Inheritance Tax
An inheritance tax is a tax on the right to receive money. Pennsylvania inheritance tax focuses on the beneficiary. The tax rates are as follows:
- Spouse: 0%
- Children: 4.5%
- Siblings: 12%
- Most others: 15%
- Charitable organizations: exempt
In some situations, planning can be done to lower the inheritance tax. We can help you analyze the balancing of interests that may be involved in such planning. Certain types of lifetime trusts can possibly later eliminate one level of the inheritance tax. We can discuss these types of trusts with you and prepare them for you.
Pennsylvania offers a 5% discount on inheritance tax paid within three months of the date of death. We can work with you to quickly assess the assets and determine whether you can take advantage of this option.
Many people confuse the "probate" estate with the "Pennsylvania Inheritance Tax" estate. Well-meaning advisors not versed in this aspect of the tax law can give misleading advice resulting in their clients failing to timely pay the inheritance tax. We can help you avoid this error and the consequent interest and penalties.