Firm Newsletter | Summer 2017 The recent Minnesota legislative session ended with new laws that benefit persons who die as residents of Minnesota or with property subject to Minnesota estate tax. Residency Determination. The Minnesota Department of Revenue and the courts have a list of factors that they consider in determining where a person resides for tax purposes. They include the number of days spent in Minnesota in a year, where one owns or leases a home, where one votes, etc. These factors used to include such things as where the person’s advisors were located and the location of charities to which the person donates. These last factors came under significant criticism as one may have lived and worked in Minnesota their entire life, been well established with their advisors, donated to favorite Minnesota charities, and then moved to a southern state in retirement to get away from Minnesota winters. In moving to a warmer climate, the person had no intention of changing his or her trusted advisors or to discontinue donating to favorite Minnesota charities. Effective on January 1, 2017, Minnesota law was changed to provide that in determining residency the Minnesota Department of Revenue and the courts can no longer consider: 1. Location of the person’s attorney, certified public accountant, or financial advisor. 2. The financial institution where the person maintains accounts or applies for credit. 3. Charitable contributions made within or without the State of Minnesota. Minnesota Estate Tax Exemption. Minnesota has increased the estate tax exemption available to persons dying either as a resident of Minnesota or with property subject to Minnesota estate tax. Effective for persons dying in 2017, the exemption has increased by $300,000 to $2.1 million, and will increase by $300,000 per year to $2.4 million in 2018, $2.7 million in 2019, and Minnesota Estate Tax Relief - Continued on Page 5 Minnesota Estate Tax Relief By Nancy M. Kiskis | 612-877-5385 | [email protected] MN Estate Tax Exemption (Millions US$) 2017 2018 2019 2020 1.0 0.0 2.0 3.0 $2.1 $2.4 $2.7 $3.0 Page 1: Minnesota Estate Tax Relief Page 2: Two New Attorneys Have Joined Our Team: Shannon Heim and Jodi Johnson Moss & Barnett Remembers Scott Herzog Page 3: Uncertainty for Financial Institutions in the State-Legalized Marijuana Industry Page 4: Consumer Attorneys Target Filers of Mechanics Liens: How to Avoid Getting Sued Page 7: Moss & Barnett Congratulates its Super Lawyers and Rising Stars! Page 8: Moss & Barnett Launches “M&B Cares” IN THIS ISSUE: Minnesota Estate Tax Relief by Nancy M. Kiskis Page 1 Minnesota has increased the estate tax exemption available to persons dying either as a resident of Minnesota or with property subject to Minnesota estate tax. Effective for persons dying in 2017, the exemption has increased by $300,000 to $2.1 million, and will increase by $300,000 per year to $2.4 million in 2018. Page 3 Consumer Attorneys Target Filers of Mechanics Liens: How to Avoid Getting Sued Page 4 by Sarah E. Doerr The Minnesota Court of Appeals recently issued an opinion of interest to the construction and trade industries, and to all parties who serve mechanic’s lien statements on consumers. Uncertainty for Financial Institutions in the State-Legalized Marijuana Industry by Margaret H. Garborg The banking industry has been reluctant to enter the market due to the risk of prosecution under federal d r u g a n d a n t i - m o n e y laundering statutes.