Q: I've a will specifying my 2 cars go to a friend on my death. Will the friend have to pay taxes to receive the vehicles?
I am divorced, cars are titled in my name only and fully paid for, no liens. I reside in Michigan. Michigan SOS (DMV) advised heir will have to pay sales tax - seems strange. Is this correct? My house will transfer without fees on my death.
A: The Secretary of State is correct in this case. Only transfers of title between immediate family members are exempt from the 6% tax. If your friend is to receive the vehicles, he or she will need to pay that 6% tax.
Trent Harris and Kenneth V Zichi agree with this answer
A: I agree with the prior answer. Also, you mentioned that your house will transfer without fees on your death. That may be the case if you've signed a lady bird deed. But if not, then there may be real estate transfer tax that will need to be paid upon transfer of the house to the new owner.
Kenneth V Zichi agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
