The federal estate tax is a tax on your right to transfer property at your death—whether by will or intestate succession (transfer to heirs when a person dies without a will, as provided by state statute). The estate tax consists of an accounting of everything you own or have certain interests in on the date of your death.

The fair market value of these items is used—not necessarily what you paid for them or what their values were when you acquired them. The total of all your assets at death is your "gross estate." The property included in your gross estate may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

In Connecticut, the federal estate tax applies to the transfer of property at death, including transfers through a will or by intestate succession. The tax is based on the fair market value of the decedent's assets at the time of death, which collectively make up the 'gross estate.' This includes a variety of assets such as cash, securities, real estate, insurance, trusts, annuities, and business interests. As of the knowledge cutoff in 2023, the federal estate tax exemption amount is $12.92 million per individual, meaning that estates valued below this threshold are not subject to federal estate tax. Amounts above this exemption are taxed at progressive rates. It's important to note that Connecticut also imposes its own state estate tax, which may apply to estates that are not large enough to trigger the federal estate tax. Connecticut's estate tax exemption is lower than the federal exemption, and the state tax rates vary. Estate planning with the assistance of an attorney can help individuals understand and potentially minimize their estate tax liabilities.