Create an Account - Increase your productivity, customize your experience, and engage in information you care about.
Show All Answers
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."
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.
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.
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.
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.
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.
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. TateYork County Register of WillsYork County Judicial Center45 North George StreetYork, PA 17401
No one is allowed to enter a safe deposit box-not even a joint owner-except to remove a will and/or burial instructions in the presence of a bank employee. The bank employee must complete PA Form REV-487 (Entry into a Safe Deposit Box to remove a Will or Cemetery Deed) to record the entry and mail it to the PA Department of Revenue. PA law states that the contents of safe deposit boxes must be inventoried before they can be removed.
Effective May 11, 2011, neither a department or bank employee, nor lawyer or CPA must be present at a safe deposit box inventory. Instead, pursuant to the Inheritance and Estate Tax Act of 1991, a safe deposit box of a decedent may be entered at the time fixed in a notice mailed within seven days of the date of proposed entry, to the Department of Revenue and to the financial institution in which the box is located, 72 P.S. section 9193. The department no longer will provide employees to be present at safe deposit box inventories.
The Act requires that notice of a proposed safe deposit box entry and inventory must be delivered to the department via United States Postal Service with return receipt service. The Act allows that, when a person furnishes a signed statement under penalty of perjury that he/she, or someone on his / her behalf, has given this notice, the financial institution in which a safe deposit box of a decedent is located shall permit entry into the box and removal of its contents, without the presence of a department or bank employee.
Inheritance Tax DivisionPA Department of RevenueBureau of Individual TaxesDepartment 280601Harrisburg, PA 17128-0601Phone: 717-787-8327Fax: 717-772-0412Pennsylvania Department of Revenue SiteEmail Pennsylvania Department of Revenue