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My Mother transferred her Bucks County home to me two years ago. She recently died. I am going to sell the house soon, but do I have to pay Pennsylvania Inheritance Tax?

Not in your case. The Pennsylvania Inheritance Tax of 4.5% applies to transfers to children at death, and includes all gifts made within one year of the date of death. If the house was transferred properly into your name 2 years ago, it will not be subject to the Pennsylvania Inheritance Tax.

My mother’s Will gives me the option to disclaim on my inheritance, how is this done and how long does it take to prepare a disclaimer?

A disclaimer is an heir’s legal refusal to accept a gift or a bequest. If you properly execute a disclaimer, the asset disclaimed will pass to whoever would have received it had you died before the person who left the asset to you.

First, if your Mother’s attorney is serving as the executor and will also be providing your mother’s estate legal services in Montgomery County, the attorney should not be charging both an executor’s fee and a fee for legal services based solely on a percentage of the estate.

As the executor of an estate, your expenses incurred in handling the estate are reimbursed from the estate assets. Typical examples are filing fees, parking fees, and money that you pay to have the estate assets secured or cleaned.

You are also reimbursed for reasonable travel costs that were incurred only because of the estate. For example, if you would have paid the airfare to attend your mother’s funeral whether you were the executor or not, then you would not be reimbursed. However, if you had to travel to the Surrogate’s office to file the will, then that cost can be reimbursed. You can be reimbursed a reasonable amount, which can include mileage on your auto.

The Pennsylvania Inheritance Tax is levied on the net estate value, meaning the fair market value of the estate’s assets less expenses and debts.

With one exception, if a Pennsylvania resident dies before reaching the age 59½ his IRA is not subject to the Pennsylvania Inheritance Tax. This is because of a Pennsylvania rule stating that there will be no tax levied on the value of any retirement plan for which the deceased would have been penalized had he removed the funds during his lifetime.

To avoid interest and penalties, the Pennsylvania Inheritance Tax must be paid within 9 months of the date of death. As executor, you are responsible to make the payment. If you delay and interest or penalties are created, the beneficiaries may demand that you be held responsible.

To avoid interest and penalties, the Pennsylvania Inheritance Tax must be paid within 9 months of the date of death. The date you filed the Will does not matter. Otherwise, executors would simply hold off filing the Will to delay making the tax payment.

For some estates, spending a little money now to avoid probate at death can create a substantial savings for the family. Typical techniques used to avoid probate include Revocable Living Trusts, Jointly Owned Accounts and Payable-on-Death designations on bank accounts and stock accounts.

For some New Jersey estates, spending a little money now to avoid probate with the Camden County Surrogate at death can create a substantial savings for the family. Typical techniques used to avoid probate in New Jersey include Revocable Living Trusts, Jointly Owned Accounts and Payable-on-Death designations on bank accounts and stock accounts.