If you own real or tangible personal property in Pennsylvania at the time of your death, you may owe Pennsylvania inheritance tax. This applies to both Pennsylvania residents and to nonresidents who own property in Pennsylvania.
Pennsylvania imposes an inheritance tax on the value of the assets owned by the decedent located in Pennsylvania. This Pennsylvania tax is in addition to any federal estate tax that may be owed.
The rate of the inheritance tax depends on the person who inherits and is as follows:
*0% on transfers to a surviving spouse or to a parent from a child aged 21 or younger
*4.5% on transfers to direct descendants, such as children
*12% on transfers to siblings
*15% on transfers to all others, except charitable organizations
All real estate and tangible personal property including cash, cars, furniture, and jewelry is taxable. All intangible property of a Pennsylvania resident including stocks, bonds, and money in bank accounts is taxable.
If you own property jointly with someone else, then your proportionate interest in the joint property is taxable (except if between husband and wife).
Inheritance tax returns must be filed within 9 months after death to avoid penalties and interest. If the inheritance tax is paid within 3 months after death, a 5% discount is allowed.
The attorneys of Supinka & Supinka PC, are experienced in handling the filing of inheritance tax returns and assisting with estate administration matters. For more information and a consultation, please call Supinka & Supinka PC (724) 349-6768.
