Category Archives: Beneficiaries
Can I fund my son’s Special Needs Trust under my Will without paying the Pennsylvania Inheritance Tax?
My son is a special needs child and I have formed a Special Needs Trustin my will for his care. How do I fund this Trust without paying the Pennsylvania Inheritance Tax? If you are unable to fund the trust until your death, then the only way to fund the trust without paying the 4.5%Pennsylvania […]
Is life insurance subject to the Pennsylvania Inheritance Tax?
Life insurance is not subject to the Pennsylvania Inheritance Tax, making it an excellent tool to make gifts to those who would otherwise be subject to the tax. For example, if you leave cash or a portion of your IRA to a friend at your death, that gift is subject to the 15%Pennsylvania Inheritance Tax […]
Is there a discount allowed on the Pennsylvania Inheritance Tax?
To avoid interest and penalties, the Pennsylvania Inheritance Tax must be paid within 9 months of the date of death. As executor, you are responsible to make the payment. If you delay and interest or penalties are created, the beneficiaries may demand that you be held responsible. To encourage you to make the payment early, […]
Is my IRA subject to the Pennsylvania Inheritance Tax?
Your IRA is subject to the Pennsylvania Inheritance Tax, which can prove to be a tax trap. For example, if you leave $100,000 from your IRA to a friend, that gift is subject to the 15% Pennsylvania Inheritance Taxrate. To avoid interest and penalties on the Pennsylvania Inheritance Tax, within 9 months of your death […]
My mother’s Philadelphia house needs repairs before I sell it as executor. Will the repair costs be deductible against the Pennsylvania Inheritance Tax?
The Pennsylvania Inheritance Tax is levied on the net estate value, meaning the fair market value of the estate’s assets less expenses and debts. If repairing the house for sale is reasonable, and the expenses paid are reasonable, they will be deducted from the sale proceeds when calculating the net estate. As an executor, you […]
Pennsylvania Probate and Inheritance Tax
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 […]
