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| Question: | Why do Probate Courts become involved in the settling of decendents’ estates? |
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| Answer: | When a person who owns property dies, the Probate Court becomes involved to oversee the division of property among those persons legally entitled to it. If the person, referred to as the ’decedent,’ left a will, the division of property will be carried out according to the wishes of the decedent as set forth in the will. (The process of proving that a will is genuine and distributing the property in it is known as ’probating’ a will.) If the decedent did not leave a will, his or her property will be divided according to Connecticut’s laws of ’intestacy.’ (See the answer to question 15.) In addition to overseeing the distribution of the estate, the Probate Court will insure that any debts of the decedent, funeral expenses, and taxes are paid before distributing the remaining assets of the estate. |
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| Question: | When is it necessary to open an estate? |
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| Answer: | An estate must be opened if a decedent owned properties at the time of her death in his/her name alone or together with others, but not in survivorship. A court order is required to transfer this type of property to the proper party. |
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| Question: | What does ’in survivorship’ mean, and must survivorship property be reported to the Probate Court? |
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| Answer: | The placing of a savings account, shares of corporate stock, bonds, or real estate ’in survivorship’ with another means that each of the named parties has an undivided equal interest in the monies, stocks, bonds, or real estate during their joint lives. This form of ownership grants to the joint owner(s) who survives, ownership of all of the monies, stocks, bonds, or real estate immediately upon the death of the joint owner. Survivorship property must be reported to the Probate Court on the Connecticut Succession Tax Return required to be filed with the Court. |
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| Question: | What taxes might be due at the time of death? |
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| Answer: | Taxes payable as a result of death include one to the federal government called the Federal Estate Tax and another to the State of Connecticut known as the Connecticut Succession Tax. There may be a tax exemption and thus no tax due depending on the relationship of the beneficiary to the decedent and the size of the estate. Until January 1, 2005, succession tax returns are to be filed with and reviewed by the Probate Court and then forwarded to the Commissioner of Revenue Services of Connecticut. In the event that a dispute arises between the taxpayer and the Commissioner and a compromise is not reached, the Probate Court will hold a hearing to determine the matter. There is also a Connecticut Estate Tax which applies in certain cases where filing of a Federal Estate Tax Return is required. There may also be taxes payable to other states in which the decedent owned property. There may be income taxes, property taxes, and other taxes due from a decedent if these taxes accrued prior to death. It is the fiduciary’s responsibility to ascertain and pay such taxes. Fiduciaries are also responsible for reporting income received during estate administration. |
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| Question: | How is the Connecticut Succession Tax determined? |
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| Answer: | The Connecticut Succession Tax is currently being phased out and will be totally eliminated by January 1, 2005. The amount of property exempted from the tax varies depending upon the relationship of the decedent to those who will receive the property. The succession tax on amounts passing to most beneficiaries (formerly Class AA, A and B) was eliminated. Currently there is one class of inheritors with Succession Taxes:
Class C — Relationship to decedent: any other beneficiary. For example, uncles, aunts, cousins, sister-in-law, brother-in-law, stepbrother, stepsister, unrelated individuals, associations, corporations.
Exemption amount for property inherited by Class C: Property under $1,500,000, effective January 1, 2004.
Tax on Class C will be eliminated January 1, 2005.
Tax Tables may be obtained from the Department of Revenue Services (860.297.5737) or from your local probate court. |
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| Question: | Is the Federal Estate Tax Determined in the same manner as the Connecticut Succession Tax? |
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| Answer: | No. Furthermore, the Federal Tax Reform Act of 1976 and the Economic Recovery Tax Act of 1981 made major changes in the federal estate tax picture from that previously in effect. Under the new laws, a single schedule of rates applies to determine both gift and estate taxes. The laws are very complex, and it is suggested that a person seek professional assistance for an explanation of the law. At the time this pamphlet was being prepared, Congress was considering major changes to these taxes, including phased-in increases to the $600,000 exemption. Please consult with your tax advisor for the latest information. Effective for decedents dying on or after July 1,1997, those required to file a Connecticut Estate Tax Return must do so by filing one signed original with the Department of Revenue Services, 25 Sigourney Street, Hartford, CT 06106, and by filing a duplicate original with the Probate Court for the district in which the decedent last resided. |
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| Question: | What is the effect of having savings or securites ’in trust for’ another person? How do such bank accounts differ from a custodial bank account for a minor? |
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| Answer: | Monies on deposit in a bank account standing in the name of a depositor ’in trust for’ another become the monies of the named beneficiary immediately upon the death of the depositor. In 1997, the State Legislature changed the law to permit securities to be similarly owned by one individual ’in trust for’ another. Like the bank accounts, those securities remain the exclusive property of the owner until death, when they are transferred immediately to the survivor. For persons dying before January 1, 2005, a succession tax return will need to be filed for such assets. An alternative way of providing money in an account for the benefit of a minor child is by opening a custodial account under the Uniform Transfers to Minors Act. The depositor could act as a custodian of such monies. However, the monies in a custodial account belong to the minor at all times and can only be used for the minor’s benefit. When the minor attains the age of twenty-one, he or she is entitled to receive those monies and may ask the custodian for an accounting of how they were managed. The death of the custodian prior to the beneficiary’s reaching the age of twenty-one may require the probate court to appoint a successor custodian. Whether or not a succession tax is due depends upon the amount of the transfer in relation to the amount of the exemption. (See question 5 above.) |
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| Question: | Is there a simple method to probate a small estate? |
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| Answer: | Yes, if the total assets left by a decedent in his name alone consist of personal property and do not exceed $20,000. The decedent may own survivorship real estate or other survivor-ship assets exceeding $20,000 in value and still qualify for this simple procedure. In such an event, the transfer of both tangible and intangible personal property such as bank accounts, shares of corporate stock, bonds, unpaid wages, death benefits, insurance proceeds, or motor vehicles can be passed simply to the surviving spouse or next of kin. The only requirement is that the surviving spouse or next of kin or some suitable person file an affidavit in the Probate Court stating that the decedent’s funeral expenses and other debts have been paid at least to the value of such assets or that such assets are necessary to pay funeral and physicians’ expenses. Thereafter, the Judge will confirm that no other probate proceedings have been started and will authorize by a decree the transfer of the personal property to the surviving spouse, next of kin, some suitable person, the funeral director, or physician to the extent needed to pay such bills. A Succession Tax Return is also required for a small estate, but in most cases a short form can be used. |
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| Question: | Who can serve as an executor or administrator of an estate? What duties does one have? |
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| Answer: | An executor or administrator can be anyone: a member of the decedent’s family, an attorney, a bank, or a beneficiary of a will. An executor is named in the will and chosen by the person making the will. If that person is capable, the Court must appoint that individual as executor. If there is no will, the selection of an administrator is made by the Court. The law requires that a family member or designee of the family member be chosen, unless it appears to the Court that it would not be in the best interests of the parties concerned, in which case the Court will usually appoint an impartial person or bank. |
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| Question: | Is it neccesary to have a lawyer or other professional help probate an estate or file the required tax returns? |
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| Answer: | It is often advisable for the fiduciary to obtain professional assistance in connection with the administration of an estate. The Clerk of the Court or the Judge of Probate may provide limited assistance by helping an individual to complete required forms and reports. The Judge will be careful in the type of assistance given, since he or she may be called upon at a later time to adjudicate matters relating to the tax return, an account, or intermediate petitions. It is the fiduciary, however, who is primarily responsible for completing these forms and reports and for taking all of the other steps necessary to settle the estate. A booklet entitled ’Guidelines for Administration of Decedents’ Estates’ is available from the Court of Probate to assist fiduciaries. Responsibilities such as preparation of tax returns and protecting unusual assets frequently require professional help. |
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| Question: | How do you make application for the probate of a decedent’s will? |
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| Answer: | Any person in possession of any will must deliver such will to the Probate Court in the town where the decedent had his domicile within 30 days after the decedent’s death. Ordinarily, at the time the will is brought to the Probate Court, an application for probate of the will is filed with the Court, and after a hearing, an executor is named. However, if the decedent left no assets in his or her name that would pass under the will, the will is simply placed on file and not admitted to probate. |
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| Question: | How old can a will be and still be good? |
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| Answer: | A will can be legally binding no matter how old it is. However, certain subsequent events may cause a change in the will’s formula of distribution. For example, the subsequent birth or adoption of a child, marriage, divorce, or annulment may alter the will’s stated disposition. Therefore, it is extremely important for everyone to review the contents of their wills periodically, especially if such a major life event has occurred. |
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| Question: | What can be done if a person dies and has a safe deposit box and a will may be in the box? |
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| Answer: | If a decedent had a safe deposit box and it is suspected that a will or other important documents are in the safe deposit box, it is possible for a Probate Court to immediately issue an order authorizing a family member or other suitable person to gain access to the safe deposit box. The box will be opened in the presence of a bank officer and the contents cataloged. If a will is discovered, it will then have to be filed in the Probate Court. A similar situation might involve a decedent who lived alone in a house or apartment, and no relative can be found to take proper action. The court has the ability to appoint a temporary administrator immediately in order to safeguard the decedent’s belongings and to take other action to protect the estate. |
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| Question: | When a person dies, are his/her assets all ’frozen’ and unavailable tot he family? |
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| Answer: | In the overwhelming number of cases involving joint and survivorship assets between the decedent and family members, funds are immediately available to the survivors without court approval. However, assets in the name of the decedent alone may not be used until an executor or administrator is appointed, which, in most cases, takes only one to two weeks. Thereafter, such assets may be used to pay proper debts and expenses. A family car may be used immediately with permission of the court. In addition, if all the heirs consent, an estate can be opened in a single day so that the estate’s funds can be accessed without delay. Even though these assets may be available immediately to the family, with or without court action, they still must be properly accounted for so that the claims of creditors and the State Tax Department are properly handled. |
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| Question: | What if a person dies leaving no will? What happens to the property? |
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| Answer: | If the decedent left property in his own name, then it is necessary for an appropriate person (usually a family member) to make application to the Probate Court for administration of the decedent’s estate. Since there is no will, the property is distributed in accordance with the Connecticut laws of descent and distribution. The estate is called ’intestate’ because there is no will. |
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