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HF3993 (Legislative Session 94 (2025-2026))

Amount excluded from the Minnesota taxable estate increased, and conforming changes made.

Related bill: SF4469

AI Generated Summary

Purpose

This bill aims to increase the amount that is excluded from the Minnesota taxable estate, effectively raising the threshold at which a Minnesota estate tax return must be filed. It makes conforming changes to related state tax statutes to reflect a higher exemption level.

Main provisions

  • Estate tax filing requirement: Personal representatives of Minnesota-situs estates must file a Minnesota estate tax return if:
    • a federal estate tax return is required, or
    • the sum of the federal gross estate and federal adjusted taxable gifts (as defined in the Internal Revenue Code) made within three years of the decedent’s death exceeds specific thresholds.
  • Thresholds: The bill lists escalating thresholds by year of death, up to a higher amount for the most recent years. The sequence starts at 1,200,000 for deaths in 2014 and increases through subsequent years, with a note indicating 3,000,000 for estates dying in 2020 and thereafter, and a subsequent 4,000,000 figure appears in the text.
  • Return details: The Minnesota estate tax return must include a computation showing the Minnesota estate tax due and must be signed by the personal representative.
  • Conforming changes: The bill intends to modify related Minnesota Statutes (sections 291.016 and 291.03) to align with the higher exemption level and the revised filing triggers.

Significant changes to existing law

  • Raises the exemption level used to determine whether a Minnesota estate tax return is required, reducing how many estates must file Minnesota estate tax returns.
  • Alters the point at which estates become subject to Minnesota estate tax by using higher thresholds tied to federal estate-related values.
  • Requires synchronization (conforming changes) with other sections of Minnesota tax law to reflect the new exemption and filing rules.

Practical impact

  • For many estate scenarios, fewer estates will file a Minnesota estate tax return.
  • Tax administration and revenue may shift because fewer filings occur, while those with very large estates (above the new thresholds) will continue to be taxed but under updated rules.
  • Personal representatives must still compute and report Minnesota estate tax due when filing is required.

How it interacts with federal rules

  • The filing trigger relies on the federal estate framework: a return is needed if a federal return is required or if the combined federal gross estate and federal adjusted taxable gifts exceed the specified threshold.
  • Uses definitions from the Internal Revenue Code, specifically the concept of federal adjusted taxable gifts and the reference to section 2001b for calculating the threshold.

Note on terms in the bill

  • Concepts included: Minnesota estate tax return, personal representative, situs in Minnesota, federal estate tax return, federal gross estate, federal adjusted taxable gifts, Internal Revenue Code (IRC) section 2001b, Minnesota taxable estate, computation of Minnesota estate tax due, conforming changes, Minnesota Statutes 2024 sections 289A.10, 291.016, 291.03.

Relevant Terms - Minnesota estate tax return - personal representative - situs in Minnesota - federal estate tax return - federal gross estate - federal adjusted taxable gifts - Internal Revenue Code section 2001b - three years after death - Minnesota taxable estate - computation of Minnesota estate tax due - conforming changes - Minnesota Statutes 2024 sections 289A.10, 291.016, 291.03

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2026HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 289A.10, subdivision 1, to modify estate tax return requirements and adjust the Minnesota estate tax exemption thresholds, culminating in an exemption of 4,000,000 for estates dying in 2020 and thereafter.",
      "modified": [
        "Adjusts the Minnesota estate tax exemption thresholds for estates dying in different years, culminating in the 4,000,000 exemption for deaths in 2020 and thereafter."
      ]
    },
    "citation": "289A.10",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill also amends Minnesota Statutes 2024 section 291.016, subdivision 3, but the specific language changes are not included in the excerpt provided.",
      "modified": []
    },
    "citation": "291.016",
    "subdivision": "3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill also amends Minnesota Statutes 2024 section 291.03, subdivision 1.1.5, but the specific language changes are not included in the excerpt provided.",
      "modified": []
    },
    "citation": "291.03",
    "subdivision": "1.1.5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references federal law, the Internal Revenue Code section 2001(b), for calculating the gross estate and adjusted taxable gifts used to determine Minnesota estate tax.",
      "modified": []
    },
    "citation": "Internal Revenue Code § 2001(b)",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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