Legal Blog

The Weekly Scenario: Estate Tax Credit in D.C.

Question: The District of Columbia seems to be one of the last holdouts in revamping its estate tax laws to coincide with the increased federal estate tax credit.  Has D.C. considered modifying its estate tax credit (currently $1,000,000 per person) to parallel with the higher federal estate tax exemption amount? Answer: In 2014, the Washington, D.C. City Council passed a tax reduction bill that provided for certain taxes to be reduced if projected revenues reached specified thresholds. I understand that there were twenty-six possible tax reductions and the increase in the exemption for D.C. estate taxes from $1,000,000 to 2,000,000 was not high on the list (the 15th priority). Apparently, the projected revenue increase in D.C. for 2016 will not be enough to cause an exemption increase for D.C. estate taxes. The amount then that will pass free for D.C. estate tax will remain at $1,000,000 for individuals dying in 2016 (and previously). As always, if you have any questions or would like to learn more, please let me know.


Steve Shane Head Shot for webSteve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts and charitable trust. He is also experienced with drafting documents for business planning, the incorporation and application for exemption for Private Foundations and the administration of decedents’ estates. You can connect with Offit Kurman via our BlogFacebookTwitterGoogle+YouTube, and LinkedIn pages.  You can also sign up to received Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.