The legislation signed by Governor Mark Dayton on May 30 increased the estate exemption amount for a Minnesota estate from its current $1.8 million level to $2.1 million, retroactive to January 1, 2017. The estate exemption amount is set to increase to $3 million by 2020. Minnesota is one of 18 states plus the District of Columbia that still impose an estate or inheritance tax separate from the federal estate tax levy. In addition to the increase to the exemption amount there was a slight change to schedule of rates with this recent change will amounting to a savings of $30,000 on a $7.1 million estate for 2017 and a $34,000 saving for 2018.
Although this change has been signed into law, in a letter from Governor Dayton to the legislators he has expressed his displeasure in this scheduled increase. In it he calls on them to cancel the estate tax increase in a second special session, what will happen remains to be seen.