I recently mentioned some issues to consider before transferring certain assets, primarily with regards to the MN estate and gift taxes. While we want you to be cautious before making any transfers, we do want to ensure individuals are aware that there are certain transfers that are excluded from being taxable gifts under Minnesota law.
Minnesota Statutes § 292.17, subdivision 3, contains the following exceptions:
- Gifts of real property located outside of the state of Minnesota;
- Gifts of tangible personal property that was normally held at a location outside of the state of Minnesota on the date the gift is made; and
- Gifts of intangible personal property made by an individual who is not a resident of the state of Minnesota at the time the gift was made.
These exceptions can be beneficial for Minnesota residents should they need to gift assets to strategically plan for the possibility of estate taxes. Additionally, they can be helpful to any individuals who might be moving to Minnesota and are concerned that they now have a taxable estate under Minnesota law.
You should contact an accountant or an attorney if you think you should take advantage of these exclusions.
