PA estate tax vs Federal
Does anyone know if PA follows the Federal limit on estate tax or does PA have its own limit like NJ does at $675,000?
Thank you,
Douglas
Does anyone know if PA follows the Federal limit on estate tax or does PA have its own limit like NJ does at $675,000?
Thank you,
Douglas
Permalink Submitted by Bruce Steiner on Wed, 2013-02-20 17:14
Pennsylvania has an inheritance tax. The exempt amount is zero. However, there is no tax on transfers to spouses, and Pennsylvania has something analogous to (though not exactly the same as) the Federal QTIP election.
Permalink Submitted by Douglas Bauerband on Thu, 2013-02-21 18:39
so if my client is not married, has no childres and leaves his money to his cousins & nephews…his estate will pay taxes on the total amount of assets with no exemptions…correct?So it doesn’t matter if he gifts money now to them? thank you,Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2013-02-21 19:02
His estate would not pay taxes directly as would be the case for an estate tax. An inheritance tax is paid by the beneficiaries and for more distant relatives like this the rate can be higher than for children. Gifting now would get funds to beneficiaries and reduce inheritance taxes subject to any special issues in PA law.