Law Office of Lisa E. Wnuck, LLC
493 Heritage Road, Southbury, CT
(203) 586-1445
debbie@southburylaw.com or lisa@southburylaw.com
493 Heritage Road, Southbury, CT
(203) 586-1445
debbie@southburylaw.com or lisa@southburylaw.com
estate taxes 2019
FEDERAL ESTATE TAX:
An executor or administrator must file a federal estate tax return if the gross estate plus adjusted taxable gifts is more than the decedent's available estate tax exemption, taking into account prior gifts. The exemption, which is indexed for inflation and adjusts annually, is $11.4 million in 2019.
CONNECTICUT GIFT AND ESTATE TAX:
The portability of the federal estate tax exemption between spouses enables a surviving spouse to carry over or “port” some or all of his or her predeceased spouse’s unused estate tax exemption amount ($11.4 million in 2019), allowing the surviving spouse to shelter as much as $22.8 million of net worth from the federal estate tax system in his or her estate.
Unlike the federal estate tax exemption, the state exemption is not portable and therefore may not be carried over from the predeceased spouse’s estate to the surviving spouse’s estate. Prior to 2018, Connecticut’s estate tax exemption had been $2 million for almost 15 years. It is currently $3.6 million in 2019 and will rise to $5.1 million in 2020, $7.1 million in 2021 and $9.1 million in 2022. Starting in 2023 it will equal the federal estate tax exemption (currently $11.4 million) which in 2026 will drop back to its 2017 level of $5.49 million.
All this means that if a married couple’s net worth exceeds the CT estate tax exemption, a marital disclaimer trust is a simple, appropriate and flexible estate planning tool to minimize, if not zero out, Connecticut estate tax.
An executor or administrator must file a federal estate tax return if the gross estate plus adjusted taxable gifts is more than the decedent's available estate tax exemption, taking into account prior gifts. The exemption, which is indexed for inflation and adjusts annually, is $11.4 million in 2019.
CONNECTICUT GIFT AND ESTATE TAX:
The portability of the federal estate tax exemption between spouses enables a surviving spouse to carry over or “port” some or all of his or her predeceased spouse’s unused estate tax exemption amount ($11.4 million in 2019), allowing the surviving spouse to shelter as much as $22.8 million of net worth from the federal estate tax system in his or her estate.
Unlike the federal estate tax exemption, the state exemption is not portable and therefore may not be carried over from the predeceased spouse’s estate to the surviving spouse’s estate. Prior to 2018, Connecticut’s estate tax exemption had been $2 million for almost 15 years. It is currently $3.6 million in 2019 and will rise to $5.1 million in 2020, $7.1 million in 2021 and $9.1 million in 2022. Starting in 2023 it will equal the federal estate tax exemption (currently $11.4 million) which in 2026 will drop back to its 2017 level of $5.49 million.
All this means that if a married couple’s net worth exceeds the CT estate tax exemption, a marital disclaimer trust is a simple, appropriate and flexible estate planning tool to minimize, if not zero out, Connecticut estate tax.
Posted August 14, 2019
