For most people, the federal estate tax never comes into play because the exemption is a robust $15 million for 2026. There is a state-level estate tax here in Connecticut to contend with as well, but the exclusion mirrors the $15 million federal exemption.
That said, some people in the Westport and Glastonbury areas hold enough wealth to reach the thresholds where these taxes apply.
If you are among them, the estate tax filing requirements are worth understanding before they matter. Let’s look at the facts so you know what is expected of you.
How the Estate Tax Works
An estate tax is a tax on the transfer of property after someone dies. It is based on the value of everything you own or control when you pass. That includes your home, bank and brokerage accounts, retirement accounts, business interests, and any life insurance policies you may own.
Certain transfers are deducted before any tax is figured, most notably property left to a surviving spouse via the marital exemption along with gifts to charity.
Each tax also comes with an exemption or exclusion, which is the amount that can pass free of taxation. Only the portion of your taxable estate above that $15 million exemption is taxed.
Taxable gifts you made during your lifetime generally count against the same exemption, so large lifetime gifts reduce what remains available at death.
Keep in mind that owing tax and filing a return are two separate questions. As we will see, an estate can be required to file even when no tax is due.
Gift Tax Clarity
There is a federal gift tax that is unified with the estate tax, and there is a state-level gift tax in Connecticut. So, as stated above, any gifts that you give while you are living will reduce the available exclusion that can be applied to your estate after your passing.
However, there is an additional annual exclusion that sits apart from the multimillion-dollar unified gift and estate tax exclusion. At the present time in 2026, this exclusion is $19,000 per recipient.
This means that you can give up to $19,000 to any number of people in a given year without incurring any gift tax exposure, and you wouldn’t use any of your unified exclusion by giving these gifts.
Federal Estate Tax Return
An executor must file federal Form 706 when the gross estate, plus taxable gifts made during your life, exceeds the exemption. The return is due nine months after the date of death. A six-month extension to file is available, but any tax owed is still due at the nine-month mark.
Connecticut Estate Tax Return
On the state level, if your estate is at or below the exemption, your executor files Form CT-706 NT with the probate court in the district where you lived. The probate judge reviews the return and, if satisfied, issues an opinion that no Connecticut estate tax is due.
Estates Above the Exemption
If your Connecticut taxable estate exceeds the exemption, your executor files Form CT-706/709 with the Department of Revenue Services. Both the return and any tax owed are due six months after death, which is three months earlier than the federal deadline.
Extensions are available, but the request must be filed before the original due date.
As we have touched on, Connecticut has its own state-level gift tax. If your Connecticut taxable gifts exceed the applicable Connecticut gift tax exemption, you may need to file Form CT-706/709 by April 15 of the following year.
Estate Tax Efficiency Strategies
These taxes can take a significant bite out of your legacy if you have been very successful from a financial standpoint. The good news is that there are strategies that can be implemented to ease the burden for the benefit of your loved ones after you are gone.
Strategic Gift Giving
You can use the $19,000 per person annual exclusion to shave down the taxable value of your estate over a number of years. This exemption is allotted to each individual taxpayer, so if you are married, you and your spouse could give $38,000 to any number of recipients annually.
To put this into perspective, let’s say that you have three married children. You could give $38,000 to each of your children, and $38,000 to each of their spouses.
This would result in a $228,000 transfer each year, reducing the value of your estate while essentially giving your children portions of their inheritance in advance.
Plus, there are two added gift tax exemptions that you can utilize. You can pay school tuition for any number of students equaling any amount of money each year tax-free. There is also a medical exemption, so you can pay medical bills for others without incurring any gift tax exposure.
Irrevocable Trusts
When you transfer assets into an irrevocable trust, they are no longer part of your estate for tax purposes. There are several different types of trusts that are used to facilitate transfers to the beneficiaries in a tax efficient manner.
These would include the generation-skipping trust, dynasty trust, qualified personal residence trust, grantor retained annuity trust, spousal lifetime access trust, irrevocable life insurance trust, intentionally defective trust, credit shelter trust, and charitable remainder trust.
We Are Here to Help!
Our firm can step up to the plate to help you preserve your wealth if estate taxes are going to be a concern. At the same time, legal counsel is invaluable when you plan your estate, even if you are not a multimillionaire with estate tax liability.
Personalized attention is the key to a proper plan, because each situation is different. When you work with us, we will evaluate your situation and your objectives, and we’ll make recommendations based on the circumstances.
Ultimately, you will go forward with a plan that is tailored to suit your specific needs. And over the years, we will always be available to make the appropriate revisions if and when things change.
We have an estate planning office in Westport, CT, and another location in Glastonbury. You can send us a message to request a consultation at either office, and we can be reached by phone at 860-548-1000.
And if you would like to take a first step before you consult with us formally, join us at one of our monthly seminars. They are offered on a complimentary basis, and you can visit our seminar schedule page to see the dates and obtain registration information.
- What Are the Estate Tax Filing Requirements? - October 13, 2026
- Can a Trustee Change the Terms of a Trust? - October 1, 2026
- What Is a Pour-Over Will and Why Do I Need One? - August 13, 2026
( By appointment only )