In the state of
Michigan, inheritance tax returns are not supposed to be filed for those estates whose owners died after 31st December 2004 and before 1st January 2011. In the year 1993 the Michigan inheritance tax was replaced by the estate tax. The estates whose owners died between December 31, 2004 and January 1, 2011, are not liable to be taxed to Michigan inheritance or estate tax.
The estate tax in Michigan is the equivalent of the upper limit of the federal credit that could be permitted for state death taxes. The laws of taxation in Michigan state that the estates whose owners have passed away before the December 31, 2004 need to file inheritance tax returns through the following forms:
Form 2523 - Michigan Inheritance Tax Return
Form 2307 - Michigan Inheritance Tax No-Tax Return
Michigan Estate Tax Facts
The new federal code provides that the amount of exemption granted for filing the tax returns are supposed to increase from the years 1998 to 2006. Normally the estates whose gross value is either same or less than the exemption amount need not to register a United States Estate (and Generation-Skipping Transfer) Tax Return.
All the estates that are held in Michigan need to pay the estate taxes. The rule is applicable even if the owner was a non resident of Michigan. When the Michigan estate tax return is being registered it needs to have a US 706 attachment with it.
The estate tax returns in Michigan are filed when the US 706 tax return file is supposed to be submitted. Normally the due date comes nine months after the owner of an estate dies. The laws in Michigan State that the estate taxes need to be paid at the same time the tax returns are filed.
Michigan Estate Tax Return File
The two estate tax return files in operation in Michigan are Form MI-706 and Form MI-706 A. Form MI-706 is applicable for the Michigan residents and those estate owners, all of whose properties are located only in Michigan.
Form MI-706 A is applied for the Michigan residents whose properties are located outside the state and the non residents of the state who have held properties in the state.