HF 3756

as introduced - 86th Legislature (2009 - 2010) Posted on 04/06/2010 10:43am

A bill for an act
relating to probate; providing certain rules of construction; making technical and
clarifying changes to the estate tax; amending Minnesota Statutes 2008, section
289A.10, subdivision 1; Minnesota Statutes 2009 Supplement, section 291.005,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 524.

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

Section 1.

Minnesota Statutes 2008, section 289A.10, subdivision 1, is amended to
read:

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 federal gross estate exceeds deleted text begin $700,000 for estates of decedents dying after
December 31, 2001, and before January 1, 2004; $850,000 for estates of decedents dying
after December 31, 2003, and before January 1, 2005; $950,000 for estates of decedents
dying after December 31, 2004, and before January 1, 2006; and deleted text end $1,000,000 deleted text begin for estates of
decedents dying after December 31, 2005 deleted text end .

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2005.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 291.005, subdivision 1, is
amended to read:

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 new text begin required to
be new text end valued and otherwise determined for federal estate tax purposes deleted text begin by federal taxing
authorities pursuant to the provisions of deleted text end new text begin under new text end the Internal Revenue Code.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through March 31, 2009 new text begin , but without regard to the provisions of
sections 501 and 901 of Public Law 107-16 new text end .

(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.

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

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

(7) "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.

(8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(9) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies regardless when the decedent died.
new text end

Sec. 3.

new text begin [524.2-712] DECEDENTS DYING AFTER DECEMBER 31, 2009, AND
BEFORE JANUARY 1, 2011; CONSTRUCTION OF CERTAIN FORMULA
CLAUSES BY REFERENCE TO FEDERAL TRANSFER TAX LAW.
new text end

new text begin (a) A governing instrument, including a will or trust agreement, of a decedent who
dies after December 31, 2009, and before January 1, 2011, that contains a formula or
provision referring to the "unified credit," "estate tax exemption," "applicable exemption
amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
any section of the Internal Revenue Code relating to the federal estate tax or federal
generation-skipping transfer tax, or that measures a share of an estate or trust by reference
to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
the federal estate tax and the federal generation-skipping transfer tax laws as they applied
with respect to the estates of decedents dying on December 31, 2009. This paragraph does
not apply to a governing instrument, including a will or trust agreement, that manifests
an intent that a contrary rule applies if the decedent dies on a date on which there is no
then-applicable federal estate or federal generation-skipping transfer tax.
new text end

new text begin (b) If the federal estate or federal generation-skipping transfer tax becomes effective
before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) instead
refers to the first date on which the tax becomes legally effective.
new text end

new text begin (c) The personal representative, trustee, or any interested person under the governing
instrument, including a will or trust agreement, may bring a proceeding to determine
whether the decedent intended that a formula or provision described in paragraph (a) be
construed with respect to the law as it existed after December 31, 2009. Such a proceeding
must be commenced by December 31, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on January 1, 2010.
new text end