What the 4th of July Can Teach You About Protecting Your Family’s Independence

Every Fourth of July, we celebrate the idea that freedom doesn’t happen by accident. It took deliberate action, careful planning, and a commitment to protecting something worth preserving.

The same is true for your family’s financial future.

Independence Day is a fitting moment to ask a question many Connecticut families put off all year:

If something happened to you today, would your family be protected? Do you have a plan in place, or are you leaving those decisions to chance?

What Happens Without a Plan

If you die without a will in Connecticut, the state decides what happens to your assets. Under Connecticut’s intestate succession laws (CGS § 45a-437), the distribution of your estate follows a fixed legal formula, one that may not reflect your actual wishes or your family’s real needs. Your spouse, children, and other relatives receive shares determined by statute, not by you.

For many families, that outcome is far from what they would have chosen. Estate planning exists precisely to put those decisions back in your hands.

The New Tax Landscape: What Changed and What Didn’t

If you’ve been following the estate tax news, you may have heard that a major deadline came and went. The Tax Cuts and Jobs Act of 2017 (TCJA) had temporarily doubled the federal estate and gift tax exemption, but that increase was set to expire at the end of 2025. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, resolved the uncertainty. The federal estate tax exemption rose to $15 million per person, and unlike the TCJA increase, this one carries no sunset provision. For married couples, up to $30 million can be transferred free of federal estate and gift tax starting in 2026.

Connecticut follows suit. For estates of decedents dying during 2026, the Connecticut estate tax exemption is also $15 million.

For most Connecticut families, this means estate tax is not the primary concern. But that is exactly why the planning conversation matters more than ever, not less.

Connecticut’s Unique Rules Still Require Attention

Even with generous exemptions, Connecticut has specific rules that set it apart from most other states. 

Connecticut does not allow portability between spouses. Unused exemptions vanish at death. At the federal level, a surviving spouse can claim a deceased spouse’s unused exemption with the right filing. Connecticut offers no such option, which means married couples here need to plan deliberately to make full use of both exemptions.  

Connecticut also remains the only state with both estate and gift taxes. Gifts made during your lifetime count against your Connecticut exemption, requiring careful coordination with your overall plan. The annual gift tax exclusion of $19,000 per recipient allows some flexibility, but larger gifts require attention.  

And for estates that do exceed the threshold, Connecticut applies a flat 12% tax rate to the portion above the exemption. Combined with the federal 40% rate, larger estates can face meaningful combined exposure. 

Estate Planning Is About More Than Taxes

Here’s something worth saying plainly: the $15 million exemption means most Connecticut families will never owe a dollar in estate tax. But that doesn’t mean an estate plan isn’t necessary.

Wills, powers of attorney, healthcare directives, and trust structures have nothing to do with your tax bracket. They determine who makes decisions for you if you become incapacitated, who raises your children if the unthinkable happens, and whether your family navigates a difficult time with clarity or confusion.

Your estate may also be larger than you realize. A home in eastern Connecticut, retirement accounts, and a life insurance policy can add up quickly. And the permanence of current tax law is only as secure as the political climate allows. Congress retains the authority to amend or repeal tax laws, and future administrations may seek to revisit the estate tax framework. A plan built for today’s rules should be flexible enough to adapt.

This Summer, Take the Step

Summer is when families gather. It’s when the people you love are around the same table, and when questions about the future have a way of surfacing. It’s also one of the strongest windows all year to turn that instinct into action.

The Prue Law Group has been guiding Connecticut families through estate planning for over four decades. With Attorney Patrick Prue‘s more than 20 years of experience as a Connecticut probate judge, our team brings a perspective on estate and probate matters that few firms in the region can offer.

When legal matters,we’re here for you. Contact us today to schedule a consultation at any of our four conveniently located offices in Willimantic, Brooklyn, Coventry, and Colchester.

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Sources: 

• Connecticut Department of Revenue Services. “Estate and Gift Tax Information.” portal.ct.gov.
• Morgan Lewis. “Estate Tax Alert: New $15 Million Federal Exemption Becomes Law.” August 2025. morganlewis.com.
• Mercer Advisors. “Estate Tax Exemption 2026 Changes Require Planning.” merceradvisors.com.
• Citizens Private Bank. “Estate Tax and Gift Tax Exemption Changes.” citizensbank.com.
• SmartAsset. “Connecticut Estate Tax: Everything You Need to Know.” smartasset.com.
• Connecticut General Statutes § 45a-437. Intestate succession.

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The Prue Law Group has served eastern and central Connecticut since 1980, providing comprehensive business law, estate planning, probate, and elder law services. Our team’s deep local knowledge and specialized expertise help business owners protect what matters most. AI may have been used for the initial research and drafting of the article. This content is intended for general informational purposes only and should not be construed as legal advice. For guidance on your specific situation, please contact our office for a consultation.