Estate Tax Returns
The loss of a loved one brings with it a number of immediate and important responsibilities. One of the most complex is settling the decedent’s financial affairs, which often involves filing an estate tax return. At Bakewell & Mulhare, we provide the clear, strategic guidance you need to navigate this intricate process, ensuring all obligations are met with precision and care.
What is an Estate Tax Return?
An estate tax return is a comprehensive document filed with the government after an individual’s passing. Its purpose is to report the total value of the deceased person’s assets—known as their “gross estate”—to determine if any tax is owed on the transfer of this wealth. This is not an income tax return; rather, it is a detailed accounting of everything the person owned, from real estate and bank accounts to investments and personal property. Properly preparing this return is a critical step in the administration of an estate before any assets can be distributed to heirs.
Federal vs. Connecticut Filing Requirements
An estate may be required to file tax returns at both the federal and state levels, and the rules for each are distinct.
Federal Estate Tax Return: The IRS requires the filing of Form 706 for a deceased U.S. citizen or resident. However, this is only necessary if the estate’s total value, combined with prior taxable gifts, exceeds a very high federal exemption threshold ($13.61 million per individual in 2024). While this means most estates are not subject to a federal tax, it is crucial to properly value the assets to confirm whether a return is required. In some cases, filing a federal return is a strategic choice to protect a surviving spouse’s future exemption, a concept known as “portability.”
Connecticut Estate & Gift Tax Return: Connecticut is one of a minority of states that imposes its own estate tax. The state requires the filing of Form CT-706/709 at a significantly lower exemption threshold than the federal government. This means many Connecticut residents whose estates fall well below the federal filing requirement are still legally obligated to file a state estate tax return. Navigating the specific rules, deadlines, and deductions for Connecticut is essential for proper compliance.
Your Partner in Estate Administration
Preparing an accurate and timely estate tax return is a complex and demanding task. For over 20 years, the team at Bakewell & Mulhare has provided expert guidance to executors and families across Connecticut, helping them fulfill their fiduciary duties with confidence.
Our process is designed for clarity and collaboration. It begins with an initial planning meeting where we sit down with you to gather all necessary documentation and understand the unique components of the estate. Following this meeting, our team meticulously prepares the draft return, applying our deep knowledge of tax law to ensure every detail is accounted for. We then schedule a final review meeting with you to walk through the completed return line-by-line, answering your questions and confirming its accuracy before we file.
Our comprehensive approach ensures compliance with both federal and state law, providing you with the peace of mind that comes from knowing this critical responsibility is handled correctly. Let our experience work for you.