Connecticut Estate Tax Update - Legislature Votes to Postpone Exemption Increase, Governor Vetoes Bill

Due to ongoing budget woes, the Connecticut legislature voted on December 21 to postpone the increase of the state estate tax exemption from $2 million to $3.5 million which is scheduled to take place on January 1. The change was also supposed to increase the state gift tax exemption to $3.5 million and make the state estate tax applicable only to the amount an estate exceeds $3.5 million instead of the current law which taxes the first $2 million as well as everything above it. It still remains to be seen if Gov. M. Jodi Rell will veto the postponement.

UPDATE - After the initial posting of this information on Monday morning, Gov. M. Jodi Rell moved on Monday afternoon to veto the bill that would have postponed the increase in the state estate tax exemption: Rell Vetoes Legislature's Deficit Plan, Delay In Estate Tax.

• Legislature still at odds over strategy to trim deficit
• Understanding Death, Estate and Inheritance Taxes
• Understanding the State Estate Tax Exemption Trap
• State Estate Tax Chart
• Overview of Connecticut Estate Tax Laws
• Understanding Connecticut Gift Taxes