Minnesota Estate Tax Changes

The legislative session included manychanges in the $4 million dollar estate tax exclusion for certain smallbusiness and farm property. Originally, the law had made it more challenging forfarm families to be eligible for the estate tax exclusion.Recently, however,the rules were changed to make it easier for farm families. Heirs do not haveto use the farmland in the trade for three years anymore. In addition, theheirs do not have to homestead the land. Despite these changes, heirs stillhave to keep the farmland at a 2a classification for three years after thedecedent’s passing.

Another change in the law permits property held in abusiness entity such as a Limited Partnership, or Limited Liability Corporationis eligible for the estate tax exclusion. The new estate tax requirements canget complicated its best to check with a tax expert and lawyer for your uniquesituation. 

See Gary A. Hachfeld, Key Changes in MN $4 Million Estate Exclusion, Minnesota Farm Guide,  Jul. 18, 2013.