Your estate plan gives you control over what happens to your property when you die and also what care and treatment you receive when you are in a medically vulnerable situation due to incapacitation. Each of these considerations requires careful planning to adequately protect yourself and the people that you love.
The property that you want to leave for your loved ones could wind up going to other people or even businesses instead if you don’t plan carefully. Non-family beneficiaries may receive nothing if you don’t put your wishes in writing. Your creditors can bring a claim against your estate and demands your assets to pay off your debts.
Taxing authorities can also consume a substantial amount of your estate, leaving the people you love with less. Have you evaluated whether your estate is vulnerable to taxation?
Minnesota has a state estate tax
Most people know that there is a federal estate tax, but the majority of Americans will not have to pay an estate tax at the state level. In Minnesota, however, any estates probated are vulnerable to not only federal estate taxes but also state estate taxes as well.
The $3 million cut-off for Minnesota estate taxes is substantially lower than the more than the $11.7 million estate tax threshold at the federal level. The more your estate is worth, the higher the tax percentage you may have to pay.
Advance planning through structured giving or changing the ownership of major assets could help you minimize the estate tax implications for your estate. Planning ahead to reduce estate taxes will ultimately benefit the people who love you by increasing the Legacy you can leave for them.