An inheritance tax is a tax imposed on a person who inherits property from a deceased person. There is no federal inheritance tax, but some states have an inheritance tax.
In the state of Michigan, there is no inheritance tax imposed on individuals who inherit property from a deceased person. This means that beneficiaries and heirs do not have to pay taxes to the state of Michigan simply for receiving an inheritance. It's important to note that while Michigan does not have an inheritance tax, the estate of the deceased may be subject to federal estate taxes if the value of the estate exceeds the federal exemption limit. However, as of the current tax laws, most estates are not large enough to owe federal estate tax. Additionally, beneficiaries should be aware of other potential tax implications, such as income taxes on earnings from inherited assets.