Life Insurance Avoids PA Inheritance Tax
From our “Ask a Question” Mailbag: Life Insurance Avoids PA Inheritance Tax
Most Recently Updated July 8, 2018.
“Is life insurance subject to the Pennsylvania Inheritance Tax?”
Life Insurance Avoids PA Inheritance Tax
Life Insurance Avoids PA Inheritance Tax
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.
More Planning Questions?
Avoiding Probate is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.
In Conclusion: Life Insurance Avoids PA Inheritance Tax
I hope that this article was helpful in explaining how Life Insurance avoids PA Inheritance Tax. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!
Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers. By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!
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Tags: Avoiding Probate, Lehigh County, Life Insurance, Pennsylvania
