What You Need to Know About Michigan Inheritance Laws
When a person dies in Michigan, the assets and property associated with the person can be subject to various inheritance laws and taxes. Here’s everything you need to know about Michigan Inheritance Laws.
Michigan does not have an inheritance tax or estate tax on a decedent’s assets. The state repealed those taxes in 2019, and so it leaves families or survivors of individuals without those additional payments to be made. Estate taxes are generally taken straight from a deceased person’s estate, while inheritance tax is imposed on the heirs after receiving their inheritance. Seventeen states in the U.S. have an inheritance or estate tax.
Dying Without a Will in Michigan
If you die in Michigan with a valid will and last testament in Michigan, then property and assets will be distributed according to that will. To be valid, you must be at least 18 years old at the time of signing, of sound mind, and have signed the document with at least two witness signatures. It must also name a beneficiary.
If an estate in Michigan is less than $25,000 in value, it does not need to go through probate. If an estate is larger than $25,000, it will need to go through probate. Michigan follows the Union Probate Code. This can take about a year to finalize.
Related: Michigan Probate Forms
If you die without a will in Michigan, your estate is subject to state inheritance laws (known as “intestate succession laws.”) The only items excluded from this would be assets in a living trust, life insurance policies, and retirement funds, and property owned jointly. This means all other assets will need to go through probate.
Spousal Inheritance Laws in Michigan
If a will or trust exists for the deceased, then assets and property can be left in whatever way the person saw fit. There are no rules that require a spouse or other family members to receive assets from an estate.
Spouses do not automatically receive their late spouse’s estate without a will in Michigan. If you die with no parents or descendants, then the spouse receives 100% of the estate.
If you die without a will and have a spouse and parent(s) surviving, the court divides the estate with the spouse receiving the first $150,000 of the estate and 75% of the remaining balance. The parents would then receive the remainder of the estate.
If you die without a will and have a spouse and children, the spouse will receive $150,000 of the estate and then 50% of the remaining amount. The children with that spouse would receive the other 50%.
If you are unmarried without children, and your estate is intestate, then 100% of the estate will go to the deceased’s parents.
Related: How to Avoid Probate in Michigan
Sibling Inheritance Laws in Michigan
If a person dies in Michigan, and there is no will and no spouse, children, or parents surviving, then the estate is divided equally among any siblings of the deceased.
Inheritance Rights of Children in Michigan
If you die without a will in Michigan, all of your children have rights to some of your estate, but how much will depend on if you have a spouse, other children, or children from other relationships. However, a will can outline the distribution of assets and property in any way the deceased saw fit, which can include leaving nothing to surviving children or relatives.
For any child to have a claim on the estate of someone deceased, that child must be legally recognized by the state either through birth during the marriage, proof of paternity outside of marriage, or by legal adoption papers. A biological child born after a person’s death must be alive for at least 120 hours after birth to have any claim on an estate.
Without a will, the deceased’s estate goes to the surviving children after $150,000 plus 50% goes to the spouse. The remaining divides between surviving children.
If you die with children with your surviving spouse, as well as children from another relationship, then the spouse receives $100,000 from the estate plus 50% of the balance, and the children divide what is left
If there is no surviving spouse, then the child(ren) in an intestate estate would receive 100% of the assets. And, if there is a deceased child, their share would go to a grandchild (their child) if applicable.
Contact Us
If you or a loved one would like to learn more about Michigan Inheritance Laws, get your free consultation with one of our most qualified attorneys in Michigan today!