Most Connecticut Estates Owe No Estate Tax. Probate Filings Still Matter.

A daughter calls about her father's house in Westville, his retirement accounts, and his savings. Her first question is whether Connecticut is going to tax the estate.

For most families, the answer is no. Two questions still matter: does anything have to be filed, and does the house need to go through probate?

First, The Tax Answer

For 2026 deaths, Connecticut's estate tax exemption is $15 million, and the tax on the portion of the Connecticut taxable estate above that amount is generally a flat 12% under Connecticut General Statutes § 12-391. Most Connecticut estates, including a house, a retirement account, and a lifetime of savings, fall well under that number and owe no state estate tax at all.

The federal estate tax exemption is also $15 million per person for 2026 deaths, so an estate whose gross estate plus adjusted taxable gifts (lifetime gifts not already counted in the estate) stays under that figure generally owes neither tax and does not have to file a federal estate tax return. The difference for married couples shows up below: federal law lets a surviving spouse claim the first spouse's unused exemption if the estate files a federal return to make that election, and Connecticut does not.

Owing no tax and filing nothing, though, are two different questions. Even a nontaxable estate may still have to file a return, and skipping that filing can delay how quickly an executor can transfer or refinance the house.

The Filing That May Survive The Tax

Even when no tax is due, Connecticut generally still requires a return. Under § 12-392, a Connecticut resident's estate at or below the $15 million exemption generally files Form CT-706 NT with the Probate Court for the district where the person lived, not with the Department of Revenue Services. Different venue rules apply to a nonresident who owned Connecticut real estate or tangible personal property. An estate making a Connecticut QTIP election files Form CT-706/709 instead.

The form requires the estate to account for real estate, securities, and bank accounts held solely in the decedent's name, the same categories held jointly with right of survivorship, pension and retirement benefits, any trusts created during the decedent's life, and life insurance. Nontaxable does not mean nothing to report.

Connecticut's instructions for the 2026 form state that it must reach the Probate Court within six months after the date of death, the same six-month clock that applies to a taxable estate's return. Connecticut law puts a tax lien on the decedent's Connecticut real estate, and after the Probate Court determines that no Connecticut estate tax is due, it issues the certificate releasing that lien. Without that certificate, selling or refinancing the house can stall.

When A Full Probate Estate Is Required

Filing an estate tax return with the Probate Court does not automatically mean a full probate estate has to be opened. Whether one is required depends on how the assets were titled: whether property was held jointly, whether accounts had named beneficiaries, whether anything passed by survivorship, and what the debts and disputes, if any, look like.

If a full estate is opened, the process described in the Connecticut Probate Courts' Administration of Decedents' Estates guide can include admitting a will and appointing a fiduciary, inventorying assets, handling notices and creditor claims, and eventually filing an account with the court. Not every death requires every one of those steps. A modest estate with a house held jointly with a spouse and a few payable-on-death accounts can look very different from an estate with disputed heirs or outstanding debts.

Three Wrinkles Worth Knowing

Connecticut does not let a surviving spouse carry over a deceased spouse's unused exemption the way the federal estate tax system allows. For most families this changes nothing, since most estates are nowhere near $15 million to begin with. For a couple with substantial combined assets, real estate, a business, or investment accounts that add up, it is a reason to talk through planning rather than assume the exemption automatically doubles when the first spouse dies.

Connecticut is also the only state that still collects its own gift tax, as the Tax Foundation also notes, and it shares the same $15 million threshold as the estate tax, counting Connecticut taxable gifts made since January 1, 2005. Most people never come close to it, but a gift made years before someone dies can still surface in the paperwork their estate has to file later.

And probate fees are set by statute, § 45a-107, and computed from the greatest of several estate-value measures, including the inventory and the Connecticut taxable estate, whether or not any estate tax is ultimately owed. A nontaxable estate is not necessarily a fee-free one.

What Can Pass Outside A Full Probate Estate

Not everything a person owns has to move through a full probate estate to reach the next owner. Depending on the governing title or beneficiary designation, life insurance with a named beneficiary, retirement accounts with a beneficiary designation, and property held with survivorship rights can pass directly, without probate administration. We covered how that works, and where it can go wrong, in our post on what happens when someone dies without a will.

An asset can pass outside probate and still need to be reported on the Connecticut estate tax return. A house that passed to a surviving spouse by survivorship, a life insurance payout, and a retirement account with a named beneficiary can all bypass a full probate estate and still belong on the CT-706 NT.

When To Get Help

Late or incomplete filings, creditor claims that surface after distributions have already gone out, and paying beneficiaries before the estate's obligations are settled can all create problems for the person handling the estate. Before making any distributions, identify the required filings and their deadlines and resolve the known creditor and estate obligations.

A Short Conversation Can Answer Both Questions

If you were named executor, or you are the one sorting out a family member's estate in Greater New Haven, the two questions worth answering early are the same ones the daughter in Westville asked: does the estate owe tax, and what actually has to be filed, where, and by when. Contact our office and, as part of our probate and estate work, we can walk through what your specific situation requires.