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Broadly speaking, Michigan law gives highest priority to the surviving spouse of the decedent, followed by their children and grandchildren, then parents and siblings, followed by more distant relatives.
Ing to the Internal Revenue Service (IRS), federal estate tax returns are only required for estates with values exceeding $12.06 million in 2022 (rising to $12.92 million in 2023). If the estate passes to the spouse of the deceased person, no estate tax is assessed.
However, if the home was only in the name of the deceased spouse and there is no will or trust, the courts will decide what happens to the home's equity. Similarly, if the deceased person owned any property or had a bank account in their own name the proceeds go to any named beneficiaries.
Since Michigan is not a state that imposes an inheritance tax, the inheritance tax in 2023 is 0% (zero). As a result, you won't owe Michigan inheritance taxes.
Who Gets What in Michigan? If you die with:here's what happens:spouse and parentsspouse inherits the first $150,000 of your intestate property, plus 3/4 of the balance parents inherit everything elseparents but no spouse or descendantsparents inherit everything6 more rows