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Selling an inherited house in Michigan.
Inheriting a home in Michigan brings a few state-specific questions, especially around property taxes. Here is what to know before you decide whether to keep it or sell.
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Inherited house · Michigan
How it works in Michigan.
Michigan does not currently collect an inheritance tax or an estate tax, so the bigger state-level questions usually involve property taxes and title. Michigan caps a home's taxable value while one owner holds it, and a transfer of ownership can cause that value to uncap. There is an exception for certain transfers of residential property to close relatives, and the deceased owner's principal residence exemption does not simply carry over to the heirs.
How title reaches you also shapes the timeline. A house may pass through probate with a personal representative, through a small estate assignment, through a trust, or through a Lady Bird deed or joint ownership. Each path produces different paperwork for the county register of deeds and the local assessor. A Michigan attorney, your local assessor and a tax professional can help you sort out what applies before you make plans for the home.
Michigan specifics
What to know in Michigan.
No Michigan inheritance or estate tax today
The Michigan Department of Treasury says the state's estate tax is not operative because of changes in federal law. Michigan's inheritance tax applies only to estates of people who died before October 1, 1993. Federal rules are separate, so a tax professional can confirm whether anything else applies.
Taxable value can uncap on transfer
Michigan caps a property's taxable value between transfers of ownership, and a transfer can cause it to uncap to the state equalized value. That can raise the tax bill for the next owner. Your local assessor can tell you whether the transfer to you uncapped the value.
Exception for close family transfers
Under MCL 211.27a, as amended by 2014 PA 310, a transfer of residential property to a relative within the first degree, such as a spouse, parent or child, is generally not treated as a transfer of ownership. The residential use must not change for the exemption to hold. The assessor or Treasury can ask for proof of the relationship.
The principal residence exemption ends at death
According to Michigan Treasury guidance, a deceased owner is no longer eligible for the principal residence exemption. The estate's personal representative or trustee is expected to file a Request to Rescind (Form 2602) within 90 days of death. An heir who moves in and qualifies would need to claim the exemption separately.
Several ways title can pass
In Michigan, an inherited home may pass through a probate estate, a small estate petition for assignment, a trust, joint ownership with survivorship or a Lady Bird deed. The route determines what has to be recorded before you can sell.
This is general information, not legal or tax advice. Rules can change and every situation is different, so confirm the details for your case with a Michigan attorney or the appropriate office.
Your options
There is more than one path.
Keep or rent the home
Keeping the house can preserve a family place or provide rental income. It also means ongoing costs, maintenance and, for a rental, the responsibilities of being a landlord. If siblings share ownership, one heir may be able to buy out the others.
List with a real estate agent
Listing on the open market reaches the widest pool of buyers and is often the clearest way to learn what the home is worth. It usually involves preparing the house, showings and agent commissions. It can take longer if the home needs work or is still full of belongings.
Explore offers from investors and professionals
Some heirs prefer a simpler path, especially when the home needs repairs or they live far away. Through a platform like Doorbloom, you can share details about the house and hear from independent investors and professionals who may buy it as-is. Offers may be lower than what a fully prepared listing could bring, so it is worth comparing.
How it works
Three clear steps.
- 1
Tell us about your home
Share the address, condition and your timeline. It takes about a minute, and we only ask what is needed for the next step.
- 2
Review who is interested
Real estate investors and professionals review your home. You see who they are before anyone gets your contact details.
- 3
Choose your next step
Talk to the people you want, compare your options, or decide not to sell. There is no pressure and no obligation.
Questions
Questions from Michigan homeowners.
Does Michigan have an inheritance tax?
Not for current deaths. Michigan Treasury says the inheritance tax applies only to estates of people who died before October 1, 1993, and the state estate tax is not operative. A tax professional can confirm any federal tax questions.
Will property taxes go up if I inherit a house in Michigan?
They might. A transfer of ownership can uncap the taxable value, but transfers of residential property to certain close relatives are generally exempt from uncapping if the use stays residential. Your local assessor can explain how the transfer was treated.
Can I keep the deceased owner's homestead exemption in Michigan?
Michigan's principal residence exemption does not carry over automatically. Treasury guidance says the estate should file a Request to Rescind within 90 days of death, and an heir who makes the home their own principal residence would file their own claim.
Do I need probate to sell an inherited house in Michigan?
It depends on how the home was titled. A house held in a trust, with a survivorship owner or under a Lady Bird deed may pass without probate, while a house in the deceased person's sole name usually needs a probate or small estate proceeding. A Michigan probate attorney can confirm the right path.
Is Doorbloom buying my house?
No. Doorbloom is a platform that connects Michigan homeowners with real estate investors and professionals. Any offer comes from them, and nothing is binding until you sign a purchase agreement.
What does it cost?
Creating an account and telling us about your home is free for homeowners.
Official Michigan resources
Independent help in Michigan.
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Inherited house in other states
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