Inheritance tax rates in Pennsylvania vary depending on the type of beneficiary. The tax collected on an inheritance is 4.5% for those who are direct descendants and anyone who is considered to be a lineal heir. Siblings must pay 12% in taxes. Other types of heirs like organizations and exempt institutions must pay 15% for transfers.
If you’re the spouse of the deceased and obtained their assets, you don’t have to pay any taxes. Anyone under the age of 21 is also tax-exempt.
What type of property is subject to inheritance tax?
Both tangible and real estate property are eligible for inheritance tax. This includes furniture items, jewelry, cash and vehicles.
During probate, the state cannot tax any property that is intangible, which includes stocks, bonds, loans receivable and bank accounts. However, the full value of the property can be taxed if the deceased created a joint interest in their property within the last 12 months of their death. This includes securities, bank accounts and real estate properties.
Who can you contact for legal assistance?
Contact a legal professional if you want to learn more about inheritance tax and determine how much you need to pay. An attorney with experience in probate and estate administration may walk you through each step of the process to avoid making any mistakes or suffering from penalties. You might also want to work with a legal professional if you need assistance navigating wills, trusts, powers of attorney, living wills or probate litigation. Your attorney may review the facts of your case to discuss your options and guide you in the right direction.