State of Connecticut

Office of Probate Court Administration

Interest Applies to Certain Probate Fees Beginning in 2011

Public Act 10-184 § 1 makes two important changes to the probate fee statutes. The Office of the Probate Court Administrator asked that we publish the following summary of the act:

Interest on Probate Fees

• Interest at the rate of 0.5% per month for late payment of probate fees
• Applies only to fees on decedents’ estates
• Accrual of interest begins:
• 30 days after the date of a court’s invoice, or
• If an estate tax return is not filed by the due date, 30 days after the date it was due (or extension thereof)
• An estate is exempt from interest if:
• The basis for costs does not exceed $40,000
• Any portion of the estate passes to a surviving spouse and the basis for costs does not exceed $500,000
• A court may extend the time for payment
• A court cannot waive previously accrued interest
• Applicable to estates of decedents dying on and after January 1, 2011

Exclusion of Out-of-State Property from Probate Fees

• For Connecticut residents, real and tangible personal property located in another state is excluded from the calculation of probate fees
• For out-of-state residents who own real or tangible personal property in Connecticut, only the property located in Connecticut is included in the calculation of probate fees
• The 0.1% fee on certain non-solely owned real property is repealed
• Effective for estate proceedings commenced on or after January 1, 2011

Interest Applies to Certain Probate Fees Beginning in 2011

Public Act 10-184 § 1 makes two important changes to the probate fee statutes. The Office of the Probate Court Administrator asked that we publish the following summary of the act:

Interest on Probate Fees

Beginning in 2011, interest will accrue on the late payment of probate fees for decedents’ estates at the rate of 0.5% per month. Interest starts to accrue thirty days after the court issues an invoice. Because estates that fail to file a timely estate return may not receive an invoice at all, interest also begins to accrue 30 days after the date the return was due. The intent of the new statute is to create a financial incentive for all estates to comply with the statutory requirement of filing an estate tax return and paying the probate fee.

The interest rules apply only to fees on decedents’ estates. Interest does not apply to fees for other types of cases. It also does not apply to miscellaneous charges for items such as copying and recording in decedents’ estates.

There are two exemptions from the interest provisions. First, estates in which the basis for costs does not exceed $40,000 are entirely exempt. Estates are also exempt if any portion of the property passes to a surviving spouse and the basis for costs is $500,000 or less. The term basis for costs is defined in § 45a-107 and is the figure that courts use to calculate probate fees. Note that the basis for costs is reduced by 50% for any property passing to a surviving spouse, so that estates that are valued at $1 million or less that pass to a surviving spouse are exempt from the interest provisions.

A court may grant an extension if it determines that requiring payment by the due date of the invoice would cause undue hardship. Judges may not, however, waive interest that has already accrued and also may not extend the due date for the tax return itself. Requests for an extension of time to file an estate tax return must be filed with the Department of Revenue Services.

The new interest rules apply to the estates of decedents dying on or after January 1, 2011.

Exclusion of Out-of-State Property from Probate Fees

A second change resulting from the passage of Public Act 10-184 is the exclusion of out- of-state real and tangible personal property from the calculation of the probate fees. The 0.1% fee on certain non-solely owned real property is also repealed. Both changes become effective for estate proceedings commenced on or after January 1, 2011.