We will use your information to respond to you, regarding the reason you contacted us. We will not sell or rent this information to anyone. We only have access to/collect information that you voluntarily give us via email or other direct contact from you. We are the sole owners of the information collected on this site. How you can correct any inaccuracies in the information.The security procedures in place to protect the misuse of your information.What choices are available to you regarding the use of your data.What personally identifiable information is collected from you through the web site, how it is used and with whom it may be shared.Should I Transfer my Family Home to my Child?ġ Decedent is the legal term for a person who has died.This privacy policy discloses the privacy practices for This privacy policy applies solely to information collected by this web site. Making Medical Choices – Lessons from the Schiavo Case Related estate planning and estate administration articles: If you desire more information on this topic, please email a Pennsylvania estate planning lawyer now or phone us at 72 in Greensburg or toll free at 88.įor more information please visit our Wills, Estate Planning, Estate Administration and Probate Information page. We are here to assist you at that time and hope that you will consult with us so as to insure a timely tax filing and tax payment that has not only considered the appropriate valuation of the assets, but also taken advantage of all of the expenses and deductions that the department permits. This article merely scratches the surface concerning the proper filing and payment of Pennsylvania inheritance tax. If payment is made within 90 days of the date of death, the department discounts the amount by 5%. If it is not paid within that period of time, the Pennsylvania Department of Revenue may assess penalties and interest. In Pennsylvania, the inheritance tax must be paid within nine months of the time of the decedent’s death. However, if that account was established using only the decedent’s funds, and the decedent dies within one year, then the whole value of the account is taxed, not just a portion of it. For example, where a decedent owns a bank account which is titled in the decedent’s name and, let us say, two of his children’s names, the decedent’s one-third interest would be taxed at a rate of 4.5%. Sometimes, jointly held property is ignored for tax purposes at the time of death. Further, an IRA account held in the decedent’s name, if the decedent had not reached the age of 59 ½, is also exempt. As an example, life insurance proceeds which are paid directly to a beneficiary or are paid to the estate of the decedent are exempt. Many people do not realize that there are certain types of assets that are exempt from inheritance tax. Property passing to other individuals would be taxed in Pennsylvania at a rate of 15%. If property would be passing to a brother or sister, the tax rate would be 12%. Once the net value has been calculated, the Pennsylvania inheritance tax, as it pertains to children, is 4.5% of that net value. These expenses typically include the cost of the funeral, the debts of the decedent (including mortgage loans, credit cards, home equity loans, etc.), bills and expenses incurred as the result of a last illness, all fees that are paid to the Register of Wills Office, legal fees for processing the estate, and miscellaneous expenses and fees. Further, the internet can be very helpful to value stocks and/or vehicles.įrom the value of these resources, we are permitted to deduct certain expenses to arrive at a net valuation for the estate. With bank accounts and the like, date of death values are obtained from the financial institution. With real estate , the value is often arrived at by having an appraisal performed. The value of these assets must be ascertained as of the date of death. For instance, if a widow dies owning real estate in her own name, a checking account, a certificate of deposit, an automobile, some stocks and/or bonds, all of those items are taxable, as they would transfer to her beneficiaries, let us presume, her children. Pennsylvania inheritance tax is assessed on virtually all property owned by the decedent 1 himself or with others at the time of death. That was true only until 1994 - it has now been abolished. One common misconception is that spouses have to pay inheritance tax on property that they obtain from their deceased mate. The Pennsylvania inheritance tax is a tax on property at the time of someone’s death and is imposed upon the transfer of that property. Frequently, in our practice, we are confronted with many misconceptions concerning Pennsylvania inheritance tax.
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