If you live in an area like Glastonbury or Westport and your estate includes substantial real estate, investments, or business interests, your legacy planning needs to be both strategic and detailed.
A basic will may not address the level of complexity involved. Protecting your assets, reducing tax exposure, and setting up long-term structures for your family requires a more advanced approach.
Legacy planning focuses on more than just transferring wealth. It’s about preserving your values, minimizing risk, and supporting the people and causes you care about most.
In Connecticut, where both state and federal taxes come into play, thoughtful planning can make a significant difference.
Connecticut’s Estate and Gift Tax Structure
Connecticut is the only state that currently imposes both a state-level estate tax and a gift tax. As of 2025, the Connecticut estate and gift tax exemption is $13.99 million. This is the same level as the federal transfer taxes.
Lifetime Gifting as a Strategic Tool
Unlike many other states, Connecticut tracks cumulative lifetime gifts. These gifts count against your exemption just like assets transferred at death. If your lifetime gifts and the value of your taxable estate exceed the exemption, your estate will face tax liability.
One way to manage this is by making strategic use of the annual gift tax exclusion. In 2025, you can gift up to $19,000 per recipient each year without impacting your lifetime exemption. Married couples can double that amount to $38,000 per recipient per year.
Over time, this technique allows you to transfer wealth gradually, reducing the size of your taxable estate. In addition, these gifts can support children, grandchildren, or charitable efforts in a way that aligns with your long-term vision.
Trusts Offer Flexibility and Control
High-net-worth individuals often use irrevocable trusts to mitigate estate tax exposure. An irrevocable life insurance trust (ILIT), for example, can hold life insurance policies outside of your taxable estate.
A grantor retained annuity trust (GRAT) may help transfer appreciation on assets to heirs with minimal tax consequences. For real estate holdings, a qualified personal residence trust (QPRT) allows you to remove the value of a home from your estate while still living in it for a set period.
Each trust type has specific requirements and advantages, so selecting the right structure depends on your goals, your family circumstances, and the type of assets involved.
Planning for Business Succession
If you own a closely held business in Connecticut, it’s important to integrate succession planning into your legacy plan. This isn’t just about choosing a successor—it’s about creating a structure that supports a smooth transition, minimizes tax exposure, and preserves business continuity.
Options might include a buy-sell agreement, a family limited partnership, or the use of intentionally defective grantor trusts. These tools can allow you to pass the business on with clear rules and reduced valuation risk for estate tax purposes.
Without a succession plan in place, the business may face disruption, valuation disputes, or even liquidation, especially if heirs disagree on how to proceed. Planning now helps avoid that scenario.
Charitable Giving as a Legacy Strategy
Charitable giving is a common goal in legacy planning. Whether you support local organizations in Glastonbury or Westport or contribute to national causes, incorporating philanthropy into your estate plan can provide both tax benefits and personal fulfillment.
You might use donor-advised funds, charitable remainder trusts, or direct gifts through your estate. These methods can help reduce your taxable estate while supporting your values. In some cases, charitable strategies can also provide income streams during your lifetime.
Attend a Complimentary Learning Event!
We conduct educational seminars that go over all of the most important elements of the estate planning process. There is no charge to attend these events, so this is a great way to connect with our firm as you build on your knowledge.
Our two offices are in Westport and Glastonbury, so our seminars are held in these areas and throughout the entire state of Connecticut. To see the dates and learn more, visit this page: CT Estate Planning Events.
Schedule a Complimentary Consultation!
Our firm can help you take the right steps to facilitate smooth and efficient asset transfers after you are gone. If you are ready to get started, call our Westport, CT estate planning offices at 860-548-1000.
You can call the same number if you would like to meet at our Glastonbury location, and you can fill out our contact form if you would like to send us a message.
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