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Governor Lamont's budget proposal for 2020 - 2022 would repeal the Connecticut gift tax. Gifts made within three years of the date of death would be added back to a decedent's taxable estate. If adopted, this change would give rise to numerous planning opportunities. We will keep a close eye on this.
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This is a follow up to my November 5, 2018 blog, in which a described a Surrogate Court’s decision that QTIP assets from a 2010 estate are not subject to New York estate tax upon the death of the surviving spouse. The Budget bill would amend New York tax law so that QTIP assets from a 2010 estate are subject to New York estate tax upon the death of the surviving spouse for deaths after April 1, 2019.
Also, the bill would extend the New York three-year gift add back until January 1, 2026. This would apply to the estates of individuals dying on or after January 1, 2019. February 1, 2019. Sen. Bernie Sanders of Vermont has introduced legislation that would reform the federal estate tax. Currently, an individual is entitled to a combined lifetime gift and estate tax exemption of $11,400,000. The federal tax is 40% on gifts and estates that exceed this threshold.
Sen. Sanders’ bill would reduce the combined lifetime gift and estate tax exemption to $3,500,000. It would impose a 45% tax on the value of an estate between $3,500,000 and $10,000,000, a 50% tax on the value of an estate between $10,000,000 and $50,000,000; a 55% tax on the value of an estate between $50,000,000 and $1,000,000,000, and a 77% tax on the value of an estate above $1,000,000,000. |
AuthorMr. Hendel has been practicing wealth preservation planning for over forty years. Archives
September 2022
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