Under recent legislation, the large estates of Connecticut residents dying on or after January 1, 2015 are being hit with sizable increases in probate court fees. Estates totaling less than $2 million are not affected and those in the $5 million range will see a relatively small increase in the probate court fee.
The fees are computed based on a percentage of assets reported on the estate's Connecticut estate tax return and are imposed regardless of whether the assets are probated.
Prior to the legislation, probate court fees were capped at $12,500 for all estates regardless of their value. The new legislation eliminates that cap and increases the percentage applied to estate assets in excess of $2 million from .25% to .50% while lower rates apply to the first $2 million of assets. The result is an increase in fees for estates in excess of $2 million and a substantial increase in fees for larger estates. that previously benefited from the cap.
Example: Prior to this legislation, a $20 million estate would have paid a probate court fee of $12,500. With the fee increase, that same estate will now pay a fee of $95,615!
Questions? Contact your Berdon advisor or Marco Svagna, CPA at 212.331.7644 |email@example.com.