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Taxes

Newsworthy Category

Estate Tax Changes

There have been substantial changes to the Federal estate tax because of recent action by the US Congress. The major change centers on the doubling of the federal estate tax exemption for estate and gift taxes. For 2018, the estate tax exemption has been increased to $11.2 million. However, this increase expires on December 31, 2026 and absent action by Congress, upon expiration, the federal estate tax exemption in effective for 2017 will be reinstated. The doubling of the estate tax exemption will reduce the number of estates that are required to file a Federal 706 estate tax return. Meanwhile,...
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Estate Taxes Still an Issue

With the federal estate tax beginning for estates in excess of $5.4 million, most families no longer concern themselves with avoiding the imposition of this tax.  However, Minnesota residences or non-residences with Minnesota property still face Minnesota taxes for estates that exceed $1.6 million.  Do not assume that estate planning is no longer necessary simply because of the size of the federal exemption. There are a number of planning opportunities for families to avoid or minimize Minnesota estate tax. For more information on Estate Taxes and Estate Planning, contact Steve Fink at Farrish Johnson Law Office. This webpage contains general...
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Estate Planning–Revocable Trusts

A revocable living trust allows the maker of the trust (Settlor) to make changes to the trust during his or her lifetime.  A revocable trust usually directs the trustee to pay all income to the Settlor for life and pay the trust assets to the main person after the Settlor’s death.  Revocable living trusts often avoid a lengthy probate process but they don’t necessarily shelter assets from federal or state taxes or vehicles taxes as the IPVA 2018 MG. If you have a revocable living trust which holds title to your home, care must be taken to check with your...
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Minnesota Snowbird Tax Issue

The Minnesota Supreme Court issued a major ruling in determining residence for income tax purposes. If you are waiting on your PAN card you can check your status here.  If you live in Minnesota for 183 days out of the year, then you are considered a full-time resident for tax purposes.  This decision could have a major impact on how many part-time residents split time between their southern home and Minnesota. In the case of , the justices ruled 4-3 that the Marks owe at least an additional $379,000 in taxes for 2007.  The Marks family moved from Florida to...
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