Life insurance is not subject to the Pennsylvania Inheritance Tax, making it an excellent tool to make gifts to those who would otherwise be subject to the tax.
For example, if you leave cash or a portion of your IRA to a friend at your death, that gift is subject to the 15% Pennsylvania Inheritance Tax rate. Instead, if you leave your friend the same amount through a life insurance policy, there is no tax due.
If you have questions about probate in Lehigh County, Pennsylvania, feel free to contact our office for a free consultation.
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