What is the status of taxes in an intestate estate?

In the state of Michigan, taxes are handled differently in intestate estates than those that are settled through a will. Intestate estates are those in which a person dies without a valid will and no arrangements have been made in regard to how the possessions of the deceased will be distributed. In an intestate estate, the taxes are paid by the heirs of the deceased according to the estate assets they receive, as determined by Michigan intestate succession law. Michigan’s laws surrounding taxes for intestate estates are different than those of most other states. The majority of states require taxes to be paid out of the estate assets before any heirs can be given their portion. However, in Michigan, the heirs are given their portion of the estate first, and then they are responsible for paying taxes owed on what they received. In some cases, there may be more taxes owed to the state than proceeds from the estate can cover. The heirs are still required to pay the amount owed, but the estate administrator may apply for assistance on their behalf in case of financial hardship. If the estate contains property, the heirs may be required to pay an inheritance tax and a real estate transfer tax, both of which are determined by the value of the property. In an intestate estate, taxes are the responsibility of the heirs according to the laws of Michigan. The estate administrator may apply for assistance if there are more taxes owed than can be covered by the estate. Inheritance and real estate transfer taxes may also be applicable.

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What is the status of taxes in an intestate estate?

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