Tag Archive for Minnesota estate tax

Perspective on GOP Plan to Eliminate Estate Tax

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..

Historical Estate Tax Perspective

Tax TimeThe 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..

Don’t Confuse Probate Assets With Assets Subject to Estate Taxes

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..

Pros and Cons of Revocable Living Trusts in Minnesota

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..

Don’t Forget Minnesota’s Estate Tax

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..

Will Your Trust Harm Your Spouse?

Caution: Your spouse may face unintended financial consequences at your death if you created a Minnesota revocable trust prior to the steep climbs in the exemption from federal estate taxes that began in 2001. » Read more..

Minnesota’s Estate Tax is Not Impacted by the “Fiscal Cliff” Vote

The Congressional vote to avert the so-called fiscal cliff exempts estates of $5 million in value from the federal estate tax. However, Minnesota’s estate tax exemption remains at $1 million. » Read more..