The District of Columbia has adopted the Uniform Trust Code, giving DC residents a modern framework for trust administration. While not a state, DC has its own distinct trust and tax laws that differ significantly from neighboring Maryland and Virginia. The most important distinction: DC imposes an estate tax with an exemption of approximately $4.99 million for 2026, and unlike the federal estate tax, DC's exemption is not portable between spouses. The DC Trust Code is found in the DC Code.
This guide applies to both revocable and irrevocable trusts in the District of Columbia.
Where DC trust law lives
DC's trust statutes are found within the DC Code. The District adopted the UTC, providing the standard framework for trust creation, administration, modification, and termination. Estate tax provisions are in DC Code Title 47, Chapter 37.
Accounting and notice requirements
DC follows the standard UTC notice framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship of an irrevocable trust. Annual accounting to qualified beneficiaries is required under the default rules.
While the trust is revocable and the trust creator is alive and competent, the trustee's duties run primarily to the trust creator.
Trustee duties
DC trustees must administer the trust in good faith, following the trust's terms and purposes, and in the interests of the beneficiaries. All standard UTC duties apply: loyalty, impartiality, prudent administration, and prudent investing. Compensation follows the trust instrument first, with reasonable compensation as the default.
What makes DC different
Estate tax with non-portable exemption. DC imposes an estate tax with an exemption of approximately $4.99 million for 2026 (indexed for inflation). The critical detail: unlike both the federal estate tax and Maryland's estate tax, DC's exemption is not portable between spouses. This means when the first spouse dies, their unused exemption cannot be transferred to the surviving spouse. Each spouse must use their own exemption independently. For married couples, this "use it or lose it" structure makes trust-based planning, like credit shelter or bypass trusts, especially important in DC.
No inheritance tax. DC does not impose an inheritance tax. Only the estate tax applies. This is a meaningful difference from neighboring Maryland, which imposes both.
Spousal rights protections. DC law provides strong protections for surviving spouses and domestic partners. You cannot disinherit your spouse or domestic partner unless they waive their rights in writing. A surviving spouse is entitled to a statutory share of the estate, including a $30,000 homestead allowance and $20,000 in exempt property. These rights exist regardless of what the trust instrument says and must be accounted for in estate planning.
Tri-state DMV considerations. DC sits at the center of the Virginia-Maryland-DC tri-state area. The three jurisdictions have dramatically different trust and tax environments. Virginia has no state estate tax or inheritance tax. Maryland has both an estate tax and an inheritance tax. DC has an estate tax but no inheritance tax. Moving between these jurisdictions, owning property across them, or having beneficiaries in multiple states creates significant planning complexity. A trust created under DC law may need different provisions than one created under Virginia or Maryland law.
Estate tax return filing. DC estate tax returns must be filed within 10 months of death (with a possible 6-month extension). Even estates under the exemption threshold may need to file if a federal return is required.
TrustHelm tip: DC's non-portable estate tax exemption makes it especially important for married couples to understand how their trust is structured. TrustHelm's AI-powered document analysis can help you identify whether your trust includes credit shelter or bypass provisions that maximize both spouses' exemptions.
The most common DC trust mistakes
Not funding the trust. As in every jurisdiction, the most common mistake is failing to transfer assets into the trust. Revocable trust assets avoid probate but do not avoid estate tax. They are still counted in the gross estate.
Not planning for the non-portable exemption. DC's lack of portability means married couples who rely on the surviving spouse inheriting everything may waste the first spouse's DC estate tax exemption entirely. Trust structures that use both spouses' exemptions are critical in DC.
Ignoring spousal rights. DC's statutory share for surviving spouses and domestic partners cannot be overridden by a trust. Families must account for these rights when planning distributions.
Not accounting for DMV differences. Families in the DC metro area commonly have property and connections in DC, Maryland, and Virginia. Assuming the same rules apply across all three jurisdictions is a common and potentially expensive mistake.
Not reviewing plans after moving to DC. If you move to DC from Virginia, you suddenly face a state-level estate tax that did not exist before. Your existing estate plan may need significant updates.
When to talk to an attorney
You should consult a DC trust attorney if you need to understand how the non-portable estate tax exemption affects your planning, if you are a married couple who wants to maximize both spouses' exemptions, if you have property or beneficiaries across the DC-Maryland-Virginia region, or if you have recently moved to DC from another jurisdiction.
If you need help finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney tool.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.