Danbury Probate and Estate Administration Law Blog

Many Connecticut residents have become skeptical of what comes out of Washington, D.C., these days. A prime example was the debate over the federal estate tax exemption last year and whether the exemption would be eliminated or reduced.

The fears over the tax implications of Congress' action or inaction caused many around the country to alter their estate plans. For instance, many gave away assets before the deadline in fear of what would happen. While Congress ultimately made the exemption permanent at a level over $5 million, indexed for inflation, there is still much action that must be done by Connecticut residents in order to make sure their estate planning documents are in order.

When it comes to who Connecticut residents trust, there are often no stronger individuals than family and friends. The bonds individuals develop with family and friends throughout their lifetime are not only important in every day affairs, but in estate planning as well.

Part of estate planning is designating certain individuals to take certain roles if the person becomes incapacitated, or when the person dies. For instance, setting up a power of attorney and a guardianship are key aspects of any estate plan, to cover any and all contingencies that may occur to an individual.

Many Connecticut residents consider their pets to be a regular member of the family. Some pet owners decide to carry this sentiment into their estate plan. While this may surprise others, it can be just as effective as other succession planning strategies in terms of reducing estate taxes.

Recently, for example, a man left a portion of his estate to every county-run animal shelter in his home state. The man, a dairy farmer, was said to have a fondness for stray cats and other animals. Based on this love, the man's will left nearly $1 million in donations to various charities. The man also left $2,590 to 235 different cemeteries due to his interest in maintenance and upkeep of the cemeteries.

When Connecticut residents die, surviving loves ones often must not only deal with the grief they feel for their loss, but confusion over handling the state of the deceased person. This makes it all the more important for individuals to ensure their estate plan is in place before they die, to minimize the struggle for loved ones to sort out issues afterward.

One of the more confusing areas for many individuals is dealing with estate tax issues. Perhaps the first step in assessing an estate tax is knowing how the tax will be assessed and what basis will be used. For example, it can be tricky for individuals to know what basis to use for property acquired from a deceased person.