Recent changes to the Connecticut estate tax system has created much uncertainty for estate planners in the state. The big problem is a reach back provision on probate court fees which is making estates pay a higher fee even if the person died before the legislation was passed. A cap of $12,500 used to be imposed but was removed which is the primary driver of discontent with the new system especially since the fee is imposed whether the probate court system is used or not. This new fee structure, in addition to other taxes such as those on luxury purchases, have created a situation where the wealthy with the ability to move are opting for that choice. Only time will tell what the full impact of these new taxes will be on estate planning in Connecticut but already it has lead to much grumbling and predictions of a wealth exodus for those nearing the end of their life.
See Ashlea Ebeling, The $250,000 Connecticut Probate Fee & The $20 Million Estate Tax Cap, Forbes, October 16, 2015.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
