Estate planning rules in District of Columbia

Key takeaway

District of Columbia estate planning includes written wills, appointment of personal representatives, trusts, powers of attorney, conservatorship, transfer on death deeds, payable on death accounts and tax filings. The rules address property transfers and fiduciary administration involving owners of businesses, real estate and private investments, their spouses and adult children.

Written wills and personal representatives

The District of Columbia's ordinary written-will provision calls for a writing, a signature and attestation by two credible witnesses in the testator's presence, subject to statutory exceptions. The signature may be the testator's or that of a person acting at the testator's express direction and in the testator's presence.

District of Columbia law sets a priority order for appointing a personal representative, starting with the representative named in the will, then the surviving spouse or domestic partner (together with children if the estate is intestate), then residuary legatees, children and grandchildren.

Trusts, powers of attorney and conservatorship

District of Columbia trust creation conditions include the settlor's capacity, an intent to create the trust, and a definite beneficiary or a recognized exception.

A District of Columbia power of attorney executed under the applicable chapter is valid subject to acknowledgment before a notary public or another person authorized to take acknowledgments.

A District of Columbia court may appoint a conservator or make a protective order over an individual's estate and affairs if the individual is incapacitated, has disappeared, is detained by a foreign power or is held hostage, and further conditions are met.

Deeds and payable on death accounts

A District of Columbia transfer on death deed contains the essential elements and formalities of a properly recordable inter vivos deed.

District of Columbia law assigns sums deposited in a payable on death account to the surviving beneficiary or beneficiaries upon the death of the sole party or the last survivor of two or more parties.

A District of Columbia payable on death designation is ineffective on a multiple-party account without a right of survivorship. Designating a District of Columbia account as a tenancy in common establishes that the account has no right of survivorship.

Tax filings

The District of Columbia estate tax return and tax payment are generally due within 10 months after death. A 6-month extension of time to file may be requested using Form FR-77.

Each beneficiary of assets with taxable situs in the District of Columbia valued above $1,000 files Form FR-19 and Form FR-19A within 15 months after death.

A fiduciary of a District of Columbia trust files Form D-41 if the trust's gross income is $100 or more for the taxable year.

Thresholds and rates change. Check the state's own current figures.

Common questions

How does District of Columbia law address several eligible personal representatives?

District of Columbia law permits the court to grant letters to one or more eligible people within a priority class as convenient. All representatives named in a probated will are entitled to letters.

Can a District of Columbia trustee select a beneficiary from an indefinite class?

A District of Columbia trustee's power to select a beneficiary from an indefinite class is valid. A power unexercised within a reasonable time fails, and the property passes to those who would have taken without the power.