What is an “income in respect of a decedent”?
In Michigan, an “income in respect of a decedent” (IRD) is income that is owed to a decedent (a deceased person) but is received by the decedent’s estate or by someone else who is entitled to the decedent’s property after his or her death. IRD can include such items as unpaid wages, bank interest, tax refunds, or other taxes due to the decedent. Any of these items would become part of the decedent’s estate and would be subject to the Michigan inheritance law, which states that all of the decedent’s assets must be passed on to the decedent’s heirs or beneficiaries according to Michigan inheritance law. If there are no heirs or beneficiaries, the assets are distributed according to the law of intestacy, which distributes the assets to the decedent’s next of kin. Any IRD that is considered part of the decedent’s estate is divided between the heirs or beneficiaries according to the law. IRD is an important part of estate planning and understanding the Michigan inheritance law is essential in order to properly and legally distribute any income in respect of a decedent.
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