The Webcalculators website for online estate, trust, tax, and financial calculators now includes a projection of the value of a “sole use trust” for the benefit of a surviving spouse with and without the election to pre-pay the inheritance tax … Continue reading
The five percent discount for inheritance tax paid within three months of death (§ 2142 of the Inheritance and Estate Tax Act, 72 P.S. § 9142) is often a significant benefit, and so care should be taken to make sure...
Below is an overview/explanation from Webcalculators. For an article addressing the pros and cons of the election, and drafting to allow disclaimers of interests that would prevent the treatment of a trust as a sole use trust, see “‘Sole Use … Continue reading
Most exclusions from the Pennsylvania inheritance tax can be found in section 2111 of the Inheritance and Estate Tax Act, Part III of Article XXI of the Tax Reform Code of 1971, 72 P.S. § 9112. However, there are other...
A trust for pets is subject to inheritance tax at the rate of 15%. King Estate, 8 Fid.Rep.3d 145 (Chester Co. O.C. 2018). (For a contrary result, see Schrock Estate, 6 Fid.Rep.3d 199 (Westmoreland Co. O.C. 2015). … Continue reading
Value of trust remainder subject to inheritance tax was valued taking into account the right of the spouse, who was the income beneficiary, to principal for the spouse’s health, support, maintenance, or education without taking into account other sources of … Continue reading
Assets awarded to the decedent’s former spouse in a divorce proceeding in which grounds for divorce were established before the decedent’s death were not subject to inheritance tax at a 15% rate but were deductible as debts of the estate. Board … Continue reading
The Orphans’ Court Procedural Rules Committee has proposed removing the Estate Information Form, RW-01 (REV-346) from the index and appendix of Register of Wills forms. The report of the committee states that the form is a Department of Revenue form … Continue reading
Section 41 of the Act of October 30, 2017, No. 43, extends by one year the due date for inheritance tax returns that claim an agricultural or small business exemption from inheritance tax. Specifically, section 41 of the Act amends … Continue reading
Somewhat to my surprise, a bill in the Pennsylvania legislature that would reduce the inheritance tax to 0% for transfers to children under the age of 21 (HB 291) has made it out of committee and received its first consideration. … Continue reading