As you may know, several tax law changes resulted from the
legislation signed into law by Governor Malloy on May 4, 2011, as
part of the budget compromise. The following summarizes a few of
the key changes.
CONNECTICUT ESTATE AND GIFT TAX LAWS
Estate and gift tax exemption reduced to $2,000,000.
The Connecticut estate tax exemption amount has decreased from
$3,500,000 to $2,000,000. The estates of decedents dying on or
after January 1, 2011, that are over $2,000,000 are now subject to
Connecticut estate tax.
There is a parallel change to the Connecticut gift tax
exemption, which was also reduced to $2,000,000, effective January
1, 2011. Connecticut residents are now limited to making lifetime
gifts of up to $2,000,000 without incurring Connecticut gift tax.
(However, the federal gift tax exemption remains at $5,000,000 for
2011 and 2012.) For Connecticut gift tax purposes, the aggregate
amount of all gifts made on or after January 1, 2005, (the year
when
