2017 Tax Bill Impact On Estate Planning In Wisconsin And Minnesota
The Federal tax law that passed in December of 2017 and effective January 1, 2018, made some changes to the circumstances under which an estate tax would be charged to your estate upon your death. The new Federal estate tax exemption in 2018 is $11.2 Million, per person. In other words, if an individual dies in 2018, a Federal estate tax would be imposed if they had more than $11.2 Million in their taxable estate at time of death. For married couples, the “portability” law remains in effect, so that a married couple with the proper planning, can share their combined $22.4 Million in estate tax exemption.
Wisconsin Estate Tax
Wisconsin still imposes no additional estate tax upon its residents after death.
Minnesota’s Estate Tax Exemption
In Minnesota, effective January 1, 2017, the estate tax exemption applicable in 2018 is $2.4 Million, rising to $3 Million by 2020. That means for a resident of Minnesota, if an individual has more than $2.4 Million in his or her estate but less than $11.2 Million, at the time of his or her death, then he/she would pay estate tax to the State of Minnesota for any amounts over $2.4 Million, but would not owe an additional Federal estate tax unless and until the taxable estate was valued at $11.2 Million or more.
Estate Planning In Light Of Tax Changes
What does this mean for estate planning purposes? The change in estate tax exemptions can mean either greater flexibility or greater opportunities for clients with their estate plans. Perhaps an old trust should be revisited or a client without a trust, should consider one to take advantage of opportunities available today. If you are interested in reviewing your current estate plan, or creating a new one, please contact one of our leading Estate Planning Attorneys at Bosshard Parke.