Forbes: Don't Die in Minnesota
Forbes recently published an article entitled “Where Not to Die in 2013”. Not surprisingly, Minnesota made the list. The list is based on those states that have a separate estate and/or inheritance tax.
Now that the federal estate tax only applies to those who die with more than $5.25 million in assets (as of 2013 and indexed for inflation), many people mistakenly believe they no longer need to worry about the estate tax. However, Minnesota is one of only 21 states that have a separate estate or inheritance tax, and it applies to much smaller estates.
In Minnesota, estates over $1 million dollars in total assets are subject to the estate tax. For many families with life insurance in place to take care of their children in the event of their death, their life insurance alone causes them to have a taxable estate – without even considering the value of their home, 401(k)s, IRAs and other assets. However, if you plan ahead, you can minimize or possibly even avoid the state death tax.
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