ESTATE TAX ALERT
Effective January 1, 2010, the new Connecticut Gift and Estate Tax Law:
- increased from $ 2 million to $ 3. 5 million the applicable exemption for estate and gift taxes.
- reduced the tax rates on estates and gifts by 25%.
- eliminated the "cliff' tax.
- reduced the time to file an estate tax return to six, rather than nine, months after the date of death.
|
TABLE 1: CURRENT AND FUTURE ESTATE TAX RATES | ||
| VALUE OF GIFT | CURRENT TAX | 2010 TAX |
| OR ESTATE C & D) | (Add cols. E & F) | (Add cols. E & F) |
| Col. A: | Col. B: | Col. C: | Col. D: | Col. E: | Col. F: |
| Over | But not over | Tax on | Tax rate on | Tax on | Tax rate on |
| Col. A | excess | Col. A | excess | ||
| over Col. A | over Col. A | ||||
| 0 | $ 2,000,000 |
NO TAX | |||
| $ 2,000,000 | 2,100,000 | 5. 085% of the total over 0 | |||
| 2,100,000 | 2,600,000 | $ 106,800 | 8. 0% | ||
| 2,600,000 | 3,100,000 | 146,800 | 8.8% | ||
| 3,100,000 | 3,500,000 | 190,800 | 9.6% | ||
| 3,500,000 | 3,600,000 | 190,800 | 9.6% | 0 | 7.2% |
| 3,600,000 | 4,100,000 | 238,800 | 10.4% | 7,200 | 7.8% |
| 4,100,000 | 5,100,000 | 290,800 | 11. 2% | 46,200 | 8. 4% |
| 5,100,000 | 6,100,000 | 402,800 | 12. 0% | 130,200 | 130,200 |
| 6,100,000 | 7,100,000 | 522,800 | 12. 8% | 220,200 | 9. 6% |
| 7,100,000 | 8,100,000 | 650,800 | 13. 6% | 316,200 | 10. 2% |
| 8,100,000 | 9,100,000 | 786,800 | 14. 4% | 418,200 | 10. 8% |
| 9,100,000 | 10,100,000 | 930,800 | 15. 2% | 526,200 | 11.4% |
| Over $ 10,100,000 | 1,082,800 | 16. 0% | 640,200 | 12. 0% | |
Please call, Attorneys Michael D. Saffer or Frances B. Granquist, if you have any questions, or would like to review or update your estate plan, as a result of these changes.
The Pellegrine Lau) Finn. PC
P. 203-787-2225 F. 203-777-2096
www.pellegrinolawfirm.com
