Understanding estate taxes is essential for effective estate planning. Here, we provide you with up-to-date information regarding estate and gift taxes in 2025 to help you make informed decisions:

Federal Gift Tax Exemption:

2025 Annual Exclusion for a present interest gift:  $19,000 per donee

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 2025: In 2025, the IRS has announced that the federal estate tax exemption will be $13,990,000. 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 2025 exemption of $13,990,000, a married couple can now potentially shield $27,980,000 from federal estate tax.

Connecticut Gift and Estate Tax:

State Gift Tax Exemption:

2025 Annual Exclusion for a present interest gift:  $19,000 per donee

Connecticut Estate Tax Exemption:

Since 2023, the Connecticut estate tax exemption has been aligned with the federal estate exemption and is the same – see above

Non-Portability in Connecticut: Unlike the federal estate tax exemption, however, 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.
• In 2023, it increased significantly to $12,920,000, commencing the alignment with the federal exemption.
• In 2024, it is $13,610.00.
• In 2025, it is $13,990.00. 

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.

Updated October, 2025