Pennsylvania Inheritance Tax Lawyer Discusses Inheritance Tax for Pennsylvania
April 3, 2022
Individuals who stand to inherit a significant sum of money or assets may wish to discuss this information with a Pennsylvania inheritance tax lawyer. This is because some beneficiaries might owe an inheritance tax upon the transfer of money or property to them upon the decedent’s death.
When No Inheritance Tax Is Owed
A Pennsylvania inheritance tax lawyer can explain that no inheritance tax is owed when the beneficiary is someone who was closely related to the decedent. This includes a surviving spouse or a parent of an adult decedent. Additionally, no inheritance tax is owed if the beneficiary is a charitable organization.
Class A Heirs
Additionally, a Pennsylvania inheritance tax lawyer can explain that other individuals owe an inheritance tax. The amount of the tax is based on how close in relation the person is to the decedent. Class A heirs have a lower tax rate than other beneficiaries who must pay the inheritance tax. These beneficiaries are parents of a minor decedent and children of the decedent. These individuals must pay a 4.5 percent inheritance tax on the value of the asset that they receive.
Class B Heirs
The next set of beneficiaries is Class B Heirs. These individuals include siblings of the decedent. They must pay a tax rate of 12 percent.
A Pennsylvania inheritance tax lawyer can explain that all other beneficiaries must pay an inheritance tax rate of 15 percent.
How to Pay the Tax
The estate’s personal representative commonly completes an inheritance tax return for the beneficiaries. This requires the filing of only one form, including if multiple individuals will owe inheritance tax. To simplify the process and to ensure that the proper amount of inheritance tax is withheld, the personal representative may pay the tax from the amount that the individual would receive and then pay the remaining sum to the beneficiaries. Pennsylvania has strict laws regarding when the tax must be paid, or a penalty can be assessed.
Legal Assistance from a Pennsylvania Inheritance Tax Lawyer
If you would like more information on the Pennsylvania inheritance tax, contact a Pennsylvania inheritance tax lawyer by calling Caiazzo Law.