Legal Question in Wills and Trusts in Connecticut
Probate Taxes
We submitted information on our mother's estate to the Probate Court three years ago. The estate consists of partial ownership of two properties held equally with our mother's sisters, with a value ( mother's share) of less than $70,000.00 (now). The court insisted that my sister, the executor, get a bond. She did not get around to it until recently when we (the family) put one of the properties up for sale. The property is going to sell for a lot more than the estimated vale at the time the information was submitted. A friend suggested that we resubmit the information at the higher value. He said something about the taxes being less if we do this. Something to do with capital gains taxes on the increase in value over the 3 years. Should we do this?
1 Answer from Attorneys
Re: Probate Taxes
No can do. The inventory value of the property (the place where you start when you are figuring the capital gain)is the value of the property at the date of death. Now, you might be able to get an appraiser to come up with a "revised" appraisal, showing the property to be worth (AT THE TIME OF DEATH) more than you had put down on the inventory in the first place, but today's value has nothing to do with it. Of course, if you increase the date of death value, you will also increase the probate fee and the succession tax (if any) because they are also calculated on the date of death value.
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