In Pennsylvania, a deceased person’s beneficiaries may owe an inheritance tax. The inheritance tax in Pennsylvania applies to individuals not closely related to the deceased person. The looser the familial connection is between the deceased person and the beneficiary, the higher the inheritance tax rate will be.
Pennsylvania Inheritance Tax Rates
The tax rate for Pennsylvania inheritances depends upon how close the familial connection is between the deceased person and the person receiving the inheritance. No inheritance tax will be owed if the beneficiary is:
- A surviving spouse of the deceased
- A parent of a deceased adult child
- A charitable organization
There are also classes of people deemed to be close familial relations of the deceased; however, they do owe an inheritance tax. These individuals include children of the deceased and parents of a minor; they are considered “Class A heirs,” and they owe a 4.5% inheritance tax on the amount they receive.
“Class B heirs,” such as siblings of the deceased, owe a 12% tax rate. All other beneficiaries pay the collateral tax rate of 15 percent.
Paying the Pennsylvania Inheritance Tax
The executor or administrator of an estate typically fills out the inheritance tax return forms on behalf of the beneficiaries. He or she only needs to complete one form, even if multiple people owe the inheritance tax. The tax form can be very complex; working with an experienced attorney will help you know for sure that the proper tax is paid.
After the form is completed, the executor usually pays the tax from the estate before the remaining amount is distributed to the beneficiaries. The executor or administrator has nine months from the date of death to pay the tax. Otherwise, a late penalty may be assessed.
Contact a Pennsylvania Inheritance Tax Lawyer
If you have any questions about the inheritance tax in Pennsylvania and how much you may owe, you will want to contact an attorney. Discuss the specifics of your case by contacting attorney Anthony Caiazzo at (215) 465 – 5575. Schedule a consultation and get started today.