In Pennsylvania, decedents’ estates are required to submit a PA Estate tax Return (Kind REV-1500) as part of the probate and estate administration procedure. A PA Inheritance Tax Return need to be filed 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 type is the PA REV-1500. An Inheritance Tax Return should be filed within 9 months of the decedent’s date of death unless an extension has actually been correctly requested and approved. Late returns are subject to penalties and interest. Any extension of time given by the PA Department of Revenue will prevent penalties; nevertheless, interest will continue to accumulate. If an estimated tax payment is made within 3 months of the date of death, a 5% discount will use.
A Pennsylvania Inheritance Tax Return need to be submitted in replicate with the Register of Wills office of the county in which the decedent resided at the time of his or her death. The return must be total and precise. It is extremely crucial to be thorough in completing the return and to attach copies of all files referenced in the return, including a copy of the Will, expense declarations, bank statements, home appraisals, etc.
What is the PA Estate Tax Rate?
The PA inheritance tax applies to an estate no matter the estate’s size, and the estate tax rate is based upon the decedent’s relationship to the beneficiary. Significantly, the tax rate for property transfers from one spouse to another is no. The tax rate for transfers from a parent to kids and other lineal descendants is 4.5%. The rate for transfers in between siblings is 12%, and the rate for transfers to nieces, nephews and other recipients is 15%.
The inheritance tax rate uses only to the net value of a Pennsylvania estate. Debts, funeral service expenses and other estate expenses are subtracted from the gross estate. A $3,500 family exemption might be available as an extra deduction in certain situations too. Particular property is exempt from the tax completely, consisting of property jointly owned by spouses. Life insurance continues along with many retirement plans are also exempt from the PA inheritance tax.
Estate Administration Attorney Blue Bell, PA
The Martin Law Firm is a Pennsylvania estate administration law practice located in Blue Bell, Montgomery County, PA. The Martin Law office assists executors and administrators with all phases of the Pennsylvania probate and estate administration procedure, including the preparation and filing of the PA Estate Tax Return.