Estate Frequently Asked Questions
Q: Does North Dakota have a Gift Tax?
A: No. North Dakota does not have a gift tax.
Q: Does North Dakota have an Inheritance Tax?
No. North Dakota does not have an inheritance tax levied against individual heirs. The inheritance tax was repealed in 1927 and replaced with an estate tax.
Q: Does North Dakota have an estate tax?
Yes. North Dakota has an estate tax statute; however, no estate taxes are paid to North Dakota due to the Federal Congressional Budget Act Sunset Law under the provisions of the Economic Growth and Relief Act of 2001 for deaths occurring on or after January 1, 2005.
Q: Is a North Dakota Estate Tax Return required?
A North Dakota estate tax return (Form 54-91) is required for all estates of decedent's whose total gross estate meets the Federal estate tax return filing requirement.
Q: What other documents must be filed with the North Dakota Estate Tax Return?
- A copy of the Federal estate tax return (Form 706).
- A situs affidavit (Form 54.29) must be filed if there is a tax due in North Dakota.
- A copy of the decedent's Will if there is one.
- A copy of the farm real estate appraisal, if any.
- A Supplemental Agricultural Property Information Form (Form 131-3) covering any farm or ranch land.
Q: When is the North Dakota Estate Tax Return due?
North Dakota estate tax returns and tax payments are due no later than 15 months of the date of the decedent's death.
Q: When does interest apply and can it be waived?
Interest of 1% per month applies to all estate taxes not paid within 15 months of the decedent's death. The tax commissioner has the authority to waive interest, for reasonable cause, on estates of decedent's whose date of death is after June 30, 1986.
Q: What form is used to file an Amended North Dakota Estate Tax Return?
Form 54-91 may be used. The filer is requested to note on the form that it is an "amended" return. If the amended return changes the tax liability, an amended situs affidavit (Form 54.29) must be provided with the amended tax return. A copy of the amended Federal estate tax return must also be included.
Q: Is a Release of Lien required when the decedent's total gross estate is under the Federal estate tax filing requirements?
A release of lien no longer applies to the estate of decedent's whose date of death is after December 31, 1990. There is no estate tax filing requirement of any kind for estates of decedent's whose estates are under the Federal estate tax filing minimum.
Q: Do financial institutions and insurance companies need to file a 'Notice of Transfer' of a decedent's assets with the tax commissioner?
Notices of the transfer of a decedent's assets are not required if the decedent's death is after July 31, 1997.
Q: Are safety deposit box inventories required?
For estate tax purposes, an inventory of a decedent's safety deposit box is not required if the decedent's death is after July 31, 1997.