Whenever property is held in the joint names of two or more persons and the survivor or survivors of them, the right of the survivor or survivors to the immediate ownership or possession and enjoyment of such property shall be a taxable transfer and the tax shall be computed as though a fractional part of the property, determined by dividing the fair market value of the entire property by the number of persons in whose joint names it was held, belonged absolutely to the deceased person and had been bequeathed or devised by him to the survivor or survivors by will; provided, in addition to any exemption granted under the provisions of this chapter, the provisions of this section shall not render subject to a succession tax joint checking or savings accounts in banks or savings banks, savings and loan associations or credit unions, or United States war or savings bonds, payable to either or to the survivor, if the aggregate thereof is less than five thousand dollars, but a fractional share of any excess over five thousand dollars shall be taxable. The provisions of this section shall not be construed to prevent the taxability, in whole or in part, under the provisions of subsection (c) or (d) of section 12-341 or 12-341b of any property held in the joint names of two or more persons and the survivor of them, including any joint checking or savings account in any bank, savings bank, savings and loan association or credit union, or United States war or savings bonds. The limitations imposed by section 12-340 shall apply to any tax imposed under the provisions of this section.
(1949 Rev., S. 2022; 1949, 1955, S. 1138d; P.A. 78-121, S. 5, 113.)
History: P.A. 78-121 deleted words “building or” in phrase “building or savings and loan association”.
See Sec. 12-363 re certification by probate court freeing jointly held property from succession tax.
Cited. 111 C. 176; 115 C. 147. Statute upheld; the $5,000 should be subtracted before the division by the number of joint owners. 128 C. 557, 560. If donees came into possession and enjoyment at creation of accounts, section applies; if they were to succeed to possession and enjoyment at donor's death, accounts taxable under Sec. 12-341. 131 C. 347. U.S. defense savings bonds held taxable even though survivor had no knowledge of treasury regulations. 136 C. 33. Cited. 149 C. 334. Whether joint bank accounts are fractionally taxable under section or taxable in their entirety under Sec. 12-341b(d) shall be determined by the transferor's intent, as evidenced by the total factual situation. 175 C. 8. Cited. 240 C. 343.
Cited. 16 CS 241; 32 CS 227.
Structure Connecticut General Statutes
Chapter 216 - Succession and Transfer Taxes
Section 12-340. - Tax on transfers of property. Sunset of chapter.
Section 12-341a. - Effective date.
Section 12-341b. - Taxable transfers by persons dying on and after July 1, 1963.
Section 12-341c. - Effective date.
Section 12-342. - Life, accident and war risk insurance.
Section 12-343. - Jointly-owned property.
Section 12-344a. - Additional amount added to tax.
Section 12-344b. - Applicable rates.
Section 12-345. - Revocable trusts.
Section 12-345c. - Taxable transfer made, when.
Section 12-345d. - Lapse of power.
Section 12-345e. - Tax liability for transfer of property subject to general power of appointment.
Section 12-345f. - Power created on or before October 21, 1942.
Section 12-346. - Transfers to executors and trustees in lieu of commissions.
Section 12-348. - Declaration by officer of corporation or other entity claiming exemption.
Section 12-349. - Gross taxable estate.
Section 12-349a. - Effective date.
Section 12-350. - Net estate of resident transferors; deductions.
Section 12-351. - Administration expenses not deductible.
Section 12-352. - Net estate of nonresident transferor; deductions.
Section 12-353. - Life estates; annuities.
Section 12-354. - Estate which may be divested.
Section 12-355. - Compounding of tax. Contingent remainders.
Section 12-356. - Determination of value of contingent interest by Insurance Commissioner.
Section 12-357. - Supervision by commissioner.
Section 12-358. - Reports by clerks of probate courts. Certified copies of wills and papers.
Section 12-359. - Reports of representatives of transferors.
Section 12-363. - Jointly-owned real property; certificate of tax payment.
Section 12-364. - Certificate of release of lien. Regulations.
Section 12-365. - Administration on taxable transfer.
Section 12-366. - Lien for taxes. Regulations.
Section 12-368. - Waiver of hearing on computation of tax.
Section 12-369. - Action for quieting title to property.
Section 12-370. - Forms. Reciprocal exchange of information.
Section 12-371. - Estates of nonresident decedents; cooperation with other states.
Section 12-372. - Authority to compromise or arbitrate dispute as to decedent's domicile.
Section 12-373. - Agreement of compromise to fix amount of tax.
Section 12-374. - Determination of domicile by arbitration.
Section 12-375. - Tax due at death.
Section 12-376. - Payment. Interest. Extensions.
Section 12-376a. - Waiver of interest on tax on certain transfers.
Section 12-377. - Temporary payments.
Section 12-378. - Opinion of no tax due by probate court. Receipts and certificates.
Section 12-379. - Computation and payment by fiduciary.
Section 12-380. - Commissioner may compromise tax.
Section 12-381. - Enforcement against personal property.
Section 12-383. - Penalty for false return or affidavit.
Section 12-384. - Liability of representatives of estates and transferees.
Section 12-385. - Enforcement by sale of property.
Section 12-386. - Legacy charged on real property.
Section 12-387a. - Out-of-state action to collect succession tax; local tax.
Section 12-387b. - Reciprocity.
Section 12-387c. - “Tax” to include interest and penalties.
Section 12-388. - Certain refunds to estates subject to additional succession tax.
Section 12-389. - Appointment of attorneys to represent the Commissioner of Revenue Services.
Section 12-390. - Applicability of this chapter. Continuance in force of former statutes.