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 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..