT

Re: About Washington State estate tax return with 529 college fund

april4mar — Tue, 19 Nov 2024 18:16:39 GMT

Thank you for your reply, Champ.

So you think the 529 college fund portion is considered part of the value of my estate? I hope not. That's my question. Thanks.

Re: About Washington State estate tax return with 529 college fund

Anonymous_ — Fri, 13 Dec 2024 16:16:02 GMT

Re: About Washington State estate tax return with 529 college fund

april4mar — Tue, 19 Nov 2024 18:30:07 GMT

And thanks for the link too. Your answers and the link all are helpful.

Re: About Washington State estate tax return with 529 college fund

april4mar — Wed, 20 Nov 2024 03:14:09 GMT

Thank you. That helped.