Minnesota Estate Tax
As part of the state tax bill passed earlier this summer, the MN Estate Tax exemption will be increasing over the next few years (2017 to 2020.) The exemption was also retroactively increased from $1.8 million to $2.1 million for 2017.
This change will allow the exemption to rise above the $2 million per person threshold that was set for 2018. Despite this change, the state of Minnesota remains well below the Federal exemption of $5.49 million. Minnesota’s exemption is also not portable, meaning proper financial and legal planning will still be needed to fully utilize the exemption for couples with estates valued over $2.1 million. For those with estates valued above the exemption amount, Minnesota’s Estate Tax ranges from 12% to 16%.
As always, please let us know of any questions regarding these changes.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers before engaging in any transaction.