Minnesota

Common-Law State

Minnesota is a Common Law State, which means the rules governing the ownership, division, and inheritance of income and property acquired by a husband or wife during their marriage hold that subject to various qualifications, each spouse owns and has complete control over their own her income and property.

Minnesota does not impose a gift tax.

Will Creation

The minimum age of a person competent to make a will is 18. The number of witnesses necessary to execute a will is two.

Uniform Transfers to Minors Act (UTMA)

The original custodial gift may be a life insurance policy or annuity contract.

Custodial property may be invested in or used to pay premiums on (1) a policy on the minor’s life if the minor’s estate is the sole beneficiary, or (2) a policy on a third party in whom the child has an insurable interest if the minor or the custodian is the irrevocable beneficiary.

The custodial arrangement terminates when:

• The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, trust, or exercise of a power of appointment.
• The minor child reaches age 18 for other custodial transfers.
• The minor child dies.

Dying without a Last Will, the Minnesota laws of Intestacy.

The estate goes to the surviving spouse, as follows:

• If there are no surviving descendants, —100% of the estate
• If all descendants are also descendants of the spouse and neither spouse has other surviving descendants, —100% of the estate.
• If all descendants are also descendants of the spouse but either spouse has descendants that are not also descendants of the other spouse—$225,000 plus 50% of the balance of the estate (see Minn. Stat. §524.2‐106(b))

If there is no surviving spouse, or if a portion of the estate does not go to the spouse:

• 100% to descendants, by representation (see Minn. Stat. §524.2‐106(b))

If there is no surviving spouse or descendant:

• 100% to surviving parent or parents equally

If there is no surviving spouse, descendant, or parent:

• 100% to descendants of the decedent’s parents (or either parent), by representation (see Minn. Stat. §524.2‐106(c)(1))

If none of the above:

• Intestacy laws outline further distribution steps to grandparents’ level, then “next of kin” and descendants. See Minn. Stat. §524.2‐103(4), (5).
• If no legally described recipient can be found, estate assets go to the state of Minnesota.

Digital Assets

Minnesota follows the Revised Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.

Inheritance Tax

Minnesota does not impose an inheritance tax.

Credit Estate Tax

Minnesota imposes an estate tax on taxable estates over $1 million. Beginning January 1, 2020, the applicable exclusion amount is $3 million.

The top tax rate is 16%.

Generation-Skipping Transfer Tax (GST Tax)

Minnesota does not impose a GST tax.

Gift Tax

Minnesota does not impose a gift tax.