Current through Register Vol. 24-06, March 15, 2024
(1)
Introduction. This rule
describes the nature of Washington state's estate tax as it is imposed by
chapter 83.100 RCW (Estate and Transfer Tax Act) for deaths occurring on or
before May 16, 2005. The estate tax rules for deaths occurring on or after May
17, 2005, can be found in WAC
458-57-105 through
458-57-165. It also defines terms
that will be used throughout chapter 458-57 WAC (Washington Estate and Transfer
Tax Reform Act Rules).
(2)
Nature of Washington's estate tax. The estate tax is neither a
property tax nor an inheritance tax. It is a tax imposed on the transfer of the
entire taxable estate and not upon any particular legacy, devise, or
distributive share.
(a) The state of
Washington operates under
RCW
83.100.020, which references the Internal
Revenue Code (IRC) as it existed
January 1, 2005. The Washington
State Estate and Transfer Tax Return and the instructions for completing the
return can be found on the department's web site at
http://www.dor.wa.gov/ under the
heading titled forms. The return and instructions can also be obtained by
calling the estate tax section at 360-570-3265 (option 2).
(b) The estate tax does not apply to
completed absolute lifetime transfers. Section 2035(d) of the Internal Revenue
Code generally exempts such transfers. To the extent permitted by this
provision, lifetime transfers are not subject to Washington estate tax. The
state of Washington does not have a gift tax.
(3)
Definitions. The following
terms and definitions are applicable throughout chapter 458-57 WAC:
(a) "Decedent" means a deceased
individual;
(b) "Department" means
the department of revenue, the director of that department, or any employee of
the department exercising authority lawfully delegated to him by the
director;
(c) "Escheat" of an
estate means that whenever any person dies, whether a resident of this state or
not, leaving property in an estate subject to the jurisdiction of this state
and without being survived by any person entitled to that same property under
the laws of this state, such estate property shall be designated escheat
property and shall be subject to the provisions of
RCW
11.08.140 through
11.08.300;
(d) "Federal credit" means the maximum amount
of the credit for state taxes allowed by section 2011 of the Internal Revenue
Code. This credit is calculated using an "adjusted taxable estate" figure,
which is simply the taxable estate, less sixty thousand dollars. However, when
the term "federal credit" is used in reference to a generation-skipping
transfer (GST), it means the maximum amount of the credit for state taxes
allowed by section 2604 of the Internal Revenue Code;
(e) "Federal return" means any tax return
required by chapter 11 (Estate tax) or chapter 13 (Tax on generation-skipping
transfers) of the Internal Revenue Code;
(f) "Federal tax" means tax under chapter 11
(Estate tax) of the Internal Revenue Code. However, when used in reference to a
GST, "federal tax" means the tax under chapter 13 (Tax on generation skipping
transfers) of the Internal Revenue Code;
(g) "Generation-skipping transfer" or "GST"
means a "generation-skipping transfer" as defined and used in section 2611 of
the Internal Revenue Code;
(h)
"Gross estate" means "gross estate" as defined and used in section 2031 of the
Internal Revenue Code;
(i)
"Internal Revenue Code" or "IRC" means the United States Internal Revenue Code
of 1986, as amended or renumbered on January 1, 2005;
(j) "Nonresident" means a decedent who was
domiciled outside Washington at the time of death;
(k) "Person" means any individual, estate,
trust, receiver, cooperative association, club, corporation, company, firm,
partnership, joint venture, syndicate, or other entity and, to the extent
permitted by law, any federal, state, or other governmental unit or subdivision
or agency, department, or instrumentality thereof;
(l) "Person required to file the federal
return" means any person required to file a return required by chapter 11 or 13
of the Internal Revenue Code, such as the personal representative of an estate,
a transferor, trustee, or beneficiary of a generation-skipping transfer, or a
qualified heir with respect to qualified real property, as defined and used in
section 2032A(c) of the Internal Revenue Code;
(m) "Person responsible," means the person
responsible for filing the federal and state returns and is the same person
described in subsection (l) of this section;
(n) "Property," when used in reference to an
estate tax transfer, means property included in the gross estate. However, when
used in reference to a generation-skipping transfer, "property" means all real
and personal property subject to the federal tax;
(o) "Resident" means a decedent who was
domiciled in Washington at time of death;
(p) "State return" means the Washington
Estate Tax Return required by
RCW
83.100.050;
(q) "Transfer" means "transfer" as used in
section 2001 of the Internal Revenue Code, or a disposition or cessation of
qualified use as defined and used in section 2032A of the Internal Revenue
Code; and
(r) "Trust" means "trust"
under Washington law and any arrangement described in section 2652 of the
Internal Revenue Code.
Statutory Authority:
RCW
83.100.047 and
83.100.200. 06-07-051, §
458-57-005, filed 3/9/06, effective 4/9/06. Statutory Authority:
RCW
83.100.200. 02-18-078, § 458-57-005,
filed 8/30/02, effective 9/30/02; 99-15-095, § 458-57-005, filed 7/21/99,
effective 8/21/99.