Our current Federal Estate Tax law was enacted with the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Here is a summary of that law. Currently the Federal Estate Tax Exemption is $2 Million. However, the exemption is scheduled to increase to $3.5 Million in January. The tax will take a hiatus in 2010, before returning in 2011 with a $1 Million exemption.
Washington's estate tax was reinstated in 2005. It survived an initiative to abolish the state estate tax in 2006. The State of Washington's estate tax exemption will stay at $2 Million. With a top rate of 19%, Washington's estate tax is the highest state estate tax in the country.