More than you may think!
- Solely owned assets that don’t have designated beneficiaries. Examples are solely owned real property, solely owned financial institution accounts, solely owned United States Savings Bonds, and solely owned shares of stock.
- Jointly owned assets. Even though the jointly owned asset passes to the surviving joint owner, by operation of law, the date of death value of the asset needs to be reported on the Connecticut Estate Tax Return. In most cases, only the decedent’s proportional part of the asset is part of the gross taxable estate.
- Annuities, life insurance, and transfer on death accounts. If there is a designated beneficiary, these assets pass, by operation of law, to the designated beneficiary; however, the date of death value of the asset still needs to be reported on the Connecticut Estate Tax Return.
- Do I need to be concerned about the Connecticut Estate tax? In most cases, the answer is “no.” There is an unlimited exemption for the value of assets passing to a citizen spouse. The 2018 exemption for the value of assets passing to a non-citizen spouse (as a class) is $2,600,000.00. The exemption increases to $3,600,000.00 in 2019, and is even higher in 2020.
- What about probate Court fees? The Probate Court will bill you for statutory Probate Court fees based on the value of assets that constitute your gross taxable estate. As a rule of thumb, you can assume the amount of the fee will be about ½ of 1%. For assets passing to a spouse, the fee will be somewhat lower.
If you are interested in learning more about how probate and non-probate assets pass after death and are reported to the Probate Court, or, the Connecticut Estate Tax Return, please visit our website and read our blog for recent posts. For advice on probate and non-probate assets that is specific to you or your family, please contact the office. We would be glad to meet with you for a no hassle, no charge initial consultation, no matter how long it lasts.