Tag Archives: Probate and Administration
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 […]
Does the Pennsylvania Inheritance Tax include my mother’s antiques?
Does the Pennsylvania Inheritance Tax include my mother’s antiques? If your mother died a Pennsylvania resident, then the estate must pay the Pennsylvania Inheritance Tax on the fair market value of all of her taxable assets, including her antiques. If these antiques are passing to you, the tax rate will be 4.5%, due within nine […]
How do you figure out what a house is worth for inheritance tax?
My mother died and left us her house. We got two appraisals, which were near the value listed for real estate taxes. Then, we received a cash offer for a higher amount. Do we pay taxes on the appraisal amount, or the amount we will now sell the house for? You have an argument for […]
Do I Owe PA Inheritance Tax?
My mother transferred her Montgomery County home to me two years ago. She recently died. I am going to sell the house soon, but do I have to pay Pennsylvania Inheritance Tax? Not in your case. The Pennsylvania Inheritance Tax of 4.5% applies to transfers to children at death, and includes all gifts made within […]
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, […]
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 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 […]
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 […]
