Alex Is there a trust law in the state of CT?
Opinions expressed by Forbes Contributors are their own. If you’re rich and live in Connecticut, chances are you’ll be hearing this from your estate lawyer: As of the New Year, Connecticut trust law has entered the modern age, and that probably means you should revisit your estate plan.
When does a testamentary trust become irrevocable?
A testamentary trust is always revocable and modifiable as long as the testator is living and competent. Naturally, it becomes irrevocable when the testator dies. A living trust, as the term is commonly used, is ordinarily revocable, although certain types of trusts established during the settlor’s life may be irrevocable, usually for tax reasons.
Is there an estate tax exclusion in Connecticut?
The trust law changes come at the same time as estate tax law changes, with the Connecticut estate tax exclusion amount on the rise, so it’s an opportunistic time to fund a new trust—or add to an old trust. Connecticut’s exclusion amount is $5.1 million for 2020, up from $3.6 in 2019.
How are assets divided in probate in CT?
If no will exists, the property is divided according to Connecticut law. The Probate Courts ensure that any debt owed by the deceased person, funeral expenses and taxes are paid before the remaining assets are distributed.
Opinions expressed by Forbes Contributors are their own. If you’re rich and live in Connecticut, chances are you’ll be hearing this from your estate lawyer: As of the New Year, Connecticut trust law has entered the modern age, and that probably means you should revisit your estate plan.
What’s the look back period for an irrevocable trust?
In particular, both “penalty period” and 60 months “look-back period” rules apply. For example, assume a new irrevocable trust is created and $200,000 is transferred into that trust so as to leave only a minimal amount of family assets outside the trust. This structure is created on 1 January of Year 2001.
The trust law changes come at the same time as estate tax law changes, with the Connecticut estate tax exclusion amount on the rise, so it’s an opportunistic time to fund a new trust—or add to an old trust. Connecticut’s exclusion amount is $5.1 million for 2020, up from $3.6 in 2019.
What does an irrevocable trust do for a family?
It not only protects family assets from creditors, it also eliminates the countable assets for Medicaid eligibility purposes and hence accelerates the time when Medicaid benefits can kick-in. An irrevocable trust is a legal structure that cannot be amended or undone once signed into existence.