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At Heritage Law, we assist out-of-state counsel and fiduciaries with ancillary probate.
Understanding Connecticut’s Inchoate Lien
When non-resident decedents die owning real property in Connecticut, two inchoate liens are automatically placed on such real property at death. These liens are for Connecticut estate tax and probate fees and they apply whether the decedent owned the Connecticut property solely, jointly or in a revocable trust. These liens create a cloud on title. Our office can work with you to obtain a release of liens, clearing title and enabling the property to be transferred or sold.
Assessment of Connecticut Probate Fees and Estate Tax
For the estates of non-residents, Connecticut probate fees are assessed solely on real property and tangible personal property situated within Connecticut at the time of death. For Connecticut estate tax purposes, however, Connecticut law requires the reporting of all assets including those located outside of Connecticut. This is so that the Connecticut Department of Revenue Services can determine whether the decedent’s net taxable estate exceeds the applicable Connecticut estate tax exemption. If it does, a prorated amount of Connecticut estate tax is paid based on the value of the real and tangible personal property located in Connecticut.
Navigating the Ancillary Probate Process
The following forms are essential components of the ancillary probate process in Connecticut:
- Form C-3 UGE State of Connecticut Domicile Declaration: This form is mandatory when a decedent is claimed to be a nonresident of Connecticut. It is filed by the fiduciary of the decedent’s estate.
- Scenario 1: If the decedent’s Connecticut taxable estate, as valued for federal estate tax purposes, equals or is less than the Connecticut estate tax exemption for the year of death, Form C-3 UGE is submitted to the appropriate Connecticut Probate Court. Additionally, a Form PC-205B is filed alongside a CT706-NT and an exemplified copy of the probate record from the out-of-state probate court with primary jurisdiction over the estate. The objective is to secure a PC-258 Certificate Releasing Liens.
- Scenario 2: If the decedent’s Connecticut taxable estate exceeds the Connecticut estate tax exemption for the year of death, Form C-3 UGE is filed with the Department of Revenue Services (DRS), accompanied by Form CT-4422 UGE to obtain a Form CT-792 UGE, Certificate Releasing Connecticut Estate Tax Lien from the Connecticut Department of Revenue Services. Furthermore, a PC-257 Certificate Releasing Connecticut Probate Fee Lien is also necessary. All certificates releasing liens are officially recorded on the land records where the real property is situated to clear the title.
Our dedicated team is ready to assist you in navigating ancillary probate to clear title and enable property transfers and sales to move forward. If we can assist you, please reach out to our office at (203) 586-1445 or CONTACT US online.