Money, Money, Money: How the Washington Legislature is Changing the Financial Future for Families and Estates

This year, the Washington State Legislature got serious about money—and not just for the budget. Two big pieces of legislation passed that will directly affect many of our clients: one in family law and one in estate planning. Both changes modernize outdated laws, providing relief to families in Washington state. Whether you're navigating child support or planning your legacy, these updates could hit close to home.

Big News #1: New Child Support Schedule for High-Income Earners

Effective January 1, 2026, Washington will implement a new child support schedule that expands well beyond the current limits.

What's the Problem with the Old Table?

Right now, the child support schedule caps out at $12,000/month in combined net income. That means families earning more than that have been stuck with support amounts that don’t reflect their actual ability to support their children.

What's Changing?

The new table raises the ceiling all the way up to $50,000/month in combined net income. This makes child support more proportional for high earners, while leaving support unchanged for more moderate incomes.

Here’s how that plays out:

In a family with two kids where Parent A earns $6,000/month and Parent B earns $25,000/month:

Old support: $1,918/month

New support: $4,005.82/month

If both parents earn $6,000/month:

Support stays the same: $1,190/month under both tables

The key takeaway is that child support for moderate-income families will not change. High-income families, on the other hand, should prepare for larger support obligations.

This change recognizes the reality that child-related expenses—and the ability to pay for them—scale with income. For high earners paying or receiving child support, it’s time to run the numbers and consider how this might impact your family.

Big News #2: Estate Tax Exemption Goes Up—and So Do the Brackets

On the estate planning side, the Legislature made some long-awaited changes to Washington’s estate tax laws—changes that could make a meaningful difference for many families. These updates apply to deaths occurring on or after July 1, 2025, and they reflect a growing effort to ease the burden on middle-class estates while creating a more structured approach for larger ones.

The most immediate impact is the increase in the estate tax exemption—that is, the portion of an estate that passes tax-free. Until now, Washington’s exemption has sat at $2.193 million, a threshold that has remained frozen for years despite rising home values and asset growth. Under the new law, that exemption will rise to $3 million, offering welcome relief to families whose estates have grown simply by staying in the Puget Sound housing market.

Ending years of stagnation, the exemption won’t stay frozen anymore. Starting in 2026, it will be adjusted annually for inflation, based on the Seattle-area Consumer Price Index. That change means the exemption can keep pace with real-world costs of living and asset appreciation—helping more families avoid being taxed just for owning a home and saving responsibly.

For larger estates, the changes come with a new graduated tax rate structure. Rather than a flat rate, estates that exceed the $3 million exemption will be taxed in brackets:

• The first $1 million over the exemption will be taxed at 15%,

• With rates increasing in steps,

• And topping out at 35% for estate value above $9 million.

  
  

In practical terms, if your estate is under $3 million, you may no longer be subject to Washington estate tax at all. And if your estate is over that threshold, this is a great time to revisit your estate plan and consider tax-reduction strategies before these new brackets go into effect.

Whether you're looking to protect your loved ones from unnecessary taxes or plan for the future of a family-owned home or business, these new rules are worth understanding—and planning around.

Why It All Matters

These two laws both reflect a recognition of the need to modernize Washington’s financial laws.

In family law, the goal is to make child support more aligned with actual income and needs.

In estate planning, it’s about shielding middle-class estates from taxation while scaling rates for larger wealth transfers.

Whether you’re managing co-parenting responsibilities or planning your estate, these new laws could significantly affect your financial strategy.

Here to Help You Navigate the Changes

At Wysocki Law, we help clients think through their plans from every angle—because when laws change, so should your strategy. If you're wondering how these new rules could affect your family, estate, or financial future, reach out now. We’re here to help you stay ahead of the curve.

The information provided in this blog post is for general informational purposes only and should not be construed as legal, financial, or tax advice. Laws and regulations vary by jurisdiction and may change over time, affecting the accuracy and applicability of the information provided. Always consult with a qualified attorney, accountant, or financial advisor to discuss your specific situation before making any decisions. This post does not create an attorney-client relationship between the reader and the author or their firm.