Blog | Ward & Oehler, Ltd.

Jan 1, 2019
3 min

Estate and Gift Tax Update for 2019

With a new year come new estate tax exemption rates. Although estate and gift taxes are sometimes thought of as taxes that do not change that much, that has definitely not been the case in recent memory. In fact, there have been fairly significant changes to either Minnesota or federal estate and gift tax exemptions, rates, and deductions every year for the past several years. We are not expecting any major changes in 2019, but that remains to be seen. What we do have with 20

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Proposed IRS Regulations Address "Clawback" for Estate and Gift Tax Exclusion

Jason Wagner

Nov 28, 2018
3 min

Proposed IRS Regulations Address "Clawback" for Estate and Gift Tax Exclusion

The IRS recently released proposed regulations that address issues with the new estate and gift tax exclusions that were increased as part of the Tax Cuts and Jobs Act enacted last year. Under the new tax law, the estate and gift tax exclusion amount was temporarily doubled from its previous level, which raises questions about what will happen later if Congress does not act in the meantime to extend the increased exemption amounts or make them permanent. Prior to the 2018 tax

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The Changing Face of Traditional Legal Services: eWills or the Last Will & Testament?

The Time to Start Thinking About Farm Succession Planning is Now

Jason Wagner

May 31, 2018
3 min

The Time to Start Thinking About Farm Succession Planning is Now

Among the unique set of problems farmers encounter, estate and succession planning is often the most challenging. Determining when and how to transfer the farm is a long and not always straightforward process. This can include identifying the farm successor, making decisions about the growth of the farm, venturing into other agribusinesses, and articulating a vision for the future. While these tasks can seem daunting, having a plan in place is crucial to protecting the farm h

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Don’t Forget Fido: Estate Planning with Pets

Alyssa K. Jerde

Mar 23, 2018
3 min

Don’t Forget Fido: Estate Planning with Pets

When we sit down to discuss someone’s estate planning, the questions we ask are quite simple: What do you have? Where do you want it to go? Who do you want to manage your affairs after you’ve passed away? As part of these discussions, we often talk about: Assets – What assets comprise your estate and what are these assets worth? Is there real estate or a business involved? Are there estate tax concerns? Children and other family members – Do you have minor children? Do you ha

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Tax Reform and Your Estate Plan: What to Watch For

Jason Wagner

Dec 7, 2017
5 min

Tax Reform and Your Estate Plan: What to Watch For

While Congress has not yet sent a tax bill to the President's desk, both the House and Senate have passed their own versions of a sweeping tax reform bill that has implications for many estates. This article explores the changes to the federal estate tax, gift tax, capitals gains tax, and steps you should take to review your estate plan. Estate Tax Repeal - Maybe The tax bills passed by the House and Senate immediately doubles the federal estate tax exemption. With adjustment

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New MN Estate Tax Relief Retroactive to January 1, 2017 - or is it?

Jason Wagner

Feb 13, 2017
2 min

Estate and Gift Tax Update for 2017

On January 1, 2017, both the Minnesota and federal estate tax exemptions were updated for decedents dying in 2017. The federal estate and gift tax exemption is $5.49 million per individual (up from $5.45 million in 2016). The Minnesota estate tax exemption is $1.8 million per individual. Minnesota has no gift tax (though gifts made within three years of death can be included in the gross estate). While the federal estate tax is pegged to inflation, the Minnesota estate tax ex

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Requirements for a Valid Will in Minnesota

Jason Wagner

Dec 8, 2016
2 min

Requirements for a Valid Will in Minnesota

One question clients ask occasionally is: what are the requirements for a will to be valid in Minnesota? There are a couple basic requirements for the document itself to be considered a valid last will and testament. Most obvious, the person making the will must sign the document of his own free will and be of sound mind. Second, the signing of the will must be witnessed by two competent individuals at least age 18. That's all that is required for the document to be a valid l

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Bill Oehler

Nov 21, 2016
3 min

The Uncertain Future of the Estate Tax

No More Estate Tax? No More “Stepped Up” Tax Basis? Now that the dust has settled on the grueling and seemingly endless election cycle, voters’ minds turn to policy and wonder what (if anything) will come of the promises made by the candidates: Now What Happens? For decades, the Republican Party has railed against the so-called “death tax”, calling for complete repeal of the federal estate tax. The policy arguments in favor of repeal range from “job creation” to “I’ve alread

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Checking on Your Estate Plan: Reasons to Update Your Documents

Jason Wagner

Nov 3, 2016
2 min

Checking on Your Estate Plan: Reasons to Update Your Documents

Getting your estate plan in place can feel like a major accomplishment (and it is!), but it is not the end of the story. Estate planning itself is the process of guiding the way in which assets pass to your loved ones after your death and ensuring your wishes are followed. Checking in and reviewing your estate planning documents regularly and when certain life events occur is part of this ongoing process. While the estate plans we prepare for our clients are intended to be lo

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Jason Wagner

Sep 30, 2016
2 min

Definition: Death Taxes

"Death Taxes" Defined. The term "death taxes" refers to taxes that are imposed by the federal and some state governments (Minnesota included) on someone's estate upon their death. For federal and Minnesota purposes, the term refers only to estate taxes. Some states also have an inheritance tax which is different from the estate tax. Whereas the estate tax is levied based on the size of a person's estate, an inheritance tax is imposed on the assets a particular beneficiary inh

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Proposed Treasury Regulation Could Eliminate Valuation Discounts for Family Limited Partnerships

Jason Wagner

Sep 30, 2016
1 min

Proposed Treasury Regulation Could Eliminate Valuation Discounts for Family Limited Partnerships

On August 2, 2016, the IRS and the U.S. Treasury Department issued proposed regulations under Section 2704 of the Internal Revenue Code that would have the effect of eliminating or scaling back many valuation discounts for family-controlled entities for estate, gift, and generation-skipping transfer tax purposes. Section 2704 of the IRC was enacted as part of the special valuation rules to close perceived loopholes in how families transfer wealth. The new rules would apply to

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5 Things I Learned at the Probate & Trust Law Conference.

William Oehler

Jun 17, 2016
2 min

5 Things I Learned at the Probate & Trust Law Conference.

Attorney Bill Oehler recently attended the annual Probate & Trust Law conference in June 2016. In this blog post, Bill shares five things he learned while attending the conference with 900+ attorneys and professionals. 1. Federal estate tax is here to stay (for now). While the politicos decry the “death tax”, there is little momentum to eliminate (or reduce) the estate tax. The feds are discussing valuation discount planning, grantor retained interest trusts, and other “e

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Jason Wagner

May 23, 2016
4 min

Opinion: Tax bill injects uncertainty into planning for farmers

As part of the omnibus tax bill, HF 848, passed by the Minnesota legislature over the weekend, the legislature has directed the commissioner of revenue to review the estate tax’s definition of qualified farm property and its linkage to the property tax classification of the property during the three-year period following the death of the decedent. The commissioner is to issue a report to the legislature by February 1, 2017. Specifically, the commissioner is to report on “alte

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Prince's Estate and Intestate Succession: Lessons for the rest of us.

Jason Wagner

Apr 26, 2016
3 min

Prince's Estate and Intestate Succession: Lessons for the rest of us.

Everybody has an estate plan, or so the saying goes. What does that mean? It means that if you have not taken the time to prepare a will or trust, the laws of intestacy will dictate how your assets should be distributed upon your death. The recent news about Prince's unexpected death and his estate demonstrates how the laws of intestate succession work. According to his sister, Prince had no will. See the Star Tribune article: here. In Prince's case, any assets that are subje

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Probate Shortcut: Affidavit of Collection

Jason Wagner

Mar 14, 2016
1 min

Probate Shortcut: Affidavit of Collection

Minnesota does offer a probate shortcut for some estates. As a reminder, probate is required after the death of a loved one where property passes according to the terms of a will (or not if the person did not have a will) (see this recent post). Any assets that pass by joint ownership, beneficiary designation, or trust are not considered probate assets. For many estates, this would take most assets out of the equation and leave just a few stray accounts for probate. In this s

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Jason Wagner

Dec 31, 2015
2 min

Estate and Gift Tax Update for 2016

It’s a new year and a new... exemption limit? Yes, both the Minnesota and federal estate tax exemptions are increased for decedents dying in 2016. The federal estate and gift tax exemption is $5.45 million per individual (up from $5.43 million in 2015). The Minnesota estate tax exemption is $1.6 million per individual. Minnesota has no gift tax (though gifts made within three years of death can be included in the gross estate). While the federal estate tax is pegged to inflat

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Minnesota Farm Land Deduction Offers Estate Planning Opportunities for Farmers

Jason Wagner

Dec 11, 2015
3 min

Minnesota Farm Land Deduction Offers Estate Planning Opportunities for Farmers

Minnesota farmers have been seeing the value of their farmland increase significantly over the last few years. Though it has slowed recently, this increase often results in a gross estate that is more than the Minnesota estate tax exemption. For farmers dying in 2015, the Minnesota estate tax exemption is $1.4 million. This means that if the farmer owns property worth more than the exemption amount, his family could end up paying an estate tax. One very effective way for farm

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Estate and Gift Tax Update for 2019

Proposed IRS Regulations Address "Clawback" for Estate and Gift Tax Exclusion

The Changing Face of Traditional Legal Services: eWills or the Last Will & Testament?

The Time to Start Thinking About Farm Succession Planning is Now

Don’t Forget Fido: Estate Planning with Pets

Estate and Gift Tax Update for 2018

Tax Reform and Your Estate Plan: What to Watch For

New MN Estate Tax Relief Retroactive to January 1, 2017 - or is it?

Estate and Gift Tax Update for 2017

Requirements for a Valid Will in Minnesota

The Uncertain Future of the Estate Tax

Checking on Your Estate Plan: Reasons to Update Your Documents

Definition: Death Taxes

Proposed Treasury Regulation Could Eliminate Valuation Discounts for Family Limited Partnerships

5 Things I Learned at the Probate & Trust Law Conference.

Opinion: Tax bill injects uncertainty into planning for farmers

Prince's Estate and Intestate Succession: Lessons for the rest of us.

Probate Shortcut: Affidavit of Collection

Estate and Gift Tax Update for 2016

Minnesota Farm Land Deduction Offers Estate Planning Opportunities for Farmers