Legal Question in Wills and Trusts in Connecticut
Succession Tax
My aunt past away having had a living trust. Included in the trust were bank account, real estate and brokerage accounts. I am attempting to sell the real estate and was told I must prove that the St. of Ct succession tax has been paid. I was under the impression that items contained in the trust can be disposed of without the tax, The Trust is being closed. I understand about paying the Federal Tax to close the trust. Is there a Succession tax on the realestate in the trust in CT?
Thank You,
--name removed--
1 Answer from Attorneys
Re: Succession Tax
That's why I normally advise against these living trusts. They promise to enable you to avoid probate, probate fees and taxes, while in truth they do none of these. The succession tax and the probate fees are both calculated on the gross TAXABLE estate. Now, there might not be any tax due, but you still must file the tax return. The probate court will send you a bill for its fee (usually small, about one half of one per cent) and you will know from the return whether a tax is due. For children & grandchildren, the tax disappeared in 2002; for nieces & nephews it went in 2003 (in 2002, the first $1,500,000.00 is tax free) so there may be no tax, but there's still a return to file, and you still have to get a "no tax due" letter from the probate court to sell the real estate.
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