Minneslate Logo

HF166 (Legislative Session 94 (2025-2026))

Federal estate tax exclusion amount conformed.

Related bill: SF1942

AI Generated Summary

Purpose

  • Align Minnesota’s estate tax with the federal estate tax exclusion amount, by updating Minnesota’s thresholds for when an estate tax return is required and how much tax may be due.

Main Provisions

  • For estates with a property situs in Minnesota, the personal representative must file a Minnesota estate tax return if:
    • a federal estate tax return is required to be filed, or
    • the sum of the federal gross estate and federal adjusted taxable gifts made within three years of the decedent’s death exceeds specified thresholds.
  • The thresholds are tied to the year of death:
    • 2014: $1,200,000
    • 2015: $1,400,000
    • 2016: $1,600,000
    • 2017: $2,100,000
    • 2018: $2,400,000
    • 2019: $2,700,000
    • 2020 and thereafter: $3,000,000
  • The return must include a computation of the Minnesota estate tax due and must be signed by the personal representative.
  • The form used for filing is prescribed by the Minnesota commerce (commissioner).

What Changes This Bill Makes to Minnesota Law

  • Changes the trigger for filing a Minnesota estate tax return to directly reflect federal estate tax exposure, using federal gross estate plus federal adjusted taxable gifts and the relevant three-year window.
  • Establishes a moving (increasing) threshold that mirrors the federal estate tax exclusion, culminating in a $3,000,000 threshold for deaths in 2020 and later.
  • Requires explicit calculation of Minnesota tax due on the return, ensuring Minnesota taxes are calculated and collected when the threshold is exceeded.

Filing and Compliance Requirements

  • Personal representative (executor) must file the Minnesota estate tax return if the criteria above are met.
  • Filing is required even if a federal estate tax return is required for the same estate; both returns (federal and Minnesota) may be needed.
  • The return must be properly completed, include Minnesota tax computation, and be signed by the personal representative.
  • The form and filing process are defined by the Minnesota Commissioner (agency in charge).

Notable Terms and Concepts

  • Estate tax return
  • Personal representative
  • Minnesota estate tax due
  • Federal gross estate
  • Federal adjusted taxable gifts
  • Internal Revenue Code section 2001b
  • Three-year window (gifts within three years of death)
  • Situs in Minnesota
  • Commissioner (Minnesota tax authority)

Relevant Terms - Minnesota estate tax return - personal representative - federal estate tax return - federal gross estate - federal adjusted taxable gifts - Internal Revenue Code section 2001b - three years of the decedent’s death - situs in Minnesota - commissioner - Minnesota estate tax due - thresholds (1,200,000 to 3,000,000)

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 10, 2025HouseActionIntroduction and first reading, referred toTaxes
February 13, 2025HouseActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Requires Minnesota estate tax return to be filed if a federal estate tax return is required or if the sum of the federal gross estate and federal adjusted taxable gifts exceeds certain thresholds.",
        "Thresholds are specified to reflect federal estate tax exclusion amounts for decedents dying in 2014 through 2020 and thereafter."
      ],
      "removed": [],
      "summary": "Amends Minnesota Statutes section 289A.10, subdivision 1 to require a Minnesota estate tax return when a federal estate tax return is filed or when the combined federal gross estate and federal adjusted taxable gifts exceed specified thresholds.",
      "modified": [
        "Explicitly ties the Minnesota estate tax filing obligation to federal filing requirements and to adjusted federal thresholds, aligning state practice with federal standards."
      ]
    },
    "citation": "289A.10",
    "subdivision": "Subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill lists Minnesota Statutes 2024 section 291.016, subdivision 3 as amended, but the provided text does not include the specific language of the amendment for this section.",
      "modified": []
    },
    "citation": "291.016",
    "subdivision": "Subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Links 'federal adjusted taxable gifts' to IRC §2001(b) for purposes of Minnesota estate tax calculations."
      ],
      "removed": [],
      "summary": "References to the Internal Revenue Code section 2001(b) are used to define 'federal adjusted taxable gifts' and to determine thresholds for federal/federal-influenced estate calculations that affect Minnesota estate tax requirements.",
      "modified": [
        "Incorporates federal definitions under IRC §2001(b) into Minnesota statutes cited in the bill."
      ]
    },
    "citation": "Internal Revenue Code § 2001(b)",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

Loading…