Tag Archives: Philadelphia
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 […]
Can my father transfer a Philadelphia rental property into my name and avoid the Pennsylvania Inheritance Tax?
My father wants to transfer a rental property he owns in Philadelphia into my name. If he does, will this gift avoid Pennsylvania Inheritance Tax? As a Philadelphia resident, at your father’s death, all assets he leaves you at death (except life insurance) will be subject to the Pennsylvania Inheritance Tax at the 4.5% children’s […]
Inheritance and Estate Taxes for Pennsylvania Estates
Tax Returns for Pennsylvania Estates and Probate: If you are the executor of a Pennsylvania estate, you are responsible for filing all required tax returns. This will likely include the deceased’s last personal income tax return, both Pennsylvania and federal for all income from January first through the date of death. These are Forms 1040 […]
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 […]
Is there a limit on the PA Inheritance Tax?
Each Pennsylvania estate is subject to two potential estate related taxes; the Pennsylvania Inheritance Tax and the FederalEstate Tax. When you mention a “limit”, you are speaking about the Federal Estate Tax, not the Pennsylvania Inheritance Tax. The Federal Estate Tax exempts the first $5,000,000.00 (adjusted for inflation) of each estate from taxation. This means […]
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 […]
