How to File Connecticut Estate Tax Without a CPA (CT-706 NT Guide)

Filing Connecticut's estate tax return without a CPA is achievable for most executors managing a straightforward estate. The key is understanding that the CT-706 NT — the form Connecticut requires for all non-taxable estates — is primarily an administrative document, not a tax calculation. Almost every estate files the non-taxable version because the $15 million exemption covers the overwhelming majority of Connecticut families. The form's purpose is to (1) establish the gross estate value so the Probate Court can calculate its mandatory fee, and (2) generate the lien release that allows real property to be sold or transferred. You do not need a CPA to prepare this form. You do need a clear understanding of what goes into the gross estate calculation — which is where most self-represented executors make errors.

This post walks through the process from beginning to end.

What You Are Actually Filing — and Why

Connecticut is one of the only states in the country that charges a mandatory probate fee calculated as a percentage of the gross estate rather than a flat administrative fee. This fee is assessed on every estate regardless of size, and it applies to non-probate assets — including living trust assets, joint bank accounts, and life insurance proceeds payable to named beneficiaries. Your family may have spent money setting up a revocable living trust specifically to "avoid probate." That trust does not avoid the Connecticut probate fee.

The CT-706 NT is the mechanism the Probate Court uses to calculate this fee and to issue a Certificate Releasing the Connecticut Estate Tax Lien. That lien attaches automatically to all Connecticut real property at the moment of death. Until it is released, the property cannot be legally conveyed to a buyer or heir.

Most estates file CT-706 NT rather than CT-706/709 because the estate is worth less than $15 million (the 2026 exemption threshold). The CT-706 NT goes to the Probate Court only — not to the DRS. The CT-706/709 goes to the DRS and is required only if the estate exceeds $15 million.

The Six-Month Deadline — and What Happens If You Miss It

CT-706 NT must be filed within six months of the date of death. This deadline is firm. After 30 days from when the return is due (so 7 months after death), interest begins accruing on the unpaid probate fee at 0.5% per month. The Probate Court judge cannot waive this interest. For a $1 million gross estate with a probate fee of approximately $4,790, that is about $24 per month in perpetuity until the fee is paid.

You can request an extension using Form CT-706 NT EXT. Filing the extension does not stop the interest clock on the fee itself — it only extends the return filing deadline. Pay the estimated fee before the six-month mark to avoid interest even if you file the extension.

Step 1: Gather All Assets as of the Date of Death

The CT-706 NT requires you to report the fair market value of every asset in the gross estate as of the exact date of death — not the date you file, not the date assets are distributed, but the date of death.

What is included in Connecticut's gross estate:

• All solely owned real property located in Connecticut
• All solely owned personal property (bank accounts, stocks, bonds, business interests)
• Property held in joint tenancy with right of survivorship (50% of the value, unless you can prove a different contribution)
• Assets in a revocable living trust — Connecticut includes these even though they pass outside probate
• Life insurance proceeds where the decedent was the policy owner (not just the insured)
• Retirement accounts (IRA, 401k) in some circumstances — check the federal rules on inclusion
• Annuities with death benefits
• Gifts made within three years of death that were not exempt from Connecticut gift tax

Common documents to collect:

• Certified date-of-death brokerage statements (request from each financial institution)
• Real estate appraisal as of the date of death
• Bank account balances as of date of death (bank statements or call customer service and ask for written confirmation)
• Life insurance policy face values and ownership documentation
• Mortgage statements showing outstanding balances (deducted from gross value)
• Copies of any trusts the decedent held

Step 2: Determine Which Assets Get a Spousal Reduction

Connecticut provides a 50% reduction on property passing to a surviving spouse when calculating the gross estate for probate fee purposes. This is not the same as the marital deduction for federal estate tax purposes — it is a specific reduction in the probate fee base.

To claim the spousal reduction, document which assets pass to the surviving spouse and how. Assets passing by beneficiary designation to a surviving spouse, or jointly-owned property passing to a surviving spouse by survivorship, qualify. Assets passing to adult children or other beneficiaries do not.

The spousal reduction is calculated on Form CT-706 NT and reduces the fee base accordingly.

Step 3: Calculate the Gross Estate and Estimate the Probate Fee

Add up all the assets in Step 1. Subtract allowable deductions (mortgages and liens on Connecticut real estate; only secured debts against specific property are deductible). Apply the spousal reduction if applicable.

The resulting figure is the gross taxable estate for probate fee purposes. Apply the fee schedule:

Example: A $750,000 gross estate where $400,000 passes to a surviving spouse.

• Gross estate: $750,000
• Spousal reduction (50% of $400,000): -$200,000
• Net taxable estate: $550,000
• Probate fee: $1,865 + 0.25% × ($550,000 - $500,000) = $1,865 + $125 = $1,990

Step 4: Complete and File Form CT-706 NT

Form CT-706 NT is available directly from the Connecticut Probate Court website. File it with the Probate Court in the district where the decedent was domiciled at death — not the DRS.

Key sections:

• Schedule A: Connecticut real property — list each parcel with address, date-of-death fair market value, and any outstanding mortgage
• Schedule B: Stocks, bonds, and other personal property — list each financial account
• Schedule C: Life insurance — list policies where decedent was owner
• Schedule D: Joint property — report 50% of jointly-held assets unless you have evidence supporting a different percentage
• Schedule E: Other property transferred at death (trusts, beneficiary designations)
• Schedule F: Debts and deductions — mortgages and liens only, not general debts
• Schedule G: Spousal reduction calculation

The Probate Court will review the return, calculate the fee, and issue an invoice. Pay the fee within 30 days of receiving the invoice to avoid interest.

Step 5: Obtain and Record the Lien Release

After you file CT-706 NT and the Probate Court processes the return, the Probate Judge issues a Certificate Releasing Connecticut Estate Tax Lien. This is not automatic — you need to request it when filing CT-706 NT or follow up with the court after the fee is paid.

Once you have the Certificate:

1. Take the original to the Town Clerk in the municipality where the property is located
2. Pay the recording fee (typically $70 for the first page, $5 per subsequent page)
3. The Town Clerk records the certificate on the municipal land records
4. The title is now clear of the Connecticut estate tax lien

This step is required before a real estate closing can proceed. Buyers' title companies always check for this lien. If it is not released and recorded, the closing stops.

Step 6: File the Decedent's Final CT-1040

Separately from the CT-706 NT, the executor must file the decedent's final state income tax return (Form CT-1040) for the year of death. This covers income earned from January 1 through the date of death.

• The return is due on the standard April 15 deadline (or April 18 if the 15th falls on a weekend)
• A surviving spouse may file jointly for the year of death
• If the decedent was owed a refund, use IRS Form 1310 to claim it on behalf of the estate
• The decedent's income and the estate's income are reported separately — the CT-1040 covers the decedent's personal income; the CT-1041 covers post-death estate income

Step 7: Determine If You Need a CT-1041

If the estate earns income after the date of death — interest from bank accounts, dividends, rental income from a property still in the estate — that income is taxable to the estate and must be reported on Connecticut Form CT-1041 (Fiduciary Income Tax Return) and the corresponding federal Form 1041.

Before you can file the CT-1041, you need an Estate EIN (Employer Identification Number), obtained from the IRS using Form SS-4. This is required even if the estate is modest.

The CT-1041 is typically more complex than the CT-1040 if there are significant K-1 distributions to beneficiaries or if income is substantial. This is one area where CPA involvement is often worth the cost.

Where CPAs Are Actually Useful

Even if you file CT-706 NT yourself, there are areas where CPA expertise adds genuine value:

• The CT-1041 with complex assets. If the estate includes a business, partnership interests, or significant investment income, the fiduciary return is materially more complex than the individual final return.
• Step-up in basis calculations. If beneficiaries plan to sell inherited real estate or securities, calculating and documenting the stepped-up basis under IRC § 1014 requires careful valuation work. A CPA can ensure the basis is established correctly and defensibly.
• Coordinating K-1 timing. If the estate issues K-1s to beneficiaries (which passes income to them for tax purposes), the timing of those distributions affects the beneficiaries' individual returns. A CPA can advise on fiscal year elections to manage this.

If you use a CPA for these purposes, you will save significantly by arriving organized — with the gross estate calculated, the probate fee paid, the CT-706 NT filed, and the 1099s and basis records assembled — rather than asking the CPA to start from scratch.

FAQ

Do I need to file a federal estate tax return (Form 706) for a Connecticut estate?

Federal Form 706 is required only if the gross estate exceeds the federal exemption, which is $13.99 million in 2025 and continues at a high level in 2026. For virtually all Connecticut families, no federal Form 706 is required. The CT-706 NT is a state-only filing.

What is the difference between CT-706 NT and CT-706/709?

CT-706 NT is for non-taxable estates — those below the $15 million exemption. It is filed with the Probate Court and its primary function is to calculate the probate fee and release the real estate lien. CT-706/709 is for taxable estates above $15 million. It is filed with the DRS and involves actual estate tax calculations at the 12% flat rate.

Can I use TurboTax to prepare CT-706 NT?

No. TurboTax and similar consumer software do not include the CT-706 NT. The form is unique to Connecticut's Probate Court process and is not part of any standard tax preparation software. You complete it manually using the form from the Connecticut Probate Court website.

What records do I need to keep after filing?

Keep copies of the filed CT-706 NT, the probate fee payment confirmation, the Certificate Releasing the Connecticut Estate Tax Lien, and the Town Clerk recording confirmation. For the CT-1040 and CT-1041, retain supporting documentation (1099s, basis records, appraisals) for at least seven years.

What happens if I get the gross estate calculation wrong?

If the gross estate is understated, the Probate Court may catch the discrepancy during review and return the filing for correction. In the meantime, interest on the fee continues to accrue. If the understatement is later discovered after the estate closes, there can be additional liability. The Connecticut Final Tax & Estate Tax Guide includes a gross estate worksheet specifically to help executors identify and capture all includible assets before filing.

The Connecticut Final Tax & Estate Tax Guide provides a field-by-field walkthrough of Form CT-706 NT, a probate fee calculation worksheet, the lien release sequence, and complete guidance on the CT-1040 and CT-1041. It is written for executors completing these filings themselves, in plain English, without the IRC code references that make official instructions inaccessible.

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