Recently, the Minnesota Legislature passed a newtax bill that the governor is expected to approve. The bill will be adding anew state gift tax. If signed by the governor the new law will take effect onJuly 1, 2013. The law requires a 10% tax on gifts worth $1 million dollars overa person’s lifetime. The new law is stricter that the current Federalexclusions. Some Federal exclusions are not exempted from the state tax. When aMinnesota resident or non-resident dies all of the lifetime gifts will be assessedfor gift tax purposes. Clients who wish to give a gift should consult with afinancial advisor to understand the different tax implications.
See Michelle L. Rehbein, Minnesota Legislature Adds New State Gift Tax And Expands Estate Tax Provisions For Nonresidents, Leonard, Street and Deinard, May 17, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
