Just as gifts come in all shapes and sizes, so do the tax rules and regulations regarding the gifts of your assets that you make during your lifetime or at death. Generally speaking, the donor of the gift is responsible for paying any gift taxes owed.
The Internal Revenue Service (IRS) first states that any gift is a taxable gift, but then applies exceptions to that general rule. » Read more..
The dollar value of assets that can be owned by a Minnesotan at death without incurring federal or Minnesota estate taxes has changed significantly over the past several years.
Thus, many Minnesotans will not owe any Minnesota estate taxes, and fewer still will owe a federal estate tax.
The exclusion from federal estate taxes for a person dying in 2017 is $5,490,000. As recently as 1997, the exclusion was $600,000. In 2001, the exclusion from federal estate taxes was $675,000. » Read more..
If some of the language in your Will or Trust seems foreign to you, you are not alone. Here’s a rundown of some commonly used terms, and a description of what they mean:
Testator (male) or Testatrix (female): This is you, if this is your Will.
Settlor or Grantor: This is you, if this is your Trust. » Read more..
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Assets inherited by a surviving spouse are not taxed, but the inheritance of others may be.
Some states – such as Iowa — impose an inheritance tax. Other states – such as Minnesota – have an estate tax but not an inheritance tax. Still other states have neither an inheritance nor estate tax. The tax laws of the state where the deceased lived determines which state law applies. » Read more..
Consider these consequences if you die in Minnesota without an estate plan: » Read more..
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If you’re trying to avoid Minnesota’s estate, gift and income taxes by claiming another state as your state of residence, Minnesota’s tax collector – the Minnesota Department of Revenue – will be watching. » Read more..
The value of the assets that you hold at your death is viewed two different ways: one way by the Probate Court and another way by taxing authorities. It’s easy to confuse the two versions. » Read more..
If the proceeds from life insurance policies that you own, when combined with the value of your other assets, exceed the $1.4 million exemption from Minnesota’s estate tax for persons dying in 2015, then you may want to consider an Irrevocable Life Insurance Trust (ILIT). » Read more..
Revocable Living Trusts are an excellent estate planning tool, but there are common misconceptions about them. A Revocable Living Trust is set up by you, during your lifetime. » Read more..
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There are several “pros” and some “cons” for Minnesotans to consider when deciding whether to establish a Revocable Living Trust. For many, the pros outweigh the cons. » Read more..
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