HF 2915

as introduced - 91st Legislature (2019 - 2020) Posted on 05/19/2019 01:29pm

A bill for an act
relating to taxation; estate; providing for a deceased spousal unused exclusion
amount; amending Minnesota Statutes 2018, sections 289A.38, by adding a
subdivision; 291.016, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 289A.38, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Estate tax returns; unused deceased spousal exclusion. new text end

new text begin Notwithstanding
any period of limitation in this section, after the time has expired within which a tax may
be assessed with respect to the unused deceased spousal exclusion in section 291.016,
subdivision 4, the commissioner may examine a return of the deceased spouse to make
determinations with respect to that amount to carry out the purposes of section 291.016.
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, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 291.016, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Unused deceased spousal exclusion. new text end

new text begin (a) In addition to the subtraction in
subdivision 3, an estate is allowed a subtraction equal to the amount of the unused deceased
spousal exclusion determined in paragraph (b). To qualify for the subtraction, the decedent
must be the surviving spouse of the surviving spouse's last deceased spouse and must be an
heir or beneficiary of the last deceased spouse's estate. In addition, the estate of the last
deceased spouse must satisfy all of the following requirements:
new text end

new text begin (1) the estate was allowed a subtraction under subdivision 3 in an amount that is less
than the maximum allowable exclusion under subdivision 3, determined without regard to
any subtraction allowed under this subdivision, for the year in which the deceased spouse
died;
new text end

new text begin (2) the estate made an irrevocable election on an estate tax return that is filed within the
time prescribed by law, including extensions, for filing that return, to provide a subtraction
allowed to the estate of the surviving spouse under this subdivision; and
new text end

new text begin (3) the value of last deceased spouse's taxable estate was zero.
new text end

new text begin (b) The unused deceased spousal exclusion is equal to the amount of the difference, if
any, between the amount of the last deceased spouse's exclusion under subdivision 3,
paragraph (b), and the value, excluding the amount of any subtraction allowed in this
subdivision, of the last deceased spouse's Minnesota taxable estate. The amount of the
unused deceased spousal exclusion may not exceed the maximum exclusion amount allowed
in subdivision 3, paragraph (b).
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, 2019.
new text end