Minnesota Estate Planning Laws: Key Statutes and Recent Changes

Minnesota has a comprehensive body of estate planning law that differs from federal law and from many other states in important ways. From a state estate tax that applies to far smaller estates than the federal threshold, to recent trust law reforms that modernize how families can plan across generations, understanding these statutes is essential for anyone creating or updating an estate plan in Minnesota.

This page provides an overview of the key Minnesota estate planning laws, organized by topic, with references to specific statutes.

The Minnesota Uniform Probate Code (Chapter 524)

Minnesota adopted its version of the Uniform Probate Code under Minn. Stat. Ch. 524, which governs wills, intestate succession, probate administration, and trust law. This comprehensive code provides the legal framework for virtually every aspect of estate planning and estate administration in the state.

Key provisions include:

• Intestate succession (Minn. Stat. § 524.2-101 through § 524.2-114) — determines how property passes when someone dies without a valid will
• Requirements for valid wills (Minn. Stat. § 524.2-502) — establishes that a will must be in writing, signed by the testator, and signed by at least two witnesses
• Elective share protections (Minn. Stat. § 524.2-211) — ensures a surviving spouse can claim a statutory share of the estate regardless of what the will provides
• Probate administration procedures (Minn. Stat. § 524.3-301 through § 524.3-505) — outlines the process for informal, formal, and supervised probate proceedings

For a detailed walkthrough of the probate process, see the guide to probate in Minnesota.

Minnesota Estate Tax

One of the most significant ways Minnesota estate planning law differs from federal law involves the estate tax. Under Minn. Stat. Ch. 291, Minnesota imposes its own estate tax with a $3 million exemption — far lower than the $13.61 million federal exemption (2024 figure, adjusted annually for inflation).

Key Features of the Minnesota Estate Tax

• No portability — Unlike the federal estate tax, Minnesota does not allow a surviving spouse to use the deceased spouse’s unused exemption. This makes planning for married couples significantly more complex at the state level.
• Graduated rates — Minnesota estate tax rates range from approximately 13% to 16%, depending on the size of the estate.
• Broad inclusion — The taxable estate includes real property, financial accounts, business interests, life insurance proceeds (if the decedent owned the policy), retirement accounts, and other assets.
• Marital and charitable deductions — Minnesota allows deductions for assets passing to a surviving spouse or to qualified charitable organizations, similar to federal law.

Because of the large gap between the state and federal exemption amounts, many Minnesota families face state estate tax liability even though they owe nothing at the federal level. An experienced estate planning attorney can structure a plan to reduce or eliminate this exposure. For a detailed analysis of strategies and thresholds, see the guide to Minnesota estate tax.

2025 Trust Law Reforms

Minnesota enacted significant trust law changes effective in 2025 that modernize how trusts operate in the state. These reforms affect existing and future trusts alike.

500-Year Dynasty Trusts

Previously, Minnesota limited the duration of trusts under the rule against perpetuities. The 2025 changes allow trusts to last up to 500 years, enabling families to create multi-generational dynasty trusts that protect assets and manage wealth over an extended period. This brings Minnesota in line with several other states that have relaxed or eliminated perpetuity restrictions.

Uneconomical Trust Threshold ($150,000)

The new law establishes a $150,000 threshold for uneconomical trusts. When the value of trust assets falls below this amount, the trustee may have authority to terminate the trust and distribute the remaining assets to beneficiaries, avoiding the administrative costs that would otherwise consume a disproportionate share of trust principal. This provision is particularly helpful for older trusts that have been depleted over time.

Simplified Decanting

Trust decanting — the process of pouring assets from one trust into a new trust with modified terms — has been simplified under the 2025 reforms. Trustees now have clearer authority and more streamlined procedures to modify trust terms that may have become outdated or inefficient, without requiring court approval in many cases.

These changes have particular importance for revocable living trusts and irrevocable trusts created under prior law.

Electronic Wills (Effective August 2023)

Since August 1, 2023, Minnesota recognizes electronic wills under Minn. Stat. § 524.2-520. This means a will can be:

• Created and stored in electronic form
• Signed electronically by the testator
• Witnessed electronically, with witnesses present via audio-video communication technology

Electronic wills must meet the same substantive requirements as traditional paper wills — they must be signed by the testator and attested by at least two witnesses. The electronic format simply provides an alternative method of execution.

This change is particularly useful for individuals who are unable to meet with an attorney in person, those with mobility limitations, or families where quick execution is necessary. However, because electronic wills involve specific technical requirements, working with an attorney who understands the statutory framework is advisable to ensure the document is valid and enforceable.

For a comparison of wills and trusts as estate planning tools, see the guide to wills vs. trusts in Minnesota.

Transfer on Death Deeds

Minnesota is one of a growing number of states that authorize Transfer on Death Deeds (TODDs) under Minn. Stat. § 507.071. A TODD allows a property owner to name a beneficiary who will receive the real property automatically upon the owner’s death, without the need for probate.

Key characteristics of Minnesota TODDs:

• Revocable during the owner’s lifetime — The owner retains full control and can revoke or change the beneficiary at any time
• No transfer of ownership until death — The beneficiary has no interest in the property during the owner’s lifetime
• Must be recorded — The deed must be properly recorded in the county where the property is located before the owner’s death
• Subject to estate recovery — Minnesota Medical Assistance (Medicaid) can seek recovery against property transferred via TODD

Transfer on Death Deeds are a straightforward tool for avoiding probate on real property, but they have limitations and may not be appropriate in every situation. For a full discussion, see the guide to Transfer on Death Deeds in Minnesota.

Healthcare Directives

Under Minn. Stat. Ch. 145C, Minnesota law allows individuals to create a healthcare directive — a single document that combines a living will with the appointment of a healthcare agent. This statute governs:

• Living will provisions — Instructions about desired medical treatment if the individual is unable to communicate, including end-of-life care preferences
• Healthcare agent appointment — Designation of a trusted person to make healthcare decisions on the individual’s behalf
• Execution requirements — The directive must be signed by the principal and either notarized or witnessed by two individuals

Minnesota’s healthcare directive statute is notably flexible, allowing individuals to provide detailed instructions or broad authority to their healthcare agent. A properly executed healthcare directive is recognized by all Minnesota healthcare providers and institutions.

For more on healthcare directives as a component of estate planning, see the guide to healthcare directives in Minnesota.

Powers of Attorney

Minnesota’s statutory short form power of attorney is governed by Minn. Stat. Ch. 523. A power of attorney allows an individual (the principal) to grant another person (the agent or attorney-in-fact) authority to manage financial and legal affairs.

Types of Powers of Attorney

• General power of attorney — Broad authority over financial matters, but terminates upon the principal’s incapacity
• Durable power of attorney — Continues in effect even if the principal becomes incapacitated (most common for estate planning purposes)
• Limited or special power of attorney — Authority restricted to specific transactions or time periods

Under Minn. Stat. § 523.07, a power of attorney that includes the language “This power of attorney shall not be affected by disability of the principal” or similar language is considered durable. For estate planning purposes, durable powers of attorney are strongly preferred because they remain effective precisely when they are needed most — when the principal can no longer manage affairs independently.

For a detailed discussion, see the guide to power of attorney in Minnesota.

Additional Estate Planning Tools Under Minnesota Law

Payable-on-Death and Transfer-on-Death Accounts

Financial accounts can be designated with payable-on-death (POD) or transfer-on-death (TOD) beneficiaries, allowing them to pass directly to named beneficiaries outside of probate. These designations are governed by the Uniform TOD Security Registration Act and Minnesota banking regulations.

Small Estate Affidavit

For estates valued at $75,000 or less in non-real-property assets, Minnesota law allows heirs to use a small estate affidavit under Minn. Stat. § 524.3-1201 to collect assets without formal probate proceedings. This simplified process can save significant time and expense for qualifying estates.

Beneficiary Designations

Retirement accounts, life insurance policies, and certain other financial products pass according to their beneficiary designations rather than through a will or trust. Keeping these designations current is one of the most important — and frequently overlooked — aspects of estate planning.

Planning for Business Owners

Minnesota business owners face additional estate planning considerations, including business succession, buy-sell agreements, and the interaction between business entity structures and estate tax planning. The state’s relatively low estate tax exemption makes this planning particularly important for business owners whose company value pushes their total estate above $3 million. For more on this topic, see the guide to estate planning for business owners.

Family Cabin and Recreational Property

Minnesota’s tradition of family lake cabins and recreational property creates unique estate planning challenges. From managing shared ownership to minimizing estate tax impact, cabin planning requires careful consideration of trusts, LLCs, and family agreements. For specific strategies, see the guide to family cabin planning in Minnesota.

Specialized Planning Areas

Minnesota law provides specific tools and frameworks for a variety of estate planning situations:

• Blended families — QTIP trusts, elective share considerations, and coordinating beneficiary designations across families
• Agricultural estates — Green Acres program, farm LLCs, and succession planning for farming operations
• Special needs trusts — Supplemental needs trusts under Minn. Stat. § 501C.1205 that preserve government benefits
• Post-divorce planning — Automatic revocation rules under § 524.2-804 and what still needs manual updating
• Guardianship and conservatorship — Court-appointed decision-making under Ch. 524.5 and how proper planning can prevent it
• Inheritance laws — Intestate succession rules, spousal protections, and the homestead exemption
• Digital assets — Minnesota’s adoption of RUFADAA (Minn. Stat. § 521A) for fiduciary access to digital accounts
• High net worth planning — Advanced strategies for estates above the $3M Minnesota tax threshold
• Charitable trusts — CRTs, CLTs, and donor-advised funds for tax-efficient charitable giving
• Pet trusts — Trusts for animal care authorized under Minn. Stat. § 501C.0408

Staying Current with Minnesota Estate Planning Law

Estate planning law changes regularly at both the state and federal levels. The 2025 trust law reforms, 2023 electronic wills legislation, and ongoing adjustments to federal estate tax exemptions all demonstrate why periodic review of an existing estate plan is essential. See our guide on when to update your estate plan for specific triggers and a document-by-document review checklist.

Key events that should trigger a review include:

• Changes in marital status, family composition, or family relationships
• Significant changes in asset values or financial circumstances
• Purchase or sale of real property or business interests
• Changes in state or federal tax law
• Relocation to or from Minnesota
• Changes in the availability or willingness of named fiduciaries

An experienced Minnesota estate planning attorney can evaluate whether an existing plan still achieves its intended goals under current law, and recommend modifications where appropriate.

For answers to common questions about estate planning in Minnesota, see the estate planning FAQ. For an overview of the foundational concepts, see the guide on what is estate planning. Or use our estate planning checklist to assess where you stand.