Connecticut Estate and Gift Taxes

Effective beginning June 30, 2005, Connecticut signed into law various changes that affected requirements related to estate, inheritance, and gift taxes.  The Department of Revenue Services of Connecticut is responsible for overseeing this area of taxation for the state.

Following is an overview of the current estate, inheritance, and gift tax laws in effect for the state.  If you are looking for information about federal income tax, please visit our web site’s “Tax Relief” page.

What are estate and gift taxes?

An estate refers to a person’s property left behind at the time of the person’s death.  It is customary that upon death a person’s property will pass to another person through either a will or under the guidance of applicable state or federal laws.

A gift refers to when a person’s property or an interest in property is transferred from that person to another while the original property holder is still alive and without the original holder of the property receiving adequate compensation.

For the transfer of property through an estate or gift, government agencies including certain states and the federal government through the Internal Revenue Service (IRS) impose tax on such transfers against the person who received the property.  Since the person did not pay for the property or interest in the property, it is treated as income to that person and therefore is considered taxable.

Who has to file an estate or gift tax return?

For the estates of decedents who died on or after January 1, 2005, their estate must file a unified estate and gift tax return if the decedent was a resident of Connecticut or a non-resident of Connecticut who owned real or tangible personal property located in Connecticut.

What are the thresholds where estate and gift taxes apply?

The following tables outline the current estate and gift tax thresholds in effect in Connecticut.

Estate Tax Table for Estates of Decedents Dying On or After January 1, 2012

If the Amount of Connecticut Taxable Estate Is: The Amount of the Estate Tax Is:
Not over $2,000,000 None
Over $2,000,000 but not over $3,600,000   7.2% of the excess over $2,000,000
Over $3,600,000 but not over $4,100,000 $115,200 plus 7.8% of the excess over $3,600,000
Over $4,100,000 but not over $5,100,000 $154,200 plus 8.4% of the excess over $4,100,000
Over $5,100,000 but not over $6,100,000 $238,200 plus 9.0% of the excess over $5,100,000
Over $6,100,000 but not over $7,100,000 $328,200 plus 9.6% of the excess over $6,100,000
Over $7,100,000 but not over $8,100,000 $424,200 plus 10.2% of the excess over $7,100,000
Over $8,100,000 but not over $9,100,000 $526,200 plus 10.8% of the excess over $8,100,000
Over $9,100,000 but not over $10,100,000 $634,200 plus 11.4% of the excess over $9,100,000
Over $10,100,000 $748,200 plus 12% of the excess over $10,100,000

Gift Tax Table for Connecticut Taxable Gifts Made On or After January 1, 2012

If the Aggregate Amount of Connecticut Taxable Gifts Made On or After January 1, 2005 Is: The Amount of the Gift Tax Is:
Not over $2,000,000 None
Over $2,000,000 but not over $3,600,000   7.2% of the excess over $2,000,000
Over $3,600,000 but not over $4,100,000 $115,200 plus 7.8% of the excess over $3,600,000
Over $4,100,000 but not over $5,100,000 $154,200 plus 8.4% of the excess over $4,100,000
Over $5,100,000 but not over $6,100,000 $238,200 plus 9.0% of the excess over $5,100,000
Over $6,100,000 but not over $7,100,000 $328,200 plus 9.6% of the excess over $6,100,000
Over $7,100,000 but not over $8,100,000 $424,200 plus 10.2% of the excess over $7,100,000
Over $8,100,000 but not over $9,100,000 $526,200 plus 10.8% of the excess over $8,100,000
Over $9,100,000 but not over $10,100,000 $634,200 plus 11.4% of the excess over $9,100,000
Over $10,100,000 $748,200 plus 12% of the excess over $10,100,000

What forms must I file related to estate and gift taxes?  And where do I file the forms?

If the estate does not owe any taxes, the estate must file Form CT-706 NT with the Probate Court overseeing the case.  If the estate owes taxes, the state must file Form CT-706/709 with the Probate Court and with the Department of Revenue Services of Connecticut.

When must I file forms related to estate and gift taxes?

Estate and gift tax forms are due by April 15 of the year following the tax year in which the decedent passed away or the gift was made.  If April 15 falls on a weekend or holiday, the estate and gift tax forms are due on the next business day.

You can request an extension of time to file your estate and gift taxes by filing Form CT-706/709 EXT.  As with federal and state income taxes, remember that an extension related to estate and gift taxes is only an extension related to filing of the appropriate forms.  You must still pay the expected state and gift tax due by April 15 or you will be assessed interest and penalties on the unpaid amounts.

Who can provide additional help if I have questions about estate or gift taxes?

If you have questions about estate or gift taxes, need help filing the appropriate estate and gift tax forms, or you have any other tax-related needs, you can start by calling the phone number located at the top of this page.  You can speak with a tax attorney who is knowledgeable about the subjects where you need help and who can answer your questions.

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.