Our office is located in Mt. Clemens, so we can be easily reached by people that reside in Grosse Pointe, Michigan. We have built many meaningful relationships with families in this area over the years that we have been in practice, and we greatly value these connections. It is a good feeling to be able to help our neighbors preserve their legacies for the benefit of their loved ones.
Grosse Pointe is a waterfront city, so Lake St. Clair offers many fantastic recreational opportunities for locals that enjoy boating and other water sports. In fact, Grosse Pointe Yacht Club is one of the most historic sites in town, because it was originally founded back in 1914.
This very special city is located in Wayne County, and the estimated population is typically within the vicinity of 5000 to 6000 residents. It has a special charm due to its unique nature, but everything that a large metropolitan area has to offer is within easy reach. As a result, residents enjoy the best of both worlds.
There are many places of note in town, including venerable buildings like Woodland Green, Rosecroft, the Murray Sales House, and the Henry Tiffany Cole House, just to name a handful.
Over the years, many famous people have called some section of the Grosse Pointe community home. These would include Edsel Ford, who was the son of Henry Ford, eight-time Grammy winner Anita Baker, and baseball folk hero Kirk Gibson. Clearly, it is one of the most important cities in the state of Michigan, and we are proud to serve its residents.
Affluence and the Federal Estate Tax
People that are familiar with the state are well aware of the fact that Grosse Pointe is a very affluent area. The median price for a single-family home in town is in excess of $350,000 at the time of this writing, and this tells you a lot about the success level of local residents.
Obviously, it is great to be able to achieve your financial goals and live in a sought-after place like Grosse Pointe. At the same time, there is one negative that can go along with the accumulation of significant wealth, and you should proactively prepare for it in advance.
The threat that we are referring is that of taxation. Inheritances are not taxable to the heirs with regard to regular income taxes, and this comes as a pleasant surprise to many people. However, there is a federal estate tax to contend with, and there are a number of states in the union that have state-level estate taxes.
Here in the state of Michigan, there is no state-level estate tax in place, but you do have to be concerned about property that you own elsewhere. If you are in direct personal possession of valuable property in a state that has its own estate tax, that levy could be imposed.
On the federal level, the estate tax exclusion stands at $11.4 million in 2019. This is the amount that can be transferred before the tax would be applied on the remainder as it is being distributed. The maximum rate of the federal estate tax is a whopping 40% that can have a significant impact on your legacy.
We should point out the fact that there is an unlimited marital estate tax deduction. The tax can be applied on transfers to anyone, even close relatives, except your spouse. One caveat would be that you have to be married to an American citizen to take advantage of the unlimited marital deduction.
The existence of the federal estate tax is the bad news, but the good news is that there are strategies that can be implemented to ease the burden if you plan ahead effectively. Family limited partnerships, charitable trusts, and other irrevocable trusts can be useful estate tax efficiency tools.
Schedule a Grosse Pointe, Michigan Estate Planning Consultation!
We are here to help if you would like to discuss estate tax asset protection or any other estate planning matter with a licensed inheritance planning attorney. You can send us a message to request a consultation appointment, and if you would prefer to speak over the phone, we can be reached at 586-493-7661.