How Do You File Pennsylvania Inheritance Tax?
When a resident of Pennsylvania bequeaths his assets to family members or other individuals, the vast majority of these assets will be subject to the state’s inheritance tax. While life insurance payments, pensions and individual retirement accounts (which haven’t reached maturity yet) are exempt, assets are taxed based on how the beneficiary is related to the deceased. An individual is allowed a complete inheritance tax exemption for only one spouse during his or her lifetime. If a widow claims the exemption and then re-marries, she will have to pay taxes on any bequests from her second husband. Direct descendants (children, step-children, parents and grandchildren) must pay a 4.5 percent tax rate. Siblings (including biological and adoptive) must pay a 12 percent tax rate while nephews, nieces and unrelated beneficiaries are subject to the maximum 15 percent rate. Prepared by the executor of the deceased’s estate, the Pennsylvania Inheritance Tax Return is an extensive document but o
