As the Millennial generation begins to enter middle age, there have been several recent articles that discuss the great wealth transfer that will be occurring in the next few years when the baby boomer generation passes their wealth on to the next generation.  While it may feel like you are too young to start discussing your estate plan while you are in your thirties and forties, it is never too soon to have a plan in place for your future inheritance.

Here are a few estate planning considerations for Millennials:

• Avoid Intestacy: If you don’t have children, you may not think that an estate plan is necessary at this time.  However, if you pass away without a Will, your estate is intestate and passes to your heirs at law according to Washington statute.  For example, if you are married and have no children, all of your community property will go to your spouse and seventy-five percent (75%) of your separate property will go to your spouse with the remaining twenty-five percent (25%) of your separate property going to your parents/siblings.  If you would prefer to have control over the disposition of your estate, you will need a Will or a revocable living trust that details the disposition of your assets upon your death.
• Legacy Properties: If your family owns a vacation home that is a legacy property, there are a couple of issues to consider.  If the vacation home is located outside of the state of Washington, it is strongly recommended that the vacation home be held in a revocable living trust.  Real property that is located outside of the state of Washington is subject to an ancillary probate in the state in which it is located.  In order to avoid this ancillary probate, the vacation home should be in a revocable living trust or in an LLC.  The LLC structure is recommended if you are inheriting the vacation home with your siblings because the LLC can provide for the terms of use of the vacation home as well as options for buying out the other siblings.
• Estate Taxes: Your inheritance may suddenly cause your estate to be subject to estate taxes.  As a Washington resident, we are planning for two different estate taxes – the Federal Estate and Gift tax and the Washington Estate tax.  As of July 1, 2026, the Washington estate tax exemption will be $3 million per person, and the estate tax rate will be a graduated tax rate from 10% on the first $1 million above the exemption up to 20% on $9 million and above.  The Washington estate tax does not have portability to the surviving spouse so if your estate is taxable in Washington, it is important to consider estate planning strategies for tax efficiency and to preserve the Washington estate tax exemption for the first spouse to pass away.  In addition, the Federal Estate and Gift tax exemption amount is $15 million per person and there is portability of any remaining exemption to the surviving spouse.  For estates greater than $15 million or $30 million for a married couple, the Federal Estate and Gift tax rate is about 40%.

In summary, it is never too soon to start thinking about your estate plan and planning for the future.  It is also recommended that you discuss estate planning with your parents to make sure that you understand how it is set up and your role in their estate plan.

The Estate Planning Attorneys at Lasher Holzapfel Sperry & Ebberson PLLC are available to meet with you to discuss your current estate plan and craft an estate plan that accomplishes your goals.