7 Steps for Settling an Estate in Connecticut
Probate is the legal process during which a named representative for the estate (“fiduciary”) carries out the filings required by the Probate Court and makes distributions to estate beneficiaries. The Probate Court in the district the individual last resided oversees this process and ensures that administration expenses and debts are paid and that the property and possessions of the deceased are distributed to the correct people.
If you are the Executor or Administrator of an estate, the following outline provides you with some of the major responsibilities you will have in settling the estate. Every situation is different, and you should consult with an attorney specializing in estate administration to ensure that filings are timely and accurate and that you are following correct distribution procedures.
Prepare and file the Petition/Administration or Probate of Will. This petition should be filed within 30 days of the decedent’s death. The petition is filed with the Original Will (if one exists) and a copy of the death certificate. A copy must be sent to all of the listed heirs and beneficiaries. The Probate Court may then choose to schedule a hearing to admit the will and officially appoint the Executor or Administrator (the “fiduciary”) – this is the first step to open the estate with the Probate Court.
Collect the Decedent’s Property. The fiduciary has a responsibility to protect and preserve all of the estate assets. Bank accounts and any other financial assets should be placed in an estate account and kept separate from the fiduciary’s own personal accounts. If the decedent owned real estate, within two months of appointment, the fiduciary must file the Notice for Land Records/Appointment of Fiduciary form with the Town Clerk in each town in Connecticut where real estate is owned by the decedent.
Prepare and file the Inventory. Within two months of appointment, the fiduciary must file an Inventory of the estate. This Inventory should include any real estate, bank accounts, stocks, motor vehicles, household furnishings and personal effects owned in the sole name of the decedent, without a beneficiary designation. Some accounts pass directly to named beneficiaries without having to go through probate, such as life insurance policies, retirement accounts and certain bank or brokerage accounts that are either payable or transferable upon death. Real property held in trust or owned jointly with “rights of survivorship” are also not included on the Inventory.
Pay Claims. When the fiduciary has been appointed, the Probate Court will publish a “Notice to Creditors” in the newspaper informing the estate’s creditors where claims are to be presented. Creditors have a 150-day claims period to present these claims to the fiduciary. The fiduciary will then determine the validity of all claims and will then prepare and file a “Return and List of Creditors” with the Probate Court. This form details the claims the estate is responsible for and which claims have been allowed or disallowed.
Prepare and file tax returns. The fiduciary will be responsible for filing tax returns. Taxes owed may include the federal estate tax, reported on federal Form 706 and Connecticut estate tax, reported on Form CT-706/709. Even if you don’t owe any federal or state estate taxes under current exemption limits (an amount that changes almost every year), you must file a Connecticut return on the CT-706NT. This return needs to be filed within 6 months of the decedent’s date of death, after which, interest may be added to the statutory probate fees based on the amounts reported on the CT-706NT or CT-706/709.
Prepare and file a Decedent’s Estate Administration Account or Financial Report. Once the claims period has expired and the administration of the estate is complete, the fiduciary can start to prepare the “Decedent’s Estate Administration Account” also known as a Final Accounting. Copies of this account must be provided to all of the heirs, beneficiaries and attorneys of record. The Probate Court may hold a hearing on the account, and absent objections, will accept and approve the account.
Prepare and file an Affidavit of Closing of Estate. Once the fiduciary has made the distributions as approved by the Probate Court on the account, the affidavit of closing must be filed. This reports that distributions to the beneficiaries have occurred and report any additional income or expenses that occurred after the accounting was filed. This should be filed within 30 days after the distribution of assets to the beneficiaries.
The probate process can be confusing and time consuming. This information has been provided as a public service and is not to be interpreted as legal advice. The laws pertaining to Estate Administration vary from state to state and depend on your specific facts and circumstances. Feel free to contact us at (203) 446-4725 for an initial consultation so we can help you navigate this difficult process!