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Inheritance Tax Frequently Asked Questions

Inheritance Tax Frequently Asked Questions

Q.  Is there still an Inheritance Tax?

A.  Yes, the Inheritance Tax is still in effect, but only for those individuals who inherited from a person who 
      died on or before September 30, 1993.
 

Q.  What is an Inheritance Tax?

A.  An inheritance tax is a tax on the right to receive property by inheritance.
 

Q.  What is an "After Discovered Asset"?

A.  An After Discovered Asset normally occurs when an estate has been closed and an asset has been
     discovered that was not included in the original estate.
 

Q.  I have just re-opened an estate at the probate court due to an After Discovered Asset. I now need a
     determination of inheritance tax in order to close the estate. What do I need to do?

A.  Send Treasury a letter within 90 days of discovering the asset. Include the date of discovery, type of asset
      (s), date of death value, if an asset is real estate, we require a statement from the local community
      indicating the SEV as close to date of death as possible along with a detailed list of expenses incurred in
      reopening the estate. Also include copies of:

  1. The original petition to commence proceedings.
  2. Original and amended inventories.
  3. The decedent’s will and/or trust agreement.
  4. A copy of the final inheritance tax order.


Q.  I have opened a probate estate for the first time where an asset has been discovered and now I
      need a determination of tax in order to close the estate. What do I need to do?

A.  Send Treasury a letter within 90 days of discovering the asset. Include the date of discovery, type of asset
      (s), date of death value, if an asset is real estate, we require a statement from the local community
      indicating the SEV as close to date of death as possible along with a detailed list of expenses incurred in 
      opening the estate. Also attach copies of:

  1. The petition to commence proceedings.
  2. Probate inventory.
  3. The decedent's will and/or trust agreement.


Q.  I am the trustee of a decedent’s trust agreement in which some of the inheritance tax may have
      been deferred until the passing of the life estate beneficiary. That beneficiary has now passed
      away and final distributions of assets need to be made and a determination of any tax due made.
      What do I do next?

A.  Send Treasury a letter within 90 days of the passing of the life beneficiary. Include the date of death for
      life beneficiary and a breakdown of the remaining beneficiaries along with their relationship to the original
      decedent. Also attach copies of:

  1. The life beneficiaries’ death certificate.
  2. he decedent's will and/or trust agreement.
  3. A copy of all inheritance tax orders on file with the Probate Court.


Q.  Where do I mail the information related to Michigan Inheritance Tax?

A.  Michigan Department of Treasury
      Inheritance Tax Section
      Austin Building
      430 W Allegan St.
      Lansing, MI 48922
 

Q.  Is there a contact phone number I can call?

A.  (517) 636-4419