To determine the Washington Taxable Estate, take the Gross Estate and subtract most of the deductions available from the Federal Estate Tax, such as the decedent's funeral expenses, costs of administering the estate, any debts of the decedent (mortgages, liens, outstanding bills), bequests to a spouse, as well as gifts to charity. From the remaining amount, deduct the statutory deduction and farm deduction (if applicable); the result is the Washington Taxable Estate.
There are more complex scenarios (involving QTIP Trusts), but a simple example is illustrated below:
_____________ Gross Estate
_____________ Less Federal deductions (schedules J to O)
_____________ Less WA Statutory Deduction ($2,000,000 for 2006)
_____________ Less Farm Deduction
_____________ Washington Taxable Estate