Inheriting Gold or Silver in Washington State? Here’s What You Need to Know

In Washington State, physical gold - such as bullion bars, rounds, and investment-grade coins - is treated as tangible personal property for estate tax purposes. It is included in the decedent’s gross estate at fair market value as of the date of death (or the alternate valuation date, if elected under federal rules).

Disclosure: The information contained herein is provided for informational purposes only, should not be relied upon for tax purposes, and is based upon sources believed to be reliable. No guarantee is made to the completeness or accuracy of the information. Walters Wealth Management does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

Inclusion in the Taxable Estate

For Washington estate tax calculations, physical gold is aggregated with all other assets owned by the decedent, including but not limited to:

●      Real estate

●      Business interests

●      Public and private securities

●      Cash and bank accounts

●      Collectibles and other personal property

The total value of these assets determines whether the estate exceeds Washington’s estate tax exemption threshold. If the estate is above the exemption amount, the portion in excess is subject to Washington’s graduated estate tax rates.

Valuation

Gold is typically valued based on:

●      The spot price of the metal on the applicable valuation date.

●      Any premium or discount associated with the specific form (e.g., rare coins vs. standard bullion).

●      Independent appraisals for numismatic or collectible coins, where market value may differ significantly from melt value.

Application to Other Precious Metals

Washington estate tax rules apply consistently to all precious metals held as tangible personal property, not only gold. This includes silver, platinum, palladium, and other investment-grade metals in the form of bullion bars, rounds, and coins. Each is included in the taxable estate at fair market value and aggregated with the decedent’s other assets when determining estate tax exposure. Differences in metal type affect valuation due to market pricing and liquidity, but not the underlying estate tax treatment.

Titling and Ownership

How physical gold is owned can affect how it is reported:

●      Individually owned bullion is included directly in the taxable estate.

●      Gold held in a trust is included or excluded from the taxable estate depending on the trust structure and retained interests.

●      Gold held through retirement accounts is generally reported based on the account’s total fair market value rather than the metal itself.

Location and Storage of Gold

For estate tax purposes, the physical location of gold (in-state, out-of-state, bank safe deposit box, private vault, or depository) does not change its inclusion in a Washington resident’s taxable estate. Washington determines estate tax based on domicile, not where the asset is physically stored. Gold held in another state or country is still reportable if the owner was a Washington resident at death.

Relationship to Federal Estate Tax

Washington’s estate tax is separate from the federal estate tax and has its own exemption amount and rate structure. Physical gold is included in both calculations, but the thresholds and resulting tax exposure may differ between the state and federal systems.

In summary, for Washington residents, physical gold is not treated differently from other investment assets for estate tax purposes: it is part of the taxable estate, valued at fair market value, and subject to Washington’s estate tax rules when the total estate exceeds the applicable exemption.

Click here to learn more about Washington state estate taxes.

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