Minnesota lawmakers are considering a big reduction in the amount of taxes owed when wealthy people die. In their $2 billion package of tax cuts, Republicans who control the Minnesota House would more than double the amount of money Minnesotans would have to amass before their estates are subject to taxes.
Currently Minnesota's estate tax exemption is $1.4 million and is scheduled to be increased to $2 million in 2018. Under a series of proposed tax cuts, state Republican lawmakers are expected to pass legislation that would raise the estate tax exemption to $2 million immediately and gradually raise it to $5 million by 2018.
Though Democrats oppose this legislation, it appears that it has the votes to pass.
While the particulars of Minnesota's estate tax are probably only interesting to people who live in Minnesota, this can serve as a useful reminder to everyone that many states have their own estate taxes apart from the federal tax.
When planning your estate it is important to plan for the state's version of the estate tax, if your state has one.
However, if you move to another state, it is equally important that you look into whether your new state has its own version of estate or inheritance tax laws.
Contact us today to make sure your current estate plan is new state compliant.
Reference: Waseca County News (April 23, 2015) "Minnesota lawmakers poised to limit reach of estate tax."