Klooster v City of Charlevoix

Michigan Supreme Court Clarifies requirements of joint tenancy exception to property tax uncapping

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On March 10, 2011, the Michigan Supreme Court issued a unanimous decision in Klooster v City of Charlevoix. The Court clarified the requirements of the joint tenancy exception to property tax uncapping. If carefully prepared in accordance with Klooster, a property transaction creating or terminating a joint tenancy will avoid property tax uncapping and, therefore, lock-in low property tax values and result in property tax savings. This is especially important for highly appreciated properties. Taxpayers should seek property tax advice from legal counsel knowledgeable with the Klooster decision before executing a deed creating or terminating a joint tenancy.

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Published In: Residential Real Estate Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates

Reference Info:State, 6th Circuit, Michigan | United States