This weekend, the legislature passed, and Governor Dayton signed, a law increasing Minnesota’s estate tax exemption amount from $1 million to $2 million dollars.
In what is one of the most significant changes to Minnesota’s estate tax laws in over a decade, the Governor just signed a law that increases the amount Minnesota families and small-business owners can pass on to their families free of Minnesota estate tax.
Over the last few months, the federal government and many states have made significant changes to their estate tax exemptions. The federal government recently raised the exemption amount to $5.34 million while many states have either raised their exemption amounts or repealed their state estate taxes entirely.
With the change, Minnesotans can pass up to $2 million dollars to their beneficiaries without paying Minnesota estate tax. Under the old law, all estates in excess of $1 million were subject to the tax.
It is important to note that if your estate is over $2 million in total value, with proper planning, you can still minimize Minnesota estate taxes.
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