Getting through the probate process when a loved one passes away is challenging enough without having to figure out how much one has to pay Uncle Sam because of that individual's death. It may not seem right, but estate taxes must be paid to the federal government, as well as to the state of Connecticut, if an estate's value reaches a certain point. What is that point? What happens if one messes up the tax filing or fails to file on time?
Tax laws in Connecticut can be difficult to understand. Tax law is complex and is often changing. Laws regarding estate taxes, for example, are prone to change and do not always make sense. If you have questions about estate taxes, a good person to talk to in order to get answers would be an experienced tax law attorney.
When a loved one passes away, closing out his or her estate can be a real ordeal. Part of the process may involve paying estate taxes. What about inheritance taxes? Does the state of Connecticut collect such taxes, or are these the same as estate taxes?
Those who own property in Connecticut, regardless if they are residents of the state, need to know what taxes will apply to them now or their estate when they pass away. Estate taxes, for example, are no joke and can cost a lot if the proper estate planning protections are not put in place. Here is what people need to understand about estate taxes.
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.
As it currently stands, both the state of Connecticut and the federal government can collect taxes on estates. Estate taxes can really add up fast and take a lot away from beneficiaries. With some careful tax planning, it may not be so bad.
Losing a loved one is difficult no matter when or how it happens. When that individual fails to leave behind a complete estate plan, estate taxes can kill beneficiaries financially. This week, this column will briefly go over Connecticut's current estate tax laws. These laws are frequently changing, but an experienced attorney will be able to provide any updated information.