2001 Minnesota Statutes

CHAPTER 291. Estate tax

     291.005 Definitions. 

    Subdivision 1.  Unless the context otherwise clearly 
 requires, the following terms used in this chapter shall have 
 the following meanings: 

    (1) "Federal gross estate" means the gross estate of a 
 decedent as valued and otherwise determined for federal estate 
 tax purposes by federal taxing authorities pursuant to the 
 provisions of the Internal Revenue Code. 

    (2) "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.  

    (3) "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. 

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

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

    (6) "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. 

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

    (8) "Internal Revenue Code" means the United States 
 Internal Revenue Code of 1986, as amended through December 31, 
 2000. 

    Subd. 2.  The definitions set forth in section 524.1-201, 
 wherever appropriate to the administration of the provisions of 
 this chapter are incorporated by reference. 

    HIST: 1963 c 740 s 26; 1973 c 185 s 1; 1973 c 582 s 3; 1975 c 
 347 s 2; 1979 c 303 art 3 s 1; 1980 c 439 s 4; 1981 c 49 s 2; 
 3Sp1981 c 2 art 6 s 1; 1983 c 222 s 22; 1Sp1985 c 14 art 13 s 2; 
 1986 c 444; 1989 c 28 s 23; 1990 c 604 art 2 s 16; 1991 c 291 
 art 6 s 46; 1992 c 511 art 6 s 19; 1993 c 375 art 8 s 14; 1994 c 
 587 art 1 s 24; 1995 c 264 art 1 s 4; 1996 c 471 art 4 s 5; 1997 
 c 231 art 6 s 22; 1998 c 389 art 7 s 11; 1999 c 243 art 3 s 6; 
 2000 c 490 art 12 s 5; 1Sp2001 c 5 art 10 s 10 

     291.01 Tax imposed. 

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

    HIST: (2292) 1905 c 288 s 1; 1911 c 372 s 1; 1935 c 334 s 1; 
 Ex1937 c 50 s 3; 1939 c 338 s 1; 1939 c 431 art 6 s 6; 1941 c 
 470 s 1; 1943 c 504 s 1,2; 1949 c 735 s 1; 1953 c 629 s 1; 1955 
 c 552 s 1; 1961 c 442 s 1; 1963 c 182 s 1; 1963 c 218 s 1; 1963 
 c 740 s 1,2; 1965 c 89 s 1; 1965 c 555 s 1; 1967 c 850 s 1; 1978 
 c 741 s 1; 1979 c 303 art 3 s 2; 1980 c 439 s 5 

  291.015 Repealed, 1Sp1985 c 14 art 13 s 14 

  291.02 Repealed, 1979 c 303 art 3 s 41 

     291.03 Rates. 

    Subdivision 1.    Tax amount.  The tax imposed shall be 
 an amount equal to the proportion of the maximum credit 
 allowable under section 2011 of the Internal Revenue Code for 
 state death taxes as the Minnesota gross estate bears to the 
 value of the federal gross estate.  For a resident decedent, the 
 tax shall be the maximum credit allowable under section 2011 of 
 the Internal Revenue Code reduced by the amount of the death tax 
 paid the other state and credited against the federal estate tax 
 if this results in a larger amount of tax than the proportionate 
 amount of the credit.  The tax determined under this paragraph 
 shall not be greater than the maximum credit allowable under 
 section 2011 of the Internal Revenue Code.  

    Subd. 2.    Intent.  It is hereby declared to be the 
 intent and purpose of this section to obtain for Minnesota the 
 benefit of not less than the maximum credit allowed for state 
 death taxes under the federal estate tax law by imposing the tax 
 provided in this section and the same shall be liberally 
 construed to effect this purpose. 

    Subd. 3. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 4. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 5. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 6. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 7. Repealed, 1Sp1985 c 14 art 13 s 14 

    HIST: (2293) 1905 c 288 s 2; 1911 c 372 s 2; 1913 c 455 s 1,2; 
 1919 c 410 s 2a; 1927 c 205 s 1,2; 1939 c 338 s 2a; 1943 c 504 s 
 3; Ex1959 c 70 art 4 s 1; 1963 c 107 s 1; 1973 c 185 s 2; 1976 c 
 320 s 1; 1979 c 303 art 3 s 4; 1980 c 439 s 7; 1981 c 49 s 3; 
 3Sp1981 c 2 art 6 s 3; 1982 c 523 art 26 s 3; 1983 c 222 s 23; 
 1Sp1985 c 14 art 13 s 3 

  291.04 Repealed, Ex1959 c 70 art 4 s 2 

  291.05 Repealed, 1Sp1985 c 14 art 13 s 14 

    291.051 Subdivision 1. Repealed, 1Sp1985 c 14 art 
 13 s 14 

    Subd. 2. Repealed, 3Sp1981 c 2 art 6 s 7; 1Sp1985 
 c 14 art 13 s 14 

    Subd. 3. Repealed, 3Sp1981 c 2 art 6 s 7; 1Sp1985 
 c 14 art 13 s 14 

  291.06 Repealed, 1Sp1985 c 14 art 13 s 14 

  291.065 Repealed, 1Sp1985 c 14 art 13 s 14 

    291.07 Subdivision 1. Repealed, 1Sp1985 c 14 art 
 13 s 14 

    Subd. 2. Repealed, 1979 c 303 art 3 s 41; 1Sp1985 
 c 14 art 13 s 14 

    Subd. 2a. Repealed, 1979 c 303 art 3 s 41; 1Sp1985 
 c 14 art 13 s 14 

    Subd. 3. Repealed, 1983 c 222 s 45; 1Sp1985 c 14 
 art 13 s 14 

     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 the credit for state death taxes shall be reported 
 to the commissioner within 90 days after final determination of 
 the increased credit.  Upon notification the commissioner may 
 assess an additional tax in accordance with section 291.03, 
 subdivision 1.  

    HIST: 1979 c 303 art 3 s 10; 1980 c 439 s 13; 1Sp1985 c 14 art 
 13 s 4 

  291.08 Repealed, 1Sp1985 c 14 art 13 s 14 

  291.09 Repealed, 1990 c 480 art 1 s 45 

  291.10 Repealed, 1979 c 303 art 3 s 41 

  291.11 Repealed, 1990 c 480 art 1 s 45 

    291.111 Subdivision 1. Repealed, 1980 c 439 s 35; 
 1Sp1985 c 14 art 13 s 14 

    Subd. 2. Repealed, 1Sp1985 c 14 art 13 s 14 

     291.12 Collection of tax. 

    Subdivision 1.  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.  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.  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.  

    Subd. 4. Repealed, 1979 c 303 art 3 s 41 

    HIST: (2295) 1905 c 288 s 4; 1939 c 338 s 4; 1943 c 504 s 6; 
 1953 c 628 s 1; 1963 c 740 s 6; 1986 c 444 

     291.13 Taxes to be paid to commissioner of revenue. 

    Subdivision 1.  All taxes imposed by this chapter shall be 
 paid to the commissioner. 

    Subd. 2.  Repealed, 1978 c 766 s 20 

    Subd. 3.  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. 

    HIST: (2296) 1905 c 288 s 5; 1939 c 338 s 5; 1943 c 593 s 1; 
 1953 c 630 s 1; 1963 c 740 s 7; 1969 c 399 s 49 

  291.131 Repealed, 1990 c 480 art 1 s 45 

  291.132 Repealed, 1Sp1985 c 14 art 13 s 14 

  291.14 Repealed, 1990 c 480 art 1 s 45 

    291.15 Subdivision 1. Repealed, 1990 c 480 art 1 s 
 45 

    Subd. 2. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 3. Repealed, 1990 c 480 art 1 s 45 

     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.  

    HIST: (2299) 1905 c 288 s 8; 1986 c 444 

  291.17 Repealed, 1980 c 439 s 35 

  291.18 Repealed, 1Sp1985 c 14 art 13 s 14 

    291.19 Subdivision 1. Repealed, 1980 c 439 s 35 

    Subd. 2. Repealed, 1980 c 439 s 35 

    Subd. 3. Repealed, 1980 c 439 s 35 

    Subd. 4. Repealed, 1980 c 439 s 35 

    Subd. 5.  MS 1945 Repealed, 1947 c 556 s 3 

    Subd. 5.  MS 1978 Repealed, 1979 c 303 art 3 s 41 

    Subd. 6.  Repealed, 1947 c 556 s 3 

    Subd. 7.  Repealed, 1947 c 556 s 3 

    291.20 Subdivision 1. Repealed, 1Sp1985 c 14 art 
 13 s 14 

    Subd. 2. Repealed, 1Sp1985 c 14 art 13 s 14 

    Subd. 3. Repealed, 1979 c 303 art 3 s 41; 1Sp1985 
 c 14 art 13 s 14 

    Subd. 4. Repealed, 1980 c 439 s 35; 1Sp1985 c 14 
 art 13 s 14 

     291.21 Letters of administration.  

    Subdivision 1.  The commissioner shall have the same rights 
 to apply for letters of administration as are conferred upon 
 creditors by law.  

    Subd. 2. Repealed, 1979 c 303 art 3 s 41 

    HIST: (2304) 1905 c 288 s 13; 1911 c 209 s 3; 1939 c 338 s 7; 
 1939 c 431 art 6 s 6; 1943 c 504 s 9; 1943 c 593 s 4; 1963 c 740 
 s 10 

     291.215 Valuation of estate; reporting. 

    Subdivision 1.  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.  Values for purposes of the estate 
 tax on both probate and nonprobate assets shall be the same as 
 those finally determined for purposes of the federal estate tax 
 on a decedent's estate. 

    Subd. 2. Repealed, 1990 c 480 art 1 s 45 

    Subd. 3. Repealed, 1990 c 480 art 1 s 45 

    HIST: 1979 c 303 art 3 s 24; 1980 c 439 s 22; 1983 c 222 s 28; 
 1Sp1985 c 14 art 13 s 11; 1986 c 444 

  291.22 Repealed, 1979 c 303 art 3 s 41 

  291.23 Repealed, 1979 c 303 art 3 s 41 

  291.24 Repealed, 1979 c 303 art 3 s 41 

  291.25 Repealed, 1979 c 303 art 3 s 41 

  291.26 Repealed, 1979 c 303 art 3 s 41 

     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. 

    HIST: (2311) 1905 c 288 s 20; 1913 c 574 s 3; 1939 c 338 s 10; 
 1939 c 431 art 6 s 6; 1947 c 519 s 1; 1963 c 740 s 15; 1979 c 
 303 art 3 s 25; 1986 c 444 

    291.29 Subdivision 1. Repealed, 1979 c 303 art 3 s 
 41 

    Subd. 2. Repealed, 1979 c 303 art 3 s 41 

    Subd. 3. Repealed, 1979 c 303 art 3 s 41 

    Subd. 4. Repealed, 1979 c 303 art 3 s 41 

    Subd. 5. Repealed, 1Sp1985 c 14 art 13 s 14 

  291.30 Repealed, 1979 c 303 art 3 s 41 

    291.31 Subdivision 1. Repealed, 1990 c 480 art 1 s 
 45 

    Subd. 2. Repealed, 1990 c 480 art 2 s 18 

  291.32 Repealed, 1990 c 480 art 1 s 45 

  291.33 Repealed, 1Sp1981 c 1 art 3 s 4 

  291.34 Repealed, 1979 c 303 art 3 s 41 

  291.35 Repealed, 1979 c 303 art 3 s 41 

  291.36 Repealed, 1979 c 303 art 3 s 41 

  291.37 Repealed, 1979 c 303 art 3 s 41 

  291.38 Repealed, 1979 c 303 art 3 s 41 

  291.39 Repealed, 1979 c 303 art 3 s 41 

  291.40 Repealed, 1979 c 303 art 3 s 41 

     291.41 Definitions.  

    Subdivision 1.  For the purposes of sections 291.41 to 
 291.47 the terms defined in this section shall have the meanings 
 ascribed to them.  

    Subd. 2.  "Executor" means an executor of the will or 
 administrator of the estate of the decedent, but does not 
 include an ancillary administrator.  

    Subd. 3.  "Taxing official" means the commissioner of 
 revenue of this state and the officer or body designated as such 
 in the statute of a reciprocal state substantially similar to 
 sections 291.41 to 291.47.  

    Subd. 4.  "Death tax" means any tax levied by a state on 
 account of the transfer or shifting of economic benefits in 
 property at death, or in contemplation thereof, or intended to 
 take effect in possession or enjoyment at or after death, 
 whether denominated an "inheritance tax," "transfer tax," 
 "succession tax," "estate tax," "death duty," "death dues," or 
 otherwise.  

    Subd. 5.  "Interested person" means any person who may be 
 entitled to receive, or who has received any property or 
 interest which may be required to be considered in computing the 
 death tax of any state involved.  

    HIST: 1951 c 247 s 1; 1973 c 582 s 3 

     291.42 Election to invoke. 

    In any case in which this state and one or more other 
 states each claims that it was the domicile of a decedent at the 
 time of death, at any time prior to the commencement of legal 
 action for determination of domicile within this state or within 
 60 days thereafter, any executor, or the taxing official of any 
 such state, may elect to invoke the provisions of sections 
 291.41 to 291.47.  Such executor or taxing official shall send a 
 notice of such election by certified mail, receipt requested, to 
 the taxing official of each such state and to each executor, 
 ancillary administrator, and interested person.  Within 40 days 
 after the receipt of such notice of election any executor may 
 reject such election by sending a notice, by certified mail, 
 receipt requested, to the taxing officials involved and to all 
 other executors and to all interested parties.  When an election 
 has been rejected no further proceedings shall be had under 
 sections 291.41 to 291.47.  If such election is not rejected 
 within the 40-day period, the dispute as to death taxes shall be 
 determined solely in accordance with the provisions of sections 
 291.41 to 291.47.  No other proceedings to determine or assess 
 such death taxes shall thereafter be instituted in any court of 
 this state or otherwise. 

    HIST: 1951 c 247 s 2; 1978 c 674 s 60; 1986 c 444 

     291.43 Agreements as to death tax.  

    In any case in which an election is made and not rejected 
 the commissioner of revenue of this state may enter into a 
 written agreement with the other taxing officials involved and 
 with the executors to accept a certain sum in full payment of 
 any death taxes, together with interest and penalties, that may 
 be due this state, provided this agreement fixes the amount to 
 be paid the other states involved in the dispute.  

    HIST: 1951 c 247 s 3; 1973 c 582 s 3 

     291.44 Determination of domicile.  

    If in any such case it appears that an agreement cannot be 
 reached, as provided in section 291.43, or if one year shall 
 have elapsed from the date of the election without such an 
 agreement having been reached, the domicile of the decedent at 
 the time of death shall be determined solely for death tax 
 purposes as follows: 

    (1) Where only this state and one other state are involved, 
 the commissioner of revenue and the taxing official of the other 
 state shall each appoint a member of a board of arbitration, and 
 these members shall appoint the third member of the board.  If 
 this state and more than one other state are involved, the 
 taxing officials thereof shall agree upon the authorities 
 charged with the duty of administering death tax laws in three 
 states not involved in the dispute and each of these authorities 
 shall appoint a member of the board of arbitration.  The board 
 shall select one of its members as chair.  

    (2) Such board shall hold hearing at such places as are 
 deemed necessary, upon reasonable notice to the executors, 
 ancillary administrators, all other interested persons, and to 
 the taxing officials of the states involved, all of whom are 
 entitled to be heard.  

    (3) Such board may administer oaths, take testimony, 
 subpoena witnesses and require their attendance, require the 
 production of books, papers, and documents, issue commissions to 
 take testimony.  Subpoenas may be issued by any member of the 
 board.  Failure to obey a subpoena may be punished by any court 
 of record in the same manner as if the subpoena had been issued 
 by such court.  

    (4) Whenever practicable such board shall apply the rules 
 of evidence then prevailing in the federal courts under the 
 federal rules of civil procedure.  

    (5) Such board shall determine the domicile of the decedent 
 at the time of death.  This determination is final and 
 conclusive and binds this state, and all of its judicial and 
 administrative officials on all questions concerning the 
 domicile of the decedent for death tax purpose.  

    (6) The reasonable compensation and expenses of the members 
 of the board and its employees shall be agreed upon among such 
 members, the taxing officials involved, and the executors.  If 
 an agreement cannot be reached, such compensation and expenses 
 shall be determined by such taxing officials; and, if they 
 cannot agree, by the appropriate court having probate 
 jurisdiction of the state determined to be the domicile.  Such 
 amount shall be borne by the estate and shall be deemed an 
 administration expense.  

    (7) The determination of such board and the record of its 
 proceeding shall be filed with the authority having jurisdiction 
 to assess the death tax in the state determined to be the 
 domicile of the decedent and with the authorities which would 
 have had jurisdiction to assess the death tax in each of the 
 other states involved if the decedent had been found to be 
 domiciled therein.  

    HIST: 1951 c 247 s 4; 1973 c 582 s 3; 1986 c 444; 1995 c 189 s 
 8; 1996 c 277 s 1 

     291.45 Acceptance of agreed sum in full payment.  

    Notwithstanding the commencement of a legal action for 
 determination of domicile within this state or the commencement 
 of an arbitration proceeding, as provided in section 291.44, the 
 commissioner of revenue of this state may in any case enter into 
 a written agreement with the other taxing officials involved and 
 with the executors to accept a certain sum in full payment of 
 any death tax, together with interest and penalties, that may be 
 due this state, provided this agreement fixes the amount to be 
 paid the other states involved in the dispute, at any time 
 before such proceeding is concluded.  Upon the filing of this 
 agreement with the authority which would have jurisdiction to 
 assess the death tax of this state, if the decedent died 
 domiciled in this state, an assessment shall be made as provided 
 in such agreement, and this assessment finally and conclusively 
 fixes the amount of death tax due this state.  If the aggregate 
 amount payable under such agreement or under an agreement made 
 in accordance with the provisions of section 291.43 to the 
 states involved is less than the minimum credit allowable to the 
 estate against the United States estate tax imposed with respect 
 thereto, the executor forthwith shall also pay to the 
 commissioner of revenue of this state the same percentage of the 
 difference between such aggregate amount of such credit as the 
 amount payable to such commissioner under such agreement bears 
 to such aggregate amount.  

    HIST: 1951 c 247 s 5; 1973 c 582 s 3 

     291.46 Penalties, interest; limitation.  

    When in any case the board of arbitration determines that a 
 decedent died domiciled in this state, the total amount of 
 interest and penalties for nonpayment of the tax, between the 
 date of the election and the final determination of the board, 
 shall not exceed ten percent of the amount of the taxes per 
 annum.  

    HIST: 1951 c 247 s 6; 1975 c 377 s 26 

     291.47 Application.  

    Sections 291.41 to 291.47 apply only to cases in which each 
 of the states involved in the dispute has in effect therein a 
 law substantially similar to sections 291.41 to 291.47.  

    HIST: 1951 c 247 s 7 

  291.48 Repealed, 1989 c 184 art 1 s 20