1993 Legislative Changes Affecting the Succession Tax and the Gift Tax
PURPOSE: This Special Notice describes changes made by 1993 Conn. Pub. Acts 261 affecting the gift tax and the succession tax.
EFFECTIVE DATE: Effective as indicated herein.
STATUTORY AUTHORITY: Conn. Gen. Stat. §§12-347, 12-376 and 12-648, as amended by 1993 Conn. Pub. Acts 261.
EXCLUSION FROM DONOR'S GROSS TAXABLE ESTATE OF GIFTS SUBJECT TO GIFT TAX NOT ALLOWED FOR GIFTS MADE ON OR AFTER JULY 1, 1993: With respect to gifts that are made on or after July 1, 1993, the provisions of Conn. Gen. Stat. §12-648, allowing the exclusion of any taxable gift, as defined in Conn. Gen. Stat. §12-643, from the donor's gross taxable estate for succession tax purposes, are repealed. In lieu of the exclusion, a credit against the donor's succession tax will be allowed in the amount of any Connecticut gift tax paid with respect to a gift that is made on or after July 1, 1993 and that is includable in the donor's gross taxable estate for succession tax purposes.
CERTAIN GIFTS TO BE EXEMPT FROM THE SUCCESSION TAX: With respect to decedents dying on or after July 1, 1993, the provisions of Conn. Gen. Stat. §12-347 are amended to include an exemption from the succession tax with respect to any transfer by gift that (1) is includable in the transferor's gross taxable estate for succession tax purposes and (2) was excluded from the total amount of gifts made by the transferor to the transferee pursuant to 26 U.S.C. §2503(b) in the year that the gift was made.
NO INTEREST PAYABLE ON SUCCESSION TAX OWED ON MONEYS RECEIVED BY DECEDENT'S ESTATE FROM SETTLEMENT, AWARD OR JUDGMENT IN ANY ACTION PENDING ON DATE OF DECEDENT'S DEATH, IF THE TAX IS PAID WITHIN SIX MONTHS OF THE RECEIPT OF SUCH MONEY: With respect to decedents dying on or after October 1, 1993, the provisions of Conn. Gen. Stat. §12-376(a), accruing interest on succession tax that is not paid to the Department within six months after the date of a decedent's death, are modified. If the succession tax is owed on money received as the result of any settlement, award or judgment in an action that is pending on the date of the decedent's death, interest will not accrue on the succession tax owed thereon if the tax is paid within six months of the receipt of such money.
EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.
EFFECT ON OTHER DOCUMENTS: With respect to gifts that are made on or after July 1, 1993, the paragraph of SN 92(1) pertaining to GIFTS THAT ARE SUBJECT TO GIFT TAX WILL NOT BE INCLUDABLE, FOR SUCCESSION TAX PURPOSES, IN GROSS TAXABLE ESTATE may no longer be relied upon. SN 92(1) is modified and superseded in part.
PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.
FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.
Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page at https://www.ct.gov/drs. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.