Saturday, April 12, 2014

New Laws in Minnesota: Estate tax threshold increased

A number of new laws and changes to existing laws have already been passed this legislative session.  Here's one that comes up quite a bit in my estate planning practice:  an increase in Minnesota's estate tax threshold.

Previously, Minnesota required an estate tax return to be filed if the decedent filed a Federal estate tax return or if the decedent's federal gross estate and federal taxable gifts made within 3 years of death exceeded $1,000,000.

Now, the threshold is increased to $1,200,000 for decedents dying in 2014; $1,400,000 for decedents dying in 2015; $1,600,000 for decedents dying in 2016; $1,800,000 for decedents dying in 2017; and $2,000,000 for decedents dying in 2018 or thereafter.

The federal estate tax threshold is still $5,000,000, but debate about lowering, raising, or abolishing it altogether continues in Washington.