Connecticut has moved to increase its state estate tax exemption from $2,000,000 to $3,500,000 for deaths occurring on or after January 1, 2010. This change makes the state exemption equal to the federal exemption, thereby eliminating the state estate tax exemption trap that was created by the decoupling of the federal estate tax exemption from the state exemption on January 1, 2005.
In addition, the due date for a Connecticut estate tax return and payment of any taxes owed has been moved up from nine months after the decedent's date of death to only six months. This change became effective for deaths occurring on or after July 1, 2009.
Now is the time for Connecticut residents and nonresidents who own real estate or tangible personal property located in Connecticut to have their estate plans reviewed to determine if any changes are needed as a result of the new estate tax exemption.
- State changing its estate tax law
- Overview of Connecticut Estate Tax Laws
- Connecticut Legislature Votes to Postpone Estate Tax Exemption Increase, Governor Vetoes Bill
- Understanding Death, Estate and Inheritance Taxes
- Which States Still Collect an Estate Tax?
- Understanding the State Estate Tax Exemption Trap
- Overview of Current Federal Estate Tax Laws