estate taxes 2022
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 $12.06 million in 2022.
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 ($12.06 million in 2022), allowing a married couple to shelter over $24 million of net worth from the federal estate tax system.
CONNECTICUT GIFT AND ESTATE TAX:
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. In 2019 it rose to $3.6 million; in 2020, $5.1 million; and in 2021, $7.1 million. This year, the federal estate tax exemption is $9.1 million. Starting next year on 1/1/23 it will equal the federal estate tax exemption (currently $12.06 million). In 2026 it will drop back to its 2017 level of $5.49 million which after indexing for inflation translates to approximately $6 million.
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 $12.06 million in 2022.
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 ($12.06 million in 2022), allowing a married couple to shelter over $24 million of net worth from the federal estate tax system.
CONNECTICUT GIFT AND ESTATE TAX:
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. In 2019 it rose to $3.6 million; in 2020, $5.1 million; and in 2021, $7.1 million. This year, the federal estate tax exemption is $9.1 million. Starting next year on 1/1/23 it will equal the federal estate tax exemption (currently $12.06 million). In 2026 it will drop back to its 2017 level of $5.49 million which after indexing for inflation translates to approximately $6 million.
