CT-706 NT: Instructions for Connecticut's Nontaxable Estate Return

The CT-706 NT is the document that trips up more Connecticut executors than any other part of the probate process. It's a Connecticut state estate tax return — but it's required even when the estate owes no estate tax whatsoever. Most families learn about it late, file it under pressure, or miss the deadline entirely and discover that the penalty started accumulating months before they knew the form existed.

This article explains exactly what the CT-706 NT is, who must file it, what information goes on it, how to file on time, and what the consequences are if you don't.

What the CT-706 NT Is and Why It Exists

The CT-706 NT is the Connecticut Estate Tax Return for Nontaxable Estates. It is filed with the Connecticut probate court — not the Department of Revenue Services directly, though DRS publishes and owns the form — within six months of the date of death.

For 2026, the Connecticut estate tax exemption is $15 million per individual. The vast majority of Connecticut estates fall well below this threshold and owe no estate tax. Despite that, state law requires the CT-706 NT to be filed for essentially all Connecticut estates because the form serves two critical functions beyond tax collection:

1. Probate fee calculation. Connecticut's statutory probate fee is assessed on the gross taxable estate. The probate court cannot calculate what it is owed until the executor provides a complete asset valuation through the CT-706 NT. Filing this form is what triggers the court to issue its fee invoice.

2. Lien release for real estate. Connecticut places an automatic, invisible lien on all real property owned by a Connecticut resident the moment they die. No lien release is issued until the CT-706 NT is reviewed and approved by the probate court. Without the release — the Certificate Releasing Connecticut Estate Tax Liens, Form PC-256 — the property cannot be legally sold or refinanced. Title companies will not insure a transaction without it.

The form is available from the Connecticut Department of Revenue Services at portal.ct.gov/drs.

Who Must File

If the decedent was a Connecticut resident at the time of death, the executor or administrator of the estate must file the CT-706 NT with the probate court within six months of the date of death, regardless of the estate's size or whether any tax is owed.

The exceptions that allow you to skip this form are narrow: certain estates where assets pass entirely outside of probate to a surviving spouse, and where specific conditions are met, may be exempt. If you are uncertain whether your specific situation qualifies for an exemption, consult with a Connecticut probate attorney before assuming no filing is required.

For most families handling a standard Connecticut estate with a home, bank accounts, and investment accounts, the filing is required.

What the CT-706 NT Asks For

The form asks the executor to report the total value of the gross taxable estate, organized by asset category. The gross taxable estate is broader than most executors expect. It includes:

Probate assets — solely owned property that passes through the court: bank accounts, investment accounts, business interests, personal property, and real estate titled in the decedent's name alone.

Non-probate assets — property that bypasses the probate process but is still included in the taxable estate for fee purposes: jointly held bank accounts, living trust assets, payable-on-death and transfer-on-death accounts, retirement accounts with named beneficiaries, and life insurance proceeds (in most circumstances).

Each asset is reported at its fair market value as of the date of death. For real estate, this typically means an appraisal or a comparable sales analysis. For investment accounts, it is the account balance on the date of death. For closely held business interests, formal valuation may be required.

The form then applies any applicable deductions — debts and mortgages, administration expenses, charitable bequests, and the marital deduction for assets passing to a surviving spouse — to arrive at the Connecticut taxable estate. If the taxable estate is below the $15 million threshold, no tax is owed and the form simply documents that the estate is nontaxable. The probate court then uses the gross estate figure to calculate the statutory probate fee.

Common mistakes on the CT-706 NT include:

• Omitting non-probate assets. Executors sometimes report only assets that went through the court, not realizing that joint accounts and trust assets must also be included in the gross estate for fee calculation purposes.
• Using incorrect date-of-death values. Asset values must reflect the date of death, not the date the form is filed. For volatile investment accounts, use the actual account statement showing the balance on the date of death.
• Incorrect categorization of asset types. The form has distinct schedules for different asset categories. Placing assets in the wrong schedule causes administrative rejections and delays.

A Reddit user dealing with a rejected CT-706 NT described the experience plainly: "This has been sent back to me several times already to correct and I'm at the end of my rope trying to ask probate, who refuses to help, and the IRS website which is impossible to get answers on." The form rejection process adds weeks to an already slow timeline and can push the estate past the six-month deadline even for executors who started on time.

The Six-Month Deadline and How to Extend It

The CT-706 NT must be filed within six months of the date of death. If the decedent died on March 15, the return is due September 15.

If you need more time — because an estate asset requires a formal appraisal, a business interest needs valuation, or asset documentation is taking longer than expected — you can request an extension using Form CT-706 NT EXT. This extension request must be filed with the probate court before the six-month deadline, not after. Submitting it on time stops the penalty from accruing and gives you additional time to complete the full return.

Keep a copy of the extension request and any court acknowledgment as proof that it was filed before the deadline.

What Happens If You Miss the Deadline

If the CT-706 NT is not filed on time and no extension was requested, Connecticut automatically starts charging interest at 0.5% per month on the unpaid statutory probate fee. This begins from the date the return was originally due, not from the date the estate is eventually processed.

The interest compounds. A probate fee that starts at $2,000 grows by $10 per month from the missed deadline forward. If the estate sits unresolved for a year, that's $120 in interest before anything else happens. For larger estates with higher probate fees, the compounding cost is proportionally larger.

Beyond the financial penalty, the state's automatic real estate lien cannot be cleared until the CT-706 NT is filed and approved. If you have a home to sell — or a home you need to transfer to heirs — the six-month deadline is also the trigger that unlocks that process. Missing it means the sale or transfer is delayed until the form is finally filed, reviewed, and the PC-256 lien release is issued.

Filing the CT-706 NT: Step by Step

Step 1: Gather date-of-death values for all assets — probate and non-probate. Obtain account statements dated as close to the date of death as possible. Order a real estate appraisal if one hasn't been done.

Step 2: Download the current version of Form CT-706 NT from portal.ct.gov/drs. Always use the current year's version; the form is updated periodically and the probate court may reject an outdated version.

Step 3: Complete the asset schedules. Report each asset at fair market value as of the date of death. Include all non-probate assets even if they never touched the probate court.

Step 4: Apply deductions (debts, mortgages, administration expenses, marital deduction). Confirm the taxable estate is below the $15 million threshold.

Step 5: File the completed form with the probate court — not with DRS directly. The court is the point of submission for the CT-706 NT. You can file in person or through TurboCourt (eFile.ctprobate.gov) if you have registered for an Individual account.

Step 6: Pay the probate fee invoice when the court issues it. Payment is due within 30 days of the invoice date. Late payment triggers the same 0.5% monthly interest penalty on the unpaid fee balance.

Step 7: After the probate court reviews and approves the CT-706 NT, request Form PC-256 (Certificate Releasing Connecticut Estate Tax Liens) for any real estate in the estate. Record the PC-256 with the relevant town clerk before attempting to sell or transfer the property.

The Real Cost of Getting This Wrong

The CT-706 NT is the single form in Connecticut probate where an executor's confusion causes the most financial damage. The form is required even when no tax is owed. The deadline is absolute. The penalty starts automatically. And the form directly controls whether real estate can be transferred.

If you are working through a Connecticut estate and the CT-706 NT deadline is approaching without a clear picture of the estate's assets, file the extension now. It is a short form, it costs nothing, and it stops the penalty clock.

For a complete walkthrough of the CT-706 NT in context — including how it fits into the full probate timeline, how to calculate the probate fee, and what the PC-256 lien release process looks like for real estate — the Connecticut Estate Settlement Guide covers each step in the order executors need to take them.

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