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SF4469 (Legislative Session 94 (2025-2026))

Minnesota taxable estate amount increased exclusion provision

Related bill: HF3993

AI Generated Summary

Purpose

The bill aims to increase the amount of an estate that is exempt from Minnesota estate tax (the Minnesota taxable estate) and to make related updates to Minnesota law to reflect these higher exemption levels.

Main Provisions

  • Personal representative filing requirement: The person handling a deceased person’s estate must file a Minnesota estate tax return if:
    • a federal estate tax return is required, or
    • the combined value of the federal gross estate and federal adjusted taxable gifts made within three years of death exceeds specified thresholds.
  • Thresholds (for triggering filing and tax considerations):
    • 1,200,000 for estates died in 2014
    • 1,400,000 for estates died in 2015
    • 1,600,000 for estates died in 2016
    • 2,100,000 for estates died in 2017
    • 2,400,000 for estates died in 2018
    • 2,700,000 for estates died in 2019
    • 4,000,000 for estates died in 2020 and thereafter
  • Return content: The Minnesota estate tax return must include a calculation of the Minnesota estate tax due.
  • Signature requirement: The return must be signed by the personal representative.
  • Conforming changes: The bill also aims to make conforming updates to Minnesota Statutes (specifically sections 291.016 and 291.03), though the exact changes are not detailed in the text provided.

Significant Changes to Existing Law

  • Higher exemption/thresholds: The bill increases the amount of an estate that is exempt from Minnesota estate tax by raising the thresholds that determine whether a Minnesota estate tax return is required.
  • Filing alignment: By tying Minnesota filing requirements to higher federal thresholds (via the combined federal gross estate and taxable gifts), the bill aligns Minnesota practice with larger estate values.
  • Administrative updates: Adds conforming amendments to related Minnesota statutes to reflect the new framework for calculating and collecting the estate tax.

How It Affects Taxpayers

  • Fewer estates may owe Minnesota estate tax as the exemption/thresholds rise.
  • More estates may be required to file a Minnesota estate tax return at higher values, with the tax computation to be paid if applicable.
  • The process will require the personal representative to complete and sign the tax return.

Relevant Terms - Minnesota estate tax return - Minnesota taxable estate - Personal representative - Commissioner (of Revenue) - Federal gross estate - Federal adjusted taxable gifts - Internal Revenue Code section 2001b - Decedent - Thresholds / exemption amounts - Conforming changes - Minnesota Statutes 2024 sections 289A.10, 291.016, 291.03

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 17, 2026SenateActionIntroduction and first reading
March 17, 2026SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes, section 289A.10, subdivision 1 to modify Minnesota estate tax return requirements for estates with Minnesota situs property based on federal gross estate and gifts thresholds.",
      "modified": [
        "Updates the threshold triggering the Minnesota estate tax return based on federal estate tax and gifts amounts."
      ]
    },
    "citation": "289A.10",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes, section 291.016, subdivision 3, as part of conforming changes related to the estate tax provisions.",
      "modified": [
        "Conforming changes to estate tax provisions affecting 291.016, subdivision 3."
      ]
    },
    "citation": "291.016",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes, section 291.03, subdivision 1, in connection with estate tax provisions.",
      "modified": [
        "Conforming changes to the calculation or administration of estate taxes under 291.03, subdivision 1."
      ]
    },
    "citation": "291.03",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill uses the Internal Revenue Code definition for the sum of federal gross estate and federal adjusted taxable gifts as defined in section 2001(b).",
      "modified": []
    },
    "citation": "Internal Revenue Code § 2001(b)",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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