Rule 31 - Estate Tax MattersSection 31.1 ApplicabilitySections 31.2 through 31.6 apply only to nontaxable estates. Sections 31.7 through 31.9 apply both to taxable and nontaxable estates.
((C.G.S. sections 12-391 and 12-392(b).)
Section 31.2 Requirements for estate tax forms for nontaxable estates; extensions(a) Except as modified by this rule, a person filing a DRS Form CT-706 NT and related forms for a nontaxable estate shall comply with the instructions for the form published by DRS.(b) If the court grants an extension of time to file a DRS Form CT-706 NT, the court shall send the extension to each party and attorney of record. (See Form CT-706 NT instructions, available at http://www.ct.gov/drs.)
Section 31.3 Valuation of property for nontaxable estates(a) Except as provided in subsection (c), a person filing a DRS Form CT-706 NT for a nontaxable estate shall substantiate the fair market value of real property required to be reported on the form by submitting any one of the following: (1) a comparative market analysis prepared by a real estate broker or agent;(2) information from the municipal assessment of the property, adjusted to reflect 100 percent of the fair market value as of the date of the assessment;(3) a written appraisal; or(4) written proof of the actual sales price if the property is sold in an arm's-length transaction that is completed not later than six months after the death of the decedent.(b) Except as provided in subsection (c), the court may require a person filing a DRS Form CT-706 NTto substantiate the fair market value of any personal property required to be reported on the form by supplying a written appraisal or other reasonable proof of value, including, but not limited to, an affidavit setting forth the fair market value of the decedent's interest in an entity, such as a membership interest in a limited liability company, and the method used to determine the value of the interest.(c) If an Internal Revenue Service Form 706 is required for the decedent, the person filing a DRS Form CT-706 NT shall report each asset on the DRS Form CT-706 NT at the value shown on the Internal Revenue Service Form 706. Section 31.4 Amended tax forms for nontaxable estates
(a) Except as provided in subsection (b), if property reported on a DRS Form CT-706 NTfora nontaxable estate is sold in an arm's-length transaction that is completed not later than six months after the death of the decedent, the person filing the original form may amend the form to change the reported value of the property to the amount of the sales price. The form may be amended to change the reported value of any property that is not sold within the six-month period only if the person filing the form submits substantiation that the fair market value of the property at the time of the decedent's death is different from the amount originally reported. A change to the reported value for real property shall be substantiated by one of the methods listed in section 31.3(a). A change to the reported value for personal property shall be substantiated by a written appraisal or such other reasonable proof of value as the court directs.(b) If an Internal Revenue Service Form 706 is required for the decedent, the person filing the DRS Form CT-706 NT shall amend the DRS Form CT-706 NT to reflect any amendments, changes or corrections to the Internal Revenue Service Form 706.((C.G.S. section 12-398.)
Section 31.5 Procedure when court unable to determine if estate is nontaxableIf the court is unable to determine from review of a DRS Form CT-706 NT and accompanying materials whether the Connecticut taxable estate is less than or equal to the amount that is exempt from the Connecticut estate tax under C.G.S. section 12391, the court shall require the person filing the form to file a DRS Form CT-706/709 with DRS and submit a copy of the form to the court.
(C.G.S. section 12-392(b).)
Section 31.6 Domicile declaration for nontaxable estatesA person filing a DRS Form CT-706 NT claiming that the decedent was not domiciled in Connecticut shall submit a DRS Form C-3 UGE State of Connecticut Domicile Declaration. If the court is unable to determine the decedent's domicile from the information contained in the domicile declaration, the court may schedule a hearing to permit the person filing the domicile declaration to present evidence in support of the domicile declaration. The court shall make a written determination regarding the decedent's domicile. The clerk shall calculate the probate fee for the estate in accordance with the court's determination.
(C.G.S. sections 12-391(h), 12-395 and 45a-107.)
Section 31.7 Tax return included in permanent official recordThe court shall include each estate tax return and each attachment to the return in the permanent official record, except that the court may, on written request of the filer, exclude an attachment from the record.
(Probate Court Regulations, section 10) .
Section 31.8 Confidentiality of information on filed tax form(a) Except as provided in subsections (b) through (d), the court shall not disclose a DRS Form CT-706 NT or CT-706/709 or other estate tax return information to any person.(b) The court may disclose a DRS Form CT-706 NT or CT-706/709 or other estate tax return information to the probate court administrator or the commissioner of revenue services.(c) On request, the court may disclose a DRS Form CT-706 NT or CT-706/709 or other estate tax return information without notice and hearing, if:(1) the person who filed the form consents, in writing, to disclosure; or(2) the person seeking disclosure is: (A) a fiduciary of the estate;(B) in the case of an intestate estate, an heir of the estate; or(C) in the case of a testate estate, a residuary beneficiary of the estate.(d) On motion ofa person not listed in subsection (c) and after notice and hearing, the court may disclose a DRS Form CT-706 NT or CT-706/709 or other estate tax return information under C.G.S. section 12-398(c) if the court finds that the requesting person has a material interest that will be affected by the information contained in the return.(C.G.S. section 12-15.)
Section 31.9 Determination of amount of property passing to surviving spouse for probate fee calculationTo calculate the probate fee for an estate under C.G.S. section 45a-107, property shall be treated as passing to the surviving spouse only if the property passes directly to the spouse or the property is held in a trust that qualifies for the Connecticut estate tax marital deduction.
Rule 31 adopted effective 7/1/2013. Sections 31.1, 31.3, 31.4, 31.8 amended and section 31.9 adopted effective 7/1/2015. Sections 31.2, 31.7 and 31.9 amended effective 1/1/2020; Section 31.3 amended effective July 1, 2022.