Bill > HB1728

This bill amends Washington state estate tax law to add a new category of heir called a "qualified nonfamilial heir," specifically defined as an employee of a farm who materially participated in the farm's operations and who either acquired property from or had property passed to them by the decedent. The bill expands the existing estate tax deduction for farm properties to include these non-family members who have been actively involved in running the farm, potentially allowing them to receive farm property with reduced tax burden. Specifically, the bill defines a "qualified nonfamilial heir" as an active farm employee who has been materially participating in farm operations, using similar criteria to federal internal revenue code standards for determining material participation. The bill will apply to decedents dying on or after August 1, 2025, and aims to provide more flexibility in farm property succession by recognizing long-term, dedicated employees who have effectively been part of the farm's operational family, even if they are not blood relatives or married to the farm owner. This change could help preserve family farms by allowing them to be transferred to trusted, experienced employees who have invested significant time and effort into the agricultural enterprise.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1728&Year=2025&Initiative=false