The Tax Stack
Derek’s shorthand for the three Washington tax layers that are increasingly shaping planning conversations together: estate tax, capital gains tax, and the pressure campaign around a state income tax.
Why Derek uses this framework
Planning rarely breaks because one tax changed in isolation. The stress comes from overlap. A family dealing with liquidity, appreciated assets, and succession planning is usually feeling multiple tax pressures at once, even if only one of them is making the news that week.
The Three Layers
1. Estate Tax
Estate tax affects whether a plan has enough liquidity, how much flexibility remains for a surviving spouse, and how hard a family business or illiquid asset portfolio may be to keep intact.
2. Capital Gains Tax
Capital gains tax changes how clients think about exits, diversification, real estate, and the timing of transactions that once felt straightforward.
3. Income Tax Pressure
Even before an income tax passes, the debate changes planning assumptions. Advisors need to know what is signaling risk and what is simply noise.
How to use the framework
Ask where a planning move touches more than one tax layer at the same time.
A good strategy can become a bad one if the tax stack shifts underneath it.
Turn policy and tax chatter back into concrete questions a family or advisor can act on.
Where to go next
For Washington estate tax rates, calculators, and supporting tax content, use WashingtonEstateTax.com. For legal representation and firm context, use Jensen Estate Law. This page is the bridge between those two destinations.