DRS: SN 2003(13), 2003 Legislation Affecting the Succession Tax

 
 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

SN 2003(13)

 

2003 Legislation Affecting the Succession Tax


Purpose: This Special Notice describes legislation passed during the June 30 Special Session of the Connecticut General Assembly delaying the incremental reduction and the ultimate repeal of the succession tax for a net taxable estate passing to any Class B or Class C beneficiary.


Effective Date: August 16, 2003, and applicable to transfers from estates of decedents dying on or after March 1, 2003.


Statutory Authority: Conn. Gen. Stat. §12-344(d) and (e), as amended by 2003 Conn. Pub. Acts 1, §94 (June 30 Spec. Sess.).


Effect on Class AA beneficiaries and Class A beneficiaries: The net taxable estate passing to any Class AA beneficiary or to any Class A beneficiary is and remains exempt from succession tax.

A person is a Class AA beneficiary of the decedent if he or she is the decedent’s spouse. The net taxable estate passing to a Class AA beneficiary is and remains exempt from succession tax if the decedent died on or after July 1, 1988.

A person is a Class A beneficiary of the decedent if he or she is the decedent’s parent; grandparent; adoptive parent, or a natural or adopted descendant, such as a daughter, son, grandchild, or great-grandchild. The net taxable estate passing to a Class A beneficiary is and remains exempt from succession tax if the decedent died on or after January 1, 2001.


Effect on Class B beneficiaries and Class C beneficiaries: The net taxable estate passing to any Class B or Class C beneficiary is affected by the delay in the incremental reduction and ultimate repeal of the succession tax.

A person is a Class B beneficiary of the decedent if he or she is the decedent’s brother or sister (full or half) or adopted brother or sister; a natural or adopted descendant of the brother or sister (niece or nephew related by blood); stepchild; or the spouse or unremarried widow(er) of the decedent’s natural or adopted child.

A person is a Class C beneficiary of the decedent if he or she is not a Class AA beneficiary, a Class A beneficiary, or a Class B beneficiary. For example, a Class C beneficiary may include the decedent’s cousin, uncle, aunt, sister-in-law, brother-in-law, stepbrother, stepsister, or step-grandchild, as well as unrelated individuals and associations or corporations.

The following tables take into account the effective tax rate and are applicable to the net taxable estate of a decedent who dies during 2001, 2002, 2003, or 2004 passing to a Class B or Class C beneficiary. The effective tax rate means and includes the tax under Conn. Gen. Stat. §12-344(d) or (e), the surtax under Conn. Gen. Stat. §12-344a(a), and the additional surtax on the sum of the tax and the surtax under Conn. Gen. Stat. §12-344a(b). The tables do not cover the net taxable estate passing to a Class AA or Class A beneficiary, or any transfer to any charitable, literary, scientific, historical, religious, or government-related organization. Transfers from an estate of a decedent to any charitable, literary, scientific, historical, religious, or government-related organization are exempt from succession tax. Conn. Gen. Stat. §12-347(a). (See Form C-107, Tax Tables for Succession and Transfer Taxes, on the DRS Web site at www.ct.gov/DRS for tax tables applicable to the net taxable estate of a decedent who died before 2001.)


Tax Table for Estates of Decedents Dying During 2001 or 2002

Class AA. Exempt

Class A. Exempt

Class B. (Total exemption for class ($600,000) is included in table.)

If net taxable amount passing to
Class B is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$600,000

$0

-----

-----

600,000

1,000,000

0

12.87%

$600,000

over 1,000,000

-----

51,480

14.30%

1,000,000

Class C. (Total exemption for class ($200,000) is included in table.)

If net taxable amount passing to
Class C is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$200,000

$0

-----

-----

200,000

250,000

0

14.30%

$200,000

250,000

400,000

7,150

15.73%

250,000

400,000

600,000

30,745

17.16%

400,000

600,000

1,000,000

65,065

18.59%

600,000

over 1,000,000

-----

139,425

20.02%

1,000,000


Tax Table for Estates of Decedents Dying During January or February 2003

Class AA. Exempt

Class A. Exempt

Class B. (Total exemption for class ($1,500,000) is included in table.)

If net taxable amount passing to
Class B is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$1,500,000

$0

-----

-----

over 1,500,000

-----

0

11.44%

$1,500,000

Class C. (Total exemption for class ($400,000) is included in table.)

If net taxable amount passing to
Class C is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$400,000

$0

-----

-----

400,000

600,000

0

17.16%

$400,000

600,000

1,000,000

34,320

18.59%

600,000

over 1,000,000

-----

108,680

20.02%

1,000,000


Tax Table for Estates of Decedents Dying On or After March 1, 2003
And Prior to January 1, 2005

Class AA. Exempt

Class A. Exempt

Class B. (Total exemption for class ($600,000) is included in table.)

If net taxable amount passing to
Class B is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$600,000

$0

-----

-----

600,000

1,000,000

0

12.87%

$600,000

over 1,000,000

-----

51,480

14.30%

1,000,000

Class C. (Total exemption for class ($200,000) is included in table.)

If net taxable amount passing to
Class C is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$200,000

$0

-----

-----

200,000

250,000

0

14.30%

$200,000

250,000

400,000

7,150

15.73%

250,000

400,000

600,000

30,745

17.16%

400,000

600,000

1,000,000

65,065

18.59%

600,000

over 1,000,000

-----

139,425

20.02%

1,000,000


Tax Table for Estates of Decedents Dying During 2005

Class AA. Exempt

Class A. Exempt

Class B. (Total exemption for class ($1,500,000) is included in table.)

If net taxable amount passing to
Class B is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$1,500,000

$0

-----

-----

over 1,500,000

-----

0

11.44%

$1,500,000

Class C. (Total exemption for class ($400,000) is included in table.)

If net taxable amount passing to
Class C is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$400,000

$0

-----

-----

400,000

600,000

0

17.16%

$400,000

600,000

1,000,000

34,320

18.59%

600,000

over 1,000,000

-----

108,680

20.02%

1,000,000


Tax Table for Estates of Decedents Dying During 2006

Class AA. Exempt

Class A. Exempt

Class B. Exempt

Class C. (Total exemption for class ($600,000) is included in table.)

If net taxable amount passing to
Class C is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$600,000

$0

-----

-----

600,000

1,000,000

0

18.59%

$600,000

over 1,000,000

-----

74,360

20.02%

1,000,000


Tax Table for Estates of Decedents Dying During 2007

Class AA. Exempt

Class A. Exempt

Class B. Exempt

Class C. (Total exemption for class ($1,500,000) is included in table.)

If net taxable amount passing to
Class C is at least:

but is
less than or equal to:

the tax is
the sum of:

plus
the following %:

of the amount exceeding:

$0

$1,500,000

$0

-----

-----

over 1,500,000

-----

0

20.02%

$1,500,000


Tax Table for Estates of Decedents Dying During 2008 or Thereafter

Class AA. Exempt

Class A. Exempt

Class B. Exempt

Class C. Exempt


Effect on Other Documents: While this Special Notice does not modify Special Notice 2001(10), More 2001 Legislative Changes Affecting the Succession Tax, the succession tax tables published in Special Notice 2001(10) should not be relied upon by estates of decedents dying on or after March 1, 2003.


Effect of This Document: A Special Notice announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates an informal interpretation of Connecticut tax law by DRS.


For Further Information: Call the DRS Inheritance/Estate Tax Section at 860-297-5737 during business hours, Monday through Friday.


Forms and Publications: Forms and publications are available all day, seven days a week:

  • Internet: Preview and download forms and publications from the DRS Web site: www.ct.gov/drs
  • Telephone: Call 860-297-4753 (from anywhere), or 1-800-382-9463 (in-state) and select Option 2 from a touch-tone phone.

SN 2003(13)
Succession Tax
Succession Tax Legislative Change
Issued: 09/12/2003