July 3, 2020

Volume X, Number 185

July 02, 2020

Subscribe to Latest Legal News and Analysis

July 01, 2020

Subscribe to Latest Legal News and Analysis

June 30, 2020

Subscribe to Latest Legal News and Analysis

Estate Planning Alert: Connecticut to Match Federal Gift and Estate Tax Exemptions by 2023

The Connecticut gift and estate tax exemptions will continue to rise over the next several years and are now set to match the federal exemption amount by 2023. This news comes with the publication of the 2019 Connecticut General Statutes, which resolved a conflict in two separate bills that the Connecticut General Assembly passed in 2018. With that resolution, we now know that the gift and estate tax exemptions are slated to rise substantially over the next several years as follows:

2019 $3,600,000
2020 $5,100,000
2021 $7,100,000
2022 $9,100,000
2023 and beyond

Equal to the federal basic exclusion amount

As a reminder, the Tax Cuts and Jobs Act doubled the federal basic exclusion amount, resulting in federal exemptions from estate, gift, and generation-skipping transfer tax that are currently equal $11,400,000. However, it is important to keep in mind that on January 1, 2026, lacking other legislation, the federal exemptions, and therefore the Connecticut exemptions as well, are set to revert back to $5,000,000, indexed for inflation after 2011.

As with any new legislation that changes the tax landscape, it is imperative to review your estate plan.

© 1998-2020 Wiggin and Dana LLPNational Law Review, Volume IX, Number 94


About this Author

Wiggin and Dana attorneys have a deep understanding of the issues faced by emerging growth companies and investors alike. Our business-minded approach has won the trust of numerous emerging growth companies at all stages of their life cycles, as well as investors of all types — from angel investors and venture capitalists, to family offices, traditional private...