DC laws are very different from the rest of the country. If you own a home in Georgetown, upper Northwest, Kalorama, or on Capitol Hill, there is a good chance your estate is closer to a taxable one than you think. The district taxes estates at a threshold far below the federal level, and it does so with a rule that punishes married couples who never got around to planning. Add a probate court that puts your family's business on the public record, and the case for a current, D.C.-specific estate plan is straightforward.

The District's Estate Tax Starts Well Below the Federal Line

Estate planning attorney Montgomery County MD Again, Washington DC is very different. For deaths occurring in 2026, the D.C. estate tax exclusion is $4,988,400. Estates above that file a Form D-76 within ten months of death, at graduated rates running from 11.2% up to 16%. The federal exemption sits far higher, which is exactly why so many D.C. families are surprised: they owe nothing federally and a meaningful sum to the District.

Real estate planning attorney Maryland Run the numbers honestly. A Georgetown or Kalorama residence held for twenty or thirty years, a Capitol Hill rowhouse, a TSP or 401(k), an IRA, brokerage accounts, and life insurance you own outright, the total crosses $4.99 million more easily than most people expect. Life insurance counts toward your taxable estate if you own the policy, and that single line item pushes many estates over.  Regular meetings with your attorney every few years is a good thing to do so there are no surprises as your life changes. 

D.C. Does Not Allow Portability and That Is the Costly Part

Everything must be planned out before death.  Under federal law, a surviving spouse can carry over a deceased spouse's unused exemption. The district does not recognize portability. If the first spouse to die leaves everything outright to the survivor, that first exclusion is simply gone. The survivor's estate then gets one $4.99 million exclusion instead of two, and the difference can be taxed at up to 16%.

This is complex stuff. The fix has to happen before death, not after. Couples generally preserve both exclusions through a credit shelter (bypass) trust built into their wills or revocable trusts, funded at the first death. It is standard drafting, but only if someone drafts it. A simple "all to my spouse" will, or a plan written in another state, usually does not.

Did you know? One piece of good news: unlike Maryland, the District imposes no inheritance tax, so gifts to nieces, nephews, friends, and unmarried partners are not taxed based on the relationship.

Probate Here Is Public

Again, another complex issue. D.C. estates are administered through the Probate Division of D.C. Superior Court on 5th Street NW. Estates of $40,000 or less in probate assets may qualify for the simplified small estate process. Larger estates go through standard administration: published notice, a creditor claim period, filings any member of the public can pull, and, commonly, a year or more before the estate closes.

D.C. does authorize transfer-on-death deeds for real property, which can keep a home out of probate. They are useful, but blunt, a TOD deed does nothing for incapacity, minor beneficiaries, or a house left to several children who disagree about selling. A funded revocable trust usually does more work, particularly for the many D.C. residents who also own property in Maryland, Virginia, or the shore, where separate ancillary probate would otherwise be required. Again, it gets complex therefore you need an attorney that knows the D.C., laws. 

The Documents That Get Used First

Where does one begin? A durable financial power of attorney, a D.C. advance directive naming a health care representative or agent, guardian nominations for minor children, and reviewed beneficiary designations are what families actually reach for, usually during an illness, not after a death. For federal employees, Foreign Service officers, and retirees, coordinating TSP, FEGLI, and survivor annuity elections with the rest of the plan matters just as much as the will. Again, all of these on their own can be complex, a good estate planning attorney can help you. 

Talk to a D.C. Estate Planning Attorney

The Law Office of Brian Gormley has served clients in Washington, D.C., Maryland, and Virginia since 2003, handling estate planning, trusts, probate, and guardianship matters.