Should You Prepare for a Future Inheritance?

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

IRS: Estate tax
- https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
  - Related column excerpt:
    - “There are two levels of estate taxes (federal and state) that are paid by the estate itself -- but it will not be subject to taxes if the size of the estate falls under certain thresholds. On a federal level, estates that do not exceed $13.99 million (as of 2025) are free of federal estate taxes.”
Connecticut State Department of Revenue Services: Estate and Gift Tax Information
- https://portal.ct.gov/drs/individuals/individual-income-tax-portal/estate-and-gift-taxes/tax-information
  - Related column excerpt:
    - “As to states, it depends. My home state (Connecticut) matches the federal exemption. That means that if your estate does not exceed $13.99 million, there is no Connecticut estate tax. To look up other states, a good resource is The American College of Trust and Estate Counsel’s State Death Tax Chart.”
ACTEC: Resources for Wealth Planning Professionals – State Death Tax Chart
- https://www.actec.org/resources-for-wealth-planning-professionals/state-death-tax-chart/
  - Related column excerpt:
    - “As to states, it depends. My home state (Connecticut) matches the federal exemption. That means that if your estate does not exceed $13.99 million, there is no Connecticut estate tax. To look up other states, a good resource is The American College of Trust and Estate Counsel’s State Death Tax Chart.”
Fidelity Viewpoints: “What is a step-up in cost basis and how can it affect me?”
- https://www.fidelity.com/learning-center/personal-finance/what-is-step-up-in-basis
  - Related column excerpt:
    - “‘[I]f a person holds property at death, it will receive a new basis equal to the fair market value of the property at the person’s date of death. In the case of appreciated assets, the rule allows people to inherit the assets, such as stocks or real estate, without inheriting the tax burden that’s triggered by capital gains.’”