Inheritance Taxes in Pennsylvania - Revision history

Josephdebarberie at 13:47, 16 April 2024

2024-04-16T13:47:18Z

2024-04-16T13:46:39Z

2022-05-17T14:14:28Z

‎Generally

2022-05-17T14:14:13Z

‎Generally

2022-05-17T14:12:06Z

‎Underwriting Tips

2021-10-29T14:42:55Z

2021-10-26T13:54:19Z

‎Generally

2021-10-26T13:47:26Z

‎Generally

2021-10-26T13:44:39Z

‎Generally

2021-10-21T19:25:44Z

← Older revision		Revision as of 13:47, 16 April 2024
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	If there are bonafide purchasers of a parcel which was not reported in an opened Estate and more than 20 years and 9 months have passed since the date of death, the Department will abstain from looking to the property for future collection activities.<ref>''See'' 2018 Letter</ref> The Department does not consider any purchaser acquiring the Property directly from an Estate, or a transferee from a decedent as a "bonafide purchaser".<br>		If there are bonafide purchasers of a parcel which was not reported in an opened Estate and more than 20 years and 9 months have passed since the date of death, the Department will abstain from looking to the property for future collection activities.<ref>''See'' 2018 Letter</ref> The Department does not consider any purchaser acquiring the Property directly from an Estate, or a transferee from a decedent as a "bonafide purchaser".<br>
	<br>		<br>
		+
		+	= Cross-Reference =
		+	[[Estates in Pennsylvania]]

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-= Generally =
+= Citation =
 Per the Pennsylvania Department of Revenue:
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 * Transfers made within 1 year before the decedent's death for nominal or no consideration
-= Inheritance Tax Liens on Real Estate =
+= Underwriting =
-== Attachment ==
+== Attachment of Lien to Real Estate ==
 According to a [https://uww.wfgnationaltitle.com/images/a/a1/PA_Dept_of_Rev_Inheritance_Tax_Letter_5-1-18.pdf letter] from the Pennsylvania Department of Revenue's Deputy Chief Counsel dated May 1, 2018 ("2018 Letter"), the lien attaches at the time of the decedent's death. The lien is secret or hidden because it cannot be ascertained until an Estate is opened and the subject property is reported to the Department.
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 If there are bonafide purchasers of a parcel which was not reported in an opened Estate and more than 20 years and 9 months have passed since the date of death, the Department will abstain from looking to the property for future collection activities.<ref>''See'' 2018 Letter</ref> The Department does not consider any purchaser acquiring the Property directly from an Estate, or a transferee from a decedent as a "bonafide purchaser".<br>
 <br>

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 * Transfer of jointly held property (except property held jointly by spouses)
 * Transfer of remainder after death of life tenant
-* Transfers made within 1 year of the decedent's death for nominal or no consideration
+* Transfers made within 1 year before the decedent's death for nominal or no consideration
 = Inheritance Tax Liens on Real Estate =

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 <br>
 Inheritance Tax may be due even when property does not pass through operation of probate<ref>''See, e.g.'', 72 P.S. §§ 9107, 9108. The transferee of property subject to taxation must file a return for any property not included in the Personal Representative's return. ''See'' 72 P.S. § 9136(a)(2) </ref>, such as:<br>
--Transfer of jointly held property (except property held jointly by spouses)<br>
+* Transfer of jointly held property (except property held jointly by spouses)
--Transfer of remainder after death of life tenant<br>
+* Transfer of remainder after death of life tenant
 = Inheritance Tax Liens on Real Estate =

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 = Underwriting Tips =
-Although taxes for the entire Estate attach to all of the Estate's property, the Department is required to issue a certificate releasing a specific piece of property when taxes are paid on the full value of that property without any deductions.<ref>''See'' [https://govt.westlaw.com/pac/Document/NFC2AC5A0343A11DA8A989F4EECDB8638?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default) 72 P.S. § 9175(c),(d)]</ref>
+Although taxes for the entire Estate attach to all of the Estate's property, the Department is required to issue a certificate releasing a specific piece of property when taxes are paid on the full value of that property without any deductions.<ref>''See'' [https://govt.westlaw.com/pac/Document/NFC2AC5A0343A11DA8A989F4EECDB8638?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default) 72 P.S. § 9175(c),(d)]</ref></br>
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 [https://www.revenue.pa.gov/TaxTypes/InheritanceTax/Pages/default.aspx Inheritance Tax rates] from the Pennsylvania Department of Revenue<br>
 <br>
-Inheritance Tax may be due even when property does not pass through operation of probate<ref>''See, e.g.'', 72 P.S. § 9108</ref>, such as:<br>
+Inheritance Tax may be due even when property does not pass through operation of probate<ref>''See, e.g.'', 72 P.S. § 9108. The transferee of property subject to taxation must file a return for any property not included in the Personal Representative's return. ''See'' 72 P.S. § 9136(a)(2) </ref>, such as:<br>
 -Transfer of jointly held property (except property held jointly by spouses)<br>
 -Transfer of remainder after death of life tenant<br>