Pennsylvania inheritance tax law allows a trust for the “sole use” of the surviving spouse to be taxed entirely at the death of the surviving spouse, rather than having to pay tax on the present value of the taxable remainder...
The Act of July 8, 2016, No. 79 of 2016 (“Act 79”), enacting S.B. 1104, put into effect a number of changes to the Probate, Estates and Fiduciaries Code (PEF Code, Title 20 of Pa.C.S.) that had been recommended by...
An unliquidated personal injury action is not a “future interest” within the meaning of section 2116(c) of the Inheritance and Estate Tax Act (72 P.S. 9116(c)) and so disclaimers filed more than nine months after death were not effective for … Continue reading
Good news (for disclaimer fans): S.B. 1104, which contains a number of different amendments to the PEF Code, and which appears to be on track to pass the Senate, has been amended to specify that an agent who is given … Continue reading
Declaratory judgment was appropriate to hold that second spouse, who had not elected against will executed before her marriage to the decedent, was entitled to an intestate share of the decedent’s revocable trust which was also executed before marriage, and … Continue reading
A disclaimer is a transfer without value that can affect eligibility for Medical Assistance – Long Term Care benefits. Schell v. Dept. of Public Welfare, 80 A.3d 844, 203 C.D. 2013 (Pa. Cmwlth. 12/4/13). … Continue reading
The decision whether to create a trust for the surviving spouse in order to minimize federal estate tax can be a difficult one, but in most cases the decision can be deferred until after a death has occurred, because the creation of the trust can be dependent on a “qualified disclaimer” by surviving spouse. This allows tax planning to be done “post mortem, but only if the will or revocable trust has been drafted to include “disclaimer trust” provisions, so that a disclaimer by the surviving spouse results in a trust for the surviving spouse.Continue reading