Minnesota Second State to Impose Gift Tax

Effective June 30, 2013, the new Minnesota gift tax willimpose a 10% tax on certain gifts made by Minnesota residents and those owningproperty in Minnesota.  Individuals havea lifetime $1 million exemption from the gift tax. 

Minnesota also has a 16% estate tax.  Individuals “will be required to includeMinnesota taxable gifts made within three years of death in their Minnesotataxable estate.”

The new law also subjects property held in pass-throughentities to the estate tax.

See Mark W.Greiner, Karen Sandler Steinert & Cameron R. Seybolt, Minnesota Enacts Significant Changes to Minnesota Estate and Gift TaxLaws, Lexology, May 24, 2013.