Our office frequently assists out of state counsel and fiduciaries with ancillary probate for estates of non-resident decedents owning real property in Connecticut.
In Connecticut, an inchoate lien automatically attaches at death to real property, creating a cloud on title. This lien attaches to real property even if it had been owned jointly with rights of survivorship or in a revocable trust. This lien is for unpaid probate fees and Connecticut estate tax, even if no Connecticut estate tax ends up being due which is typically the case. Before the property can be sold or transferred, this lien must be released.
Connecticut probate fees will only be assessed on real and tangible personal property actually located in Connecticut at death, however, all assets in the decedent’s gross taxable estate are required to be reported on the Connecticut estate tax return. This is so that a determination can be made as to whether the decedent’s net taxable estate exceeds the Connecticut estate tax exemption in effect at the decedent’s death.
The following forms are applicable to ancillary probate in Connecticut:
Whenever a decedent is claimed to be a nonresident of Connecticut, the fiduciary of the decedent’s estate must file Form C-3 UGE State of Connecticut Domicile Declaration.
1) If the decedent’s Connecticut taxable estate as valued for federal estate tax purposes is EQUAL TO OR LESS THAN the Connecticut estate tax exemption amount for the year of death, this form is filed with the appropriate Connecticut Probate Court. In addition, a Form PC-205B is filed with a CT706-NT and an exemplified copy of the probate record obtained from the out of state probate court with primary jurisdiction over the administration of the estate. The goal is to obtain a PC-258 Certificate Releasing Liens.
2) If the decedent’s Connecticut taxable estate as valued for federal estate tax purposes EXCEEDS the Connecticut estate tax exemption amount for the year of death, Form C-3 UGE is filed with the Department of Revenue Services (DRS) as well as Form CT-4422 UGE to obtain a Form CT-792 UGE, Certificate Releasing Connecticut Estate Tax Lien from the Connecticut Department of Revenue Services. A PC-257 Certificate Releasing Connecticut Probate Fee Lien will also be required.
All Certificates Releasing Liens get recorded on the land records where the real property is located to clear title.
Let us assist you in releasing this lien to clear title to real property so that it can be sold or transferred.
Call our office at (203) 586-1445 or CONTACT US online