Pennsylvania is one of six states that has an inheritance tax, while other states have an estate tax, or no tax at all. Inheritance tax is a tax imposed on the transfer of assets from a deceased person to their heirs or beneficiaries.
The Pennsylvania inheritance tax is based on the relationship between the deceased person, commonly referred to as the Decedent, and the beneficiary receiving the assets.
For a surviving spouse or a parent of a child aged 21 or younger at the time of death, there is no inheritance tax. Lineal descendants including children and grandchildren are taxed at a rate of 4.5%. Siblings are 12%, and all other heirs (excluding charitable organizations and exempt institutions) have a tax rate of 15%.
It’s important to note that tax and estate laws can change, so it’s advisable to consult with one of our knowledgeable attorneys for the most up-to-date information on inheritance tax preparation and estate administration.
If you have any questions about the topic discussed in this article, or any estate planning matter, please give us a call at Bononi & Company 724-832-2499.