Sjoberg & Tebelius, P.A.
Serving Minnesota & Western Wisconsin
651-315-8856

Federal Estate Tax Limits Increased, Minnesota Limits Remain Low

farm.jpgThe recent federal tax overhaul has had a significant impact on the estate tax.

Previously, individuals could shelter up to $5.49 million in assets from federal estate taxes; married couples could shelter $10.98 million. The new law increased that limit to an estimated $11.2 million for individuals and $22.4 million for married couples.

Minnesota limits still lower than federal

While this is good news for our country's wealthiest families, Minnesotans are still subject to a state estate tax with a much smaller threshold.

In Minnesota, individuals can shelter up to $2.4 million in assets before being subject to the state estate tax. This exemption amount is scheduled to increase to $2.7 million in 2019 and $3 million in 2020.

When it comes time to start estate planning, families will need to consider both the state and federal limits if they want to attempt to avoid taxation on their assets.

Minnesota does allow certain exclusions for small business property and homestead farmland. The combined value of these exclusions and the general exemption cannot exceed $5 million, but the decedent or spouse must have owned the qualifying property for three years prior to the date of death. Heirs must own and use the property in the business for three years after the date of death.

To ensure estates are protected and heirs are not hit with a large tax burden, families can work with an estate planning attorney to navigate the state and federal exemptions in conjunction with their existing assets to find a favorable solution.

No Comments

Leave a comment
Comment Information
Client Testimonials

Client Testimonials

  1. “Thank you for providing personalized professional services to us during a time of grief and loss when family relationships were not the best. With an attorney on board to help manage legal matters, everyone had confidence that the best was being done. ”

    Read More…
  2. “Our estate plan was handled well. We never felt rushed and all details were fully explained. Sam is very professional, easy to talk to and experienced in all aspects of estate planning. He gave examples and explored alternatives for us to consider. Well done and thanks.”

    Read More…
  3. “I was given the name of the law firm by a family friend after helplessly pilfering through endless names on websites. I am grateful I called. I was connected with Dave Meier immediately and from the go, was treated with dignity, care and respect. Every visit to the firm was pleasant and professional. ”

    Read More…
  4. “We were highly impressed upon the level and capability of Sjoberg & Tebelius. They gently showed us that there was much more to achieving the Will in the correct format that will protect our children than the quick attempts we had made on our own. Great people to work with - achieving our desired results!”

    Read More…

Over 30-years of experience Serving Minnesota & Western Wisconsin

Sjoberg & Tebelius, P.A.

Woodbury Office
2145 Woodlane Drive
Suite 101
Woodbury, MN 55125

Fax: 651-738-0020
Map & Directions

Minneapolis Office
900 IDS Center (By Appointment Only)
Minneapolis, MN 55402

Toll Free: 888-892-7044
Phone: 651-315-8856
Fax: 651-738-0020
Map & Directions

Map