How do I calculate estate taxes?

In Michigan, estate taxes are the amount of money owed to the state by the estate of a deceased person. Estate taxes are calculated based on the total value of the estate, including any assets such as real estate, investments, and personal property. The first step in calculating estate taxes in Michigan is to determine the adjusted gross estate. This is the total value of the estate after subtracting liabilities, such as mortgages and other debts. After determining the adjusted gross estate, the applicable estate tax rate is applied to the adjusted gross estate to calculate the estate tax. The estate tax rate in Michigan ranges from 0.8% to 20%. The next step is to apply any applicable credits. These credits, which can include inheritance taxes, charitable donations, and other items, are subtracted from the estate tax liability to arrive at the net estate tax. Finally, Michigan allows a deduction for funeral expenses, which can be subtracted from the net estate tax to arrive at the final tax liability. In conclusion, estate taxes in Michigan are calculated by determining the adjusted gross estate, applying the applicable estate tax rate, subtracting any applicable credits, and then deducting any funeral expenses.

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