Estate planning: Complicating news for Connecticut estate planning. This session of the Legislature reduced the Connecticut Estate Tax exemption for property passing to a non-spouse beneficiary from $3,500,000.00 to $2,000,000.00.

  • The reduction of the exemption is effective as of January 1, 2011.
  • The tax rate begins at 7.2% of the taxable estate above $2,000,000.00.
  • Although $2,000,000.00 is a lot of money, you may be surprised at how quickly you can get there. The gross taxable estate for the Connecticut Estate Tax includes the value of your home, the value of your retirement accounts, and the gross proceeds received from any insurance policy that insures your life.
  • A married couple can use credit shelter trust planning to double the amount passing Connecticut Estate Tax free to non-spouse beneficiaries.

We encourage you to call us to discuss how this change in Connecticut law affects your estate planning needs. We have experience preparing sensible and cost effective estate plans for individuals and couples.