DC’s legal infrastructure for estate planning differs from any of the surrounding jurisdictions. Maryland has both an estate tax and an inheritance tax. Virginia has neither. Delaware has neither (since 2018). DC has an estate tax with a relatively low exemption and no inheritance tax. That creates a planning landscape unique to DC.
The four documents to have in place
These apply to any DC-resident parent regardless of wealth. Most cost between $500 and $2,000 through a DC-licensed attorney; a revocable trust adds $2,000–$5,000 in DC's higher-cost legal market.
1. Durable Power of Attorney (D.C. Code §21-2601.01 et seq.)
DC adopted the Uniform Power of Attorney Act (UPOAA) effective in 2015.1The DC version follows the UPOAA framework, distinguishing between general and specific authorities. Certain “hot powers” — the authority to make gifts, change beneficiary designations, create or amend a trust, or delegate authority — must be specifically granted in the document. A generic out-of-state POA may carry the general powers but lack these specific authorizations under DC law.
The POA should be durable (survives incapacity), in writing, signed by your parent in front of a notary. DC requires notarization; witnesses are not strictly required by statute but many practitioners include them. Banks and brokerages may scrutinize older POAs; a current DC-drafted POA reduces friction at the moment of need.
2. DC Advance Directive (D.C. Code §21-2201 et seq.)
DC combines living will and healthcare power of attorney into a single document under the DC Health Care Decisions Act.2 The document names a healthcare agent (sometimes called a healthcare representative), specifies end-of-life treatment preferences, and addresses related topics like organ donation.
Execution requirements: signed by the principal in the presence of two adult witnesses, or notarized. Witnesses cannot be the named agent or, for the healthcare-decisions portion, the principal’s healthcare provider.
3. Will, or Revocable Living Trust
Every DC adult should have a will, even if assets primarily pass outside probate. For families with material assets or with complex distribution wishes, a revocable living trust is often added alongside a pour-over will. The trust avoids the cost and timeline of DC Superior Court probate while keeping the principal in full control during life.
4. DC MOST (for those with serious illness)
The DC Medical Orders for Scope of Treatment (MOST)form is DC’s POLST-equivalent. It is a medical order signed by a clinician that travels with the patient across care settings and is honored by EMS, hospitals, and long-term care facilities. DC MOST is intended for patients with serious illness or advanced frailty — not for all adults.
The DC estate tax
DC is one of approximately seventeen jurisdictions that impose a state-level estate tax (in addition to the federal estate tax). The DC estate-tax exemption is approximately $4.873 million per individual for deaths in 2024-25.3 Estates above this exemption owe DC estate tax at graduated rates approaching 16% at the top end of the schedule.
Critically, the DC exemption is much lower than the federal exemption (approximately $13.99M per individual in 2025). This means DC residents can face DC estate tax even with no federal estate-tax liability. For DC homeowners with material home equity in DC’s expensive housing market plus retirement assets, the DC threshold is more reachable than many families realize.
Planning tools to consider with DC counsel:
- Marital deduction. Estate tax is deferred for assets passing to a surviving spouse via unlimited marital deduction. DC follows federal rules on the marital deduction.
- Lifetime gifting. DC does not impose a state-level gift tax (only federal). Lifetime gifts that stay below the federal annual exclusion (approximately $19,000 per recipient in 2025) can remove assets from the DC estate over time.
- Irrevocable life insurance trusts (ILITs). Removes life-insurance proceeds from the DC estate.
- Credit shelter trusts. Use both spouses' DC exemptions through a credit-shelter / bypass-trust structure.
- Out-of-DC trusts. Some DC families use irrevocable trusts in jurisdictions without estate taxes (Delaware, Nevada, South Dakota) to reduce DC estate-tax exposure. Requires careful structuring and DC-DC-counsel input.
Probate in DC: DC Superior Court Probate Division
DC probate is administered by the DC Superior Court Probate Division. Estates fall into two broad tracks:
- Small estate procedure. Available for estates with personal property under approximately $40,000. A faster, less formal process.
- Standard probate.Required for larger estates. Includes inventory, accounting, creditor claims period, and distribution. Timeline typically 6–12 months for uncontested estates.
DC does not impose statutory attorney fee schedules for probate; attorneys charge hourly or by flat fee. DC’s higher-cost legal market means probate fees often exceed those in neighboring Virginia for comparable estates .
The federal-retiree estate planning issue
DC has the country’s highest concentration of federal retirees. Federal-retiree estate plans often have idiosyncratic features:
- Survivor benefits. Federal pensions (FERS, CSRS) often provide a survivor annuity to the spouse. The election is made at retirement and is irrevocable or only narrowly modifiable later.
- TSP accounts. Thrift Savings Plan accounts pass by beneficiary designation, similar to private 401(k) plans. Update beneficiaries after marriage, divorce, or death.
- FEGLI.Federal Employees’ Group Life Insurance passes by beneficiary designation. Many retirees have outdated beneficiaries.
- FEHB.Spouses can continue FEHB enrollment after the retiree’s death if the retiree elected a survivor annuity. The interaction with Medicare matters.
For federal-retiree DC residents, a comprehensive estate review includes coordinating private-asset planning with federal-benefit elections. A DC attorney experienced with federal-retiree planning is the right resource.
Homestead protection in DC
DC’s homestead exemption is modest by national standards. The DC exemption protects a limited amount of equity in the homestead from execution by creditors. The protection is materially weaker than in Florida (unlimited), Texas (unlimited), or Arizona ($400,000).
DC also offers a separate homestead deduction on real property taxes for owner-occupants, plus the Schedule H property-tax credit for low-income homeowners and renters (up to $1,375 in 2024).
Elder abuse remedies in DC
DC’s elder-abuse statute appears at D.C. Code §7-1901 et seq., which provides for mandatory reporting by certain professionals, civil immunity for good-faith reports, and APS investigation authority.4 DC Adult Protective Services, operated by DACL, takes reports at 1-202-541-3950. Criminal cases are referred to law enforcement.
What to do this quarter
- Locate (or create) your parent’s four documents: Durable POA, DC Advance Directive, will, and (where applicable) DC MOST.
- If your parent has assets approaching the DC estate-tax threshold (approximately $4.873M), discuss planning options with a DC attorney.
- If your parent is a federal retiree, coordinate private-asset planning with federal-benefit elections.
- For Medicaid planning context, including the interaction between estate planning and the 5-year look-back, see the DC Medicaid guide.