Your Guide to the Pennsylvania Inheritance Tax

Our Goal: Helping you to understand how the Pennsylvania Inheritance Tax Works

Whenever I am helping my Pennsylvania clients with estate planning, or working with the executor of a Pennsylvania estate, I am given the opportunity to explain how the Pennsylvania Inheritance Tax works.

First, let’s break the tax down to its roots. The Pennsylvania Inheritance Tax is a Transfer Tax. It is different from the other taxes which you might pay regularly, like income tax, real estate tax or sales tax. A transfer tax is a tax levied when an asset is transferred from one owner to another. In this case, the transfer tax is taxing the transfer from the deceased to the beneficiary. You have paid transfer taxes in the past if you have ever bought a house or a vehicle with a title. To get the deed or title transferred you paid a fee to the state or county…a transfer tax.

The Pennsylvania Inheritance Tax is a transfer tax on the transfer of assets from the deceased Pennsylvanian (or someone with Pennsylvania real estate) to the new owner. It does not matter if the transfer is through a will, by beneficiary designation, through a revocable living trust or payable on death account. The tax is triggered when one person dies who owned or controlled an asset and the asset then passed to someone else, typically called the beneficiary.

An Overview of the Pennsylvania Inheritance Tax

If you are the executor or administrator of a Pennsylvania estate you will need to file a Pennsylvania Inheritance Tax Return.

If you are not familiar with the Pennsylvania Inheritance Tax, this return can be rather difficult and confusing.

We’ve broken it down into two areas:

• Avoiding Taxes: If you are the executor or administrator of a Pennsylvania estate you will need to file a Pennsylvania Inheritance Tax Return. If you are not familiar with the Pennsylvania Inheritance Tax, this return can be rather difficult and confusing.
• Preserving Wealth: Our compassionate attorneys represent clients in estate planning, the process of developing and implementing a plan that protects both you and your assets during your lifetime, but also a plan that delivers your assets to your heirs in a protected and tax-efficient manner.

Contact our Philadelphia law firm today

Klenk Law cares about your personal situation. Let our lawyers help you achieve peace of mind. You are always welcome at our offices, conveniently located in Philadelphia. Call the firm at 215-515-2904 to arrange your consultation or contact the firm online.