ARTICLE | July 29, 2026

Estate planning is no longer just about what happens after you’re gone

Many people think of estate planning as drafting a will, signing a few legal documents, and checking a box.While those documents remain essential, they represent only one piece of a much larger financial strategy.

Today’s planning often involves coordinating:

• Estate and gift tax planning
• Income tax strategy
• Business succession
• Investment and retirement planning
• Charitable giving
• Family governance
• Wealth transfer across generations

When these pieces work together, families often gain more flexibility, improve tax efficiency, and create greater confidence that their wishes will be carried out.

Washington’s changing tax landscape raises new questions

Washington has become one of the more complex states for wealth and succession planning.Recent years have brought significant tax changes, including the state’s capital gains tax, updates to estate tax rules, and the passage of a new 9.9% tax on certain income exceeding $1 million beginning in 2028. While the new law is subject to ongoing legal challenges, it represents a meaningful shift in how high-income individuals may need to think about future planning.

These developments don’t necessarily mean dramatic changes are required. They do mean it’s worth asking whether your existing plan still aligns with today’s rules.

For families with closely held businesses, significant investment portfolios, or anticipated liquidity events, waiting until a transaction occurs can limit available planning opportunities.

Planning opportunities often begin years before a major event

One of the biggest misconceptions about estate planning is that it happens after a business is sold or retirement begins.In reality, some of the most valuable planning occurs well before those milestones.

Consider a business owner preparing for an eventual sale. Before negotiations even begin, they may have opportunities to:

• Review ownership structures
• Evaluate trust strategies
• Consider lifetime gifting
• Coordinate charitable giving
• Assess future liquidity needs
• Model potential tax outcomes under different scenarios

Once a letter of intent is signed, many of those options become more limited. The same principle applies to families with concentrated stock positions, appreciated real estate, or investment portfolios expected to generate substantial taxable income over time.

A coordinated team creates better outcomes

Estate planning isn’t solely a legal exercise. It works best when attorneys, CPAs, financial advisors, insurance professionals, and family members communicate around a shared strategy.

As author and estate planning expert James E. Hughes Jr. has long emphasized, successful wealth transfer isn’t simply about transferring financial assets. It’s about preparing families for the responsibilities that come with them. Aligning financial decisions with family goals often proves just as important as minimizing taxes.

That collaborative approach helps ensure that decisions made in one area don’t create unintended consequences in another.

For example:

• A gifting strategy may affect future income taxes.
• A business succession plan may influence estate liquidity.
• Charitable giving may support both philanthropic goals and tax planning.
• Retirement income decisions may interact with future state tax obligations.

Looking at each decision independently can leave opportunities on the table.

Planning is about creating options

Tax laws will continue to evolve. Federal exemptions change. State rules change. Family circumstances change. The best estate plans aren’t built around predicting every legislative outcome. They’re built around creating flexibility so families can adapt as circumstances evolve.

As Peter Drucker famously observed, “The best way to predict the future is to create it.” That principle applies just as well to estate planning as it does to business strategy.

For Washington families, business owners, and investors, today’s changing tax environment is a reminder that estate planning isn’t a one-time event. It’s an ongoing process that should evolve alongside your life, your business, and your goals. The introduction of Washington’s Millionaires Tax is simply one more reason to revisit the conversation. Whether you’re preparing for a business transition, updating an older estate plan, or thinking about the next generation, thoughtful planning today can create more choices tomorrow.

Larson Gross Insight

At Larson Gross, we believe the strongest estate plans are built through collaboration. By working alongside your estate planning attorney, financial advisor, and other trusted professionals, we help ensure tax considerations, business decisions, and long-term family goals are aligned. As Washington’s tax landscape continues to evolve, coordinated planning can help you make informed decisions with greater confidence.