¹ Credit Shelter (Bypass) Trust: Established under a revocable plan (typically a joint revocable living trust or will) that can be amended or revoked while both spouses are alive. The bypass trust itself becomes irrevocable at the first spouse’s death when it is funded; from that point the surviving spouse generally has limited access (e.g., HEMS standard) and cannot change remainder beneficiaries.

² Nonresidents & WA-situs property: Changing domicile can reduce or eliminate WA estate tax for non-WA residents, but nonresidents’ Washington real estate and tangible personal property may still be subject to WA estate tax. Intangibles (e.g., marketable securities) are generally taxed by the state of domicile. Review WA DOR apportionment rules when owning WA-situs assets.

³ Three-year rule (life insurance/retained interests): Completed lifetime gifts reduce the WA estate (WA has no gift tax). However, certain transfers can be included in the federal gross estate if the decedent dies within three years—most notably, transferring an existing policy to an ILIT (IRC §2035/§2042). Best practice is for the ILIT to acquire a new policy, or ensure the insured survives three years after an existing policy transfer.