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 |
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|
Class A. Exempt |
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|
Class B. (Total exemption for class ($600,000) is included in table) |
||||
|
If net taxable amount passing to |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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 |
but is |
the tax is |
plus |
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.
SN 2001(10)
Succession Tax
Succession Tax Legislative Changes
Issued: 12/26/2001