SF 3818

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/24/2026 10:12 a.m.

A bill for an act
relating to estate taxation; repealing the estate tax and making conforming changes;
amending Minnesota Statutes 2024, sections 13.4963, subdivision 2; 270B.01,
subdivision 8; 270B.03, subdivision 1; 289A.01; 289A.02, subdivision 5; 289A.35;
289A.38, subdivision 7; 289A.50, subdivision 1; 289A.56, subdivision 3; 354A.11;
356.401, subdivision 1; 524.3-916; 524.3-1001; repealing Minnesota Statutes
2024, sections 270C.585; 289A.10; 289A.18, subdivision 3; 289A.19, subdivision
4; 289A.20, subdivisions 3, 3a; 289A.30, subdivision 2; 289A.55, subdivision 7;
291.005; 291.01; 291.016; 291.03, subdivisions 1, 1a, 1d, 8, 9, 10, 11; 291.031;
291.075; 291.12, subdivisions 1, 2, 3; 291.13, subdivisions 1, 3; 291.16; 291.21,
subdivision 1; 291.215, subdivision 1; 291.27; Minnesota Statutes 2025
Supplement, section 289A.20, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 13.4963, subdivision 2, is amended to read:

Subd. 2.

Generally.

Classification and disclosure of tax data created, collected, or
maintained by the Department of Revenue under section 273.1315, chapter 115B, 289A
(except for taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A, deleted text begin 291, deleted text end
295, 297A, or 297H, or any similar Indian tribal tax administered by the commissioner
according to a tax agreement between the state and an Indian tribal government are governed
by chapter 270B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 270B.01, subdivision 8, is amended to read:

Subd. 8.

Minnesota tax laws.

For purposes of this chapter only, unless expressly stated
otherwise, "Minnesota tax laws" means:

(1) the taxes, refunds, and fees administered by or paid to the commissioner under
chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24),
290, 290A, deleted text begin 291, deleted text end 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax
administered by the commissioner pursuant to any tax agreement between the state and the
Indian tribal government, and includes any laws for the assessment, collection, and
enforcement of those taxes, refunds, and fees; and

(2) section 273.1315.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 270B.03, subdivision 1, is amended to read:

Subdivision 1.

Who may inspect.

Returns and return information must, on request, be
made open to inspection by or disclosure to the data subject. The request must be made in
writing or in accordance with written procedures of the chief disclosure officer of the
department that have been approved by the commissioner to establish the identification of
the person making the request as the data subject. For purposes of this chapter, the following
are the data subject:

(1) in the case of an individual return, that individual;

(2) in the case of an income tax return filed jointly, either of the individuals with respect
to whom the return is filed;

(3) in the case of a return filed by a business entity, an officer of a corporation, a
shareholder owning more than one percent of the stock, or any shareholder of an S
corporation; a general partner in a partnership; the owner of a sole proprietorship; a member
or manager of a limited liability company; a participant in a joint venture; the individual
who signed the return on behalf of the business entity; or an employee who is responsible
for handling the tax matters of the business entity, such as the tax manager, bookkeeper, or
managing agent;

deleted text begin (4) in the case of an estate return:
deleted text end

deleted text begin (i) the personal representative or trustee of the estate; and
deleted text end

deleted text begin (ii) any beneficiary of the estate as shown on the federal estate tax return;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end in the case of a trust return:

(i) the trustee or trustees, jointly or separately; and

(ii) any beneficiary of the trust as shown in the trust instrument;

deleted text begin (6) deleted text end new text begin (5) new text end if liability has been assessed to a transferee under section 270C.58, subdivision
1, the transferee is the data subject with regard to the returns and return information relating
to the assessed liability;

deleted text begin (7) deleted text end new text begin (6) new text end in the case of an Indian tribal government or an Indian tribal government-owned
entity:

(i) the chair of the tribal government; or

(ii) any person authorized by the tribal government; and

deleted text begin (8) deleted text end new text begin (7) new text end in the case of a successor as defined in section 270C.57, subdivision 1, paragraph
(b), the successor is the data subject and information may be disclosed as provided by section
270C.57, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 289A.01, is amended to read:

289A.01 APPLICATION OF CHAPTER.

This chapter applies to laws administered by the commissioner under chapters 290,
290A, deleted text begin 291, deleted text end and 297A deleted text begin , deleted text end and sections 298.01 and 298.015.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 289A.02, subdivision 5, is amended to read:

Subd. 5.

Other words.

Unless specifically defined in this chapter, or unless the context
clearly indicates otherwise, the words used in this chapter have the same meanings as they
are defined in chapters 290, 290A, deleted text begin 291, deleted text end and 297A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 289A.35, is amended to read:

289A.35 ASSESSMENTS ON RETURNS.

(a) The commissioner may audit and adjust the taxpayer's computation of federal adjusted
gross income, federal taxable income, items of federal tax preferences, or federal credit
amounts to make them conform with the provisions of chapter 290 or section 298.01. If a
return has been filed, the commissioner shall enter the liability reported on the return and
may make any audit or investigation that is considered necessary.

(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
best interest of the state, the commissioner may allow S corporations and partnerships to
receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).

(c) A taxpayer may petition the commissioner for the use of the method described in
paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
order of assessment has been issued.

(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
of a taxpayer cannot be appealed to the Tax Court or any other court.

deleted text begin (e) The commissioner may audit and adjust the taxpayer's computation of tax under
chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
shall notify the estate no later than nine months after the filing date, as provided by section
289A.38, subdivision 2, whether the return is under examination or the return has been
processed as filed.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 7.

Minnesota Statutes 2024, section 289A.38, subdivision 7, is amended to read:

Subd. 7.

Federal tax changes.

(a) If the amount of income, items of tax preference,
deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any
period, as reported to the Internal Revenue Service is changed or corrected by the
commissioner of Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the United States results
in a change in income, items of tax preference, deductions, credits, or withholding tax, deleted text begin or,
in the case of estate tax, where there are adjustments to the taxable estate, deleted text end the taxpayer shall
report the federal adjustments in writing to the commissioner. The federal adjustments report
must be submitted within 180 days after the final determination date and must be in the
form of either an amended Minnesota deleted text begin estate, deleted text end withholding tax, corporate franchise tax, or
income tax return conceding the accuracy of the federal adjustment or a letter detailing how
the federal adjustment is incorrect or does not change the Minnesota tax. An amended
Minnesota income tax return must be accompanied by an amended property tax refund
return, if necessary. A taxpayer filing an amended federal tax return must also file a copy
of the amended return with the commissioner of revenue within 180 days after filing the
amended return.

(b) In the case of a final federal adjustment arising from a partnership-level audit or an
administrative adjustment request filed by a partnership under section 6227 of the Internal
Revenue Code, a taxpayer must report adjustments as provided for under section 289A.382,
and not this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 8.

Minnesota Statutes 2024, section 289A.50, subdivision 1, is amended to read:

Subdivision 1.

General right to refund.

(a) Subject to the requirements of this section
and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
who files a written claim for refund will be refunded or credited the overpayment of the tax
determined by the commissioner to be erroneously paid.

(b) The claim must specify the name of the taxpayer, the date when and the period for
which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
was erroneously paid, the grounds on which a refund is claimed, and other information
relative to the payment and in the form required by the commissioner. An income tax deleted text begin , estate
tax, or deleted text end new text begin return, new text end corporate franchise tax return, or amended return claiming an overpayment
constitutes a claim for refund.

(c) When, in the course of an examination, and within the time for requesting a refund,
the commissioner determines that there has been an overpayment of tax, the commissioner
shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
If the amount of the overpayment is less than $1, the commissioner is not required to refund.
In these situations, the commissioner does not have to make written findings or serve notice
by mail to the taxpayer.

(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
care exceeds the tax against which the credit is allowable, the amount of the excess is
considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
considered an overpayment. The requirements of section 270C.33 do not apply to the
refunding of such an overpayment shown on the original return filed by a taxpayer.

(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
penalties, and interest reported in the return of the entertainment entity or imposed by section
290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
$1, the commissioner need not refund that amount.

(f) If the surety deposit required for a construction contract exceeds the liability of the
out-of-state contractor, the commissioner shall refund the difference to the contractor.

(g) An action of the commissioner in refunding the amount of the overpayment does not
constitute a determination of the correctness of the return of the taxpayer.

(h) There is appropriated from the general fund to the commissioner of revenue the
amount necessary to pay refunds allowed under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 9.

Minnesota Statutes 2024, section 289A.56, subdivision 3, is amended to read:

Subd. 3.

Withholding tax, entertainer withholding tax, withholding from payments
to out-of-state contractors, deleted text begin estate tax, deleted text end and sales tax overpayments.

When a refund is
due for overpayments of withholding tax, entertainer withholding tax, or withholding from
payments to out-of-state contractors, interest is computed from the date of payment to the
date the refund is paid or credited. For purposes of this subdivision, the date of payment is
the later of the date the tax was finally due or was paid.

deleted text begin For the purposes of computing interest on estate tax refunds, interest is paid from the
later of the date of overpayment, the date the estate tax return is due, or the date the original
estate tax return is filed to the date the refund is paid.
deleted text end

For purposes of computing interest on sales and use tax refunds, interest is paid from
the date of payment to the date the refund is paid or credited, if the refund claim includes
a detailed schedule reflecting the tax periods covered in the claim. If the refund claim
submitted does not include a detailed schedule reflecting the tax periods covered in the
claim, interest is computed from the date the claim was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 10.

Minnesota Statutes 2024, section 354A.11, is amended to read:

354A.11 CERTAIN MONEY AND CREDITS OF TEACHERS EXEMPT.

All money deposited by a teacher or member or deposited by any other person or
corporation, municipal or private, to the credit of a teacher or member of the teachers
retirement fund association organized pursuant to this chapter, and all money, rights, and
interests or annuities due or to become due to a teacher, member, or annuitant, or their
beneficiaries, from any association shall not be assignable, shall be exempt from garnishment,
attachment, and execution or sale on any final process issued from a court and other legal
process, except as provided in section 518.58, 518.581, or 518A.53 deleted text begin , and shall not be subject
to the estate tax provisions of this state deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 11.

Minnesota Statutes 2024, section 356.401, subdivision 1, is amended to read:

Subdivision 1.

Exemption; exceptions.

None of the money, annuities, or other benefits
provided for in the governing law of a covered retirement plan is assignable either in law
or in equity deleted text begin or subject to state estate tax deleted text end , or to execution, levy, attachment, garnishment, or
other legal process, except as provided in subdivision 2 or section 518.58, 518.581, or
518A.53.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 12.

Minnesota Statutes 2024, section 524.3-916, is amended to read:

524.3-916 APPORTIONMENT OF ESTATE TAXES AND
GENERATION-SKIPPING TAX.

(a) For purposes of this section:

(1) "estate" means the gross estate of a decedent as determined for the purpose of federal
estate tax deleted text begin or the estate tax payable to this state deleted text end ;

(2) "decedent's generation-skipping transfers" means all generation-skipping transfers
as determined for purposes of the federal generation-skipping tax which occur by reason
of the decedent's death which relate to property which is included in the decedent's estate;

(3) "person" means any individual, partnership, association, joint stock company,
corporation, limited liability company, government, political subdivision, governmental
agency, or local governmental agency;

(4) "person interested in the estate" means any person entitled to receive, or who has
received, from a decedent or by reason of the death of a decedent any property or interest
therein included in the decedent's estate. It includes a personal representative, guardian,
conservator, trustee, and custodian;

(5) "state" means any state, territory, or possession of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico;

(6) "estate tax" means the federal estate tax deleted text begin and the state estate tax determined by the
commissioner of revenue pursuant to chapter 291 deleted text end and interest and penalties imposed in
addition to the tax;

(7) "decedent's generation-skipping tax" means the federal generation-skipping tax
imposed on the decedent's generation-skipping transfers and interest and penalties imposed
in addition to the tax;

(8) "fiduciary" means personal representative or trustee.

(b) Any tax occasioned by a decedent's death shall be apportioned as set forth in clauses
(1) to (4).

(1) Estate taxes shall be apportioned among all persons interested in the estate in the
proportion that the value of the interest of each person interested in the estate bears to the
total value of the interests of all persons interested in the estate. The values used in
determining the tax shall be used in apportioning the tax.

(2) Notwithstanding the general rule set forth in clause (1), if property is included in the
decedent's gross estate pursuant to section 2044 of the Internal Revenue Code of 1986, as
amended, deleted text begin or any similar provision of any state estate tax law, deleted text end the difference between the
total estate tax payable by the decedent's estate and the amount of estate tax that would have
been payable by the decedent's estate if the property had not been included in the decedent's
gross estate shall be apportioned ratably among the holders of interests in the property. The
values used in determining the tax shall be used in apportioning the tax. The balance of the
tax, if any, shall be apportioned as provided in clause (1).

(3) The decedent's generation-skipping tax shall be apportioned as provided by federal
law. To the extent not provided by federal law, the decedent's generation-skipping tax shall
be apportioned among all persons receiving the decedent's generation-skipping transfers
whose tax apportionment is not provided by federal law in the proportion that the value of
the transfer to each person bears to the total value of all such transfers.

(4) If the decedent's will or other written instrument directs a method of apportionment
of estate tax or of the decedent's generation-skipping tax different from the methods described
in this section, the method described in the will or other written instrument shall control;
provided, however, that:

(i) unless the decedent's will or other written instrument specifically indicates an intent
to waive any right of recovery under section 2207A of the Internal Revenue Code of 1986,
as amended, estate taxes on property described in clause (2) must be apportioned under the
method described in clause (2); and

(ii) unless the decedent's will or other written instrument specifically indicates an intent
to waive any right of recovery under section 2207B of the Internal Revenue Code of 1986,
as amended, estate taxes on property included in the decedent's estate under section 2036
of the Internal Revenue Code of 1986, as amended, must be apportioned under the method
described in clause (1).

(c)(1) The court in which venue lies for the administration of the estate of a decedent,
on petition for the purpose may determine the apportionment of the estate tax or of the
decedent's generation-skipping tax.

(2) If the court finds that it is inequitable to apportion interest and penalties in the manner
provided in subsection (b), because of special circumstances, it may direct apportionment
thereof in the manner it finds equitable.

(3) If the court finds that the assessment of penalties and interest assessed in relation to
the estate tax or the decedent's generation-skipping tax is due to delay caused by the
negligence of the fiduciary, the court may charge the fiduciary with the amount of the
assessed penalties and interest.

(4) In any action to recover from any person interested in the estate the amount of the
estate tax or of the decedent's generation-skipping tax apportioned to the person in accordance
with this section the determination of the court in respect thereto shall be prima facie correct.

(d)(1) The personal representative or other person in possession of the property of the
decedent required to pay the estate tax or the decedent's generation-skipping tax may withhold
from any property distributable to any person interested in the estate, upon its distribution,
the amount of any taxes attributable to the person's interest. If the property in possession
of the personal representative or other person required to pay any taxes and distributable to
any person interested in the estate is insufficient to satisfy the proportionate amount of the
taxes determined to be due from the person, the personal representative or other person
required to pay any taxes may recover the deficiency from the person interested in the estate.
If the property is not in the possession of the personal representative or the other person
required to pay any taxes, the personal representative or the other person required to pay
any taxes may recover from any person interested in the estate the amount of any taxes
apportioned to the person in accordance with this section.

(2) If property held by the personal representative or other person in possession of the
property of the decedent required to pay the estate tax or the decedent's generation-skipping
tax is distributed prior to final apportionment of the estate tax or the decedent's
generation-skipping tax, the distributee shall provide a bond or other security for the
apportionment liability in the form and amount prescribed by the personal representative
or other person, as the case may be.

(e)(1) In making an apportionment, allowances shall be made for any exemptions granted,
any classification made of persons interested in the estate and for any deductions and credits
allowed by the law imposing the tax.

(2) Any exemption or deduction allowed by reason of the relationship of any person to
the decedent, by reason of the purposes of the gift, or by allocation to the gift (either by
election by the fiduciary or by operation of federal law), inures to the benefit of the person
bearing such relationship or receiving the gift; but if an interest is subject to a prior present
interest which is not allowable as a deduction, the tax apportionable against the present
interest shall be paid from principal.

(3) Any deduction for property previously taxed and any credit for gift taxes or death
taxes of a foreign country paid by the decedent or the decedent's estate inures to the
proportionate benefit of all persons liable to apportionment.

(4) Any credit for inheritance, succession or estate taxes or taxes in the nature thereof
applicable to property or interests includable in the estate, inures to the benefit of the persons
or interests chargeable with the payment thereof to the extent proportionately that the credit
reduces the tax.

(5) To the extent that property passing to or in trust for a surviving spouse or any
charitable, public or similar gift or devise is not an allowable deduction for purposes of the
estate tax solely by reason of an estate tax imposed upon and deductible from the property,
the property is not included in the computation provided for in subsection (b)(1) hereof,
and to that extent no apportionment is made against the property. The sentence immediately
preceding does not apply to any case if the result would be to deprive the estate of a deduction
otherwise allowable under section 2053(d) of the Internal Revenue Code of 1986, as
amended, of the United States, relating to deduction for state death taxes on transfers for
public, charitable, or religious uses.

(f) No interest in income and no estate for years or for life or other temporary interest
in any property or fund is subject to apportionment as between the temporary interest and
the remainder. The estate tax on the temporary interest and the estate tax, if any, on the
remainder is chargeable against the corpus of the property or funds subject to the temporary
interest and remainder. The decedent's generation-skipping tax is chargeable against the
property which constitutes the decedent's generation-skipping transfer.

(g) Neither the personal representative nor other person required to pay the tax is under
any duty to institute any action to recover from any person interested in the estate the amount
of the estate tax or of the decedent's generation-skipping tax apportioned to the person until
the final determination of the tax. A personal representative or other person required to pay
the estate tax or decedent's generation-skipping tax who institutes the action within a
reasonable time after final determination of the tax is not subject to any liability or surcharge
because any portion of the tax apportioned to any person interested in the estate was
collectible at a time following the death of the decedent but thereafter became uncollectible.
If the personal representative or other person required to pay the estate tax or decedent's
generation-skipping tax cannot collect from any person interested in the estate the amount
of the tax apportioned to the person, the amount not recoverable shall be equitably
apportioned among the other persons interested in the estate who are subject to apportionment
of the tax involved.

(h) A personal representative acting in another state or a person required to pay the estate
tax or decedent's generation-skipping tax domiciled in another state may institute an action
in the courts of this state and may recover a proportionate amount of the federal estate tax,
of an estate tax payable to another state or of a death duty due by a decedent's estate to
another state, or of the decedent's generation-skipping tax, from a person interested in the
estate who is either domiciled in this state or who owns property in this state subject to
attachment or execution. For the purposes of the action the determination of apportionment
by the court having jurisdiction of the administration of the decedent's estate in the other
state is prima facie correct.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 13.

Minnesota Statutes 2024, section 524.3-1001, is amended to read:

524.3-1001 FORMAL PROCEEDINGS TERMINATING ADMINISTRATION;
TESTATE OR INTESTATE; ORDER OF DISTRIBUTION, DECREE, AND
GENERAL PROTECTION.

(a)(1) A personal representative or any interested person may petition for an order of
complete settlement of the estate. The personal representative may petition at any time, and
any other interested person may petition after one year from the appointment of the original
personal representative except that no petition under this section may be entertained until
the time for presenting claims which arose prior to the death of the decedent has expired.
The petition may request the court to determine testacy, if not previously determined, to
consider the final account or compel or approve an accounting and distribution, to construe
any will or determine heirs and adjudicate the final settlement and distribution of the estate.
After notice to all interested persons and hearing the court may enter an order or orders, on
appropriate conditions, determining the persons entitled to distribution of the estate, and,
as circumstances require, approving settlement and directing or approving distribution of
the estate and discharging the personal representative from further claim or demand of any
interested person.

(2) In such petition for complete settlement of the estate, the petitioner may apply for a
decree. Upon the hearing, if in the best interests of interested persons, the court may issue
its decree which shall determine the persons entitled to the estate and assign the same to
them in lieu of ordering the assignment by the personal representative. The decree shall
name the heirs and distributees, state their relationship to the decedent, describe the property,
and state the proportions or part thereof to which each is entitled. In the estate of a testate
decedent, no heirs shall be named in the decree unless all heirs be ascertained.

(3) In solvent estates, the hearing may be waived by written consent to the proposed
account and decree of distribution or order of distribution by all heirs or distributees, and
the court may then enter its order allowing the account and issue its decree or order of
distribution.

(4) Where a decree or order for distribution is issued, the personal representative shall
not be discharged until all property is paid or transferred to the persons entitled to the
property, and the personal representative has otherwise fully discharged the duties of a
personal representative. deleted text begin If an order assessing estate tax or request for documents is filed
with the court by the commissioner of revenue, no discharge shall be issued until the
assessment is paid or the request is complied with. If no order assessing estate tax or request
deleted text end deleted text begin for documents is filed, the court shall have the power to settle and distribute the estate and
discharge the personal representative without regard to tax obligations.
deleted text end

(b) If one or more heirs or devisees were omitted as parties in, or were not given notice
of, a previous formal testacy proceeding, the court, on proper petition for an order of complete
settlement of the estate under this section, and after notice to the omitted or unnotified
persons and other interested parties determined to be interested on the assumption that the
previous order concerning testacy is conclusive as to those given notice of the earlier
proceeding, may determine testacy as it affects the omitted persons and confirm or alter the
previous order of testacy as it affects all interested persons as appropriate in the light of the
new proofs. In the absence of objection by an omitted or unnotified person, evidence received
in the original testacy proceeding shall constitute prima facie proof of due execution of any
will previously admitted to probate, or of the fact that the decedent left no valid will if the
prior proceedings determined this fact.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, sections 270C.585; 289A.10; 289A.18, subdivision 3;
289A.19, subdivision 4; 289A.20, subdivisions 3 and 3a; 289A.30, subdivision 2; 289A.55,
subdivision 7; 291.005; 291.01; 291.016; 291.03, subdivisions 1, 1a, 1d, 8, 9, 10, and 11;
291.031; 291.075; 291.12, subdivisions 1, 2, and 3; 291.13, subdivisions 1 and 3; 291.16;
291.21, subdivision 1; 291.215, subdivision 1; and 291.27, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2025 Supplement, section 289A.20, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 26-06599

270C.585 TRANSFEREE LIABILITY FOR ESTATE TAX.

The personal representative and person to whom property that is subject to taxation under chapter 291 is transferred, other than a bona fide purchaser, mortgagee, or lessee, is personally liable for that tax, until its payment, to the extent of the value of the property at the time of the transfer. Personal liability also does not extend to subsequent transferees from bona fide purchasers, mortgagees, and lessees.

289A.10 FILING REQUIREMENTS FOR ESTATE TAX RETURNS.

Subdivision 1.

Return required.

In the case of a decedent who has an interest in property with a situs in Minnesota, the personal representative must submit a Minnesota estate tax return to the commissioner, on a form prescribed by the commissioner, if:

(1) a federal estate tax return is required to be filed; or

(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue Code, made within three years of the date of the decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016; $2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying in 2018; $2,700,000 for estates of decedents dying in 2019; and $3,000,000 for estates of decedents dying in 2020 and thereafter.

The return must contain a computation of the Minnesota estate tax due. The return must be signed by the personal representative.

Subd. 1a.

Recapture tax return required.

If a disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as defined under section 291.03, subdivision 8, paragraph (c), or personal representative of the decedent's estate must submit a recapture tax return to the commissioner.

Subd. 2.

Documents required.

The commissioner may designate on the return the documents that are required to be filed together with the return to determine the computation of tax.

Subd. 3.

Definitions.

For purposes of this section, the definitions contained in section 291.005 apply.

289A.18 DUE DATES FOR FILING OF RETURNS.

Subd. 3.

Estate tax returns.

An estate tax return must be filed with the commissioner within nine months after the decedent's death.

289A.19 EXTENSIONS FOR FILING RETURNS.

Subd. 4.

Estate tax returns.

The time for filing an estate tax return shall be extended for either six months or the amount of time granted under section 6081 of the Internal Revenue Code to file the federal estate tax return, whichever is longer.

289A.20 DUE DATES FOR MAKING PAYMENTS OF TAX.

Subd. 3.

Estate tax.

Taxes imposed by section 291.03, subdivision 1, take effect at and upon the death of the person whose estate is subject to taxation and are due and payable on or before the expiration of nine months from that death.

Subd. 3a.

Recapture tax.

The additional estate tax imposed by section 291.03, subdivision 11, paragraph (b), is due and payable on or before the expiration of the date provided by section 291.03, subdivision 11, paragraph (c).

Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and payable to the commissioner monthly on or before the 20th day of the month following the month in which the taxable event occurred, or following another reporting period as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) or (g), except that use taxes due on an annual use tax return as provided under section 289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.

(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30, except for taxes imposed under chapters 168E, 295, and 297H, must remit the June liability for the next year in the following manner:

(1) Two business days before June 30 of calendar year 2027 and each year thereafter, the vendor must remit 5.6 percent of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount of tax not remitted in June.

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $250,000, during a fiscal year must remit by electronic means all liabilities on returns due for periods beginning in all subsequent calendar years on or before the 20th day of the month following the month in which the taxable event occurred, or on or before the 20th day of the month following the month in which the sale is reported under section 289A.18, subdivision 4; or

(2) $250,000 or more during a fiscal year must remit by electronic means all liabilities in the manner provided in paragraph (a) on returns due for periods beginning in the subsequent calendar year, except that a vendor subject to the remittance requirements of paragraph (b) must remit the percentage of the estimated June liability, as provided in paragraph (b), clause (1), which is due two business days before June 30. The remaining amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious beliefs from paying electronically shall be allowed to remit the payment by mail. The filer must notify the commissioner of revenue of the intent to pay by mail before doing so on a form prescribed by the commissioner. No extra fee may be charged to a person making payment by mail under this paragraph. The payment must be postmarked at least two business days before the due date for making the payment in order to be considered paid on a timely basis.

289A.30 EXTENSIONS FOR PAYING TAX.

Subd. 2.

Estate tax.

Where good cause exists, the commissioner may extend the time for payment of estate tax for a period of not more than six months. If an extension to pay the federal estate tax has been granted under section 6161 of the Internal Revenue Code, the time for payment of the estate tax without penalty is extended for that period. A taxpayer who owes at least $5,000 in taxes and who, under section 6161 or 6166 of the Internal Revenue Code has been granted an extension for payment of the tax shown on the return, may elect to pay the tax due to the commissioner in equal amounts at the same time as required for federal purposes. A taxpayer electing to pay the tax in installments shall defer a percentage of tax that does not exceed the percentage of federal tax deferred and must notify the commissioner in writing no later than nine months after the death of the person whose estate is subject to taxation. If the taxpayer fails to pay an installment on time, unless it is shown that the failure is due to reasonable cause, the election is revoked and the entire amount of unpaid tax plus accrued interest is due and payable 90 days after the date on which the installment was payable.

289A.55 INTEREST PAYABLE TO COMMISSIONER.

Subd. 7.

Installment payments; estate tax.

Interest must be paid on unpaid installment payments of the tax authorized under section 289A.30, subdivision 2, beginning on the date the tax was due without regard to extensions allowed or extensions elected, at the rate given in section 270C.40.

291.005 DEFINITIONS.

Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following terms used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued and otherwise determined for federal estate tax purposes under the Internal Revenue Code, increased by the value of any property in which the decedent had a qualifying income interest for life and for which an election was made under section 291.03, subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended through May 1, 2023.

(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included in the estate which has its situs outside Minnesota, and (b) including any property omitted from the federal gross estate which is includable in the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person appointed by the court to administer and dispose of the property of the decedent. If there is no executor, administrator or other person appointed, qualified, and acting within this state, then any person in actual or constructive possession of any property having a situs in this state which is included in the federal gross estate of the decedent shall be deemed to be a personal representative to the extent of the property and the Minnesota estate tax due with respect to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply to determinations of domicile under this chapter.

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept or located at the time of the decedent's death or for a gift of tangible personal property within three years of death, the state or country in which it was normally kept or located when the gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue Code, owned by a nonresident decedent and that is normally kept or located in this state because it is on loan to an organization, qualifying as exempt from taxation under section 501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within three years of death, the state or country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with assets that include real or tangible personal property, situs of the real or tangible personal property, including qualified works of art, is determined as if the pass-through entity does not exist and the real or tangible personal property is personally owned by the decedent. If the pass-through entity is owned by a person or persons in addition to the decedent, ownership of the property is attributed to the decedent in proportion to the decedent's capital ownership share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of whether it is taxed as an association or is disregarded for federal income tax purposes under Code of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includable in the decedent's federal gross estate; but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated by the Securities and Exchange Commission as a national securities exchange under section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.

Subd. 2.

Incorporation by reference of Uniform Probate Code definitions.

The definitions set forth in section 524.1-201, wherever appropriate to the administration of the provisions of this chapter are incorporated by reference.

291.01 TAX IMPOSED.

A tax is hereby imposed upon the transfer of estates of decedents as prescribed by this chapter.

291.016 MINNESOTA TAXABLE ESTATE.

Subdivision 1.

General.

For purposes of the tax under this chapter, the Minnesota taxable estate equals the federal taxable estate as provided under section 2051 of the Internal Revenue Code, without regard to whether the estate is subject to the federal estate tax:

(1) increased by the value of any property in which the decedent had a qualifying income interest for life and for which an election was made under section 291.03, subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate tax purposes;

(2) increased by the additions under subdivision 2; and

(3) decreased by the subtraction under subdivision 3.

Subd. 2.

Additions.

The following amounts, to the extent deducted in computing or otherwise excluded from the federal taxable estate, must be added in computing the Minnesota taxable estate:

(1) the amount of the deduction for state death taxes allowed under section 2058 of the Internal Revenue Code;

(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) of the Internal Revenue Code; and

(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal Revenue Code, made by the decedent within three years of the date of death. For purposes of this clause, the amount of the addition equals the value of the gift under section 2512 of the Internal Revenue Code and excludes any value of the gift included in the federal estate.

Subd. 3.

Subtraction.

(a) For estates of decedents dying after December 31, 2016, a subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:

(1) the exclusion amount for the year of death under paragraph (b); and

(2) the lesser of:

(i) the value of qualified small business property under section 291.03, subdivision 9, and the value of qualified farm property under section 291.03, subdivision 10; or

(ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).

(b) The following exclusion amounts apply for the year of death:

(1) $2,100,000 for decedents dying in 2017;

(2) $2,400,000 for decedents dying in 2018;

(3) $2,700,000 for decedents dying in 2019; and

(4) $3,000,000 for decedents dying in 2020 and thereafter.

(c) The subtraction under this subdivision must not reduce the Minnesota taxable estate to less than zero.

291.03 RATES.

Subdivision 1.

Tax amount.

The tax imposed must be computed by applying to the Minnesota taxable estate the following schedule of rates and then the resulting amount multiplied by a fraction, not greater than one, the numerator of which is the value of the Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause (3), with a Minnesota situs, and the denominator of which is the federal gross estate plus the value of gifts under section 291.016, subdivision 2, clause (3):

(a) For estates of decedents dying in 2017:

Amount of Minnesota Taxable Estate	Rate of Tax
Not over $5,100,000	12 percent
Over $5,100,000 but not over $7,100,000	$612,000 plus 12.8 percent of the excess over $5,100,000
Over $7,100,000 but not over $8,100,000	$868,000 plus 13.6 percent of the excess over $7,100,000
Over $8,100,000 but not over $9,100,000	$1,004,000 plus 14.4 percent of the excess over $8,100,000
Over $9,100,000 but not over $10,100,000	$1,148,000 plus 15.2 percent of the excess over $9,100,000
Over $10,100,000	$1,300,000 plus 16 percent of the excess over $10,100,000

(b) For estates of decedents dying in 2018 and thereafter:

Amount of Minnesota Taxable Estate	Rate of Tax
Not over $7,100,000	13 percent
Over $7,100,000 but not over $8,100,000	$923,000 plus 13.6 percent of the excess over $7,100,000
Over $8,100,000 but not over $9,100,000	$1,059,000 plus 14.4 percent of the excess over $8,100,000
Over $9,100,000 but not over $10,100,000	$1,203,000 plus 15.2 percent of the excess over $9,100,000
Over $10,100,000	$1,355,000 plus 16 percent of the excess over $10,100,000

Subd. 1a.

Expenses disallowed.

For the purposes of this section, expenses which are deducted for federal income tax purposes under section 642(g) of the Internal Revenue Code are not allowable in computing the tax under this chapter.

Subd. 1d.

Elections.

(a) For the purposes of this section, the value of the Minnesota taxable estate is determined by taking into account the deduction available under section 2056(b) of the Internal Revenue Code. An election under section 2056(b) of the Internal Revenue Code may be made for Minnesota estate tax purposes regardless of whether the election is made for federal estate tax purposes. The value of the gross estate includes the value of any property in which the decedent had a qualifying income interest for life for which an election was made under this subdivision.

(b) Except for an election made under section 2056(b) of the Internal Revenue Code, no federal election is allowable in computing the tax under this chapter unless the estate is required to file a federal estate tax return, the election is made on the federal estate tax return, and the election is allowed under federal law.

Subd. 8.

Definitions.

(a) For purposes of this section, the following terms have the meanings given in this subdivision.

(b) "Family member" means a family member as defined in section 2032A(e)(2) of the Internal Revenue Code, or a trust whose present beneficiaries are all family members as defined in section 2032A(e)(2) of the Internal Revenue Code.

(c) "Qualified heir" means a family member who acquired qualified property upon the death of the decedent and satisfies the requirement under subdivision 9, clause (8), or subdivision 10, clause (5), for the property.

(d) "Qualified property" means qualified small business property under subdivision 9 and qualified farm property under subdivision 10.

Subd. 9.

Qualified small business property.

Property satisfying all of the following requirements is qualified small business property:

(1) The value of the property was included in the federal adjusted taxable estate.

(2) The property consists of the assets of a trade or business or shares of stock or other ownership interests in a corporation or other entity engaged in a trade or business. Shares of stock in a corporation or an ownership interest in another type of entity do not qualify under this subdivision if the shares or ownership interests are traded on a public stock exchange at any time during the three-year period ending on the decedent's date of death. For purposes of this subdivision, an ownership interest includes the interest the decedent is deemed to own under sections 2036, 2037, 2038, 2040, or 2044 of the Internal Revenue Code.

(3) During the taxable year that ended before the decedent's death, the trade or business must not have been a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and the decedent or the decedent's spouse must have materially participated in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the taxable year that ended before the decedent's death.

(4) The gross annual sales of the trade or business were $10,000,000 or less for the last taxable year that ended before the date of the death of the decedent.

(5) The property does not include:

(i) cash;

(ii) cash equivalents;

(iii) publicly traded securities; or

(iv) any assets not used in the operation of the trade or business.

(6) For property consisting of shares of stock or other ownership interests in an entity, the value of items described in clause (5) must be excluded in the valuation of the decedent's interest in the entity.

(7) The decedent or the decedent's spouse continuously owned the property, or an undivided or joint interest in the property, including property the decedent or the decedent's spouse is deemed to own under sections 2036, 2037, 2038, 2040, or 2044 of the Internal Revenue Code, or under subdivision 1d, for the three-year period ending on the date of death of the decedent. In the case of a sole proprietor, if the property replaced similar property within the three-year period, the replacement property will be treated as having been owned for the three-year period ending on the date of death of the decedent. For the purposes of the three-year holding period under this clause, any ownership by the decedent's spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.

(8) For three years following the date of death of the decedent, the trade or business is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and a family member materially participates in the operation of the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the three years following the date of death of the decedent.

(9) The estate and the qualified heir elect to treat the property as qualified small business property and agree, in the form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.

Subd. 10.

Qualified farm property.

Property satisfying all of the following requirements is qualified farm property:

(1) The value of the property was included in the federal adjusted taxable estate.

(2) The property consists of agricultural land and is owned by a person or entity that is either not subject to or is in compliance with section 500.24.

(3) For property taxes payable in the taxable year of the decedent's death, the property is classified as class 2a property under section 273.13, subdivision 23, and is classified as agricultural homestead, agricultural relative homestead, or special agricultural homestead under section 273.124.

(4) The decedent or the decedent's spouse continuously owned the property, or an undivided or joint interest in the property, including property the decedent or the decedent's spouse is deemed to own under sections 2036, 2037, 2038, 2040, or 2044 of the Internal Revenue Code, or under subdivision 1d, for the three-year period ending on the date of death of the decedent either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24. For the purposes of the three-year holding period under this clause, any ownership by the decedent's spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.

(5) The property is classified for property tax purposes as class 2a property under section 273.13, subdivision 23, for three years following the date of death of the decedent.

(6) The estate and the qualified heir elect to treat the property as qualified farm property and agree, in a form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.

Subd. 11.

Recapture tax.

(a) If, within three years after the decedent's death and before the death of the qualified heir, the qualified heir disposes of any interest in the qualified property, other than by a disposition to a family member, or a family member ceases to satisfy the requirement under subdivision 9, clause (8); or 10, clause (5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces qualified small business property excluded under subdivision 9 with similar property, then the qualified heir will not be treated as having disposed of an interest in the qualified property.

(b) The amount of the additional tax equals the amount of the exclusion claimed by the estate under subdivision 8, paragraph (d), multiplied by 16 percent.

(c) The additional tax under this subdivision is due on the day which is six months after the date of the disposition or cessation in paragraph (a).

(d) The tax under this subdivision does not apply to the acquisition of title or possession of the qualified property by a federal, state, or local government unit, or any other entity with the power of eminent domain for a public purpose, as defined in section 117.025, subdivision 11, within the three-year holding period.

(e) This subdivision shall not apply as a result of any of the following:

(1) a portion of qualified farm property consisting of less than one-fifth of the acreage of the property is reclassified as class 2b property under section 273.13, subdivision 23, and the qualified heir has not substantially altered the reclassified property during the three-year holding period; or

(2) a portion of qualified farm property classified as class 2a property at the death of the decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence, garage, and immediately surrounding one acre of land is reclassified as class 4bb property during the three-year holding period, and the qualified heir has not substantially altered the property.

291.031 CREDIT.

(a) The estate of a nonresident decedent that is subject to tax under this chapter on the value of Minnesota situs property held in a pass-through entity is allowed a credit against the tax due under section 291.03 equal to the lesser of:

(1) the amount of estate or inheritance tax paid to another state that is attributable to the Minnesota situs property held in the pass-through entity; or

(2) the amount of tax due under section 291.03 attributable to the Minnesota situs property held in the pass-through entity.

(b) The amount of tax attributable to the Minnesota situs property held in the pass-through entity must be determined by the increase in the estate or inheritance tax that results from including the market value of the property in the estate or treating the value as a taxable inheritance to the recipient of the property.

291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.

If, after the final determination of the tax imposed by this chapter, the property valued pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify and an additional tax is imposed pursuant to section 2032A(c), any increase in federal gross or taxable estate shall be reported to the commissioner within 90 days of the federal adjustment. Upon notification the commissioner may assess an additional tax in accordance with section 291.03, subdivision 1.

291.12 COLLECTION OF TAX BY REPRESENTATIVE OR TRUSTEE.

Subdivision 1.

Requirement.

Any representative or trustee who has in possession or under control, property, the transfer of which is subject to any tax imposed by this chapter and from which such tax may lawfully be paid by the representative or trustee, shall either deduct the amount of tax due or shall collect from the person entitled to such property, the amount of tax due, together with any accrued interest thereon, before completing the transfer of such property or making delivery thereof and shall pay to the commissioner all taxes and interest so deducted or collected.

Subd. 2.

Liability.

Any representative or trustee having in possession or under control any property to which a person, from whom a tax is known by such representative or trustee to be due under the provisions of this chapter, is entitled, shall be personally liable for the payment of such tax and any interest accrued, to the extent of the value of such property; provided, however, that there shall be no such liability if such property cannot be lawfully used by the representative or trustee for the payment of such taxes or interest.

Subd. 3.

Effect on duty to transfer or deliver property.

No representative or trustee shall be required to transfer or deliver any property in possession or under control unless all taxes and interest due from the person entitled thereto under the provisions of this chapter have either been deducted or collected by the representative or trustee or paid by the transferee to the commissioner.

291.13 TAXES TO BE PAID TO COMMISSIONER OF REVENUE.

Subdivision 1.

Requirement.

All taxes imposed by this chapter shall be paid to the commissioner.

Subd. 3.

Deposit in general fund.

All taxes paid under the provisions of this chapter shall be deposited by the commissioner in the state treasury, and shall belong to and be a part of the general fund of the state.

291.16 POWER OF SALE.

Every executor, administrator, or trustee shall have full power to sell the property embraced in any inheritance, devise, bequest, or legacy to pay the tax imposed by this chapter, in the same manner as entitled by law to do for the payment of the debts of a testator or intestate.

291.21 LETTERS OF ADMINISTRATION.

Subdivision 1.

Rights of commissioner.

The commissioner shall have the same rights to apply for letters of administration as are conferred upon creditors by law.

291.215 VALUATION OF ESTATE.

Subdivision 1.

Determination.

All property includable in the Minnesota gross estate of a decedent shall be valued in accordance with the provisions of sections 2031 or 2032 and, if applicable, 2032A, of the Internal Revenue Code and any elections made in valuing the federal gross estate shall be applicable in valuing the Minnesota gross estate. The value of all property includable in the Minnesota gross estate of a decedent may be independently determined under those sections for Minnesota estate tax purposes except:

(1) as otherwise provided in section 291.075; or

(2) if the Internal Revenue Service, after receiving the estate's federal estate tax return, either conducts a separate appraisal of an asset reported on the return or proposes a change in the reported valuation of an asset in the estate, in which case the federal final determination of the value controls.

291.27 UNPAID TAX; OMITTED PROPERTY.

Any tax due and unpaid under the provisions of this chapter may be enforced and collected from any transferee of property included in the Minnesota estate by action in the court of administration of the estate of the decedent or in a court of general jurisdiction by the personal representative of any estate, the attorney general, or the commissioner in the name of the state.

Any property which for any cause is omitted from the Minnesota estate tax return so that its value is not taken into consideration in the determination of the estate tax, may be subsequently taxed against the persons receiving the same, or any part thereof, to the same effect as if included in the estate tax return, except that any personal representative of an estate discharged in the meantime shall not be liable for the payment of such tax. When any property has been omitted in the determination of an estate tax, the tax thereon may be determined and recovered in a civil action brought by the attorney general or the commissioner, in the name of the state, in any court of general jurisdiction.