PART II
RATES. EXEMPTIONS. DEDUCTIONS
Sec. 12-344. Rates. (a) The tax imposed under the provisions of this chapter shall
be at the following rates: Class AA, subject to the provisions of subsection (b) of this
section with respect to the net taxable estate passing to the surviving spouse of any
transferor whose death occurs on or after July 1, 1986, the net taxable estate of any
transferor passing to any husband or wife, in excess of three hundred thousand dollars
in value to and including four hundred thousand dollars, five per cent thereof; on the
amount in excess of four hundred thousand dollars to and including six hundred thousand
dollars, six per cent thereof; on the amount in excess of six hundred thousand dollars
to and including one million dollars, seven per cent thereof; and on the amount in excess
of one million dollars, eight per cent thereof: Class A, subject to the provisions of subsection (c) of this section with respect to the net taxable estate passing to any such class A
beneficiary of any transferor whose death occurs on or after January 1, 1997, the net
taxable estate of any transferor passing to any parent, grandparent, adoptive parent and
any natural or adopted descendant, in excess of fifty thousand dollars in value to and
including one hundred fifty thousand dollars, shall be three per cent thereof; on the
amount in excess of one hundred fifty thousand dollars to and including two hundred
fifty thousand dollars, four per cent thereof; on the amount in excess of two hundred
fifty thousand dollars to and including four hundred thousand dollars, five per cent
thereof; on the amount in excess of four hundred thousand dollars to and including six
hundred thousand dollars, six per cent thereof; on the amount in excess of six hundred
thousand dollars to and including one million dollars, seven per cent thereof; and on
the amount in excess of one million dollars, eight per cent thereof: Class B, subject to
the provisions of subsection (d) of this section with respect to the net taxable estate
passing to any such class B beneficiary of any transferor whose death occurs on or after
January 1, 1999, the net taxable estate of any transferor passing to the husband or wife
or widower or widow who has not remarried of any natural or adopted child of such
transferor, to any stepchild, brother or sister of the full or half blood or adopted brother
or sister and to any natural or adopted descendant of such brother or sister, in excess of
six thousand dollars shall be subject to a tax of four per cent to and including twenty-five thousand dollars; the tax on the amount passing to relatives of this class in excess
of twenty-five thousand dollars to and including one hundred fifty thousand dollars shall
be five per cent thereof; on the amount in excess of one hundred fifty thousand dollars
to and including two hundred fifty thousand dollars, six per cent thereof; on the amount
in excess of two hundred fifty thousand dollars to and including four hundred thousand
dollars, seven per cent thereof; on the amount in excess of four hundred thousand dollars
to and including six hundred thousand dollars, eight per cent thereof; on the amount in
excess of six hundred thousand dollars to and including one million dollars, nine per
cent thereof; and on the amount in excess of one million dollars, ten per cent thereof:
Class C, subject to the provisions of subsection (e) of this section with respect to the
net taxable estate passing to any such class C beneficiary of a transferor whose death
occurs on or after January 1, 2001, the net taxable estate of any transferor passing to
any person, corporation or association, not included in either Class AA, Class A or Class
B, in excess of one thousand dollars, and not otherwise exempt, shall be subject to a tax
of eight per cent to and including twenty-five thousand dollars; the tax on the amount
passing to beneficiaries in this class, in excess of twenty-five thousand dollars to and
including one hundred fifty thousand dollars, shall be nine per cent thereof; on the
amount in excess of one hundred fifty thousand dollars to and including two hundred
fifty thousand dollars, ten per cent thereof; on the amount in excess of two hundred fifty
thousand dollars to and including four hundred thousand dollars, eleven per cent thereof;
on the amount in excess of four hundred thousand dollars to and including six hundred
thousand dollars, twelve per cent thereof; on the amount in excess of six hundred thousand dollars to and including one million dollars, thirteen per cent thereof; and on the
amount in excess of one million dollars, fourteen per cent thereof. Only one exemption
as provided in this section for each class shall apply to the net estate passing to all
beneficiaries or distributees in such class. The value of all taxable transfers to a beneficiary or distributee shall be aggregated for the purpose of computing the tax and exemptions.
(b) The tax under this section applicable to the net taxable estate of any transferor
passing to the surviving spouse of such transferor shall, with respect to the estate of any
transferor whose death occurs on or after July 1, 1986, be imposed as follows: (1) If the
death of the transferor occurs on or after July 1, 1986, but prior to July 1, 1987, the net
taxable estate passing to the surviving spouse of such transferor shall be subject to tax
at the rate of (A) three per cent on the amount in excess of three hundred thousand dollars
in value to and including four hundred thousand dollars, (B) four per cent on the amount
in excess of four hundred thousand dollars in value to and including six hundred thousand
dollars, (C) five per cent on the amount in excess of six hundred thousand dollars in
value to and including one million dollars and (D) six per cent on the amount in excess
of one million dollars in value, (2) if the death of the transferor occurs on or after July
1, 1987, but prior to July 1, 1988, the net taxable estate passing to the surviving spouse
of such transferor shall be subject to tax at the rate of (A) one and one-half per cent on
the amount in excess of three hundred thousand dollars in value to and including four
hundred thousand dollars, (B) two per cent on the amount in excess of four hundred
thousand dollars in value to and including six hundred thousand dollars, (C) two and
one-half per cent on the amount in excess of six hundred thousand dollars in value to
and including one million dollars and (D) three per cent on the amount in excess of one
million dollars in value, and (3) if the death of the transferor occurs on or after July 1,
1988, the net taxable estate passing to the surviving spouse of such transferor shall not
be subject to tax under this chapter.
(c) The tax under this section, applicable to the net taxable estate of any transferor,
whose death occurs on or after January 1, 1997, passing to a class A beneficiary shall
be imposed as follows: (1) If the death of the transferor occurs on or after January 1,
1997, but prior to January 1, 1998, at the rate of (A) five per cent on the amount in
excess of two hundred fifty thousand dollars in value to and including four hundred
thousand dollars, (B) six per cent on the amount in excess of four hundred thousand
dollars in value to and including six hundred thousand dollars, (C) seven per cent on
the amount in excess of six hundred thousand dollars in value to and including one
million dollars and (D) eight per cent on the amount in excess of one million dollars in
value, (2) if the death of the transferor occurs on or after January 1, 1998, but prior to
January 1, 1999, at the rate of (A) six per cent on the amount in excess of five hundred
thousand dollars in value to and including six hundred thousand dollars, (B) seven per
cent on the amount in excess of six hundred thousand dollars in value to and including
one million dollars and (C) eight per cent on the amount in excess of one million dollars
in value, (3) if the death of the transferor occurs on or after January 1, 1999, but prior
to January 1, 2000, at the rate of (A) seven per cent on the amount in excess of eight
hundred thousand dollars in value to and including one million dollars and (B) eight
per cent on the amount in excess of one million dollars in value, (4) if the death of the
transferor occurs on or after January 1, 2000, but prior to January 1, 2001, at the rate of
eight per cent on the amount in excess of two million dollars in value and (5) if the death
of the transferor occurs on or after January 1, 2001, the net taxable estate passing to a
class A beneficiary shall not be subject to tax under this chapter.
(d) The tax under this section applicable to the net taxable estate of any transferor,
whose death occurs on or after January 1, 1999, passing to a class B beneficiary shall
be imposed as follows: (1) If the death of the transferor occurs on or after January 1,
1999, but prior to January 1, 2000, at the rate of (A) six per cent on the amount in excess
of two hundred thousand dollars in value to and including two hundred fifty thousand
dollars, (B) seven per cent on the amount in excess of two hundred fifty thousand dollars
in value to and including four hundred thousand dollars, (C) eight per cent on the amount
in excess of four hundred thousand dollars in value to and including six hundred thousand
dollars, (D) nine per cent on the amount in excess of six hundred thousand dollars in
value to and including one million dollars, and (E) ten per cent on the amount in excess
of one million dollars in value, (2) if the death of the transferor occurs on or after January
1, 2000, but prior to January 1, 2001, at the rate of (A) eight per cent on the amount in
excess of four hundred thousand dollars in value to and including six hundred thousand
dollars, (B) nine per cent on the amount in excess of six hundred thousand dollars in
value to and including one million dollars, and (C) ten per cent on the amount in excess
of one million dollars in value, (3) if the death of the transferor occurs on or after January
1, 2001, but prior to January 1, 2005, at the rate of (A) nine per cent on the amount in
excess of six hundred thousand dollars in value to and including one million dollars,
and (B) ten per cent on the amount in excess of one million dollars in value, (4) if the
death of the transferor occurs on or after January 1, 2005, but prior to January 1, 2006,
at the rate of eight per cent on the amount in excess of one million five hundred thousand
dollars in value, and (5) if the death of the transferor occurs on or after January 1, 2006,
the net taxable estate passing to a class B beneficiary shall not be subject to tax under
this chapter.
(e) The tax under this section applicable to the net taxable estate of any transferor,
whose death occurs on or after January 1, 2001, passing to a class C beneficiary shall
be imposed as follows: (1) If the death of the transferor occurs on or after January 1,
2001, but prior to January 1, 2005, at the rate of (A) ten per cent on the amount in excess
of two hundred thousand dollars in value to and including two hundred fifty thousand
dollars, (B) eleven per cent on the amount in excess of two hundred fifty thousand dollars
in value to and including four hundred thousand dollars, (C) twelve per cent on the
amount in excess of four hundred thousand dollars in value to and including six hundred
thousand dollars, (D) thirteen per cent on the amount in excess of six hundred thousand
dollars in value to and including one million dollars, and (E) fourteen per cent on the
amount in excess of one million dollars in value, (2) if the death of the transferor occurs
on or after January 1, 2005, but prior to January 1, 2006, at the rate of (A) twelve per
cent on the amount in excess of four hundred thousand dollars in value to and including
six hundred thousand dollars, (B) thirteen per cent on the amount in excess of six hundred
thousand dollars in value to and including one million dollars, and (C) fourteen per cent
on the amount in excess of one million dollars in value, (3) if the death of the transferor
occurs on or after January 1, 2006, but prior to January 1, 2007, at the rate of (A) thirteen
per cent on the amount in excess of six hundred thousand dollars in value to and including
one million dollars, and (B) fourteen per cent on the amount in excess of one million
dollars in value, (4) if the death of the transferor occurs on or after January 1, 2007, but
prior to January 1, 2008, at the rate of fourteen per cent on the amount in excess of one
million five hundred thousand dollars in value, and (5) if the death of the transferor
occurs on or after January 1, 2008, the net taxable estate passing to a class C beneficiary
shall not be subject to tax under this chapter.
(1949 Rev., S. 2026; 1949, S. 1143d; 1957, P.A. 555, S. 1, 2; 1959, P.A. 571, S. 1; 1963, P.A. 603; 642, S. 10; P.A.
73-309, S. 1, 2; P.A. 78-371, S. 2, 6; P.A. 85-159, S. 6, 19; 85-469, S. 4, 6; P.A. 86-397, S. 6, 10; P.A. 95-256, S. 1; Nov.
15 Sp. Sess. P.A. 01-1, S. 1, 2; June 30 Sp. Sess. P.A. 03-1, S. 94.)
History: 1959 act included widower or widow of child who has not remarried in Class B; 1963 acts clarified status of
adopted children and their descendants and changed Class A tax rate on amounts over one hundred fifty thousand to and
including two hundred fifty thousand dollars from five per cent to four per cent; P.A. 73-309 included estates passing to
brother or sister of adopted brother or sister, applicable to estates of all persons dying on or after July 1, 1973 (estates of
persons dying before that date are subject to succession tax laws previously applicable and continued in force for that
purpose); P.A. 78-371 changed lower amount in Class AA three per cent tax rate from fifty to one hundred thousand dollars,
changed lower amount in Class A two per cent tax rate from ten to twenty thousand dollars and changed lower amount in
Class C tax rate from five hundred to one thousand dollars, effective July 1, 1978, and applicable to estate of any person
dying on or after that date (estates of persons dying before that date are subject to succession and transfer tax laws previously
applicable); P.A. 85-159 increased the minimum value of the net taxable estate subject to taxation under Class AA to three
hundred thousand dollars and under Class A to fifty thousand dollars for the estate of any person dying on or after July 1,
1985; P.A. 85-469 revised effective date of P.A. 85-159 but without affecting this section; P.A. 86-397 added Subsec. (b)
reducing the rates of tax applicable to the net taxable estate of any transferor passing to the surviving spouse of such
transferor in the following manner: (1) The first reduction, in the amount of approximately one-third of applicable rates
preceding reduction, is effective with respect to such estates of transferors whose death occurs on or after July 1, 1986,
(2) the second reduction, in the amount of approximately one-half of applicable rates preceding reduction, is effective with
respect to such estates of transferors whose death occurs on or after July 1, 1987, and (3) the tax is eliminated with respect
to such estates of transferors whose death occurs on or after July 1, 1988, effective June 11, 1986, and applicable to the
estate of any transferor whose death occurs on or after July 1, 1986; P.A. 95-256 added new Subsecs. (c), (d) and (e) to
increase the exemption amount and phase out tax over a five-year period for class A, B and C beneficiaries, respectively,
and made technical changes to Subsec. (a); Nov. 15 Sp. Sess. P.A. 01-1 amended Subsecs. (d) and (e) to delay by one year
the phase-out of tax after January 1, 2002, for class B and class C beneficiaries and to make technical changes, effective
November 20, 2001; June 30 Sp. Sess. P.A. 03-1 amended Subsecs. (d) and (e) to delay the phaseout of tax under those
subsections by two years, effective August 16, 2003, and applicable to transfers from estates of decedents who die on or
after March 1, 2003.
"Adopted child" as included in class A means legally adopted child. 147 C. 134. History of statute discussed. Id., 178.
Under former statute, class B held to include the widow of a son. 147 C. 178. Computation should be on basis of disposition
by will rather than the distribution made under a compromise agreement entered into by the beneficiaries. 147 C. 406.
Rate of Connecticut succession tax depends not only on value of property which passes on death but on identity of inheritors
of that property. 173 C. 232, 237. For purposes of computation of the succession tax "step" relationship survives divorce
of the natural parent from the stepparent and also the death of the natural parent. 184 C. 380-382. Cited. 210 C. 277, 279.
Cited. 215 C. 633, 637.
Cited. 10 CA 95, 97.
Cited. 25 CS 249. Cited. 44 CS 421.
Subsec. (a):
Cited. 44 CS 421.
Subsec. (b):
Subdiv. (3) cited. 44 CS 421.
Sec. 12-344a. Additional amount added to tax. (a) To the tax imposed by the
provisions of this chapter, there shall be added an amount equal to thirty per cent of the
tax so imposed and computed under said provisions. Said added amount so computed
shall, upon its addition as aforesaid, constitute a part of the tax imposed and to be computed and assessed, become due and be paid, collected and enforced as provided in this
chapter.
(b) With respect to the estate of any person whose death occurs on or after July 1,
1983, there shall be added to the tax imposed by the provisions of this chapter, including
the amount of tax added in accordance with subsection (a) of this section, and subject
to the provisions of subsection (c) of this section, an amount determined as ten per cent
of the tax so imposed and computed under said provisions. The additional amount of
tax determined in accordance with this subsection shall constitute a part of the tax imposed by the provisions of this chapter and shall be computed and assessed, become
due and be paid, collected and enforced as provided in this chapter. The estate of any
person whose death occurs prior to July 1, 1983, shall be subject to the provisions of
this chapter applicable to such estate at the time of such person's death.
(c) The additional amount of tax imposed in accordance with subsection (b) of this
section shall not be applicable with respect to any real property in the estate of the
decedent passing to any natural or adopted descendant of the decedent, which real property is classified as farm land in accordance with section 12-107c at the time of the
decedent's death.
(1961, P.A. 332; June Sp. Sess. P.A. 83-1, S. 4, 15.)
History: June Sp. Sess. P.A. 83-1 added Subsec. (b) providing that with respect to a decedent whose death occurs on
or after July 1, 1983, an additional amount of tax shall be added to the tax otherwise payable under chapter 216, to be
determined as ten per cent of such tax and added Subsec. (c) providing that the additional tax imposed under Subsec. (b)
shall not be applicable with respect to real property classified as farmland passing to any natural or adopted descendant.
Cited. 215 C. 633, 637, 645.
Sec. 12-344b. Applicable rates. The provisions of section 12-344 shall apply to
the estates of all persons dying on or after July 1, 1973. The estates of persons dying
prior to said date shall be subject to the succession tax laws applicable to them prior to
said date and such laws are continued in force for that purpose.
(P.A. 73-309, S. 2.)
Cited. 173 C. 232, 244, 245. Cited. 215 C. 633, 637.
Sec. 12-345. Revocable trusts. A transfer of property by deed of trust wherein
the settlor reserved to himself, or to himself and others not beneficiaries, powers of
revocation, alteration or amendment, upon the exercise of which the property might
revest in him, shall, upon the death of the settlor, be taxable to the extent of the value
of the property subject to such powers and with respect to which such powers remained
unexercised. The word "property", as used in this section, shall not include the proceeds
of any policy of life, accident or health insurance, payable to a named beneficiary or
beneficiaries, or the executors of the will or the administrators of the estate of the insured,
nor the proceeds of any policy of war risk insurance, United States government life
insurance or national service life insurance.
(1949 Rev., S. 2024; September, 1957, P.A. 11, S. 49; 1969, P.A. 784, S. 2.)
History: 1969 act excluded from consideration as property proceeds of policy payable to executors or administrators,
reversing previous provision.
Cited. 122 C. 122. See note to Sec. 12-341 as to 125 C. 456. Purpose of this section to clarify the law, not to bring
within scope of statutes transfers not otherwise taxable. 129 C. 185.
Sec. 12-345a. Taxation of property transferred by exercise or nonexercise of
a power of appointment. Section 12-345a is repealed, effective May 24, 1972, and
retroactive to January 1, 1972. All estates of persons dying before January 1, 1972, shall
be subject to the succession tax laws applicable to them prior to January 1, 1972, and
such laws are continued in force for that purpose.
(1969, P.A. 796, S. 1, 2; 1972, P.A. 290, S. 5.)
Application to donee's exercise or nonexercise of a power of appointment re a marital deduction trust. Nonvesting of
property in decedent does not prevent taxation. Application is not invalid for retroactivity. 166 C. 581. History of provision.
166 C. 581. Statute reaches transfer of economic benefits to appointee upon exercise of power of appointment by donee
and to taker in default by omission of its exercise notwithstanding prior taxation in donee's estate. 173 C. 232, 243.
Cited. 32 CS 231.
Sec. 12-345b. Taxation of property transferred by exercise or nonexercise of
power of appointment: Definitions. As used in sections 12-345b to 12-345f, inclusive,
the term "general power of appointment" means a power, whether created before or
after May 24, 1972, which is exercisable in favor of the decedent, his estate, his creditors
or the creditors of his estate, except that (a) a power to consume, invade or appropriate
property for the benefit of the decedent which is limited by an ascertainable standard
relating to the health, education, support or maintenance of the decedent shall not be
deemed a general power of appointment; (b) a power of appointment created on or before
October 21, 1942, which is exercisable by the decedent only in conjunction with another
person shall not be deemed a general power of appointment; and (c) in the case of a power
of appointment created after October 21, 1942, which is exercisable by the decedent only
in conjunction with another person: (1) If the power is not exercisable by the decedent
except in conjunction with the creator of the power, such power shall not be deemed a
general power of appointment; (2) if the power is not exercisable by the decedent except
in conjunction with a person having a substantial interest in the property subject to the
power, which is adverse to exercise of the power in favor of the decedent, such power
shall not be deemed a general power of appointment. For the purposes of this section a
person who, after the death of the decedent, may be possessed of a power of appointment,
with respect to the property subject to the decedent's power, which he may exercise in
his own favor shall be deemed as having an interest in the property and such interest
shall be deemed adverse to such exercise of the decedent's power; and (3) if, after the
application of subdivisions (1) and (2), the power is a general power of appointment
and is exercisable in favor of such other person, such power shall be deemed a general
power of appointment only with respect to a fractional part of the property subject to
such power, such part to be determined by dividing the value of such property by the
number of such persons, including the decedent, in favor of whom such power is exercisable. For purposes of subdivisions (2) and (3), a power shall be deemed to be exercisable
in favor of a person if it is exercisable in favor of such person, his estate, his creditors
or the creditors of his estate.
(1972, P.A. 290, S. 4; P.A. 75-437, S. 1, 5.)
History: 1972 act effective May 24, 1972, and retroactive to January 1, 1972 (all estates of persons dying before January
1, 1972, are subject to succession tax laws applicable before that date and continued in force for that purpose); P.A. 75-437 extended definition to apply to Sec. 12-345f, made former Subdiv. (b) applicable to powers of appointment created
after October 21, 1942, redesignating it as Subdiv. (c), and inserted new Subdiv. (b) re powers of appointment created on
or before October 21, 1942, effective, effective June 26, 1975, and retroactive to January 1, 1972.
Cited. 173 C. 232, 234, 235, 237.
Cited. 10 CA 95, 99-101.
Cited. 32 CS 231.
Sec. 12-345c. Taxable transfer made, when. For purposes of the tax imposed by
this chapter, a decedent shall be deemed to have made a taxable transfer of any property
with respect to which (a) a general power of appointment created on or before October
21, 1942, is exercised by the decedent (1) by will, or (2) by a disposition which is of
such nature that if it were a transfer of property owned by the decedent, such property
would be taxable under the provisions of subsection (c) or (d) of section 12-341b; but
the failure to exercise such a power or the complete release of such a power shall not
be deemed an exercise thereof. If a general power of appointment created on or before
October 21, 1942, has been partially released so that it is no longer a general power of
appointment, the exercise of such power shall not be deemed to be the exercise of a
general power of appointment if such partial release occurred before November 1, 1951,
or if the donee of such power was under a legal disability to release such power and
such partial release occurred not later than six months after the termination of such legal
disability; or (b) the decedent has at the time of his death a general power of appointment,
created after October 21, 1942, irrespective of whether he has exercised such power of
appointment, or with respect to which the decedent has at any time exercised or released
such a general power of appointment by a disposition which is of such nature that if it
were a transfer of property owned by the decedent, such property would be taxable under
the provisions of subsection (c) or (d) of section 12-341b. A disclaimer or renunciation of
a general power of appointment shall not be deemed a release of such power. For purposes of this section the power of appointment shall be considered to exist on the date
of the decedent's death even though the exercise of the power is subject to a precedent
giving of notice or even though the exercise of the power takes effect only on the expiration of a stated period after its exercise, whether or not on or before the date of the
decedent's death notice has been given or the power has been exercised; or (c) the
decedent (1) by will, or (2) by a disposition which is of such nature that if it were a
transfer of property owned by the decedent such property would be taxable under the
provisions of subsection (c) or (d) of section 12-341b, exercises a power of appointment
created after October 21, 1942, by creating another power of appointment which can
be validly exercised so as to postpone the vesting of any estate or interest in such property,
or suspend the absolute ownership or power of alienation of such property, for a period
ascertainable without regard to the date of the creation of the first power.
(1972, P.A. 290, S. 1; P.A. 75-437, S. 2, 5; P.A. 76-435, S. 3, 82.)
History: 1972 act effective May 24, 1971, and retroactive to January 1, 1972 (all estates of persons dying before January
1, 1972, are subject to succession tax laws applicable before that date and continued in force for that purpose); P.A. 75-437 revised section to distinguish between powers of appointment created on or before October 21, 1942 and those created
after that date, effective June 26, 1975, and retroactive to January 1, 1972; P.A. 76-435 made technical changes.
Cited. 173 C. 232, 235. Cited. 220 C. 77-79, 81, 83-85.
Subsec. (a):
Subdiv. (2) cited. 220 C. 77, 79, 81, 82. Cited. Id., 77, 81, 83.
Sec. 12-345d. Lapse of power. The lapse of a general power of appointment created after October 21, 1942, during the life of the individual possessing the power shall
be considered a release of such power. The preceding sentence shall apply with respect
to the lapse of powers during any calendar year only to the extent that the property,
which could have been appointed by exercise of such lapsed powers, exceeded in value,
at the time of such lapse, the greater of the following amounts: (a) Five thousand dollars
or (b) five per cent of the aggregate value, at the time of such lapse, of the assets out of
which, or the proceeds of which, the exercise of the lapsed powers could have been
satisfied.
(1972, P.A. 290, S. 2; P.A. 75-437, S. 3, 5.)
History: 1972 act effective May 24, 1972, and retroactive to January 1, 1972 (all estates of persons dying before January
1, 1972, are subject to succession tax laws applicable before that date and continued in force for that purpose); P.A. 75-437 specified applicability of provisions to powers of appointment created after October 21, 1942, effective June 26, 1975,
and retroactive to January 1, 1972.
Sec. 12-345e. Tax liability for transfer of property subject to general power
of appointment. Nothing contained in sections 12-345b to 12-345e, inclusive, shall be
deemed to relieve from taxation, under this chapter, in the estate of the donor of a general
power of appointment, the transfer of the property subject to such power. For purposes
of computing the rate of taxation under this chapter in the estate of the donor, the property
transferred subject to such power shall be deemed to pass to the donee of the power,
and the donee of the power shall be deemed to take such property. The provisions of
section 12-340 shall apply with respect to any tax imposed by this section.
(1972, P.A. 290, S. 3; P.A. 74-46.)
History: 1972 act effective May 24, 1972, and retroactive to January 1, 1972 (all estates of persons dying before January
1, 1972, are subject to succession tax laws applicable before that date and continued in force for that purpose); P.A. 74-46 added provision clarifying transfer of property from donor to donee.
This statute imposes tax liability on transfer of property which is subject to general power of appointment. The 1974
amendment to this section mandated that appointive property be deemed to have passed entirely to donee at his donor's
death. 173 C. 232, 244-246. Cited. Id., 232, 235, 237, 242, 244-246.
Cited. 10 CA 95, 101, 102.
Sec. 12-345f. Power created on or before October 21, 1942. For purposes of
sections 12-345b to 12-345d, inclusive, a power of appointment created by a will executed on or before October 21, 1942, shall be considered a power created on or before
such date if the person executing such will dies before July 1, 1949, without having
republished such will, by codicil or otherwise, after October 21, 1942.
(P.A. 75-437, S. 4, 5.)
History: P.A. 75-437 effective June 26, 1975, and retroactive to January 1, 1972.
Sec. 12-346. Transfers to executors and trustees in lieu of commissions. If property is transferred to executors or trustees in lieu of their commissions or allowances
for services rendered in connection with the settlement of the estate, the excess in value
of the property so transferred, above the amount of commissions or allowances which
would be payable in the absence of such transfer, shall be taxable.
(1949 Rev., S. 2025.)
Sec. 12-347. Exemptions. (a) There shall be exempt from the tax imposed by this
chapter all transfers to or for the use of the United States, any state or territory, or
any political subdivision thereof, the District of Columbia, any public institution for
exclusively public purposes, any corporation or institution located within this state
which receives money appropriations made by the General Assembly, or any corporation, institution, society, association or trust, incorporated or organized under the laws
of this state or of any state whose laws provide a similar exemption of transfers to any
similar Connecticut corporation, institution, society, association or trust, formed for
charitable, educational, literary, scientific, historical or religious purposes, provided the
property transferred is to be used exclusively for one or more of such purposes; but no
such transfer shall be exempt if, at the time such transfer occurred, any officer, member,
shareholder or employee of such corporation, institution, society, association or trust is
receiving or previously received any pecuniary profit from the operation thereof, except
reasonable compensation for services in effecting one or more of such purposes or as
proper beneficiaries of a strictly charitable purpose, or if the organization of any such
corporation, institution, society, association or trust for any of the foregoing avowed
purposes is a guise or pretense for directly or indirectly making for it, or for any of its
officers, members, shareholders or employees, any other pecuniary profit, or if it is not
in good faith organized or conducted for one or more of such purposes; and any transfer
to any person, association or corporation in trust for the care of any cemetery lot.
(b) All transfers to or for the use of any corporation, institution, society, association
or trust which would be exempt under the provisions of subsection (a) if such corporation, institution, society, association or trust had been incorporated or organized at the
date of the transferor's death, shall be likewise exempt if satisfactory evidence of the
incorporation or organization thereof is submitted to the commissioner prior to the time
of the filing by the fiduciary of the return as provided in section 12-359. If such satisfactory evidence is not presented at such time, the transfer shall not be exempt; but, if such
satisfactory evidence is presented to the commissioner within five years after the date
of the transferor's death, the commissioner shall recompute the tax, treating such transfers as exempt, and shall, with the written approval of the Attorney General, present the
matter to the Comptroller for a refund.
(c) In addition to exemptions from the tax imposed by this chapter as provided in
subsections (a) and (b) of this section, exemption from said tax shall be allowed with
respect to any transfer of open space land, as defined in section 12-107b provided (1)
the grantor in the instrument of conveyance restricts the perpetual use of such property
to that of open space land or (2) the grantee submits to the probate court in which the
decedent's estate or trust is pending, a document executed by the grantee with the same
formality as that of a deed, whereby the grantee and the heirs, successors and assigns
of such grantee agree to restrict perpetually the use of such property to that of open
space, which document shall be recorded in the land records of the town in which such
property is located. The provisions of this subsection shall be applicable to the estate
of any person whose death occurs on or after July 1, 1984. The estate of any person
whose death occurs prior to July 1, 1984, shall be subject to the provisions of this chapter
in effect at the time of such person's death.
(d) In addition to exemptions from the tax imposed by this chapter, as provided for
in subsections (a), (b) and (c) of this section, exemption from said tax shall be allowed
with respect to any transfer by gift that was not included in the total amount of gifts
made during a calendar year pursuant to subsection (b) of Section 2503 of the Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended.
(1949 Rev., S. 2027; P.A. 84-366, S. 1, 2; P.A. 93-261, S. 2, 4; P.A. 99-173, S. 51, 65.)
History: P.A. 84-366 added Subsec. (c) providing exemption from tax under this chapter for any transfer of land restricted
perpetually to use as open space in the conveyance by the grantor or in a document executed by the grantee; P.A. 93-261
added a new Subsec. (d) to exempt any transfer by gift that was not included in the total amount of gifts made during a
calendar year pursuant to Section 2503 of the Internal Revenue Code, effective July 1, 1993, and applicable to persons
dying on or after July 1, 1993; P.A. 99-173 amended Subsec. (c) to delete requirement that land donated be classified as
open space land for inheritance and succession tax purposes, effective June 23, 1999, and applicable to transfers made on
or after July 1, 1999.
Validity of former classification upheld. 76 C. 235. For decisions construing corporate exemptions under former act,
see 92 C. 101; 95 C. 53. Eligibility of educational institution for exemption; this provision distinguished from section 12-81 (7). 115 C. 127, 133. Legislature may withdraw exemption any time before final distribution of estate. 115 C. 127, 149.
Cited. 123 C. 560. Gift to foreign charity exempt only if it would be wholly exempt under laws of other state if made to
Connecticut charity; gifts to Boy Scouts and Girl Scouts, incorporated under federal and D. C. laws respectively, held
exempt. 127 C. 441. Cited. 129 C. 274; 141 C. 257. Statute is constitutional and must be strictly construed. No exemption
allowed any charity unless it completely satisfies statutory requirements. 141 C. 266. Cited. 147 C. 178. Exemption does
not apply if a charitable organization takes under terms of a compromise agreement rather than by will itself. 147 C. 406.
Cited. 168 C. 447. Cited. 209 C. 429, 431, 432.
Legislature intended exemption from succession tax to be limited to public institutions and charitable organizations
located in the United States. 1 CA 22-26, 28, 29. Cited. 4 CA 249.
Specific appropriation not condition precedent to right of refund. 9 CS 422. Cited. 44 CS 421.
Subsec. (a):
Cited. 209 C. 429-431, 433, 434, 436. Cited. 217 C. 457, 458.
Cited. 1 CA 22, 24, 25.
Finding of a charitable corporation exempt from succession tax under the statute discussed. 41 CS 469, 470, 473, 483.
Cited. 44 CS 421.
Sec. 12-348. Declaration by officer of corporation or other entity claiming exemption. The Commissioner of Revenue services may require, from any corporation,
institution, society, association or trust claiming exemption from the succession tax
upon any transfer to it pursuant to the provisions of section 12-347 or claiming a refund
under the provisions of said section 12-347, a declaration, prescribed as to form by the
Commissioner of Revenue Services and bearing notice to the effect that false statements
made in such declaration are punishable, by its president or chief executive officer to
the effect that no officer, member, shareholder or employee thereof is receiving or has
previously received any pecuniary profit from the operation thereof except reasonable
compensation for services in effecting one or more of the purposes for which it is formed
or as a proper beneficiary of a strictly charitable purpose.
(1949 Rev., S. 2028; P.A. 77-614, S. 139, 610; P.A. 00-174, S. 58, 83.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 00-174 deleted a reference to an affidavit under oath and added provisions re declaration, effective July 1, 2000.
Sec. 12-349. Gross taxable estate. (a) All property in estate valued at fair market value, except farm land under certain conditions allowing valuation according
to use. (1) The gross estate for the purpose of the tax imposed by the provisions of this
chapter shall be the total of the fair market value of all the property transferred subject
to tax under the provisions of part I, except that the value of any real property in the
gross estate classified as farm land in accordance with section 12-107c at the time of
the decedent's death shall be determined for purposes of said tax in accordance with
the provisions applicable to farm land in section 12-63, provided (A) such farm land is
transferred to any of the beneficiaries or distributees included in the list of beneficiaries
or distributees in classes AA, A and B as provided in section 12-344, (B) such farm
land was owned by the decedent or any of the beneficiaries or distributees in classes
AA, A and B as provided in section 12-344 for an aggregate of no less than five years
during the eight years immediately preceding the decedent's death, and (C) the decedent
or any such beneficiary or distributee shall have engaged in active and substantial participation in farming or agricultural operations directly related to such farm land, as determined by the assessor, for an aggregate of no less than five years during the eight years
immediately preceding the decedent's death.
(2) Where real property classified at the time of the decedent's death as farm land
in accordance with section 12-107c is owned by a partnership, corporation or trust engaged in farming or agricultural operations, and, at the time of the decedent's death, (A)
the sole partners, shareholders or beneficiaries, as the case may be, of such partnership,
corporation or trust are the decedent and any persons who would be classified as transferees under class AA, A or B as provided in section 12-344, whether or not such persons
are in fact beneficiaries or distributees of the decedent, and (B) all of the decedent's
interest in such partnership, corporation or trust passes to transferees under class AA,
A or B as provided in section 12-344, the interest of the decedent and of such beneficiaries
and distributees in such partnership, corporation or trust shall be treated in the same
manner for purposes of this chapter as if the interest of the decedent and such beneficiaries and distributees was in real property in the gross estate classified as farm land in
accordance with section 12-107c.
(b) Exclusion from estate for value of payments to beneficiary after decedent's
death under retirement or profit-sharing plan, except portion of payments attributable to contributions by decedent. There shall be excluded from the gross estate the
value of an annuity or other payment receivable after the death of the decedent by any
beneficiary, other than the decedent's estate, under an employees' trust or plan, or under
a contract purchased by an employees' trust or plan, forming part of a pension, stock
bonus or profit-sharing plan, or under a retirement annuity contract purchased by an
employer pursuant to a plan, provided at the time of decedent's separation from employment, by death or otherwise, or at the time of termination of the plan, if earlier, payments
to or in respect of such trust, plan or annuity were exempt from federal income taxation
under the United States Internal Revenue Code. If such amounts payable after the death
of the decedent under a plan above described are attributable to any extent to payments
or contributions made by the decedent, no exclusion shall be allowed for that part of
the value of such amounts in the proportion that the total payments or contributions
made by the decedent bears to the total payments or contributions made. For purposes
of the preceding sentence, contributions or payments made by the decedent's employer
or former employer shall not be considered to be contributed by the decedent, if made
to or in respect to a trust, plan or annuity exempt from federal income taxation under
the United States Internal Revenue Code.
(c) Exclusion from estate for value of payments receivable after decedent's
death under Social Security, Railroad Retirement and certain survivor benefits
for retired servicemen. There shall be excluded from the gross taxable estate the value
of any payments receivable after the death of the decedent by other persons under the
provisions of the Federal Social Security Act and the Railroad Retirement Act of 1937,
as the same have been and may be amended from time to time, and with respect to
persons dying on or after June 8, 1978, the value of any annuity payments receivable
by an eligible survivor, upon the death of a retired serviceman, under the "Retired Serviceman's Family Protection Plan" or the "Survivor Benefit Plan" for retired servicemen
as provided in Chapter 73 of Title 10 of the United States Code, irrespective of whether
such annuity payments are attributable to any extent to payments or contributions made
by the decedent.
(d) Exclusion from gross estate for value of payments receivable after decedent's death under self-employed pension plan established in accordance with Internal Revenue Code requirements. There shall be excluded from the gross taxable
estate the value of any payments receivable after the death of the decedent by any beneficiary, other than the decedent's estate, under a pension plan for self-employed individuals as may be established pursuant to Section 401(c) of the Internal Revenue Code and
regulations related thereto, and with respect to which payments to the credit of such
plan were exempt from federal income tax.
(e) Imposition of tax when farm land in gross estate, valued on basis of farm
use for purposes of gross taxable estate, is sold or converted to other use within
ten years after decedent's death. (1) If, within ten years immediately following the
death of the decedent, real property in the gross estate of the decedent, classified as farm
land in accordance with section 12-107c and the value of which, for purposes of the tax
imposed under this chapter, was determined in accordance with provisions applicable
to farm land in section 12-63 as provided in subsection (a) of this section, is transferred
to anyone other than a beneficiary or distributee in class AA, A or B as provided in
section 12-344 or is no longer classified as farm land in accordance with section 12-107c, such beneficiary or distributee shall be liable for a tax applicable to such transfer
or change in classification. Said tax shall be in an amount equal to the difference between
the amount of tax paid under this chapter with respect to such farm land and the amount
of tax which would have been paid if such farm land had been assessed at fair market
value for purposes of determining the amount of tax under this chapter, and accordingly,
the succession tax return of the decedent shall include, in such manner as required by
the Commissioner of Revenue Services for purposes of this section, a declaration, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the
effect that false statements made in such declaration are punishable, as to the fair market
value of such farm land, based on its highest and best use value, as of the date of death
of the decedent. Said tax shall be paid to the Commissioner of Revenue Services within
sixty days following the date of such transfer or change in classification, and if not so
paid shall bear interest at the rate of twelve per cent per annum, commencing at the
expiration of such sixty days, until paid. The Commissioner of Revenue Services may,
for cause shown, on written application of the beneficiary or distributee, filed with said
commissioner at or before the expiration of such sixty days, extend the time for payment
of said tax or any part thereof.
(2) Said tax imposed under the provisions of subdivision (1) of this subsection shall
be a lien in favor of the state of Connecticut upon such real property so valued as farm land
for purposes of determining the gross estate of the decedent as provided in subsection (a)
of this section and, following the death of the decedent, transferred or changed in respect
to use, resulting in a change in the classification of such property as farm land so as to
be subject to said tax, from the date on which such transfer or change in classification
becomes effective until (A) the expiration of ten years immediately following the death
of the decedent, if there has been no such transfer or change in classification during said
period of ten years or (B) in the event of such a transfer or change in classification
resulting in the imposition of tax as provided in said subdivision (1), payment of any
tax due in accordance with this subdivision plus interest and costs that may accrue in
addition thereto, provided such lien shall not be valid as against any lienor, mortgagee,
judgment creditor or bona fide purchaser, when they have no notice, unless and until
notice of such lien is filed or recorded in the town clerk's office or place where mortgages,
liens and conveyances of such property are required by statute to be filed or recorded.
(3) Where real property classified at the time of the decedent's death as farm land
in accordance with section 12-107c is owned by a partnership, corporation or trust engaged in farming or agricultural operations, and, at the time of the decedent's death, the
sole partners, shareholders or beneficiaries, as the case may be, of such partnership,
corporation or trust, are the decedent and any persons who would be classified as transferees under class AA, A or B as provided in section 12-344, whether or not such persons
are in fact beneficiaries or distributees of the decedent, any transfer of an interest in
such partnership, corporation or trust to anyone other than a beneficiary or distributee
in class AA, A or B as provided in section 12-344 shall be treated in the same manner
for purposes of this chapter as a transfer of real property in the gross estate classified
as farm land in accordance with section 12-107c to anyone other than a beneficiary or
distributee in class AA, A or B as provided in section 12-344. Any change in the use
of such farm land, by such partnership, corporation or trust, so that it is no longer classified as farm land in accordance with section 12-107c shall be treated in the same manner
for purposes of this chapter as a change in the use of real property in the gross estate
classified as farm land in accordance with section 12-107c, by the decedent's beneficiaries or distributees in class AA, A or B as provided in section 12-344, so that it is no
longer so classified.
(1949 Rev., S. 2029; 1961, P.A. 511, S. 1; February, 1965, P.A. 312, S. 1; 1972, P.A. 265, S. 8; P.A. 78-267, S. 1, 3;
78-303, S. 85, 136; 78-371, S. 1, 6; P.A. 87-459, S. 1, 2; P.A. 98-244, S. 14, 35; P.A. 00-174, S. 59, 83.)
History: 1961 act added provisions regarding exclusion of certain annuities from gross estate; 1965 act excluded value
of payments receivable after decedent's death by other persons under Social Security Act or Railroad Retirement Act of
1937, as amended, applicable to estates of persons dying on or after July 1, 1975 (all estates not within provisions of section
are subject to succession or inheritance tax laws applicable before that date and continued in effect for that purpose); 1972
act deleted inclusion, in case of resident transferor, of "all gains made ... in reducing to possession choses in action, including
notes and mortgages but not including corporate or governmental stock or bonds nor including income accruing after
death", effective May 18, 1972, but retroactive to January 1, 1972, and applicable to estates of persons dying on or after
that date (all estates of persons dying before January 1, 1972, are subject to succession tax laws applicable before that date
and continued in force for that purpose); P.A. 78-267 excluded, on or after June 8, 1978, value of annuity payments
receivable by eligible survivor under retired servicemen plans listed; P.A. 78-303 allowed substitution of commissioner
of revenue services for tax commissioner pursuant to provisions of P.A. 77-614; P.A. 78-371 included provisions for
determining tax on farm land and added Subsecs. (b) and (c) re transfer or reclassification of farm land, effective July 1,
1978, and applicable to estate of any person dying on or after that date (all estates of persons dying before July 1, 1978,
are subject to succession and transfer tax laws applicable before that date); P.A. 87-459 added Subsec. (d) providing for
exclusion from gross estate for the value of any payments receivable after decedent's death under a self-employed pension
plan established in accordance with Internal Revenue Code requirements and combined Subsecs. (b) and (c) into a new
Subsec. (e), effective June 30, 1987, and applicable to the estate of any decedent whose death occurs on or after July 1,
1987; P.A. 98-244 amended Subsec. (a) to add new Subdiv. (2) and Subsec. (e) to add new Subdiv. (3) re property owned
by a partnership, corporation or trust engaged in farming and made technical changes, effective June 8, 1998, and applicable
to estates of persons dying on or after June 20, 1996; P.A. 00-174 amended Subsec. (e)(1) to delete a reference to sworn
statement and add provisions re declaration, effective July 1, 2000.
See Sec. 12-349a re effective date of this section.
All taxable transfers, including ante mortem transfers, should be combined in determining gross taxable estate. 122 C.
126. Computation should be based on value of estate at date of death, not date of distribution. 126 C. 138. Cited. 141 C. 257.
An individual retirement account (IRA) does not qualify for exclusion under statute as a "retirement annuity contract
purchased by the employer" although established solely from proceeds of an employer funded pension fund. 38 CS 86,
87, 89, 91.
Sec. 12-349a. Effective date. Section 12-349 shall take effect July 1, 1961, and
shall apply to the estates of persons dying on and after that date but all estates not within
the provisions of section 12-349 shall be subject to the succession tax or inheritance tax
laws applicable to them prior to July 1, 1961, and such laws are continued in force for
that purpose.
(1961, P.A. 511, S. 2.)
Sec. 12-350. Net estate of resident transferors; deductions. In the case of the
estate of a resident transferor, the net estate for the purposes of the tax imposed by the
provisions of this chapter shall be ascertained by deducting from the gross taxable estate
the following items: (a) Debts of the transferor which constitute lawful claims against
his estate; (b) unpaid taxes, (1) on real property within this state which were a lien
at the date of the transferor's death, (2) on personal property of the transferor which
constituted a personal obligation or were a lien at the date of death, (3) on the income
of the transferor accrued to the date of death; (c) any tax on untaxed property assessed
by this state against the estate of the transferor; (d) special assessments which, at the
date of death, were a lien on the real property of the transferor situated within this state;
(e) funeral expenses and all amounts actually expended or to be expended for a headstone
or monument or the care of any cemetery lot; (f) reasonable compensation of executors
and administrators and reasonable attorney's fees; (g) a reasonable allowance made
during the settlement of the estate for the support of the widow, widower, dependent
minor children, including legally adopted children, of the transferor, or dependent children incapable of self-support because mentally or physically defective receiving support mainly from the transferor at the time of his death; but no such deduction shall be
made for any such allowance beyond the expiration of twelve months after the date of
the transferor's death; (h) the amount at the date of the transferor's death of all unpaid
mortgages upon real or personal property situated within this state, which mortgages
were not deducted in the appraisal of the property mortgaged; (i) reasonable expenses
of administration, including those relating to property transferred other than by will or
laws relating to intestate estates, except as provided in section 12-351; (j) in the case of
a transfer other than by will, liens subject to which the transfer is made, unpaid expenses
of administering a trust prior to death, which trust is taxable under the provisions of
this chapter, and expenses of terminating such trust if it terminates on the death of the
transferor; (k) any amount exempted pursuant to subsection (b) of section 12-344. The
foregoing deductions shall be allowed in the case of property transferred by will and
by laws relating to intestate estates, provided they reduce the gross taxable estate. In
the case of property transferred other than by will or by laws relating to intestate estates,
such deductions shall be allowed (1) only to the extent that such property is includable
in the decedent's gross taxable estate under the provisions of this chapter, and (2) only
to the extent that the transferee has actually paid the deductible items and either the
transferee was legally obligated to pay such items or the assets subject to probate are
insufficient to pay such items.
(1949 Rev., S. 2030; 1949, S. 1140d; 1969, P.A. 243, S. 1; 524, S. 1; 1971, P.A. 863, S. 1; 1972, P.A. 265, S. 1; P.A.
83-520, S. 10, 13; P.A. 88-310, S. 1, 2.)
History: 1969 acts made deductions applicable to joint bank accounts and provided exceptions relating to joint bank
accounts, specified that deductions allowed only if they reduce gross taxable estate, substituted "a reasonable allowance"
for "any allowance" in Subdiv. (h), specified "reasonable" expenses in Subdiv. (j) and included as deduction for transfers
other than by will or laws governing intestate estates and joint bank account a deduction for expenses set forth relating to
trusts, effective July 1, 1969, and applicable to estates of persons dying on or after that date (all estates of persons dying
before July 1, 1969, are subject to succession or inheritance tax laws applicable before that date and continued in force for
that purpose); 1971 act included as deductions for transfers other than by will, laws governing intestate estates and joint
bank accounts, deductions for probate fees, appraisers' fees, and expenses relating to administrator if one appointed,
effective January 1, 1972, and applicable to estates of persons dying on or after that date (all estates of persons dying before
January 1, 1972, are subject to succession or inheritance tax laws applicable before that date and continued in force for
that purpose); 1972 act deleted Subdiv. (b) re losses incurred up to time of filing return "in the reduction to possession of
choses in action, including notes and mortgages, but not including corporate or governmental stocks or bonds nor including
income accrued after death", effective May 18, 1972, but retroactive to January 1, 1972, and applicable to estates of persons
dying on or after that date (all estates of persons dying before January 1, 1972, are subject to succession tax laws applicable
before that date and continued in force for that purpose); P.A. 83-520, effective July 7, 1983, and applicable to estates of
decedents dying on or after such date, (1) included expenses relating to property transferred other than by will or laws of
intestacy as reasonable expenses of administration under Subsec. (i), (2) permitted deduction, in the case of transfer other
than by will, of liens subject to which transfer is made, unpaid expenses of administration of taxable trust prior to death
and expenses of terminating such trust if it terminates on death of transferor, (3) deleted former provisions re extent to
which deductions shall be allowed and substituted provision that such deductions shall be allowed to the extent that the
transferee has actually paid deductible items and either the transferee was legally obligated to pay or assets subject to
probate are insufficient to pay, and (4) made technical changes; P.A. 88-310 added Subdiv. (k) deducting from gross taxable
estate amounts exempted pursuant to Subsec. (b) of Sec. 12-344.
Federal estate tax is not to be deducted in determining the net taxable estate. 141 C. 257. Cited. 210 C. 277, 278, 280,
282-286. Cited. 215 C. 633, 641, 644.
Expenses of last illness and funeral are not deductible from the nonprobate portion of an estate, in this case a joint bank
account, except as they may constitute liens thereon or debts which it is judicially established are chargeable thereto. Such
liens or debts are not created by section 36-3a. 25 CS 250, 251. Cited. 40 CS 484, 489. Cited. 44 CS 263.
Subsec. (a):
When an insurance company makes a loan to its insured against a policy on his life, the transaction does not create a
true debt; but where the insured borrows from a bank on his own note and pledges his insurance as collateral security, a
debt is created. 142 C. 529.
Subsec. (e):
Cited. 209 C. 429, 433.
Subsec. (f):
Cited. 44 CS 263.
Subsec. (h):
"Reduce the gross taxable estate" not intended to restrict the number of deductions allowable for state succession tax
purposes. 210 C. 277, 278, 280, 284.
Subsec. (k):
Cited. 44 CS 421.
Sec. 12-351. Administration expenses not deductible. The following expenses
of administration shall not be allowable deductions: (a) The federal estate tax and succession, inheritance, estate or transfer taxes paid or payable to other states, territories, the
District of Columbia, foreign countries or governmental subdivisions thereof; (b) expenses of care, maintenance or repair of real estate and buildings accrued subsequent
to the death of the transferor; (c) interest on obligations of the transferor or of the estate,
which interest accrued subsequent to the death of the transferor; (d) property taxes,
except the tax on untaxed property assessed by the state against the estate, assessed as
of a date subsequent to the death of the transferor; (e) income taxes accrued subsequent
to the death of the transferor; (f) expenses incurred and taxes assessed upon and in
connection with real estate and tangible personal property situated outside this state;
(g) all other charges and expenses of administration properly allocable against income.
(1949 Rev., S. 2031; 1949, S. 1141d.)
Federal estate tax not to be exempted in computing the tax. 141 C. 257.
Cited. 27 CS 270.
Subdiv. (a):
Cited. 44 CS 421.
Sec. 12-352. Net estate of nonresident transferor; deductions. In the case of the
estate of a nonresident transferor, when property is transferred by will or intestate laws,
the net estate for the purpose of the tax imposed by the provisions of this chapter shall
be ascertained by deducting from the gross taxable estate the following items: (a) Fees
of the Connecticut Probate Court; (b) advertising expenses incidental to administration
in this state; (c) the reasonable compensation of appraisers of real estate or tangible
personal property situated within this state; (d) expenses incurred in connection with
procuring the fiduciary's bond filed in the Connecticut Probate Court; (e) commissions
paid in connection with the sale of real estate or tangible personal property situated
within this state; (f) reasonable compensation of executors and administrators, qualifying as such in the Connecticut Probate Court, and reasonable fees for Connecticut attorneys; (g) the amount at the date of the transferor's death of all unpaid mortgages upon
real or tangible personal property situated within this state, which mortgages were not
deducted in the appraisal of the property mortgaged; (h) unpaid taxes upon real or tangible personal property situated within this state which were a lien at the date of the
transferor's death; (i) any tax on untaxed property assessed by this state against the
estate of the transferor; (j) special assessments which, at the date of death, were a lien
on real property of the transferor situated within this state; (k) any amount exempted
pursuant to subsection (b) of section 12-344. In case the domiciliary estate is insolvent,
there shall be allowed as a deduction, in addition to the foregoing items, the amount by
which the total of the lawful claims against and administration expenses of the estate,
exclusive of Connecticut deductible items set forth above, exceeds the total value of
property wherever situated subject to such claims and expenses, exclusive of the gross
estate situated in this state. The foregoing deductions shall be allowed in the case of
property transferred by will and by laws relating to intestate estates, provided they reduce
the gross taxable estate. In the case of property transferred other than by will or by laws
relating to intestate estates, such deductions shall be allowed (1) only to the extent that
such property is includable in the decedent's gross taxable estate under the provisions
of this chapter, and (2) only to the extent that the transferee has actually paid the deductible items and either the transferee was legally obligated to pay such items or the assets
subject to probate are insufficient to pay such items.
(1949 Rev., S. 2032; 1949, S. 1142d; 1971, P.A. 863, S. 2; P.A. 86-81, S. 1, 2; P.A. 90-230, S. 80, 101.)
History: 1971 act rephrased Subdiv. (c) to clarify that appraisers of real estate and tangible personal property intended,
effective January 1, 1972, and applicable to estates of persons dying on or after that date (all estates of persons dying before
January 1, 1972, are subject to succession or inheritance tax laws applicable before that date and continued in force for
that purpose); P.A. 86-81 provided for the allowance of deductions under this section for nonresident transferors in the
same manner as for resident transferors, effective July 1, 1986, and applicable to estates of persons dying on or after that
date; P.A. 90-230 added Subdiv. (k) re "any amount exempted pursuant to subsection (b) of section 12-344".
Cited. 44 CS 263.
Sec. 12-353. Life estates; annuities. The value of each future, contingent or limited estate, income interest or annuity for life or lives in being shall, so far as possible,
be determined by the rule, method and standard of mortality and of value set forth in
the Commissioners' 1980 Standard Ordinary Mortality Table with interest at six per
cent per annum. The value of the interest remaining after such limited estate shall be
determined by deducting the computed value of the limited estate from the value of the
entire property in which such interest exists.
(1949 Rev., S. 2033; P.A. 83-520, S. 11, 13.)
History: P.A. 83-520, effective July 7, 1983, and applicable to estates of decedents dying on or after such date, changed
standard and value to that set forth in the commissioners' 1980 Standard Ordinary Mortality Table, with interest at the rate
of six per cent per annum.
Statute applies to life estate passing by will, even though life tenant dies before computation of tax. 108 C. 715, 719.
This and succeeding sections cited. 118 C. 242.
Sec. 12-354. Estate which may be divested. When an estate or interest may be
divested by the act or omission of the transferee, it shall be taxed as if there were no
possibility of divesting.
(1949 Rev., S. 2034.)
Cited. 152 C. 282.
Sec. 12-355. Compounding of tax. Contingent remainders. (a) If it is impossible
to compute the present value of any of the property transferred, or of any interest therein,
or if the tax cannot be determined because of a contingency as to who will take, the
Commissioner of Revenue Services may enter into an agreement with the fiduciary to
compound the tax upon such terms as may be deemed equitable, and the payment of
any amount agreed upon shall be in full satisfaction for the tax imposed by this chapter,
and such amount shall be payable out of the property transferred. The fiduciary is authorized to enter into such agreements on behalf of the estate or trust without the formal
authorization of the Probate Court provided by section 45a-151.
(b) If such an agreement cannot be reached within thirty days after the mailing by
the Commissioner of Revenue Services to the fiduciary of an offer to compromise the
tax, said commissioner shall, if the return filed under the provisions of section 12-359
is correctly made out, make a computation of the tax, based upon the whole net taxable
estate, upon the assumption that the contingencies will so resolve themselves as to lead
to the highest tax possible under the provisions of this chapter, and the executor, trustee
and transferee shall be liable for such tax as in other cases. Copies of such computation
shall be filed, and further proceedings taken in connection therewith, in accordance
with the provisions of section 12-367. If, after such first computation and upon the
determination of any of the contingencies, any part of the estate so passes as to lead to
a lower tax, and if the fiduciary, within two years of such determination, notifies the
Commissioner of Revenue Services thereof, the Commissioner of Revenue Services
shall forthwith recompute the whole tax in the same manner as would have been done
originally had the outcome of the contingencies in question been known. Copies of such
recomputation shall be filed, and further proceedings taken in connection therewith, in
accordance with the provisions of section 12-367. Upon the final determination of the
amount of tax due on the recomputation the commissioner shall certify to the Comptroller that a refund is due in an amount equal to the difference between the tax paid at the
highest rate and the tax actually due as shown by the recomputation. Before certifying
to the Comptroller that a refund is due, the commissioner shall determine whether any
additional estate tax is due under section 12-391 on account of such recomputation, and,
if the commissioner so determines, the commissioner shall reduce, but not below zero,
the amount of the refund otherwise due by the amount of such additional estate tax.
Such refund, as so reduced, shall bear interest at the rate of five per cent compounded
annually from the date of payment of the original tax to the date of the determination
of the contingencies and shall be paid by the Treasurer, on the order of the Comptroller,
to the trustee or other proper fiduciary, who shall distribute it ratably among the several
beneficiaries equitably entitled to it. This subsection shall not be construed to prevent
more than one refund in one estate if the circumstances warrant.
(1949 Rev., S. 2035; June, 1955, S. 1146d; 1967, P.A. 22; 1971, P.A. 863, S. 3; P.A. 77-614, S. 139, 610; P.A. 80-307,
S. 13, 31; P.A. 81-411, S. 21, 42; P.A. 97-165, S. 14, 16; 97-203, S. 15, 20.)
History: 1967 act amended Subsec. (b) to change interest rate on refund from two to four per cent; 1971 act deleted
references to court of common pleas' approval of recomputation and certification of amount due to tax commissioner,
effective January 1, 1972, and applicable to estates of persons dying on or after that date (all estates of persons dying before
January 1, 1972, are subject to succession or inheritance tax laws applicable before that date and continued in force for
that purpose); P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 80-307 temporarily increased interest on refund to five per cent for taxes due on or after July 1, 1980, but not later
than June 30, 1981; P.A. 81-411 continued the five per cent rate of interest applicable to refunds under subsection (b) with
respect to taxes becoming due on or after July 1, 1980; P.A. 97-165 amended Subsec. (b) to provide that in the case of a
refund the commissioner must first verify that no additional estate tax is due prior to issuing a refund and if due the refund
is offset, effective July 1, 1997, and applicable to the estate of any person whose death occurs on or after July 1, 1997;
P.A. 97-203 amended Subsec. (a) to delete requirement of Attorney General approval, effective July 1, 1997.
Former statute construed. 127 C. 636. Cited. 145 C. 497. Applied to a marital deduction trust, with a general power of
appointment over the residue. 166 C. 581. Cited. 173 C. 232, 233, 235, 241, 242, 244-246.
Cited. 10 CA 95, 100, 102.
Subsec. (a):
Cited. 10 CA 95, 97.
Subsec. (b):
Cited. 173 C. 232, 236.
Cited. 10 CA 95, 99, 100.
Sec. 12-356. Determination of value of contingent interest by Insurance Commissioner. The Insurance Commissioner shall, whenever possible, without fee, on the
application of the commissioner, determine the value of any interest transferred, including a remainder interest, which is limited, contingent, dependent or determinable upon
the life or lives of persons in being, or a term for years, upon the facts submitted with
such application and with interest for purposes of such determination at the rate of six
per cent per annum; and shall certify the valuation in duplicate to the commissioner,
and such certificate shall be competent evidence that the valuation as so determined is
correct.
(1949 Rev., S. 2036; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 21, 348; P.A. 83-520, S. 12, 13.)