In Pennsylvania, decedents’ estates are required to file a PA Inheritance Tax Return (Type REV-1500) as part of the probate and estate administration process. A PA Estate Tax Return must be submitted on behalf of any decedent who (1) lived in Pennsylvania at the time of his/her death, and/or (2) owned or had an interest in reportable property that goes through estate tax.
PA Inheritance Tax Return Filing Guidelines
The Pennsylvania inheritance tax kind is the PA REV-1500. An Estate tax Return must be submitted within 9 months of the decedent’s date of death unless an extension has been properly obtained and granted. Late returns are subject to charges and interest. Any extension of time given by the PA Department of Revenue will avoid penalties; nevertheless, interest will continue to accrue. If an approximated tax payment is made within 3 months of the date of death, a 5% discount will apply.
A Pennsylvania Estate tax Return should be filed in duplicate with the Register of Wills office of the county where the decedent resided at the time of his or her death. The return should be complete and precise. It is really essential to be thorough in finishing the return and to connect copies of all documents referenced in the return, including a copy of the Will, cost statements, bank declarations, house appraisals, etc.
What is the PA Inheritance Tax Rate?
The PA inheritance tax applies to an estate regardless of the estate’s size, and the estate tax rate is based on the decedent’s relationship to the beneficiary. Notably, the tax rate for property transfers from one partner to another is zero. The tax rate for transfers from a parent to children and other lineal descendants is 4.5%. The rate for transfers between siblings is 12%, and the rate for transfers to nieces, nephews and other recipients is 15%.
The estate tax rate uses just to the net worth of a Pennsylvania estate. Financial obligations, funeral service expenses and other estate costs are subtracted from the gross estate. A $3,500 family exemption may be available as an additional deduction in particular circumstances. Specific property is exempt from the tax entirely, including property collectively owned by partners. Life insurance continues in addition to lots of retirement plans are likewise exempt from the PA inheritance tax.
Estate Administration Attorney Blue Bell, PA
The Martin Law Office is a Pennsylvania estate administration law office located in Blue Bell, Montgomery County, PA. The Martin Law office helps administrators and administrators with all phases of the Pennsylvania probate and estate administration procedure, including the preparation and filing of the PA Estate Tax Return.