Jensen Estate Law
February 2025 Newsletter
Estate planning decisions today can have a lasting impact on your loved ones. This month, we’re covering key topics to help you make informed choices, from avoiding common mistakes when naming beneficiaries to understanding potential changes to Washington’s estate tax.
If you’ve named a minor child as a direct beneficiary, it may be time to reconsider. Explore why a trust may be a better option to ensure their inheritance is protected. We’re also keeping an eye on proposed updates to Washington’s estate tax, which could affect exemption amounts and tax rates in the coming years.
With tax season approaching, now is a great time to review your estate plan. Our upcoming Tax Season 2025 Webinar will cover key updates, including tax law changes, trust taxation, and estate tax implications. Need a refresher before then? Check out our past videos on estate and tax planning to stay ahead.
Don’t Name a Minor Child as Direct Beneficiary – Here’s Why!
Naming a minor child as a direct beneficiary on life insurance policies, retirement accounts, or other assets can create unnecessary legal and financial complications. Because minors cannot legally manage inherited funds, the court must appoint a guardian to oversee the assets—a process that can be costly, time-consuming, and out of your control. Even worse, once the child turns 18, they typically receive the full inheritance outright, regardless of their financial readiness.
A trust offers a better solution, allowing you to designate how and when the funds are distributed while ensuring they are managed responsibly. With a trust, you can protect your child’s financial future, minimize court involvement, and ensure their inheritance is used as you intended.
News & Updates You Should Know
Proposed Changes to Washington’s Estate Tax Could Impact Your Plan
Proposed updates to Washington’s estate tax could impact estate planning for many residents. House Bill 2019 aims to increase the exemption to $3 million, adjust it for inflation, and introduce a tiered tax structure with rates ranging from 16% to 38%. House Bill 1375 takes a simpler approach, keeping the current $2.193 million exemption but adjusting it for inflation without changing tax rates.
Strategies to consider include:
📌 Lifetime gifting – Reducing taxable estate value through strategic asset transfers.
📌 Trust planning – Using irrevocable trusts to protect assets and control distribution.
📌 Portability planning – Addressing the lack of spousal exemption transfer under Washington law.
If these bills pass, they could reshape estate tax obligations for Washington families. Planning ahead can help minimize tax burdens and protect generational wealth.
Webinar: Tax Season 2025 Key Updates
Get the latest tax insights from Derek W. Jensen, JD, LLM, on March 18th! This session will cover:
- Annual Tax Update – Key changes in tax law and what they mean for you.
- Income Taxation of Trusts – What you need to know for proper trust administration.
- Estate Tax Considerations – Federal and state tax implications for estates.
- New Administration, New Rules? – Insights into potential tax law changes and how they might affect planning.
Don’t miss this chance to get expert guidance on tax issues straight from your friendly neighborhood tax attorney!
📅 Date: Tuesday, March 18th
⏰ Time: 4 PM (PST)
📍 Location: Microsoft Teams
Be Ready for Our Next Webinar!
Get a refresher on key tax considerations before our next webinar! In this session, Derek W. Jensen, JD, LLM, covers Washington’s estate tax, capital gains tax, and how they interact with federal transfer and income taxes.
📌 Washington Estate Tax – Who it applies to and why proactive planning matters.
📌 Capital Gains & Step-Up Basis – Key differences between state and federal tax rules.
📌 Retirement Account Taxation – How the SECURE Act impacts beneficiaries.
📌 Federal Gift & Estate Taxes – What to know for long-term planning.
🎥 Watch now for a tax refresher before our March 18th webinar, where we’ll dive into 2025 updates!