Why Minnesota Families Cannot Count on Portability to Protect Their Estate from Death Taxes
If you are here, that means you probably have some questions on portability and whether or not it applies to your estate. Many families are under the mistaken belief that they no longer need to do estate tax planning because federal portability and the higher federal estate tax exemption takes care of that for them. However, nothing could be further from the truth. Portability only applies to the federal estate tax. It does nothing to protect you or your family from MN death taxes. Not only does federal portability offer no protection for your estate, the much reported federal exemption has give many a false sense of security. Mn has a separate estate tax that is in addition to the federal estate tax and it has a lower estate tax threshold -- estates as small as $1 million dollars are subject to the tax.
Also, portability has numerous other shortcomings. For example, it does nothing to protect a surviving spouse or your children from creditor’s claims, lawsuits, and divorce. For more information on the hidden dangers of portability, check out our video “The Hidden Dangers of Portability: Why Relying on Federal Portability for Your Minnesota Estate Planning May Cost You and Your Family Dearly”