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Tax changes may affect Connecticut estate plans

On Behalf of | Feb 17, 2018 | Estate Planning |

The probate court in Connecticut serves as a gateway for normal people to the services of the law. Two of the most common functions of probate is to attend to the needs of the living and to deal with the property and assets of the deceased.

People who want their money and belongings to make a difference for family, friends or charities after they are gone should consider estate planning as a way to make these desires reality. The federal and Connecticut state governments have restrictions, especially on large estates, that could change these plans without preparation.

The estate tax is the most well-known restriction to passing inheritances on to people and institutions. The federal government will not levy a tax on estates less than $11.18 million in value, and the government of Connecticut will not tax estates larger than $2.6 million in value.

There are ways around estates retaining these values after death if the writer of a will wished to avoid taxation. The creation of trusts within the legal requirements to not be subject to tax may help pass assets to family members, especially children below the age of consent when a trust is formed.

Estate planning, particularly writing a will, is everyone’s business when they are of age and have any assets, debts or financial arrangements that may help or affect their families. An attorney can help guide these wishes through any challenges and legal problems.

Changes in tax plans may also make people revisit their current estate plans. It is always worth exploring how you can make the most of your assets for the people and issues you love.

Source: Mondaq, “How The New Federal And Connecticut Estate And Gift Tax Exemption Could Affect Your Estate Plan,” Jan. 24, 2018

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