Connecticut's Succession and Transfer Tax
Connecticut’s succession and transfer tax, codified in Chapter 216 of the General Statutes (CGS 12-340 et seq.), is effectively dead. It applies only to estates of decedents who died on or before January 1, 2005, and only if the estate filed a return under CGS 12-359 or was assessed a tax under CGS 12-367 before October 1, 2018.
Most practitioners will never encounter this tax. But for those administering older estates that remain open, or for those trying to clear title on real property from a pre-2005 decedent, the succession tax can still surface.
What the Succession Tax Was
The succession and transfer tax was a transfer tax imposed on the receipt of property by beneficiaries, as opposed to the modern estate tax, which is imposed on the transfer of the estate as a whole. The tax rate and exemptions depended on the relationship between the decedent and the beneficiary. Closer relatives (spouses, children) paid lower rates or were exempt; more distant relatives and unrelated beneficiaries paid higher rates.
For resident decedents, the tax applied to Connecticut real property, Connecticut tangible personal property, and all intangible personal property (CGS 12-340(b)(1)). For nonresidents, it applied only to Connecticut real property and tangible personal property with an actual Connecticut situs (CGS 12-340(b)(2)).
The tax was not collected when the amount due was less than $10.
The Sunset
CGS 12-340(a) provides the sunset: “The provisions of this chapter shall apply only to estates of decedents dying on or prior to January 1, 2005, that, prior to October 1, 2018, have filed a return under section 12-359 or been assessed a tax under section 12-367.”
This two-part condition means the tax is inapplicable unless both criteria are met. A pre-2005 estate that never filed and was never assessed before October 2018 is outside the scope of the statute. The October 2018 cutoff was a legislative cleanup, intended to close the book on estates that had gone decades without resolution.
When the Succession Tax Still Matters
There are two scenarios where practitioners may encounter the Chapter 216 tax.
Open pre-2005 estates. An estate of a decedent who died before 2005, where the estate filed or was assessed before October 2018, may still have unresolved succession tax liability. If the estate is still in administration (delayed administration is more common than most people realize, particularly for estates involving real property disputes, missing heirs, or contested wills), the fiduciary must resolve any outstanding succession tax liability before obtaining tax clearance from the probate court.
Title clearance on real property. When real property was owned by a decedent who died before 2005, the succession tax creates a statutory lien on the property (CGS 12-364, 12-366). Title companies and buyers will require evidence that the succession tax lien has been discharged before transferring title. Discharge requires either a certificate that no tax is due (CGS 12-378) or a receipt showing the tax has been paid.
Obtaining clearance for a pre-2005 estate can be complicated. The probate court must review the estate, and the Commissioner of Revenue Services may need to verify that the tax was paid or is not due. If the estate was never formally administered, a late administration may be necessary solely to clear the tax lien.
Tax Clearance Under Chapter 216
CGS 12-378 governs tax clearance for the succession tax. The probate judge may issue a written opinion that no tax is due, which becomes conclusive evidence that the property is free of any succession tax claim 30 days after filing, unless the Commissioner of Revenue Services objects within that period.
If the tax has been paid, the Commissioner issues a receipt, a copy of which must be filed with the probate court. The fiduciary cannot obtain a final accounting from the probate court without this receipt or a certificate that no tax is due.
Transition to the Modern Estate Tax
The succession tax was replaced by the standalone Connecticut estate tax (Chapter 217, CGS 12-391 et seq.) for deaths on or after January 1, 2005. The modern estate tax is structured differently: it taxes the transfer of the estate as a whole rather than the receipt by individual beneficiaries, and it uses a unified rate schedule rather than relationship-based rates.
For estates spanning the transition period (decedents who died before 2005 but whose estates were not administered until after 2005), only the succession tax applies. The date-of-death rule controls: the tax in effect at the date of death governs, regardless of when the estate is actually administered.
The practical takeaway: if you encounter an estate of a pre-2005 decedent, do not assume the modern estate tax rules apply. Look to Chapter 216 and its specific requirements.
For the modern Connecticut estate tax rules applicable to deaths on or after January 1, 2005, see our Connecticut estate tax guide. For the tax clearance process (which applies to both the succession tax and the modern estate tax), see obtaining estate tax clearance in Connecticut.
Fiduciaries administering pre-2005 estates must still follow the standard probate timeline and deadlines for inventory, creditor notice, and accounting, in addition to resolving any succession tax liability.