Under the Inheritance Tax Law, the account was jointly owned because you and your mother had equal access to the account. Recently my mother died and now I am being told that I will have to pay an inheritance tax on my own money, can this be correct? Recently my mother died and now I am being told that I will have to pay an inheritance tax on my own money, can this be correct?įor the sake of convenience, I put my mother's name on my savings account. In addition to debts incurred by the decedent or the estate, the cost of administration, attorney fees, fiduciary fees, funeral and burial expenses including the cost of a burial lot, tombstone or grave marker, and other related burial expenses, are deductible. Unsatisfied liabilities incurred by the decedent prior to his / her death are deductible against his/her taxable estate. Can the funeral expenses and unpaid bills of the decedent be deducted from the amount subject to tax? Jointly owned property, except between married spouses, including but not limited to real estate, securities, bank accounts, etc., with the right of survivorship, is taxable. is taxable regardless of where it is located. All intangible property including stocks, bonds, bank accounts, loan receivable, etc. The Inheritance Tax check is made payable to "Register of Wills, Agent." What property is subject to inheritance tax?Īll real property and all tangible personal property, including but not limited to cash, automobiles, furniture, antiques, jewelry, etc., located in Pennsylvania are taxable. The return is filed with the Register who granted the letters. The Register of Wills serves as an agent for the Commonwealth in the Collection of the tax. An application of extension for filing the return may be requested. Interest is charged beginning with the first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. PA Inheritance Tax is due within nine (9) months of date of death. A discount of 5% of tax due is allowed for whatever portion of the tax is paid within three (3) months. A transfer from a child twenty-one (21) years of age or younger to a natural parent, adopted parent, or stepparent is also taxed at the zero rates. Charitable organizations, exempt institutions, and government entities are exempt from PA Inheritance Tax. All other beneficiaries (nephews, nieces, aunts, uncles, cousins, friends, etc.) receive a tax rate of 15%. Property owned jointly between married spouses is exempt from Inheritance Tax, while property inherited from a spouse is taxed at a rate of 0%. Effective for dates of death after July 1, 2000, the Pennsylvania Inheritance Tax rate is 4.5% for direct descendants (lineal heirs, grandfather, grandmother, father, mother, children) and a rate of 12% for transfers to a sibling (an individual who has at least one parent in common with the decedent, whether by blood or adoption).
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