The New Cost of Dying

If you didn't already fear dying, the Washington state legislature has given you a new reason: estate taxes.

The legislature passed a bill that creates a new state-level tax on folks with more than $1.5 million in their estate. Beginning in 2006, the threshhold increases to $2.0 million. Rates will range from 10-19% of the estate.

The tax took effect May 17, 2005, and replaces a state-level estate tax that was declared invalid by the Washington Supreme court earlier this year. I guess the pot of dead peoples' cash was so attractive to legislators, they couldn't help but try to grab a piece. The estate tax has always seemed patently unfair to me, as estates are composed of assets purchased with money that has already been taxed once. The logic behind death being a taxable event escapes me.

Anyway, here's a link to the bill.