While Connecticut increases the exemption in 2020, not requiring estates valued under 5.1 million to be subject to Connecticut estate taxes, all decedent estates will continue to be subject to Probate Court fees. These fees apply regardless if the deceased individual’s assets are subject to probate, held in a lifetime revocable trust, pass to beneficiaries via survivorship beneficiary designations (such as jointly held real estate or bank accounts) or pass via designations (such as life insurance proceeds or retirement plans). All these types of assets are considered a part of the deceased person’s gross estate and subject to a probate fee.
By way of example, an estate with a gross taxable estate value of $500,000 would be subject to a probate fee of $1865 and a $1,000,000 gross taxable estate would pay $3115 in probate fees. This is often a surprise to clients that have set up living trusts in order to avoid probate and yet find their assets are still subject to the fees of the Probate Court. This is important information you need to know before paying for the cost and expense of a living trust in order to avoid probate.
This article is for informational purposes only. It is not intended to be, nor should it be relied upon, for legal advice.