Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 881 - Modification of Default Apportionment of Estate Tax Burden
 
Author: Senator Ann H. Rest
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 16, 2015



 

This bill modifies the default apportionment rules applicable to estates that hold Qualified Terminable Interest Property (QTIP).  The purpose of a QTIP election is generally to grant the use of assets from an estate to a surviving spouse for life and prevent the surviving spouse from deciding the allocation of QTIP trust assets.  Once the surviving spouse dies, the QTIP trust assets revert to named beneficiaries. 

Under current law, the estate tax burden is proportional relative to the value of the estate between amounts that are part of the QTIP trust and those that are not.  A decedent may also direct a method of apportionment in a will that would supersede a default apportionment rule.  This bill would not change the ability of a decedent to direct an apportionment method, but would change the default rule, but requires that the estate tax burden is borne by beneficiaries with an interest in the QTIP trust.

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 03/16/2015
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn