Settlement Against Estate For Tax Purposes In Minnesota
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Transfer on Death Deed. For real estate, a transfer on death deed (TODD) that is filed with the county while the owner is alive acts to change ownership of property once they pass without going through probate.
The Minnesota estate tax exemption amount has not changed since 2020, and under current law the Minnesota estate tax exemption is scheduled to remain at $3.0 million until new legislation occurs. The Minnesota estate tax rates range between 13 and 16 percent.
Minnesota law does not set a specific timeline for settling an estate, but it generally should be done as "expeditiously and efficiently as is compatible with the best interests of the estate." Delays can result in additional expenses and even legal repercussions for the executor.
Avoiding the tax requires changing one's permanent home (domicile) to another state or reducing the amount of Minnesota property owned. Affluent individuals may be willing to change their domiciles to avoid paying potentially multimillion-dollar state estate tax liabilities.
Any estate value above this amount is subject to taxation. In Minnesota, the gross estate tax exemption is $3 million. Estates valued above this amount are subject to Minnesota estate taxes.
The Minnesota estate tax exemption remains unchanged for 2025. The exemption is $3,000,000 per individual, or $6,000,000 for a married couple. Tax rates range from 13 percent to 16 percent, with the top rate applied to the taxable estate value over $10.1 million.
If your personal property exceeds $75,000 or you own real estate in your name alone, your estate must be probated.
The personal representative is personally responsible for probating the estate completely and correctly ing to Minnesota law. Most estates are expected to be completed within an 18 month period. If more time is needed, the personal representative must petition the court for an extension.
