Show All Answers

1. Are taxes payable on an estate?

Effective for dates of death after July 1, 2000, the Pennsylvania Inheritance Tax rate is 4.5% for direct descendants (lineal heirs, grandfather, grandmother, father, mother, children) and a rate of 12% for transfers to a sibling (an individual who has at least one parent in common with the decedent, whether by blood or adoption). Property owned jointly between married spouses is exempt from Inheritance Tax, while property inherited from a spouse is taxed at a rate of 0%. All other beneficiaries (nephews, nieces, aunts, uncles, cousins, friends, etc.) receive a tax rate of 15%. Charitable organizations, exempt institutions, and government entities are exempt from PA Inheritance Tax. A transfer from a child twenty-one (21) years of age or younger to a natural parent, adopted parent, or stepparent is also taxed at the zero rates. A discount of 5% of tax due is allowed for whatever portion of the tax is paid within three (3) months.

PA Inheritance Tax is due within nine (9) months of date of death. Interest is charged beginning with the first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. An application of extension for filing the return may be requested.

The Register of Wills serves as an agent for the Commonwealth in the Collection of the tax. The return is filed with the Register who granted the letters. The Inheritance Tax check is made payable to "Register of Wills, Agent."

2. What property is subject to inheritance tax?

All real property and all tangible personal property, including but not limited to cash, automobiles, furniture, antiques, jewelry, etc., located in Pennsylvania are taxable. All intangible property including stocks, bonds, bank accounts, loan receivable, etc. is taxable regardless of where it is located. Jointly owned property, except between married spouses, including but not limited to real estate, securities, bank accounts, etc., with the right of survivorship, is taxable.

3. Can the funeral expenses and unpaid bills of the decedent be deducted from the amount subject to tax?

Yes. Unsatisfied liabilities incurred by the decedent prior to his / her death are deductible against his/her taxable estate. In addition to debts incurred by the decedent or the estate, the cost of administration, attorney fees, fiduciary fees, funeral and burial expenses including the cost of a burial lot, tombstone or grave marker, and other related burial expenses, are deductible.

4. Recently my mother died and now I am being told that I will have to pay an inheritance tax on my own money, can this be correct?

For the sake of convenience, I put my mother's name on my savings account. Recently my mother died and now I am being told that I will have to pay an inheritance tax on my own money, can this be correct?

Under the Inheritance Tax Law, the account was jointly owned because you and your mother had equal access to the account. Therefore, in this example, the survivor is taxed on one-half of the amount in the account.

5. What is the family exemption and how much can be claimed?

The family exemption is a right given to specific individuals to retain or claim certain types of decedent’s property in accordance with Section 3121 of the Probate, Estate and Fiduciaries Code. For decedents dying after January 31, 1995, the family exemption is $3,500. From June 27, 1974, through January 31, 1995, the amount of the family exemption was $2,000.

6. Who is entitled to claim the family exemption?

The family exemption may be claimed by a spouse of a decedent who died as a resident of Pennsylvania. If there is no spouse, or if the spouse has forfeited his / her rights, then any child of the decedent who is a member of the same household as the decedent may claim the exemption.

In the event there is no spouse or child, the exemption may be claimed by a parent or parents who are members of the same household of the decedent. The family exemption is allowable against assets that are passed on with or without a will.

7. Where is the inheritance tax return to be filed?

The Inheritance Tax return is to be filed in duplicate with the county where the decedent was a resident. There is a filing fee of $10, payable to the Register of Wills-York County. In York County, mail Inheritance Tax returns to:

Bryan K. Tate
York County Register of Wills
York County Judicial Center
45 North George Street
York, PA 17401