Trusted Kalamazoo Estate Taxes Attorneys

Michigan does not have state-level estate taxes or inheritance taxes. However, there are still federal estate taxes to consider, with the 2026 exemption threshold set at $15 million for individuals and $30 million for married couples.

Here at DeMent & Marquardt, PLC, we have dedicated ourselves to helping residents of Kalamazoo and the surrounding areas with their estate planning and related needs since 1994. When you need experienced legal guidance and are ready to get started, call our firm to schedule your initial consultation.

How Can You Minimize Michigan Estate Tax Liabilities?

If you are concerned about exceeding the thresholds noted above, estate tax planning is important. There are ways to reduce the value of your estate, and we can help you explore options such as:

• Giving gifts to beneficiaries in advance
• Making charitable donations or establishing charitable trusts
• Utilizing irrevocable trusts to move assets out of your name, reducing the value of your estate but preserving assets for beneficiaries
• Considering discretionary trusts, special needs trusts, educational trusts and more, depending on your unique situation

We can also help you address annual exclusions for gifts and consider lifetime exemptions. In 2026, the annual exclusion was set at $19,000. The lifetime exemption was raised to $15 million for individuals and $30 million for married couples in 2026. A 40% tax rate applies to assets and estates above these levels.

What Key Deadlines Are There In The Michigan Estate Filing Process?

Several important federal and state deadlines must be met, including:

• The will must be filed with the probate court within 30 days of the testator’s death.
• Form 706, the Federal Estate Tax Return, must be filed within nine months of death if the estate exceeds the exemption threshold.
• Form 7768 can be used to request an automatic six-month exemption.
• Form 1041, the U.S. Income Tax Return for Estates and Trusts, must be filed by the 15th day of the 4th month following the close of the tax year (commonly April 15th).

Our attorneys can help make sure all deadlines are met and that paperwork is properly filed.

Frequently Asked Questions About Michigan And Federal Estate Taxes

While every estate is unique, many people share similar concerns, and below we address them.

How much can I pass on to my heirs before federal taxes kick in?

As of January 1, 2026, the federal exemption thresholds have been quite high. The amount you can pass to your loved ones includes:

• One person: Up to $15 million tax-free
• Married couples: Up to $30 million tax-free

Amounts that exceed these thresholds automatically become subject to a 40% federal tax rate. Also, note that the exemptions remain subject to change as U.S. tax policy evolves.

The assets that may count toward your taxable estate include:

• Real estate: Primary home, vacation homes, rental properties and land
• Financial accounts: Bank accounts and money market funds
• Investments: Stocks, bonds, brokerage accounts and mutual funds
• Retirement accounts: IRAs, 401(k)s, 403(b)s and pensions
• Life insurance: Included if you own the policy
• Business interests: LLC memberships, corporate stock or partnership interests
• Personal property: Vehicles and furniture
• Trusts and annuities: Assets held in revocable living trusts and certain irrevocable trust arrangements

Our lawyer can work with you to reduce potential estate tax exposure so that your wealth goes to your loved ones.

Does Michigan have a state-level “death tax” or inheritance tax?

No, Michigan does not have a state-level estate tax or inheritance tax. According to the Michigan Department of Treasury, there has been no state estate tax since 1993. However, the tax for people who inherited from their loved ones who died on or before September 30 remains in effect. Additionally, federal estate tax requirements also apply.

What is the “annual exclusion,” and how does it help me?

The annual gift tax exclusion is a federal IRS regulation for reducing the size of your taxable estate during your lifetime that does change from time to time. As of 2026, you can give:

• Up to $19,000 per person per year
• Up to $38,000 per recipient for married couples

The good thing is that these gifts do not count against your $15 million lifetime exemption. So, you can gradually transfer wealth to children, grandchildren or family members without triggering federal gift taxes or even filing a gift tax return. Our attorney can help you in integrating gifting into your estate plan to preserve wealth.

Call For A Consultation

DeMent & Marquardt, PLC, is well-known for its estate planning and elder law services in Kalamazoo County and throughout the surrounding area. We offer flat fees, including for updates to existing estate plans, so there are no hidden costs. Call 269-343-2106 or use the online contact form to meet with an experienced Kalamazoo estate taxes attorney right away.