Estate and gift levy will effect fewer Connecticut residents

| Feb 22, 2019 | Estate Planning

Estate planning is mostly more complicated as people deal with larger estates with diverse assets that will be shared with multiple beneficiaries. Many wealthy people plan their wills and trusts to save money for their heirs that would otherwise be consumed by government taxes.

With a record number of retirements coming due in Connecticut and the rest of the United States, a large amount of wealth may change hands to the next generation. One report says nearly $60 trillion dollars will be passed to the children of people born just after the second World War.

The government in Hartford recently revised its estate and gift levy, possibly due to pressure to keep a retirement-friendly attitude in Connecticut and prevent aging residents from leaving. This is the first revision in six years that will raise the exemption to this tax along with federal guidelines so the levy will apply only to the top earners in the Nutmeg State.

Some residents fear that the loss of tax income will cause Connecticut to lose its competitiveness with other jurisdictions. Either way, holders of large and complex estates will win out in the beginning, with lower liabilities for probate courts and executors to manage after death.

Anyone in Connecticut looking to use their assets to forward their families’ or organizations’ interests should consider the value of an updated will and the possible use of trusts and other estate planning tools to reduce their tax liabilities. An estate planning attorney can help estate planners meet their goals and work with family to move assets before death.