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December 17, 2004 (Reissued December 17, 2009) Pennsylvania Inheritance Tax No. INH04011 Taxability of a Revocable Living Trust/Inheritance Tax ISSUE: Is the funding of a trust subject to Pennsylvania.

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Out-Of-State Real Estate Is Not Taxed for Pa. Inheritance Tax purposes. Ironically, if the decedent owned a property in Stone Harbor, New Jersey or anywhere outside Pennsylvania, it is not taxed for Pa.

If the Personal Representative will not file an inheritance tax return for the decedent's estate, the person inheriting the property must file the return because that property may be subject to inheritance tax.

One way to avoid inheritance tax in PA is to make an asset joint. For example, if you have $30,000 in your name alone, and through your will, you give it to a friend of yours, it would be taxed at 15% or they would owe $4,500 in taxes.

Inheritance Tax payments need to be directed to the Register of Wills for the county in which the decedent resided. These payments are due upon the date of death and become delinquent after nine months. If inheritance tax is paid within three months of the decedent's death, a 5 percent discount is allowed.

Pennsylvania treats a son-in-law or daughter-in-law as if they are a child for purposes of the inheritance tax. As a result, there is a flat 4.5% PA inheritance tax on assets that pass to the wife or widow and husband or widower of the decedent's child.

Technically, Pennsylvania inheritance tax is a tax levied on the beneficiary's right to inherit property. This tax applies regardless of the decedent's estate size. The amount of payable tax depends on the property's value and the recipient's relationship to the decedent.

4.5 percent on transfers to direct descendants and lineal heirs; 12 percent on transfers to siblings; and. 15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities exempt from tax.

No estate will have to pay estate tax from Pennsylvania. There is still a federal estate tax. The federal estate tax exemption is $12.06 million in 2022 and $12.92 million in 2023. This exemption is portable.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232