Pepe & Hazard Wealth Attorneys Advise Clients That CT State Budget Could Benefit Heirs

Hartford, CT, September 04, 2009 --(PR.com)-- The State Senate & House of Representatives early Tuesday approved a Democratic-written budget bill that would cut estate taxes for the wealthy, reduce the sales tax for everyone and increase the state income tax for couples earning more than $1 million a year. If the bill becomes law, it will take effect January 1, 2010 and apply to estates of those who die, on or after that date.

While this is good news, some details regarding the new law are not yet known. One thing is clear, we now get to pass on more to our loved ones upon death. For example, if the tax rates remain the same, estates with values just under $3.5 million will save about $229,000 in estate taxes.

Under current law, an estate valued at $2 million or less is not taxed while the full value of any estate valued more than $2 million is taxable. Just one extra dollar over $2 million creates an estate tax of $101,700. Estate planners call this the “cliff”. This new tax bill will eliminate the “cliff” by only taxing estate amounts over $3.5 million.

“This increased legacy may require even more thoughtful estate planning in order to protect our heirs,” explains Vincent A. Liberti Jr., J.D., LL.M., Partner, Pepe & Hazard, LLP, Wealth Preservation Practice. “We are advising our present and prospective clients to contact us if they have any questions in order to avoid any confusion.”

The bill also reduces the time an executor has to file an estate tax return by making the filing deadline six, rather than nine, months after the date of death. “This reduced time period to file estate tax returns makes it imperative for estate executors and administers to properly administer the estate. Executors should contact their attorney to see how this new filing deadline affects the estate they administer,” warns Kathleen Bornhorst, J.D., LL.M., Partner, Pepe & Hazard, LLP, Wealth Preservation Practice.

Pepe & Hazard LLP is a regional law firm, practicing primarily in the areas of general litigation, construction and business law. Vincent Liberti Jr. and Kathleen Bornhorst are partners in The Wealth Preservation Practice of the business law division. Attorney Liberti’s experience encompasses matters dealing with wealth acquisition and transfer. Attorney Bornhorst is an estate and business succession planning attorney.

For more information please visit www.pepehazard.com.

###