Connecticut is home to one of the nation's highest incomes per capita and many of the best jobs in the country. As a result, many residents of the Nutmeg State have sizable income, savings and other financial advantages to manage properly.
One of the most fundamental ways to manage money is determining who will get it and how in the case of a person's death. Estate planning is rarely a pleasant task to think about, but there is great comfort in knowing that children, relatives, friends and charities will have financial security thanks to a bequest.
The largest estates have the largest amount of liability and usually the most complex needs in the estate planning process. A change in the Connecticut estate and gift tax structure, which became law in October 2017, is good news for the options for large estates.
Estates up to $2.6 million in value are exempt from estate taxation, increasing from $2 million before the law was enacted. The exemption will include all estates below $3.6 million in value in 2019, matching the federal exemption the following year.
Changes in estate tax laws are not uncommon, and the details are important because they govern the fate of estates. Other tools for estate planning, such as living trusts and payable-on-death bank accounts, may change with tax laws and the new versions can help planners save money and simplify the process.
An attorney can help you understand and apply estate tax laws to an individual estate planning process and maximize the value of bequests. Don't leave relatives and causes out to dry.
Source: Mondaq News Alerts, "Estate Planning Update March 2018 - Estate Planning Under the New Tax Law," April 06, 2018