Exemptions are a key part of estate taxes. Generally speaking, lifetime exemptions work like this: estate taxes are not due for amounts up to the exemption amount. The federal government sets its own estate tax and its own exemption amount. States also have the ability to implement their own estate taxes and exemptions.
The exemption amounts change fairly often. As of 2018, the exemption amounts are as follows:
North Dakota does not have a functional estate tax.
The Minnesota estate tax lifetime exemption is as follows:
If the person dies in the 2018 calendar year, then the estate tax exemption is $2.4 million.
If the person dies in the 2019 calendar year, then the estate tax exemption is $2.7 million.
If the person dies in the 2020 calendar year or subsequent years, then the estate tax exemption is $3 million.
The federal estate tax exemption for the year 2018 is $11.2 million per person. The exemption for subsequent years is indexed to inflation.
This is very, very basic information showing the exemption amounts. Estate taxes are complex. If you have questions about estate taxes, please give our Estate Planning Team a call at 701-297-2890 or email us through the contact form below.