Understanding estate taxes is essential for effective estate planning. Here, we provide you with up-to-date information regarding estate taxes in 2023 to help you make informed decisions:

Federal Estate Tax:

Executor’s Responsibilities: If the gross estate of a decedent surpasses their available estate tax exemption, considering prior gifts, the executor or administrator must file a federal estate tax return.

Exemption Amount in 2023: In 2023, the federal estate tax exemption is $12,920,000. This exemption is indexed for inflation and undergoes annual adjustments.

Portability Feature: The federal estate tax exemption allows for portability between spouses. This means that a surviving spouse can “port” some or all of their predeceased spouse’s unused estate tax exemption amount. With the current exemption of $12,920,000, a married couple can potentially shield over $25,840,000 from federal estate tax.

Future Changes: It’s important to note that in 2026, the federal estate tax exemption is slated to revert to its 2017 level of $5.49 million, indexed for inflation.

Connecticut Gift and Estate Tax:

Non-Portability in Connecticut: Unlike the federal estate tax exemption, the Connecticut estate tax exemption is not portable. It cannot be transferred from the estate of the predeceased spouse to the estate of the surviving spouse.

Historical Changes in Connecticut’s Estate Tax Exemption:

• Prior to 2018, Connecticut’s estate tax exemption stood at $2 million for nearly 15 years.
• In 2019, it increased to $3.6 million.
• In 2020, it rose to $5.1 million.
• In 2021, the exemption reached $7.1 million.
• In 2022, it expanded to $9.1 million.
• Starting this year, the Connecticut estate tax exemption aligns with the federal exemption of $12,920,000.

Future Changes: It’s important to note that in 2026, the Connecticut estate tax exemption is slated to revert to its 2017 level of $5.49 million, indexed for inflation.

At Heritage Law, we are committed to keeping you informed about Connecticut estate tax changes. If you have questions or need guidance, please don’t hesitate to reach out to us.