Minnesota Senate Bill SF333

Minnesota 2023-2024 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

Portability of the deceased spousal unused exclusion amount provision

Impact

The enactment of SF333 would revise existing Minnesota estate tax laws, allowing for a more favorable tax situation for surviving spouses. By enabling the portability of the unused exclusion amount— which can reach up to $3,000,000— it allows families to benefit from a larger estate value before taxable thresholds are reached. This change is likely to relieve financial pressures on families dealing with the complexities of estate settlements, ensuring that more wealth remains within families rather than being reduced by estate taxes.

Summary

SF333 is a legislative bill focusing on the portability of the deceased spousal unused exclusion amount regarding estate taxes in Minnesota. This legislation amends existing statutes related to estate taxation and provides an option for surviving spouses to elect portability of their deceased partner's unused estate tax exclusion. Specifically, it addresses how estates over a certain threshold can make use of the unused exclusion amounts from a deceased spouse, potentially reducing the tax burden on surviving partners when claiming their estates for tax purposes.

Contention

While the bill is largely seen as beneficial for taxpayers, there may be some opposition surrounding concerns about potential revenue loss for the state. Critics of similar measures could argue that allowing an increased exclusion through portability could disproportionately favor wealthier families, creating gaps in tax revenue. Nonetheless, supporters assert that the rates and thresholds place limitations that balance tax relief with the state’s need for revenue, along with addressing fairness in estate taxation.