S.F. No. 3867 Summary

• Increases Minnesota estate tax exclusion amounts for decedents dying in 2018 and thereafter to $2,400,000 (2018), $2,700,000 (2019), and $3,000,000 (2020 and later), up from $2,100,000 in 2017.

• Modifies estate tax return filing requirements to eliminate the federal gross estate and adjusted taxable gifts threshold of $1,200,000-$3,000,000, requiring returns only when a federal estate tax return is required.

• Updates Minnesota taxable estate tax rate schedules for estates dying in 2018 and thereafter, increasing the base rate to 13 percent on estates not exceeding $7,100,000 and adjusting bracket thresholds and rates.

• Repeals provisions related to qualified small business property and qualified farm property exclusions, including recapture tax requirements, definitions, and related filing and payment deadlines.

• Makes all changes retroactively effective for estates of decedents dying after December 31, 2017.