What is inheritance tax?

When you plan your estate and have everything in order, you probably think that once you die, there are no worries. Unfortunately, that is not true. While you may have no worries, your loved ones could be hit with an inheritance tax. It is important to understand what this is and how it works, so you can plan your estate accordingly to avoid these taxes if possible. 

The Pennsylvania Department of Revenue explains inheritance tax is a percentage rate based on your heirs' relationship to you that is charged on what they receive from your estate. Not every relative you leave something to will be charged this tax, which is something to keep in mind as you arrange your estate plans. If you leave everything to your spouse or your children who are under the age of 21, they will not pay anything. However, older children would pay a 4.5 percent tax. 

Other heirs will pay more. If you leave your brothers or sisters anything, then they pay 12 percent. Anyone else will pay 15 percent. One good thing is if you leave anything to charity, it is not taxed. Any taxes that must be paid are due in nine months. If your heirs pay the taxes early, within three months, then they may qualify for a discount of five percent. 

Taxes are generally applied to anything that you leave your heirs. Personal items that are not considered valuable in a monetary sense are not subject to the inheritance tax. This information is for education and is not legal advice. 

 

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Contact Us Now To Discuss Your Legal Needs

We know you have questions, and we will be happy to provide you with the answers and sound counsel you need. To get started, call our office in Wyomissing toll free at 888-434-9531 or fill out the form below. We will return your call or email promptly.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Huckabee, Weiler & Levengood, P.C.

1136 Penn Avenue
Wyomissing, PA 19610

Toll Free: 888-434-9531
Phone: 610-285-8386
Fax: 610-378-9896
Wyomissing Law Office Map

Review Us