Estate planning is something most people push off until it’s too late — and unfortunately, that delay can cost your family thousands in estate taxes. If you own property in Connecticut, especially in areas like Thompson, Woodstock, North Grosvenordale, Quinebaug, or Putnam, it’s smart to start thinking ahead. Estate taxes in Connecticut can hit hard — and fast — if you’re not prepared.
Let’s break down what estate taxes are, who’s affected, and what you can do to protect your house and legacy.
What Are Estate Taxes and Who Pays Them in Connecticut?
Estate taxes are charged when someone passes away and leaves behind significant assets — including property. While the federal estate tax only kicks in on estates over $13.61 million (as of 2024), Connecticut has its own estate tax starting at $12.92 million. That said, local homeowners can still be affected, especially if their estate includes multiple properties or valuable assets like retirement accounts and investments.
Connecticut is one of only 12 states (plus D.C.) that still collects a state-level estate tax. The rate ranges from 10.8% to 12%, depending on the size of the estate. That might not sound like much — until your family is on the hook for a six-figure tax bill just to keep your house.
1. Create a Solid Estate Plan
The first step is getting organized. You don’t need to be wealthy to need an estate plan — if you own a property, you have an estate.
Here’s what should be part of your plan:
- Will or Living Trust: This tells the courts who gets what. A living trust can also help your heirs avoid probate altogether.
- Power of Attorney & Healthcare Directive: These protect your rights while you’re still alive.
- Asset Inventory: Keep a clear list of what you own (property, bank accounts, etc.).
You can start this process with a Connecticut estate attorney, or for smaller estates, even use legal services like Legal Aid of Connecticut or Connecticut Bar Association’s lawyer referral.
2. Transfer Property the Right Way
Many people think they’re doing their family a favor by simply adding a child’s name to the deed. But that move can create capital gains tax issues and actually reduce Medicaid eligibility.
Instead, consider:
- Revocable Living Trust: Helps pass your property smoothly without probate delays or taxes.
- Transfer-on-Death (TOD) Deeds: Not available in CT yet, but an estate attorney might suggest alternatives.
- Gifting Real Estate Early: Be cautious — gifting large assets may trigger gift taxes.
If you’re unsure how to move forward, talk to a local estate attorney or financial advisor. They can help avoid missteps that may create tax liability later.
3. Don’t Let Probate Drain Your Property’s Value
When someone passes without a trust or will, the property goes into probate — a public, court-supervised process. It can take months (or years), rack up legal fees, and leave your house vulnerable to liens, vandalism, or decline in value.
Connecticut probate courts — such as Windham County Probate Court — manage estates in towns like Putnam, Thompson, and Woodstock. Once a property goes into probate, it can’t be sold until the court grants approval — and that slows everything down.
If you’re the heir of a property stuck in probate, we may be able to help you sell the house fast in Connecticut without paying out-of-pocket for repairs or commissions.
4. Keep Records Updated
A common problem we see with inherited properties is outdated paperwork. If your parents’ or grandparents’ property still has their names on the deed, and no trust was set up, it often leads to probate headaches and tax confusion.
Make sure:
- Deeds are current
- Beneficiaries are updated on all accounts
- Mortgage statements and insurance policies are accessible
This might sound tedious, but it can save your family enormous stress down the road.
5. Consider Selling the Property Before Probate Becomes a Burden
Sometimes, keeping a property in the family just isn’t feasible. Maybe the house needs major repairs, the taxes are piling up, or the heirs live out of state. In cases like these, selling the property to a local buyer like Heavenly Home Solutions, LLC can reduce stress, preserve value, and help your family move on faster — without waiting months for probate to sort itself out.
We buy properties as-is in Thompson, Woodstock, Putnam, and nearby areas, even if there’s a lien, back taxes, or title complications. And yes — we’ll walk you through probate options if needed.
Local Resources You Should Bookmark
- Connecticut Office of Policy and Management – Estate Tax Info
- Windham County Probate Court
- Connecticut Bar Association
- CT Department of Revenue Services
- Legal Help – CT Law Help
Final Thoughts
Estate taxes might sound like a far-off worry, but the truth is — preparing now can protect your property and your family from unnecessary costs and legal stress. Whether you’re inheriting a house or just thinking ahead, understanding your options puts you in control.
If you’re facing probate, dealing with an inherited house, or simply want to avoid a tax mess for your heirs, we can help.
Ready to Talk?
At Heavenly Home Solutions, LLC, we specialize in helping local families navigate complex property situations. We buy houses for cash in Putnam, Woodstock, Thompson, and surrounding areas — no repairs, no commissions, no headaches.
📞 Call or text us at 774-272-6604
📧 Email: [email protected]
📅 Or schedule a 15-minute call
Let’s find a solution that works for your situation — and protects your legacy.