The majority of assets owned by a Decedent are subject to Pennsylvania inheritance tax. However, it is important to note that though certain assets are subject to the tax, certain beneficiaries have a 0% inheritance tax rate, and therefore may or may not be required to pay the tax. Assets subject to Pennsylvania inheritance tax include the following:
- Real Estate: This includes any real property located in Pennsylvania, such as land, houses or buildings.
- Personal Property: This category encompasses various items, such as vehicles, jewelry, artwork, furniture, electronics, and other tangible possessions owned by the decedent.
- Bank Accounts: Any funds held in bank accounts, including savings accounts, checking accounts, CDs, and money market accounts, are subject to inheritance tax.
- Investments: This includes stocks, bonds, mutual funds, brokerage accounts, and other investment holdings.
A few examples of assets which are often exempt from inheritance tax are: life insurance proceeds paid directly to beneficiaries or the estate, an IRA held in the Decedent’s name, if the Decedent had not yet attained the age of 59 ½ , qualified family farms as well as certain small businesses.
It’s important to note that the exemptions and criteria for the Pennsylvania inheritance tax can change over time so it is important to meet with a qualified attorney to discuss the most up-to-date information.