If you are setting up an estate plan, you likely have various concerns with respect to what happens to your property and assets after your death. Many people pass down valuable assets and items with sentimental value to their loved ones. However, aside from figuring out how to divide property among beneficiaries, there are other issues to explore, such as estate taxes.
Aside from the possibility of a federal estate tax return, depending on the value of your estate, you may also have questions about inheritance tax.
Does Michigan have inheritance tax?
According to the Michigan Department of Treasury, if a beneficiary inherits assets from a loved one who died after 1993, they do not need to pay inheritance tax to the state of Michigan. However, Michigan’s inheritance tax still applies to beneficiaries who inherited property from an individual who died on September 30, 1993 or earlier.
Inheritance, beneficiaries and other financial concerns
Aside from taxes, there are many other factors people need to take into consideration when it comes to passing down their property to beneficiaries. For example, you could have to think about the age of your beneficiaries. In some instances, people decide to have a trustee oversee assets. If you have a loved one with special needs, your assets could affect their eligibility for crucial benefits, in which case you may want to explore special needs trusts.
When it comes to estate planning, dividing property among beneficiaries properly is crucial. Make sure you plan ahead carefully and take steps to ensure that your estate moves forward in accordance with your wishes.