State Tax and Estate Planning Update
June 25, 2019
New York and Connecticut have made important changes to state laws relevant to estate planning and to certain real estate transactions.
Please click here for our Alert Memorandum on these updates. Included below are a few key takeaways.
Overview and planning points:
- New York clients may wish to accelerate plans to make taxable gifts in order to avoid the extended three-year “clawback” for taxable gifts made within three years of death.
- Connecticut has clarified the scheduled increase in the Connecticut estate and gift tax exemptions. Given that such increases are gradual, Connecticut residents who plan to use their increased Federal gift tax exemption will want to time their gifts carefully.
- The Connecticut General Assembly passed a bill (which is expected to become law) making significant changes to Connecticut trust law, including changes permitting dynasty trusts and asset protection trusts.
- Clients purchasing or selling real estate in New York City should be aware of increased New York State real estate transfer taxes taking effect on July 1, 2019.
- The Connecticut General Assembly passed a law increasing the real estate conveyance tax on certain transfers of Connecticut residential property. If signed by the Governor, the increase will apply to transfers for consideration in excess of $2.5 million after July 1, 2020.