Connecticut Estate & Gift Tax Guide
Last updated: 4 Oct 2025
Connecticut Estate & Gift Tax — Complete Guide
A practical overview of Connecticut probate, estate tax, and gift tax: court process, who is taxed, thresholds and rate, situs rules, due dates, forms, and planning considerations.
Connecticut Probate & Intestacy Basics
Which court & when is probate needed?
Probate matters are handled by the Connecticut Probate Courts (Probate Court Districts). Estates typically open when a decedent had solely-owned assets without beneficiary designations or CT real estate. The Probate Courts provide general guidance and links to fees and forms.
Typical probate steps
File petition; appointment of fiduciary (executor/administrator); notice to heirs/creditors; inventory; pay debts, expenses & taxes; interim/final accountings; decree of distribution; close estate. Small-estate or simplified tracks may apply depending on asset mix and value.
Estate & Gift Tax — At a Glance (Connecticut)
Official Pages, Forms & Filing
- CT DRS — Estate & Gift Taxes (overview & current thresholds)
- CT DRS — Gift & Estate Tax Forms (CT-706/709, CT-706NT, CT-706/709-EXT, CT-4422 UGE lien release, C-3 UGE domicile declaration)
- CT-706 Series hub (prior-year PDFs & instructions)
- Statutes: Conn. Gen. Stat. Chapter 217 (Estate Tax) — esp. § 12-391 (definitions, imposition, rate, domicile, limits).
- DRS General Instructions (2024) — CT-706/709 & CT-706NT (exemption amounts, due dates, look-through rules, credit & cap).
Connecticut Situs Rules (Nonresidents)
| Asset type | CT estate/gift treatment | Notes |
|---|---|---|
| Real property in Connecticut | Included as CT-situs | Taxed for nonresidents; lien release (CT-4422 UGE) required before sale from estates that must file. |
| Tangible personal property located in Connecticut | Included as CT-situs | Examples: equipment, art physically in CT. |
| Intangibles (stock, partnership interests, bank accounts) | Generally sourced by domicile | Typically not CT-situs for nonresidents; see pass-through look-through rule. |
| Pass-through entities (LLC/partnership/S corp) holding CT real/tangible property | Look-through possible | If no valid business purpose, non-profit motive, or acquired without bona fide sale, CT treats underlying CT property as owned directly by the nonresident decedent. |
Special Connecticut Features
- CT-only QTIP election. A marital QTIP election may be made for Connecticut purposes even if not elected federally—requires filing CT-706/709 (not CT-706NT).
- Investment incentive. Potential estate tax reduction (up to $5M) for qualifying long-term investments in certain funds via Connecticut Innovations; aggregate program cap applies.
- Estate/gift cap. Total CT estate + gift tax payable (for gifts made on/after 1/1/2016) is capped at $15,000,000.
Filing Mechanics & Deadlines
- Estate return (CT-706/709): due 6 months after death; file electronically via myconneCT or by mail; provide a copy to the appropriate Probate Court. Extensions available (payment due by original due date).
- Nontaxable estates (CT-706NT): file with the Probate Court (do not file with DRS) when under the CT exemption but otherwise required.
- Gift return (CT-706/709): annual return due April 15 following the calendar year of gifts (file even if no CT gift tax is due when you made CT-taxable gifts).
- Interest & penalties: interest accrues at 1% per month on unpaid tax; penalties apply for late filing/payment.
Planning Ideas Commonly Used in Connecticut
- Marital & charitable transfers. Reduce the federal taxable estate and therefore the CT base (CT starts from federal).
- Lifetime gifting strategy. Use annual exclusions and consider lifetime gifts mindful of CT’s unified exemption and the $15M CT cap on combined estate/gift tax.
- Bypass/credit shelter trusts. Because CT offers no portability, traditional A/B trust planning can preserve both spouses’ CT exemptions.
- Situs & entity planning. Review exposure to CT real/tangible property for nonresidents and avoid failing the pass-through “look-through” tests.
- Liquidity planning. Coordinate insurance and titling to meet CT estate tax at 6 months and federal obligations, avoiding distressed asset sales.
FAQs
Does Connecticut have an inheritance tax?
No. Connecticut imposes an estate tax and a gift tax, but not an inheritance tax.
What is the Connecticut estate & gift tax exemption and rate?
$13.61M (2024) / $13.99M (2025); a flat 12% applies above the exemption. CT caps combined estate + gift tax at $15M.
When are returns due?
Estate return: 6 months after death (extension to file available; tax still due by original due date). Gift return: April 15 following the gift year.
How do CT situs rules work for nonresidents?
CT taxes CT-situs real/tangible property; most intangibles follow domicile. CT may look through pass-throughs that hold CT property in certain cases.
Is CT portability available between spouses?
No. CT does not allow a surviving spouse to use a deceased spouse’s unused CT exemption—consider credit shelter trusts.
Need help filing or planning?
We assist with CT probate coordination, federal Form 706, and CT estate/gift filings (CT-706/709, CT-706NT), including situs analysis and CT-only QTIP elections.