4 New Estate Law Changes for Minnesota

Recent estate law changes in Minnesota have been significant. Because the estate planning process is going to be exclusive and personal to each and every person, it is difficult to gage whether some of these law changes impact some or many. Nonetheless, here is a very high level outline of a few changes to Minnesota’s estate planning rules and laws.

One change was Minnesota’s adoption of the Revised Uniform Fiduciary Access to Digital Assets Act or “RUFADAA“. This law allows individuals to designate a fiduciary to manage their digital assets, including social media accounts, online banking, and email. Prior to this law, there was no clear legal framework for managing digital assets after a person’s death, which could lead to disputes among heirs and make it difficult to access important information.

Another change or new Minnesota estate planning law was the adoption of the Revised Uniform Trust Code (UTC). This law provides a standardized framework for creating and managing trusts, making it easier for individuals to create and administer these estate planning tools. The law includes provisions for creating a trust without a written document, allowing for greater flexibility in trust creation and management.

In addition, Minnesota has had estate law changes to their tax exemption. As of 2021, the state’s estate tax exemption is $3 million per person, up from $2.7 million in 2020. This means that individuals can pass on up to $3 million in assets without incurring state-level estate taxes. However, it’s important to note that the federal estate tax exemption is much higher, currently at $11.7 million per person, and may still impact larger estates.

Further, Minnesota has also made changes to its laws governing transfer-on-death deeds (TODDs). TODDs allow individuals to transfer real estate to designated beneficiaries without the need for probate. Minnesota has simplified the process for creating and revoking TODDs, making it easier for individuals to use this tool as part of their estate planning strategy.

Again, Minnesota’s estate law changes have been significant in recent years. Although some suggest this offers more flexibility, in reality, we have more regulation requiring our attention.

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Estate Attorney Jasper Berg