Penning Group Blog

The Penning Group blog is written and edited by the advisors and attorneys of The Penning Group, providing practical business, personal, and legal information. To view blog posts by category, choose a topic area from the sidebar menu.

Wednesday, September 4, 2013

Transfers of Ownership and Property Tax Uncapping
As a general rule, when there is a transfer of title of property in Michigan, the value of the property is "uncapped" and increased for the assessment of property tax. This results in a significant increase of property taxes, oftentimes to the point that the next generation of new owners in a family cannot afford to keep the family cottage.

In the past two weeks, I’ve discussed in my weekly blogs two "exceptions" from the transfer of ownership rules.[1] These exceptions provide the opportunity for parents to transfer ownership of property to their children in...

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Monday, August 26, 2013

A common concern among parents wishing to transfer ownership of cottages and other legacy-type residences to their children is the "uncapping" of real estate taxes that occurs upon transfer of ownership. The general rule is that as long as someone owns real estate, the "taxable value" of the real estate remains "capped" and increases only incrementally against a statutory capped amount on an annual basis. However, when there is a transfer of ownership of the property to another party, that transfer typically results in an uncapping of the property's value to a much higher fair market value for assessment of property taxes. A transfer of property from parents to their children upon...

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Sunday, August 11, 2013

The Michigan legislature recently added an exemption to the definition of "Transfer of Ownership" under the uncapping provisions of the General Property Tax Act. The new law provides that beginning December 31, 2013, transfers of residential real property from a transferor to a transferee who is related by blood or affinity to the first degree are not "transfers of ownership" and do not "uncap" the taxable value of the property provided that the use of the property does not change following the transfer. (MCL 211.77(a)(7)(s))

It is important to note that any previous transfers already completed from parents to children or from parents and/or children to trusts or limited liability...

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Tuesday, July 10, 2012

While they have their uses, there are problems with relying on legal self-help websites in place of expert advice, writes Peter I. Minton, founder and president of Minton Law Group. These sites aren't able to provide specific advice about your company and they won't be able to point out ongoing legal problems, he explains. And many people who try to save money by avoiding lawyers often face difficulties later.

Case in point: recently, a potential client was seeking information regarding a business she had founded with several partners. Since...

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Wednesday, June 20, 2012

Don't Forget to Pack Your Cottage App!

Lake Cottage AppIt's great to have the Cottage season stretched out in front of us for the next few months. The pace changes a bit when the focus is directed towards spending time at the family cottage. My family isn't any different from any other family at this time of the year. Another school year has closed behind us and the boys are transitioning to summer jobs and their favorite summer sports. Even Casey. Except Casey's favorite summer...

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