Estate Tax Return in Connecticut?

Today's blog post is dedicated toward one of the more frequent issues we come across when working with widows and widowers.

Mny times a client wants us to draft a revocable living trust for them so that they can avoid the probate process and expense associated with that process for their children.

With a living trust, it is important that certain property (depending on your circumstances) is transferred into the name of the trust after it has been created.

We may run a title search on the house prior to transferring, and find out that the house is still in the name of both the client and their deceased spouse. After discussing a little further with the client, we find out that they are under the impression that everything joint passes outside of probate so their is never any need to file anything with the probate court when property is held jointly. This assumption is wrong and could be costly.

In the State of CT, when someone passes away with assets owned in survivorship, it is still necessary to file a tax purposes only estate, which basically means a Connecticut estate tax return (CT-706 or CT-706(NT) depending on the value of the estate) must be filed. Without this, it is unlikely that the house can be sold, because a Certificate Releasing Connecticut Estate Tax will most likely not be issued. This can present major problems for the heirs of the estate.

If you have questions about probate, or if you want to set up a consultation to discuss your specific situation, feel free to contact a Connecticut Probate Attorney at (203) 651-5521. If you want to learn more about us or probate beforehand, please browse our website our contact us online.

Categories: Estate Planning, Probate, Taxes