Estate Tax in Minnesota; What does the future hold?

In Minnesota, estates are taxable at the state level AND at the federal level.  Presently, an individual who dies owning more than $1,000,000 (inclusive of life insurance, business interests, retirement assets, real estate and more) will be taxed on the first dollar over $1,000,000 by the state of Minnesota.  The federal government also taxes the estate of a deceased person.  In 2009, an individual can pass away owning up to $3,500,000 without being taxed.  The law is presently structured to ELIMINATE estate tax in 2010, and revert back to $1,000,000 in 2001.  However, during President Obama’s campaign, the President revealed his plan to keep estate tax thresholds at $3,500,000 as they are this year.  This means that the first dollar over $3,500,000 is taxed.  The tax rate that would apply could be around 45%.  For example: John passes away owning $4,200,000 when all his assets are added up.  The federal government would tax him 45% on the amount over $3,500,000; $700,000.00.  Taxation at that rate would result in a tax payable of $315,000.00.  While the state of Minnesota taxes sooner, it is much smaller percentage of the estate ranging from 5-16% depending on the amount over $1,000,000.  Republicans have been pushing to have the federal estate tax eliminated completely which Democrats claim would result in a loss of $500 billion to the federal government.   
Regardless of what happens in the next several months regarding the efforts to eliminate or freeze the current federal estate tax, tax planning strategies can avoid or minimize the tax liability.  If a person is the lucky owner of $1,000,000 or more in assets that person may want to consider such strategies as irrevocable trusts, irrevocable life insurance trusts, charitable bequests, gifting or even setting up 529 education accounts.  All of these will have the affect or reducing the amount included in your estate.