estate taxes 2023
FEDERAL ESTATE TAX:
An executor or administrator must file a federal estate tax return if the gross estate 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 $12,920,00 in 2023.
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. AT the current exemption of $12,920,00, this enables a married couple to shelter over $24,840,000 from federal estate tax.
CONNECTICUT GIFT AND ESTATE TAX:
Unlike the federal estate tax exemption, the Connecticut estate tax 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. In 2019 it rose to $3.6 million; in 2020, $5.1 million; in 2021, $7.1 million; and in 2022, $9.1 million. Beginning this year, the Connecticut estate tax exemption will match the federal exemption of $12,920,00. In 2026, however, it is slated to drop back to its 2017 level of $5.49 million indexed for inflation.
An executor or administrator must file a federal estate tax return if the gross estate 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 $12,920,00 in 2023.
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. AT the current exemption of $12,920,00, this enables a married couple to shelter over $24,840,000 from federal estate tax.
CONNECTICUT GIFT AND ESTATE TAX:
Unlike the federal estate tax exemption, the Connecticut estate tax 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. In 2019 it rose to $3.6 million; in 2020, $5.1 million; in 2021, $7.1 million; and in 2022, $9.1 million. Beginning this year, the Connecticut estate tax exemption will match the federal exemption of $12,920,00. In 2026, however, it is slated to drop back to its 2017 level of $5.49 million indexed for inflation.
