Losing a loved one is not an easy thing to go through. When a loved one passes away, it is normal to have questions while handling his or her final affairs. One thing that those who are left to close out estates in the state of Connecticut need to make sure that they consider is estate taxes. If they don't, there can be significant consequences.
The state and federal government have the right to assess estate taxes. The taxable estate has to reach a certain value before taxes kick in. The state amount and federal amount are different and are frequently changed. A tax attorney can provide information on the current estate tax limits.
It is possible for an individual to give monetary gifts up to a certain amount to an unlimited number of people annually. These gifts are not included as part of the taxable estate, which is a great tax benefit. Assets placed in an irrevocable trust may also be excluded from the taxable estate.
The executor of an estate has the job of making sure that the estate is closed out properly. Making sure estate taxes get paid -- if required -- and that one final income tax filing on behalf of the deceased is submitted, is part of that job. An experienced tax attorney can help those individuals who are charged with closing out estates in Connecticut make sure all the necessary tax documents are filed with the state and federal governments. Further assistance can be provided if the IRS chooses to audit such filings.