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.