---
url: 'https://www.fmjlaw.com/changes-to-estate-tax-exemption-amounts/'
title: Changes to Estate Tax Exemption Amounts
author:
  name: Heather Morrison
  url: 'https://www.fmjlaw.com/author/hmorrison/'
date: '2016-01-12T19:59:43+00:00'
modified: '2025-09-30T18:19:02+00:00'
type: post
categories:
  - 'Trusts & Estates Blog'
published: true
---

# Changes to Estate Tax Exemption Amounts

Below is a summary of the Minnesota estate tax exemption and federal estate and gift exemption amounts for 2016. Please let us know if you have questions regarding the status of the laws.

**Minnesota Estate Tax Exemption  
**As of January 1, 2016, the Minnesota estate tax exemption amount has increased to $1.6 million, up from $1.4 million in 2015. This state estate tax exemption will increase to $1.8 million in 2017 and then $2 million in 2018. The Minnesota estate tax rate ranges from 10-16% for deaths occurring in 2016. Minnesota is one of only 15 states that has a state estate tax.

**Federal Estate Tax Exemption  
**The 2016 federal estate tax exemption amount is $5.45 million, up from $5.43 million in 2015. This means that utilizing both exemptions, a married couple can pass $10.9 million to their beneficiaries without paying any federal estate tax. The federal estate tax rate is currently 40%.

This federal exemption amount of $5.45 million is quite high, and we at FMJ anticipate that sometime in the next few years, the exemption amount will decrease.

**Annual Exclusion for Gifts  
**The annual exclusion amount for gifts has stayed at $14,000. This means that individuals can gift up to $14,000 to any person without incurring a gift tax or having to make any required filing.  For married couples, this means that they could gift $28,000 to each child without having to file any gift tax return.

Please give [David Ness](https://www.fmjlaw.com/professional/david-m-ness/) a call at 952.995.9500 if you have any questions or if you would like to discuss.

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