Currently viewing the tag: "Inheritance tax"

I recently met with a couple who had just received a sizable inheritance from the wife’s father. An event like this usually raises questions about the impact on their financial plan, tax implications, and how the inheritance should be invested. Her first question was, “How should the money/investments be titled?”

How you take title of […]

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Jointly held property is very common, but its taxation is commonly misunderstood. On any joint account, the owner of the funds in the account is responsible for paying income tax on the account’s earnings. Which of the joint owners receives the 1099 from the payer is not dispositive of who should pay the income tax. […]

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 The youngest of the baby boomers will reach age 50 this year. Those at the other end of the generation are fast approaching age 70. The greatest wealth transfer is about to begin.

The Boston College Center on Wealth and Philanthropy conservatively estimates that $1 trillion will pass from one party […]

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The American Taxpayer Relief Act of 2012 (ATRA), which tried to keep us from going over the “fiscal cliff,” raised the federal estate tax exemption to $5.25 million and made permanent an estate tax concept called “portability.” How long the exemption will stay at $5.25 million (ignoring annual inflation adjustments) is anybody’s guess.

“Portable” means […]

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Part III of this series on the Pennsylvania inheritance tax deals with the taxation of future interests, the sole use trust election, the family exemption and the early payment discount.

The Pennsylvania inheritance tax is an excise tax on the receipt of inherited property by a beneficiary. The rate that applies depends on the beneficiary’s […]

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Inheritance Tax Treatment of Gifts

Transfers made by a decedent within one year of death are brought back into the estate for the purposes of the Pennsylvania Inheritance Tax. You can’t avoid the inheritance tax by giving away everything you own right before you die.

There is an exemption of $3,000 per donee per calendar […]

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Pennsylvania has an inheritance tax which is an excise tax on the receipt of inherited property by a beneficiary.


Rates depend on relationship

For property passing to spouses, zero percent. Prior to 1995, transfers passing to spouses were taxable at the six percent rate. This was a very controversial tax and was finally repealed […]

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What’s so bad about probate?  

To hear some folks talk, you’d think that probate was worse than death.   Probate has the undeserved reputation of causing delays and being expensive, among other concerns. Usually avoiding probate means creating a living trust and transferring title of your assets to the trust.   There is nothing wrong with this […]

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Retiring in Pennsylvania

On April 10, 2013 By

It’s a great place to retire, but can be an expensive place to have an estate.

Pennsylvania didn’t stand out in the Tax Foundation’s annual ranking of state & local tax burden based on the 2010 fiscal year. With an average tax burden of 10.2%, Pennsylvania was […]

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