• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

inheritance tax

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

V

Valor

Guest
We live in Michigan. I have a question about inheritance tax.
I received $5,000 from my Uncle when he passed away.
(I received it in March).

How much (if any) tax will I have to pay on this amount.
Some people have told me as high as 45%...others say
its a small amount and probably not subject to tax.

Can you tell me what the law says. Thanks.
 


L

loku

Guest
There is no federal or state income tax in amounts you inherit. There probably was no federal estate tax unless the estate was valued at over $675,000, and if there was, it would be paid by the estate, not by the heirs.

As for Michigan Inheritance Tax, I am sorry, I don’t know if it applies here. If it does, it would probably have been paid by the estate, and not by the heirs.
 
L

loku

Guest
On further research I found Michigan does not collect an inheritance tax, and since the Michigan Estate tax is tied to the federal estate tax, there probably is no Michigan Estate Tax if there was no federal Estate Tax (if the estate was less than $675,000). You can call the info number at the Michigan Department of Revenue toll free at (800) 487-7000.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top