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New Michigan Law Effective in 2015 is an Important Win for Cottage Owners

On October 9, 2014, PA 310 of 2014 (HB 5552) was signed into law by Michigan Gov. Rick Snyder. As stated in our previous blog, "Cottage Transfers of Ownership without Uncapping Property Tax Broadened Under Michigan House Bill", this bill broadens the current law (PA 497 of 2012) which prevents the uncapping of property taxes on certain transfers of residential property between family members. PA 310 of 2014 provides for two important changes:

  1. The definition of an eligible transferee is now defined as the owner's or the owner's spouse's mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson or granddaughter. Note that the new law does not allow for transfers to step family members or grandparents, as was previously introduced in HB 5552.

  2. The definition of transferor has been expanded to include properties transferred by a trust or by inheritance under a will or intestate succession.

As a reminder, PA 310 of 2014 does not exempt residential properties transferred from a limited liability company. Also, it is important to note that this bill is only effective for transfers on or after December 31, 2014. 

This new bill is an important win for cottage owners.  

© 2022 Varnum LLPNational Law Review, Volume IV, Number 296
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About this Author

Christopher J. Caldwell, Estate planning lawyer, Varnum
Partner

Chris is a partner and leads Varnum's Estate Planning team. Chris is acutely aware that advising clients on estate planning and wealth succession requires an intimate understanding of the client's goals, hopes, desires, and concerns in order to accurately prepare an appropriate plan. As such, he works intimately with clients and their advisors to create estate plans that enable families to plan for today as well as for future generations. Chris regularly prepares sophisticated estate plans, emphasizing probate avoidance, estate tax planning, and business succession...

616/336-6951
Laura E. Radle, estate planning attorney, Varnum
Partner

Laura is an attorney in the firm’s estate planning team where she helps individuals and families to identify their estate planning goals and to create a plan that is tailored to meet their specific needs. Laura’s practice includes a full range of estate planning and estate settlement services including the preparation of basic or complex estate plans, tax planning, business succession planning, cottage planning, charitable gift planning, and estate and trust administration services.

As a member of the Family Business Team, Laura assists business owners with the...

616/336-6415
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