Form Ct 706 – Fill Out and Use This PDF

General Instructions

The Connecticut estate tax is a transfer tax which absorbs the credit allowable for state death taxes on federal Form 706, United States Estate (and Generation Skipping Transfer) Tax Return, thereby shifting a portion of the federal estate tax to Connecticut by picking up the credit allowed for state death taxes under the Internal Revenue Code (I.R.C.). If you have any questions, please call the Inheritance Tax Section at 860-297-5737 between 8:00 a.m. and 5:00 p.m.

Who Must File: Whenever an estate is required to file federal Form 706, the estate must file Form CT-706, Connecticut Estate Tax Return, if the decedent was a Connecticut resident at the time of death or if the decedent was a nonresident of Connecticut at the time of death, but owned real property or tangible personal property located within Connecticut. The duly authorized executor(s) or administrator(s) must file Form CT-706, but if there is no executor or administrator appointed, each person in possession of estate assets must file Form CT-706.

When and Where to File: Form CT-706 must be filed and the Connecticut estate tax paid on or before the date that is nine months after the decedent’s date of death. Original returns must be filed separately with the appropriate probate court and DRS.

Make the check or money order payable to: Commissioner of Revenue Services. Write the decedent’s name, Social Security Number, Connecticut succession tax file number, if known, and “Form CT-706” on the check or money order. Mail the return and a check or money order to:

Department of Revenue Services

Inheritance Tax Section

PO Box 2972

Hartford CT 06104-2972.

Supporting Documentation: Unless previously submitted with the estate’s Connecticut succession tax return, a complete copy, including all attachments, of federal Form

706must accompany the filing of Form CT-706. Schedules A and B of Form CT-706 must be completed, if applicable. If it is claimed that the decedent was a nonresident of Connecticut at the time of death, the executor or administrator must complete and file Form C-3, State of Connecticut Domicile Declaration, with DRS. Forms may be obtained from the probate court.

Extension for Filing or Payment: To request an extension to file or pay the Connecticut estate tax, please file a Form CT-706EXT, Application for Extension of Time to File and/or Pay Estate Tax. You must be able to show that it will cause you undue hardship to pay the tax on or before the due date. Forms may be obtained from the probate court.

Amended Returns: An estate must file an amended Form CT-706 if:

•The estate files an amended federal Form 706 with the Internal Revenue Service (IRS). The estate must file an amended Form CT-706 not later than 90 days after the date of filing the amended federal return.

•The amount of federal estate tax reported on the estate’s federal Form 706 is changed or corrected by the IRS. The estate must file an amended Form CT-706 not later than 90 days after the final determination of the change or correction and either concede the accuracy of the determination or state where it is erroneous.

•The estate is a resident estate and has claimed a credit against the Connecticut estate tax for death tax paid to a state of the United States (other than the State of Connecticut) or to the District of Columbia and, as a direct result of the estate filing an amended estate tax return with the other state or District of Columbia, the amount of death tax that the estate is finally required to pay to that state or the District of Columbia is different than the amount used to determine the credit against Connecticut estate tax. The estate must file an amended Form CT-706 not later than 90 days after the date of filing the amended return with that state or the District of Columbia.

•The estate is a resident estate and has claimed a credit against the Connecticut estate tax for death tax paid to a state of the United States (other than the state of Connecticut) or to the District of Columbia and, as a direct result of a change or correction to the estate tax return filed with the other state or the District of Columbia by the tax officers or other competent authority of the jurisdiction, the amount of death tax that the estate is finally required to pay to that state or the District of Columbia is different than the amount used to determine the credit against Connecticut estate tax. The estate must file an amended Form CT-706 not later than 90 days after the final determination of the change or correction and either concede the accuracy of the determination or state where it is erroneous.

Connecticut Generation-Skipping Transfer Tax: A person liable for the tax imposed under Chapter 216a of the Connecticut General Statutes satisfies the requirements for filing a Connecticut Generation-Skipping Transfer Tax Return by filing a duplicate copy of federal Form 706. A schedule detailing the value and location of all transferred real and tangible personal property that is subject to the tax imposed under Chapter 216a must be attached. A duplicate copy of federal Form 706-GS(D),

Generation-Skipping Transfer Tax Return for Distributions, or federal Form 706-GS-T, Generation- Skipping Transfer Tax Return for Terminations, must also be attached.

Line Instructions

Line 1: The starting point in computing the Connecticut estate tax is the maximum credit for state death taxes allowable to the estate under I.R.C. §2011. This is the amount that must be entered on Line 1 even if the estate claims no state death tax credit on federal Form 706 or claims a state death tax credit that is less than the maximum credit for state death taxes that is allowable to the estate under I.R.C. §2011. No Connecticut estate tax is due from an estate if the amount of the unified credit allowed to the estate under I.R.C. §2010 exceeds the amount of the federal estate tax that is imposed by I.R.C. §2001.

Line 2: Total death taxes means the total amount of estate, inheritance, legacy, or succession taxes (excluding interest) paid to any state of the United States (other than the State of Connecticut) or to the District of Columbia for which the state tax credit is allowable to the estate under I.R.C. §2011. Payment of these taxes is reported on Lines 28 to 30 on Schedule A. The amount entered on Line 31 of Schedule A is the amount that must be entered on Line 2.

Line 3: Gross estate outside Connecticut means the estate’s real or tangible personal property located outside of Connecticut as properly valued for federal estate tax purposes.

Line 4: Total gross estate means the gross estate as properly valued for federal estate tax purposes.

Line 9: Connecticut succession tax imposed and paid means the amount of succession tax that is imposed under Chapter 216 of the Connecticut General Statutes and that is actually paid to the State of Connecticut. Any credit that an estate claims against the succession tax (such as the credit under Conn. Gen. Stat. §12-376d for the value of a work of art accepted by the State of Connecticut or the credit under Conn. Gen. Stat. §12-648 for Connecticut gift tax imposed and paid on a gift includable in the donor’s gross taxable estate for succession tax purposes) reduces the amount of succession tax that is actually paid to the State of Connecticut.

Example: An estate claimed a credit of $3,000 against its succession tax liability for Connecticut gift tax of $3,000 imposed and paid on a gift includable in the donor’s gross taxable estate for succession tax purposes. If the estate’s succession tax liability, but for the credit under Conn. Gen. Stat. §12-648, would have been $10,000, the estate must enter $7,000 (and not $10,000) on Line 9, because the amount of succession tax that was actually paid to the state of Connecticut by the estate was $7,000 ($10,000 - $3,000).

Line 14: The penalty for late payment or underpayment of estate tax is 10% (.10) of the amount due. If no tax is due, the Commissioner of Revenue Services may impose a $50 penalty for the late filing of any return that is required by law to be filed. Interest of 1% (.01) per month or fraction of a month accrues on a late payment or

underpayment of estate tax from the due date of the return until the tax is paid.

Line 16: The starting point in computing the Connecticut estate tax is the maximum state death tax credit allowable to the estate under I.R.C. §2011. This is the amount that must be entered on Line 16 even if the estate claims no state death tax credit on federal Form 706 or claims a state death tax credit that is less than the maximum credit for state death taxes that is allowable to the estate under I.R.C. §2011. No Connecticut estate tax is due from an estate if the amount of the unified credit allowed to the estate under I.R.C. §2010 exceeds the amount of the federal estate tax that is imposed by I.R.C. §2001.

Line 17: Gross estate within Connecticut means the estate’s real or tangible personal property located within Connecticut as properly valued for federal estate tax purposes.

Line 18: Total gross estate means the gross estate as properly valued for federal estate tax purposes.

Line 21: Connecticut succession tax imposed and paid means the amount of succession tax that is imposed under Chapter 216 of the Connecticut General Statutes and that is actually paid to the State of Connecticut. Any credit that an estate claims against the succession tax (such as the credit under Conn. Gen. Stat. §12-376d for the value of a work of art accepted by the State of Connecticut or the credit under Conn. Gen. Stat. §12-648 for Connecticut gift tax imposed and paid on a gift includable in the donor’s gross taxable estate for succession tax purposes) reduces the amount of succession tax that is actually paid to the State of Connecticut.

Example: An estate claimed a credit of $3,000 against its succession tax liability for Connecticut gift tax of $3,000 imposed and paid on a gift includable in the donor’s gross taxable estate for succession tax purposes. If the estate’s succession tax liability, but for the credit under Conn. Gen. Stat. §12-648, would have been $10,000, the estate must enter $7,000 (and not $10,000) on Line 21, because the amount of succession tax that was actually paid to the State of Connecticut by the estate was $7,000 ($10,000 - $3,000).

Line 26: The penalty for late payment or underpayment of estate tax is 10% (.10) of the amount due. If no tax is due, the Commissioner of Revenue Services may impose a $50 penalty for the late filing of any return that is required by law to be filed. Interest of 1% (.01) per month or fraction of a month accrues on a late payment or underpayment of estate tax from the due date of the return until the tax is paid.