Connecticut

Common-Law State

Connecticut is a Common Law State, which means the rules governing the ownership, division, and inheritance of income and property acquired by a husband or wife during their marriage hold that subject to various qualifications, each spouse owns and has complete control over their own her income and property.

Will Creation

The minimum age of a person competent to make a will is 18. The number of witnesses necessary to execute a will is two.

Uniform Transfers to Minors Act (UTMA)

• The custodial arrangement terminates when:
•  The minor child reaches age 21, or
•  The minor child dies.

Dying without a Last Will, the Connecticut laws of Intestacy.

The estate goes to the surviving spouse, as follows:

• If there are no surviving descendants or parents – 100% of the estate
• If the surviving descendants are all also the descendants of the spouse – $100,000 plus 50% of the balance of the estate
• If there are surviving parents but no surviving descendants – $100,000 plus 75% of the remaining estate
• If there are surviving descendants, at least one of whom is not also a descendant of the spouse – 50% of the estate

If there is no surviving spouse, or if a portion of the estate does not go to the spouse:

• 100% to surviving descendants and their “representatives” (which appears to mean per stirpes). See Conn. Gen. Stat. §45a‐438 and Daniels v. Daniels, 115 Conn. 239 (1932).

If there is no surviving spouse or descendant:

• 100% to surviving parent or parents equally

If there is no surviving spouse, descendant, or parent:

• 100% to descendants of parents and their “representatives” (which in this case appears to mean per stirpes). See Conn. Gen. Stat. §45a‐438 and Daniels v. Daniels, 115 Conn. 239 (1932).

If none of the above:

 Intestacy laws outline further distribution steps to next of kin and their descendants, and finally to stepchildren and their descendants. See Conn. Gen. Stat. §45a‐439.

 If no legally described recipient can be found, estate assets go to the state of Connecticut.

Digital Assets

Connecticut follows the Revised Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.

Inheritance Tax

Connecticut does not impose an inheritance tax.

Estate Tax

Connecticut imposes an estate tax.

 Tax imposed on taxable estates greater than:

•  $3,600,000 (2019)
•  $5,100,000 (2020)
•  $7,100,000 (2021)
•  $9,100,000 (2022)

 Beginning in 2023, the estate tax exemption will match the federal exemption.

 The estate tax base is the sum of taxable gifts (under Connecticut law) made by the decedent since January 1, 2005. The decedent’s taxable estate (as determined for federal estate tax purposes).

 The estate tax is progressive: 7.2% tax rate on the amount greater than $2 million and less than $3,600,000, increases to 12% of the excess of $10,100,000.

 Connecticut imposes a maximum combined estate and gift tax of $15 million.

Generation-Skipping Transfer Tax (GST Tax)

Connecticut imposes a GST tax equal to the maximum credit allowed under IRC Sec. 2604 for paid state GST tax. However, the current federal tax code does not permit a credit for paid state GST tax. Therefore, there is no current GST tax.

Gift Tax

Connecticut imposes a gift tax.

 Connecticut taxable gifts are those federal taxable gifts that are gifts of real or tangible personal property situated within Connecticut. For donors who are Connecticut residents, gifts of intangible personal property.

 All donors must file a return to report Connecticut taxable gifts even though no gift tax may (or may yet) be payable.

 No gift tax is payable until the sum of Connecticut taxable gifts made since January 1, 2005 exceeds:

•  $3,600,000 (2019)
•  $5,100,000 (2020)
•  $7,100,000 (2021)
•  $9,100,000 (2022)

 Beginning in 2023, the gift tax exemption will match the federal exemption.

Note that the exemption amount for such gifts was set at $3.5 million for contributions made from January 1, 2010, to December 31, 2010.

 The gift tax is progressive: 7.2% tax rate on the amount greater than $2 million and less than $3,600,000, all the way up to 12% of the excess of $10,100,000.

 Connecticut imposes a maximum combined estate and gift tax of $15 million.

Please give us feedback.