Difference between revisions of "Inheritance Taxes in Pennsylvania"
(Created page with "[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 e...") |
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| + | = Generally = | ||
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| + | Per the Pennsylvania Department of Revenue: | ||
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| + | "Inheritance tax payments are due upon the death of the decedent and become delinquent nine months after the individual's death. If inheritance tax is paid within three months of the decedent's death, a 5 percent discount is allowed." | ||
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[https://www.revenue.pa.gov/TaxTypes/InheritanceTax/Pages/default.aspx Inheritance Tax rates] from the Pennsylvania Department of Revenue<br> | [https://www.revenue.pa.gov/TaxTypes/InheritanceTax/Pages/default.aspx Inheritance Tax rates] from the Pennsylvania Department of Revenue<br> | ||
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-Transfer of jointly held property (except property held jointly by spouses)<br> | -Transfer of jointly held property (except property held jointly by spouses)<br> | ||
-Transfer of remainder after death of life tenant<br> | -Transfer of remainder after death of life tenant<br> | ||
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| + | = Inheritance Tax Liens on Real Estate = | ||
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| + | == Attachment == | ||
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| + | 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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| + | == Duration == | ||
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| + | The Department's lien for inheritance taxes lasts until twenty (20) years after an Estate is opened and the inheritance tax return is filed.<ref>''See'' 2018 Letter</ref> If the Department takes action within twenty (20) years (i.e. files a formal lien), then the lien becomes indefinite.<ref>''See'' 2018 Letter; 72 P.S. § 1404.1</ref><br> | ||
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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> | ||
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Revision as of 11:25, 21 October 2021
Generally
Per the Pennsylvania Department of Revenue:
"Inheritance tax payments are due upon the death of the decedent and become delinquent nine months after the individual's death. If inheritance tax is paid within three months of the decedent's death, a 5 percent discount is allowed."
Inheritance Tax rates from the Pennsylvania Department of Revenue
Inheritance Tax may be due even when property does not pass through operation of probate, such as:
-Transfer of jointly held property (except property held jointly by spouses)
-Transfer of remainder after death of life tenant
Inheritance Tax Liens on Real Estate
Attachment
According to a 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.
Duration
The Department's lien for inheritance taxes lasts until twenty (20) years after an Estate is opened and the inheritance tax return is filed.[1] If the Department takes action within twenty (20) years (i.e. files a formal lien), then the lien becomes indefinite.[2]
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.[3] The Department does not consider any purchaser acquiring the Property directly from an Estate, or a transferee from a decedent as a "bonafide purchaser".
