Listen up Washington D.C. residents – D.C lawmakers are lowering the threshold for imposing estate taxes from $5.6 million to $4 million. This move will generate an extra $1.8 million for the city. But how does it affect you? Any D.C. resident with an estate over $4 million, is now subject to estate taxation. D.C. residents who are subject to D.C. estate taxes are taxed at about 10-16% of their estate. Estate Planning attorney Jason Smolen has insights on what you need to know if the new law does go into effect.
“It’s always a good time to review your estate plan and your state’s estate tax rate, but if you are a D.C. resident, now it is crucial,” says Smolen.
It might be a good time to evaluate if continuing to live in Washington D.C. is the best option for you, your family, and your estate. If you are retired or about to retire, now is the time to look into other state’s estate laws, where they might be more beneficial to your future plans.
- In Maryland, the estate tax threshold is $5 Million – $1 Million more than the pending D.C. threshold. Maryland also has an inheritance tax.
- In Virginia, but there is no estate tax.
“This new law should not be seen as an alarm bell, but a catalyst for reevaluating,” advises Smolen. If you have questions or concerns about your estate planning or estate taxes, contact Jason Smolen at jdsmolen@smolenplevy.com.
About the Author
Jason Smolen
Jason Smolen is a founding principal of SmolenPlevy. Smolen’s knowledge of complex estate and business issues has drawn the attention of ABC News, USA Today, E! Online, Realty Times and the Bank of America Small Business Online Community. Mr. Smolen is a graduate of the City College of the City University of New York and the George Mason University School of Law. Smolen also serves as a board member of a local citizens association and recently co-authored an article titled Why You Should Think About Spousal Limited Access Trusts (SLATS).
