The new Connecticut state budget increases the individual exemption from Connecticut estate and gift tax from $2,000,000 up to $2,600,000 in 2018, and to $3,600,000 in 2019. The state exemption is set to match the federal estate and gift tax exemption in 2020.
With the recent changes in the federal estate and gift tax laws, as long as there are no changes to Connecticut tax laws in the interim, this would mean that after 2020 the Connecticut estate and gift tax exemption will be approximately $11,200,000 per person and $22,400,000 per couple.
In addition, the annual exclusion amount for gifts will rise to $15,000 in 2018, after remaining at $14,000 since 2013. As a result, starting in 2018 gifts of $15,000 or less to any number of recipients (or $30,000 or less, if made by a married couple) in a calendar year will have no gift tax consequences.
As with any change to the underlying tax environment, it is important to review your individual estate plan in light of these developments. If you have any questions regarding changes to the estate tax laws and their potential effects on your estate plan, please contact us.