Connecticut residents may be left wondering what the new tax law will mean for them. In truth, it may help some but not others. It may be a good thing, or it may be a burden. Everyone's individual situation is different. One area that may be helped by it, though, is estate taxes.
What does the law change? The biggest change seen is the limit increase on those estates that are now taxable. According to the old law, federal taxes had to be paid on estates valuing over $5.6 million. According to the new law, federal taxes now only apply to estates valuing over $11.2 million -- or double that for married couples.
What about state taxes? Connecticut still does collect state estate taxes. That has not changed. One may not have to pay anything in federal taxes, but the state limit is much lower, so state taxes may still need to be paid.
Not sure if any of this really matters? There are those in Connecticut for whom this new tax law will not change a thing. Others, though, may find that a reworking of their estate plans is in order. Those who are unsure can speak to an attorney with experience handling estate taxes in order to determine if any changes to their estate plans are necessary. The key to preventing the government from taking more than their fair share of the pie is to tackle the situation head-on and as soon as possible; that way, one can be sure beneficiaries get the most out of the estate.
Source: Forbes, "5 Questions To Ask Your Estate Planner After The New Tax Law", David Robinson, Jan. 9, 2018