Pinging Martha - Minn Estate Tax Rates......

[Cut-Throat]

I have been trying to find out Minnesota Estate Tax Rates. I have Googled this and it seems to be pretty much a mystery for some reason (which you may know). I know that for 2006 the first $1 Million is exempt, but for the life of me, I cannot find what the tax would be on the 2nd Million or 3rd Million?

Do you know?

 

[Martha]

This is why there is no simple rate table. Here is the statute which says how the rate is calculated:

291.03 Rates.

Subdivision 1. Tax amount. The tax imposed shall be an amount equal to the proportion of the maximum credit for state death taxes computed under section 2011 of the Internal Revenue Code, as amended through December 31, 2000, but using Minnesota adjusted taxable estate instead of federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal gross estate. The tax determined under this paragraph shall not be greater than the amount computed by applying the rates and brackets under section 2001(c) of the Internal Revenue Code to the Minnesota adjusted gross estate and subtracting the federal credit allowed under section 2010 of the Internal Revenue Code of 1986, as amended through December 31, 2000. For the purposes of this section, expenses which are deducted for federal income tax purposes under section 642(g) of the Internal Revenue Code as amended through December 31, 2002, are not allowable in computing the tax under this chapter.


Mud. Mud. Mud.

The rates range from a low of 5.6% to a high of 16%. Sorry, I can't give you cut offs. I'll ask the estate planners at work the next time I go.

 

[Martha]

Here is a link to a worksheet to calculate what your "tentative" estate tax is in Minnesota: www.ramsey.courts.state.mn.us/Word_docs/Civil/EstateTax.doc

When the form says it calculates what should appear on line 1 form 706, that is the tentative tax. Here is Minnesota form 706: http://www.taxes.state.mn.us/forms/m706_05.pdf