“New” Uncapping Exemption

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Beginning December 31, 2013, a transfer of residential real property does not result in real estate tax uncapping if the transferee is related to the transferor by blood or affinity to the first degree and the use of the residential real property does not change following the transfer. MCL 211.27a(7)(s). Residential real property means real property classified as residential real property under MCL 211.34c(2)(e). For example, a transfer from a parent to a child would not cause an uncapping.

Please be aware, however, that it appears that a transfer from a parent’s revocable trust or decedent’s estate to a child would be an uncapping.

Note: Before you run off and put your kids on the deed, you need to be aware of potential pitfalls of such arrangement. Consult with a professional.

Eric J. Scheske