to Connecticut Gift and Estate Taxes
2005 - Legislation signed by Connecticut Governor M. Jodi
Rell on June 30, 2005, enacted significant changes to the
Connecticut gift tax, the Connecticut estate tax, and the
Connecticut succession tax.
gift tax. On or after January 1, 2005, persons
making Connecticut taxable gifts (donors) will be required
to file a return with the Department of Revenue Services
(DRS) reporting even though no gift tax may (or may yet)
be payable. Connecticut gift tax will not be payable until
the sum of Connecticut taxable gifts made during all years
beginning on or after January 1, 2005, exceeds $2 million.
Connecticut taxable gifts are those federal taxable gifts
that are gifts of real or tangible personal property situated
within Connecticut (and, for donors who are Connecticut
residents, gifts of intangible personal property).
estate tax. The representatives of the estate
of a decedent dying on or after January 1, 2005, must file
a return with DRS if the decedent’s Connecticut taxable
estate is more than $2 million. The Connecticut taxable
estate is the sum of Connecticut taxable gifts made by the
decedent during all years beginning on or after January
1, 2005, and the decedent’s taxable estate (generally
as computed for federal estate tax purposes). If the decedent’s
Connecticut taxable estate is $2 million or less, the representatives
of the decedent’s estate must file the return with
the probate court, not DRS. The Connecticut estate tax is
no longer based on the credit allowable under 26 U.S.C.
section 2011 for state death taxes.
succession tax. The Connecticut succession
tax does not apply to estates of decedents dying on or after
January 1, 2005.
In addition, there is a unified credit against the Connecticut
gift and estate taxes. The Connecticut gift tax return and
the Connecticut estate tax return will now be combined into
a single return.
Connecticut Department of Revenue Sources (www.ct.gov/drs).