This bill amends RCW 83.100.046 to include provisions for a nonfamilial heir in the estate tax deduction. Specifically, it allows for the value of tangible personal property used by the decedent, a family member, or a qualified nonfamilial heir to be deducted from the federal taxable estate, provided certain conditions are met. The bill introduces the definition of a "qualified nonfamilial heir," which refers to an employee of a farm who materially participated in its operation and acquired property from the decedent. Additionally, the bill updates existing definitions and clarifies the criteria for property to qualify for deductions under the estate tax.

The act is set to apply to decedents dying on or after August 1, 2025, and will take effect on the same date. The amendments also include changes to existing definitions, such as the clarification of "employee of a farm" and the adjustment of certain subsections for consistency. Overall, the bill aims to broaden the scope of eligible heirs for estate tax deductions, thereby potentially easing the tax burden on estates that include nonfamilial heirs who have actively participated in the operation of the decedent's farm.

Statutes affected:
Original Bill: 83.100.046
Substitute Bill: 83.100.046