The federal estate tax is a tax on your right to transfer property at your death—whether by will or intestate succession (transfer to heirs when a person dies without a will, as provided by state statute). The estate tax consists of an accounting of everything you own or have certain interests in on the date of your death.

The fair market value of these items is used—not necessarily what you paid for them or what their values were when you acquired them. The total of all your assets at death is your "gross estate." The property included in your gross estate may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

In Washington state, the federal estate tax applies to the transfer of property at death, including transfers by will or intestate succession. The tax is based on the fair market value of the decedent's assets at the time of death, which collectively make up the 'gross estate.' This may include cash, securities, real estate, insurance, trusts, annuities, business interests, and more. For 2023, the federal estate tax exemption is $12.92 million per individual, meaning that estates valued below this threshold are not subject to federal estate taxes. Estates exceeding this amount may be taxed at rates up to 40%. It's important to note that Washington state also imposes its own estate tax, separate from the federal tax, with different exemption levels and rates. As of 2023, the Washington state estate tax exemption is $2.193 million, and the tax rates range from 10% to 20% for amounts over the exemption. Estate planning with an attorney can help individuals understand and potentially minimize their estate tax liabilities.