When is it the right time to plan an estate? The question may remind some of the old joke “don’t think of an elephant.” Obviously, you have to think of an elephant if someone says it. So, if you can ask if you should plan your estate, you probably should.
It’s not just a game for people who are middle aged or older. Clarifying your goals for loved ones, charitable causes and business opportunities can help bring peace of mind to you and your family. Also, early planning can help maximize the effectiveness of your estate for the people and organizations that survive you.
Connecticut does not collect inheritance tax, but it may levy a tax on certain estates of high value. For people who pass away in 2020, the Constitution State may tax estate worth more than $5.1 million, an increase from the $3.6 million minimum in 2019. This tax must be paid within six months, although an extension may be filed for an additional six months.
Taxes range depending on the value of an estate from 7.8% to 12%, with a cap set at $15 million. People with estates approaching these values may want to think about living trusts, charitable donations and other ways to lower tax liability.
An attorney can always help with the delicate and important process of planning an estate. A lawyer may also help recommend the times it is best to come up with updates or redo a plan entirely. The future of an entire family may depend upon it, so take it seriously at all times.