Please note:

This information has been issued to inform and not to advise. It is based on Pennsylvania Law. The statements are general, and individual facts to a given case may alter their application or involve other laws not referred to here.

Effective for dates of death after July 1, 2000 Pennsylvania Inheritance Tax rate is 4.5% for direct descendants (lineal heirs, grandfather, grandmother, father, mother, children) and a rate of 12% for transfers to a sibling (an individual who has at least one parent in common with the decedent, whether by blood or adoption). Property owned jointly between husband and wife is exempt from Inheritance Tax, while property inherited from a spouse is taxed at a rate of 0%. The prior collateral beneficiaries "all others" (nephews, nieces, aunts, uncles, cousins, friends, etc.) tax rate of 15% remains (except charitable organizations, exempt institutions, and government entities which are exempt from tax). A transfer from a child twenty-one (21) years of age or younger to a natural parent, adopted parent, or stepparent is taxed at the zero rate. A discount of 5% of tax due is allowed for whatever portion of the tax is paid within three (3) months.

Within nine (9) months of date of death, the Inheritance Tax return is due. Interest is charged beginning with first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. Application of extension of time for filing the return may be requested.

The Register of Wills serves as an agent for the Commonwealth in the Collection of the tax. The return is filed with the register who granted the letters. The Inheritance Tax check is made payable to "Register of Wills, Agent."

All real property and all tangible personal property, including but not limited to cash, automobiles, furniture, antiques, jewelry, etc., located in Pennsylvania are taxable. All intangible property including stocks, bonds, bank accounts, loan receivable, etc. is taxable regardless of where it is located. Jointly owned property, except between husband and wife, including but not limited to real estate, securities, bank accounts, etc., with the right of survivorship, is taxable.

Yes. Unsatisfied liabilities incurred by the decedent prior to his/her death are deductible against his/her taxable estate. In addition to debts incurred by the decedent or the estate, the cost of administration, attorney fees, fiduciary fees, funeral and burial expenses including the cost of a burial lot, tombstone or grave marker, and other related burial expenses, are deductible.

Under the Inheritance Tax Law, the account was jointly owned because you and your mother had equal access to the account. Therefore, in this example the survivor is taxed on one-half of the amount in the account.

The family exemption is a right given to specific individuals to retain or claim (certain types of decedent’s property) in accordance with Section 3121 of the Probate, Estate and Fiduciaries Code. For decedents dying after January 31, 1995, the family exemption is $3,500. From June 27, 1974, through January 31, 1995, the amount of the family exemption was $2,000.

The family exemption may be claimed by a spouse of a decedent who died as a resident of Pennsylvania. If there is no spouse, or if the spouse has forfeited his/her rights, then any child of the decedent who is a member of the same household as the decedent may claim the exemption.

In the event there is no spouse or child, the exemption may be claimed by a parent or parents who are members of the same household of the decedent. The family exemption is allowable against assets which are passed on with or without a will.

The Inheritance Tax return is to be filed in duplicate with the county where the decedent was a resident. There is a filing fee of $10.00, payable to Register of Wills-York County (insolvent estates - filing fee is waived). In York County mail Inheritance Tax returns to:

Bradley C. Jacobs
Register of Wills, York County
York County Judicial Center
45 North George Street
York, PA 17401

SAFE DEPOSIT BOXES

DO SAFE DEPOSIT BOXES HAVE TO BE INVENTORIED BY THE STATE AFTER SOMEONE PASSES AWAY?

Yes.  Because safe deposit boxes may contain assets which are subject to the PA Inheritance Tax, the law prohibits the removal of the contents of any safe deposit box solely-owned by a decedent, or by a decedent and others (except a spouse), without conducting a safe deposit box inventory.  These rules do not apply to boxes jointly owned by husband and wife.

WHO MAY ENTER A SAFE DEPOSIT BOX AFTER THE DEATH OF A DECEDENT?

No one is allow to enter a safe deposit box - not even a joint owner – except to remove a will and/or burial instructions in the presence of a bank employee.  The bank employee must complete PA Form REV-487 (Entry into a Safe Deposit Box to Remove a Will or Cemetery Deed) to record the entry and mail it to the PA Department of Revenue.  PA law states that the contents of safe deposit boxes must be inventoried before they can be removed.

WHO CONDUCTS SAFE DEPOSIT BOX INVENTORIES AND WHO MUST BE PRESENT AT THE INVENTORY?

A bank employee, a representative of the PA Department of Revenue or an attorney representing the estate (with written permission from the Department) can conduct safe deposit box inventories.  The person conducting the inventory and the executor or administrator of the estate must be present at the inventory.  If the executor or administrator of the estate is not present, he/she must give a notarized limited power of attorney to whoever is representing him/her.  If the decedent and a surviving joint owner owned the box, the surviving owner should be present.

HOW DO I ARRANGE AN INVENTORY OF A SAFE DEPOSIT BOX FOR SOMEONE WHO DIED IN PENNSYLVANIA?

**The information listed above is intended to be of assistance by providing basic information relating to Pennsylvania Inheritance Tax. All questions regarding your Inheritance Tax Return should be directed to the PA Department of Revenue. The Register of Wills Office is a filing office for your Tax return and can not give advice or assistance in completing your return.