Best Execution : Estate Tax Rates – MN vs Federal

Apr 24

I read this article on estate planning and it said that estate planning is not just for the 1%.  As I read the article it pointed out that Federal Estate Taxes may be different than State Estate Taxes.  I had never given it much thought but wanted to see how Minnesota rates compared to federal rates.

Under current laws as of this writing, if your estate is less than $5.43 million and pass it on your heirs upon your demise, your estate does not owe any federal taxes.  However, in Minnesota if your estate is greater than $1.6 million your heirs will owe tax on the overage.  Rates grow from 10% of the overage to a maximum of 16% for estates that exceed $10.1 million.  A big difference between federal and state rules.

Take a moment now to read the article for tips on estate planning, wills and managing trusts for the benefit of your heirs.  A little time on these topics will save your family a tremendous amount of time and agony of getting your financials in order.

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