Revocable Trusts in Connecticut Versus Nevada

If you’re comparing revocable trusts in Connecticut versus Nevada, you’re really comparing two different legal environments. Both states let you use a revocable living trust to avoid probate, plan for incapacity, and keep your affairs more private. But the tax landscape, property rules, and post-passing options aren’t the same.

What a Revocable Trust Does

In both states, a revocable living trust:

• Avoids probate for assets you title to the trust.
• Keeps most details out of the public record.
• Lets a successor trustee step in if you’re incapacitated, without court supervision.
• Is not asset protection—because it’s revocable, creditors can generally reach the assets while you’re alive.

Those points are true in Connecticut and Nevada alike.

Where Revocable Trusts in Connecticut and Nevada Differ

Taxes: Income, Estate, and Inheritance

Income tax. A revocable trust is a “grantor trust,” so its income is taxed to you at your personal rates, wherever you live. If you’re a Connecticut resident, your trust’s income is taxed in Connecticut regardless of having a Nevada trustee or Nevada address. Nevada has no state income tax, but that generally doesn’t help while the trust is revocable and you live in Connecticut.

After passing. When a revocable trust becomes irrevocable, where it’s administered (situs), where the trustees live, and where the beneficiaries live can influence state income taxation of the continuing trust. Nevada’s lack of a state income tax can be attractive for ongoing trusts.

Estate and inheritance taxes. Connecticut has a state estate tax that tracks the federal exemption (with its own rules and a high threshold). Nevada has no state estate or inheritance tax. Translation: if you’re a Connecticut domiciliary, your taxable estate may face a state-level estate tax; Nevada domiciles do not.

Property Rules: Community Property vs. Common Law

Connecticut: Common-law state (separate property). Title and beneficiary designations drive who owns what and how it passes.

Nevada: Community-property state. Assets acquired during marriage are generally community unless otherwise agreed. Community property can provide basis advantages for capital-gains planning (many couples aim for a full step-up in basis at the first death on community assets). If you live in or move to Nevada, coordinating community-property treatment inside your revocable trust can be a meaningful tax-planning lever for appreciated assets. (Details matter.)

Probate Avoidance and Real Estate

Own a condo in Stamford and a vacation home near Lake Tahoe? A revocable trust in either state avoids a second probate (ancillary probate) where the out-of-state property sits—if you title the property to the trust. This is one of the most practical reasons to use a revocable trust when you have multi-state real estate.

Privacy, Speed, and Practicality of Revocable Trusts in Connecticut Versus Nevada

Both states allow you to use a short certificate of trust (instead of the full document) when working with banks or title companies. In practice, Nevada institutions are very accustomed to trust-centered planning because the state courts and professionals see a lot of it. Connecticut institutions are too, especially for real estate closings and brokerage accounts. Either way, properly funding the trust (retitling assets) is what makes the difference.