Purpose

This bill aims to modify Minnesota’s estate tax rules by increasing the general subtraction amount and updating when a Minnesota estate tax return must be filed. It changes how large an estate has to be before Minnesota estate taxes are filed and calculated.

Key provisions

• Amends Minnesota Statutes 2024 section 289A.10, subdivision 1 to change when a Minnesota estate tax return is required.
• A Minnesota estate tax return must be filed by the personal representative when:
  • A federal estate tax return is required to be filed, or
  • The sum of the federal gross estate and federal adjusted taxable gifts (as defined in the Internal Revenue Code, section 2001b) made within three years of the decedent’s death exceeds certain thresholds.
• The thresholds for triggering the filing are listed by year and amount:
  • 1,200,000 for estates dying in 2014
  • 1,400,000 for estates dying in 2015
  • 1,600,000 for estates dying in 2016
  • 2,100,000 for estates dying in 2017
  • 2,400,000 for estates dying in 2018
  • 2,700,000 for estates dying in 2019
  • 3,000,000 for estates dying in 2020 and thereafter
  • 6,000,000 (the text lists an additional amount; the exact context in the excerpt is unclear)
• The return must be filed on a form prescribed by the Minnesota commissioner.
• The return must contain a computation of the Minnesota estate tax due.
• The return must be signed by the personal representative.
• The bill indicates amendments to Minnesota Statutes 2024 sections 289A.10 subdivision 1 and 291.016 subdivision 3 (to align with the new filing requirements).

Significant changes to existing law

• Raises or modifies the thresholds that trigger the requirement to file a Minnesota estate tax return, tying them to the combined value of the federal gross estate and federal adjusted taxable gifts over a three-year period.
• Specifies that the return must include a computation of the Minnesota estate tax due and must be signed by the personal representative.
• Requires the filing form to be prescribed by the commissioner, and keys the filing requirement to whether a federal return is required or the threshold is met.

Implementation notes

• The changes apply to estates with decedents dying in various years as listed, and unclear language in the excerpt suggests adjustments into “2020 and thereafter” and an additional higher threshold elsewhere in the text.
• The effective date and any transition rules are not stated in the provided excerpt.

Definitions and scope (in the bill text)

• Estate tax is tied to the Minnesota estate tax and uses the federal framework for determining the threshold (federal gross estate plus federal adjusted taxable gifts per IRC section 2001b).
• “Situs in Minnesota” indicates property located or subject to Minnesota tax within the state.

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Relevant Terms - Minnesota estate tax - estate tax return - personal representative - form prescribed by the commissioner - federal estate tax return - federal gross estate - federal adjusted taxable gifts - Internal Revenue Code, section 2001b - situs in Minnesota - three-year period - decedent - thresholds (1,200,000; 1,400,000; 1,600,000; 2,100,000; 2,400,000; 2,700,000; 3,000,000; 6,000,000) - commissioner