Uncapped SEV's and re-assessed property taxes on real estate transfers within families have created a tough
situation for those looking to pass on residential property
upon a family member's passing, most often family cottages along Lake Michigan.
A lot of the time, families will have to sell a property upon the death of the parent because the tax implications are just too burdensome, thus ripping away a valuable family heirloom. Thanks to Public Act 497 of 2012,
families now have the option of transferring residential property
without uncapping property taxes. The new law is limited to first-of-kin relationships and applies to residential property only. There are some questions
about how to ensure the property qualifies for remaining uncapped, since it is all very new.