One of the more controversial proposals in the 2017 GOP tax cut plan being debated currently includes the potential elimination of the federal estate tax. Under current federal estate tax law, the federal estate tax only applies to amounts above an “excluded” dollar amount.
For persons dying in 2017, only assets above $5,490,000 are subject to the federal estate tax. Up to nearly $11 million may be excluded for a couple.
For some historical perspective, note that for several years in the 1990s, the exclusion was $600,000. In 2001, the federal exclusion was $675,000. The federal estate tax exclusion jumped to $1 million in 2002; $2 million in 2006, and $3.5 million in 2009. Since 2010 or so, it has been $5 million or a bit more. » 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..
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..
The exemption from federal estate taxes – currently $5.25 million in assets per person – is so large that most of us won’t need to worry about it. However, Minnesota also has an estate tax, and the exemption from Minnesota estate taxes is $1 million in assets.
Minnesota’s estate tax differs from the federal exemption in ways beyond the exemption size. Consequently, the only way that spouses can each claim a $1 million Minnesota exemption is by setting up a special type of trust, which is often called a Family Trust or Credit-Shelter Trust. » Read more..