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, Minnesota’s estate tax is still in play. For 2018, the Minnesota exemption is $2.4 million. That number will increase in 2019 to $2.7 million and $3.0 million in 2020. In addition, Minnesota farms and small businesses may qualify for further estate tax relief up to a total of $5.0 million.
If you have questions about this or other estate planning needs, contact Steve Fink via email or by phone at 507-625-2525.