A new Connecticut Estate Tax replaces the Gift Tax and the Succession Tax.
The Connecticut legislature repealed the Connecticut State Gift Tax and the Connecticut State Succession Tax, effective as of January 1, 2005. In their place, the legislature enacted the Connecticut Estate Tax. The Connecticut Estate Tax has an unlimited exemption for assets passing between citizen spouses. The exemption for assets passing to children or other non-spouse beneficiaries is a total of $2,000,000.00. Although $2,000,000.00 is a lot of money, the taxable estate includes the proceeds of life insurance policies, equity in your home, all retirement benefits, and all non-excluded gifts made after January 1, 2005. If your net taxable estate exceeds $2,000,000.00, the Connecticut Estate Tax applies to the full amount, not just the excess.