Washington DC Estate Tax Cases
Last updated: 7 Nov 2025 •
District of Columbia Estate Tax — Case Notes & Practitioner Commentary
D.C.’s modern estate tax is administered by the Office of Tax and Revenue (OTR). Reported D.C.-specific appellate authority focused solely on the estate tax is limited; in practice, advisors anchor positions in D.C. statutes and OTR guidance, with extensive reliance on federal conformity (Form 706 framework). Below are “authorities-first” notes on issues that most often matter in filings and reviews.
Framework & Federal Conformity (D.C. Estate Tax)
What it’s about
D.C. imposes an estate tax on resident estates above the D.C. zero-bracket amount and on nonresident estates with D.C.-situs real or tangible property. The D.C. tax base starts from federal Form 706 concepts and then applies D.C.-specific definitions and thresholds.
Holding / Rule
D.C. computes a D.C. taxable estate derived from the federal framework. Current practice uses progressive brackets with a top rate of 16% and a 2025 zero-bracket amount of $4,873,200. Filing/payment are generally due 10 months after death.
Comment
When citations are thin, start with D.C. Code text and the OTR instructions for D-76/D-76EZ and FR-77. Reconcile federal schedules (valuation, deductions, marital/charitable) with D.C.-specific provisions and OTR e-file attachments.
Nonresident Situs & Apportionment (D.C. Situs Definitions)
What it’s about
Nonresidents are taxed on D.C.-situs property. Real property is taxed where located; tangible personal property where kept. Most intangibles follow domicile unless they acquire a D.C. business situs.
Holding / Rule
Tax applies only to the D.C. portion. Returns mirror federal schedules and then apply D.C. situs/apportionment logic to limit liability to D.C. assets. Certain pass-through wrappers may be looked through where appropriate.
Comment
Title, possession, and location evidence matter. For art or high-value tangibles stored or displayed in D.C., document location history carefully. Coordinate with the Nonresident Guide for examples and filing workflow.
Marital Deduction, QTIP & Portability (Practice)
What it’s about
D.C. generally conforms to federal marital-deduction and QTIP concepts. No D.C. portability exists; there is no separate state-only QTIP election.
Holding / Rule
Marital deduction/QTIP treatment follows the federal election and supporting schedules attached to the D-76. Where federal portability would otherwise be used, D.C. planning typically relies on QTIP/credit-shelter structures.
Comment
Keep QTIP election statements and trust accounting with the D.C. filing. If making partial QTIP/Clayton elections federally, ensure the return record clearly supports D.C. outcomes.
Administration Expenses, Claims & Timing (Practice)
What it’s about
Deductibility of administration expenses and claims depends on supportable valuation, approvals where required, and timing of payment/allowance.
Holding / Rule
D.C. generally follows federal scaffolding for expenses and claims. Local court treatment of claims/fees and documentary proof affect deductibility on the D.C. return.
Comment
Calendar creditor windows early. Keep orders, invoices, and proof of payment organized for OTR review. If a claim is denied or late, consider the impact on the D.C. base and whether amendment is practical.
Valuation & Alternate Valuation Date (Practice)
What it’s about
Fair market value at the valuation date drives both federal and D.C. computations, with the option to consider alternate valuation timing consistent with federal rules.
Holding / Rule
D.C. relies on federal valuation scaffolding; robust appraisals for D.C. real property and high-value tangibles are essential to defend the reported base.
Comment
Engage qualified local appraisers; reconcile federal and D.C. attachments to avoid mismatch questions in OTR review.
References
- D.C. Code — Estate Tax (Title 47, Taxation) — statutory framework for the D.C. estate tax.
- District of Columbia Office of Tax and Revenue — Estate Tax (D-76/D-76EZ) and FR-77; MyTax.DC.gov e-file guidance.
- IRS Form 706 & Instructions (federal reference) — valuation, deductions, marital/QTIP schedules.
- Historic inheritance tax (pre-4/1/1987) — legacy regime; not applicable to modern deaths but occasionally relevant for archival property records.