The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.Minnesota does not impose an inheritance tax.
Minnesota imposes an estate tax on taxable estates in excess of $1 million, due to legislation enacted March 21, 2014 (HF 1777). The $1 million exemption increases as follows:
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|
Applicable exclusion amount: |
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January 1, 2014 and before January 1, 2015 |
$1,200,000 |
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January 1, 2015 and before January 1, 2016 |
1,400,000 |
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January 1, 2016 and before January 1, 2017 |
1,600,000 |
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January 1, 2017 and before January 1, 2018 |
1,800,000 |
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January 1, 2018 and thereafter |
2,000,000 |
The top tax rate is 16%.
Minnesota does not impose a GST tax.
Repealed. Tax legislation in 2013 had imposed a gift tax. Legislation in 2014 retroactively repealed the gift tax for taxable gifts made after June 30, 2013 (the effective date of the 2013 law initially imposing the gift tax).
The minimum age of a person competent to make a will is 18.
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when –
The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.
The minor child reaches age 18 for other custodial transfers.
The minor child dies.
Non-qualified Annuities: If the annuitant is someone other than the person purchasing the policy, proceeds are exempt from the creditors of the person effecting the policy.
Life Insurance Cash Value: Up to $9,200 accrued dividend or interest or loan or cash value is exempt provided the insured is the debtor or individual upon whom the debtor is dependent.
Life Insurance Proceeds: Exempt from the creditors of the insured/original owner. Exempt up to $46,000 for proceeds payable to a surviving spouse or child (plus an additional $11,500 for each additional dependent of the surviving spouse or child).
The Minnesota state legislature has introduced, but not yet passed, The Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition. To read more about the Act, click here.
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