Bill > SF2253

This bill increases the estate tax subtraction amount for Minnesota estates, raising the threshold from previous graduated levels to a flat $6,000,000 for estates of decedents dying after June 30, 2025. Specifically, the bill modifies two key provisions: first, it changes the estate tax return filing requirement so that returns are only required when the federal gross estate and adjusted taxable gifts exceed $6,000,000, instead of the previous sliding scale that ranged from $1,200,000 to $3,000,000 depending on the year of death. Second, the bill updates the estate tax subtraction calculation, allowing a $6,000,000 subtraction and maintaining a $5,000,000 combined cap on qualified small business and qualified farm property values. This means that for estates over $6,000,000, the taxable estate will be reduced by $6,000,000, with an additional potential reduction for qualified business and farm property values, though the combined reduction cannot exceed $5,000,000. The changes are designed to provide more generous estate tax treatment for larger estates, potentially reducing the tax burden for families with significant assets.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2253&ssn=0&y=2025