Instructions For Form Ct-709 - Connecticut Estate And Gift Tax Return

A lineal descendant is a person in the direct line of

Gift Splitting

descent, such as a child or grandchild. A lineal descendant

does not include a corporation, partnership or trust.

If both spouses consent and an election was made for

federal gift tax purposes, all gifts made to third parties

The donor who claims special valuation on a gift of

during the calendar year, whether made by one spouse

farmland must provide a copy of Schedule

alone or made partly by each spouse, shall be considered

CT-709 FARMLAND to the donee, so the donee may

as made one-half by each spouse (but only if at the time

determine the amount of any additional tax that may

of the gift, each spouse is a citizen or resident of the

become due.

United States). Thus, the first $20,000 of gifts of a

Due Date of Additional Tax Liability

present interest in property to any donee by consenting

If additional gift tax is due because within ten years the

spouses during the calendar year are not subject to tax.

donee transfers the farmland to a person other than the

Where such consent is given, the gift tax liability of the

donee's lineal descendant or spouse thereof, or the land

spouses will be joint and several, which means one or

is no longer classified as farmland in accordance with

both parties can be held responsible to pay the full amount

Conn. Gen. Stat. §12-107c, such donee (or, if such land

of the tax due. (The annual exclusion amount will be

was transferred to such donee's lineal descendant or

indexed for inflation after 1998 for federal and

spouse thereof, such descendant or spouse thereof) must

Connecticut gift tax purposes. However, there is no

submit to DRS a written statement within sixty days

adjustment to the annual exclusion amount for 1999.)

following the transfer or change in classification,

If both spouses consent and an election is made to gift

indicating:

split, each spouse must file his or her own Form

•

The original donor's name and Social Security

CT-709, Connecticut Gift Tax Return. The election to

Number;

gift split must be made on each return.

•

The date of the original gift;

To split the gift, the spouses must be legally married to

•

The date of such transfer or change in

each other at the time of the gift. If they are divorced

classification;

during the year, they still may split the gift so long as neither

•

The donee's name, address, and Social Security

marries anyone else during the year. In addition, both must

Number;

be citizens or residents of the United States on the date of

•

The amount being remitted to the Commissioner

the gift and one spouse may not create a general power of

of Revenue Services; and

appointment in the other spouse over the property

•

An explanation concerning how such amount

transferred. If the spouses consent to gift splitting, all gifts

was calculated.

made during the year that qualify must be split.

Keep a copy of this written statement for your records.

The executor or administrator for a deceased spouse's

Send the written statement with a check or money order to:

estate, or the guardian of a legally incompetent spouse,

Department of Revenue Services

as the case may be, may signify the consent, but the

PO Box 2978

consent of an executor or administrator will not be

Hartford CT 06104-2978

effective with respect to gifts made by the surviving

The check or money order should be payable to the

spouse during that portion of the calendar year that his

or her spouse was deceased.

"Commissioner of Revenue Services."

If the tax is not paid on time, the penalty is 10% (.10) of

the balance due or $50, whichever is greater. Interest

Gifts to Your Spouse

will be charged on the underpayment of the tax at the

Do not report any gifts to your spouse on Form

rate of 1% (.01) per month or fraction thereof.

CT-709, Schedule A, unless:

The Commissioner may, for good cause, extend the time

•

You made a gift of a terminable interest to your

for payment of the tax if the donee (or, if such land was

spouse;

transferred to the donee's lineal descendant or spouse

•

You made a gift of a terminable future interest

thereof, such descendant or spouse thereof) files a written

to your spouse; or

application with the Commissioner on or before the

expiration of the sixty-day period.

•

Your spouse was not a citizen of the United

States at the time of the gift.

Page 9

Instructions For Form Ct-709 - Connecticut Estate And Gift Tax Return - 1999 Page 9

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