John B. Whalen Estate Planning Law Blog on Lawyers.com

Estate Tax and Inheritance Tax?

Tuesday, May 13, 2008 by John B. Whalen

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There are - very simply - two primary "death" taxes in Pennsylvania.

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The Federal Estate Tax (our federal "death" tax) taxes bequests beginning at a 45.00% rate.  The Federal Estate Tax has a threshold, and does not begin to tax estates unless they are currently over $2,000,000.00 (in 2006, 2007, and 2008).  In 2009, 2010, and 2011, the Federal Estate Tax Threshold is scheduled to change - quickly and drastically, and absent any legislative change - over the next few years.

The Pennsylvania Inheritance Tax (our "state" death tax) taxes bequests to spouses and charities at a 0.00% rate; bequests to children, grandchildren, and parents at a 04.5% rate; bequests to siblings at a 12.00% rate; and bequests to everyone else at a 15.00% tax rate.  The Pennsylvania Inheritance Tax has no threshold, and begins to tax estates immediately.

 
Posted at 06:16 AM
Topic: Estate Planning
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