Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Life Insurance Avoids PA Inheritance Tax

Posted on Sun Nov 16, 2014, on Life Insurance

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!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

Avoiding Probate, Lehigh County, Life Insurance, Pennsylvania

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Randi Greenberg

Jackie is amazing! I have asked her many questions and she answers them professionally and honestly. She is very informative !!!

Klenk Law Logo
Stars

hinda schuman

very happy to deal with Peter Klenk law firm over many decades

Klenk Law Logo
Stars

Richard Test

Very knowledgeable and easy to work with. Also very competitive pricing. Recommended to me by another attorney. First class service from start to finish.

Klenk Law Logo
Stars

Sydney Magerman

Daniella was fantastically wonderful. A joy to be around and filled our conversations with so much educational knowledge. I’ve learned so much from her about being a great person and I can’t wait to work with her again

Klenk Law Logo
Stars

Denise Lowmaster

Our experience with Klenk Law has been exceptional. We’ve had help with estate planning and pre-nuptial agreements. They really take the time to explain everything and let us know our options. All of the staff are very professional, courteous and knowledgeable. They are very prompt with responding to calls and messages. We will continue to use them and recommend to friends and family.

Let us put our expertise to work for you.

Free consultation within 24 hours.