DRS: SN 2001(10), More 2001 Legislation Affecting the Succession Tax

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

.pdf version

SN 2001(10)

More 2001 Legislation Affecting the Succession Tax


Purpose: This Special Notice describes legislation that was passed during the November 15, 2001, Special Session of the Connecticut General Assembly delaying the reduction, in increments, and the ultimate repeal of the succession tax for a net taxable estate passing to any Class B or Class C beneficiary.


Effective Date: Upon issuance and applicable as described below.


Statutory Authority: Conn. Gen. Stat. §12-344(d) and (e), as amended by 2001 Conn. Pub. Acts 1, §1 (Nov. 15 Spec. Sess.).


Effect on Each Class of Beneficiary

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; and a natural or adopted descendant of the decedent, 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 reduction, in increments, 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); 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 descendant’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 tables that follow take into account the effective tax rate including the surtax under Conn. Gen. Stat. §12-344a(a), the surtax on the sum of the tax, and the surtax under Conn. Gen. Stat. §12-344a(b) 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 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).


Tax Table for Estates of Decedents Dying During 2001

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 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 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 During 2004

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 2005

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 2006

Class AA. Exempt

Class A. Exempt

Class B. Exempt

Class C. Exempt



Effect on Other Documents: This Special Notice modifies and supersedes the tax tables that were published in Special Notice 95(18), 1995 Legislative Changes Affecting the Succession and Transfer Taxes and the Estate Tax, for estates of decedents dying during 2002 or thereafter.  Special Notice 95(18) is modified and superseded, and to that extent, it may not be relied upon on or after the date of issuance of this Special Notice.


Effect of This Document: A Special Notice is a document that 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 and may be referred to for general guidance by taxpayers or tax practitioners.


For Further Information: Please 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 (toll-free within Connecticut) and select Option 2 from a touch-tone phone.

SN 2001(10)
Succession Tax
Succession Tax Legislative Changes
Issued: 12/26/2001