At the current level, an heir can receive up to $13.6 million without paying the federal or Connecticut estate tax. However, if the Trump tax cuts expire, as of Jan. 1, 2026, the Federal estate tax exemption will drop from $13.6 million to $5.6 million.. Since the Connecticut estate tax exemption is tied to the Federal, the CT exemption will drop accordingly. .
Bottom line, after the exemption, the federal estate tax rate will be about 40%, and the Connecticut estate tax rate will be an additional 10%, devouring roughly 50% of estate value. Florida is among 33 states that do not have an estate tax, putting states like Connecticut at an even bigger disadvantage if the tax cuts expire.
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