Bill > HF1718

This bill makes several changes to Minnesota's estate tax laws, primarily removing obsolete provisions and introducing portability of the estate tax exclusion. The bill eliminates previous graduated exclusion amounts from earlier years, establishing a fixed $3,000,000 estate tax exclusion for decedents. It introduces a new provision allowing surviving spouses to use the unused estate tax exclusion from their most recently deceased spouse, known as the "deceased spousal unused exclusion amount." This means a surviving spouse can potentially use their own $3,000,000 exclusion plus any unused portion of their deceased spouse's exclusion, up to an additional $3,000,000. The bill also allows personal representatives to make this election either when filing a required estate tax return or, in some cases, by filing a return even when not otherwise required. The tax computation methodology remains largely unchanged, with a graduated tax rate schedule applied to the Minnesota taxable estate. These changes will be effective for estates of decedents dying after June 30, 2025, providing a clear timeline for implementation and giving taxpayers and estate planners advance notice of the new regulations.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1718&ssn=0&y=2025