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!

Is there a limit on the PA Inheritance Tax?

Posted on Thu Nov 13, 2014, on Probate and Estate Administration

From our “Ask a Question” Mailbag: Limit on PA Inheritance Tax Questions

Most Recently Updated July 7, 2018

“Is there a limit on PA Inheritance tax?”

Limit on PA Inheritance Tax Questions

Limit on PA Inheritance Tax Questions

Each Pennsylvania estate is subject to two potential estate related taxes; the Pennsylvania Inheritance Tax and the Federal Estate Tax. When you mention a “limit”, you are speaking about the Federal Estate Tax, not the Pennsylvania Inheritance Tax.

The Federal Estate Tax

The Federal Estate Tax exempts the first $11,000,000.00 (this goes up each year adjusted for inflation) of each estate from taxation. This means that if the estate’s value is under $11,000,000.00 there is no Federal Estate Tax due.  (see the IRS website for the most recent exemption number).

The Pennsylvania Inheritance Tax

For the Pennsylvania Inheritance Tax, there is no “limit”. If the estate even has $1.00 a tax is due. The tax is levied on the “net value” of the estate, which is the fair market value of all assets, reduced by liabilities. The amount of the tax depends on the recipient. For example, if the beneficiary is a child, the tax rate is 4.5% of the net estate value, but if the beneficiary is a sibling, the tax rate is 12%.

Anything more on taxes I need to know?

There are some subtleties to the taxes, such as that life insurance proceeds are not taxed by Pennsylvania, but they are subject to the Federal Estate Tax. If you are not familiar with these taxes, you are well advised to retain an experienced Probate Attorney to help you prepare and file the return. As a bonus, the cost of your attorney is deductible against both the Pennsylvania Inheritance Tax and the Federal Estate Tax!

More Probate Questions?

The PA Inheritance Tax is only part of the overall probate process. By all means, if you wish to learn more, please read my more detailed article, The Probate Process All You Need to Know.

In Conclusion: Limit on PA Inheritance Tax Questions

I hope that this article was helpful in explaining the limit on PA Inheritance Tax. Further, I included links to even more detailed information on my website. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Probate Lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced Probate Attorneys.  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

Peter Klenk, Probate Lawyer

Tags:

Death taxes, Estate Tax, Inheritance Tax, Pennsylvania, Pennsylvania Inheritance Tax rates, Philadelphia, Probate, Probate Attorney, Probate Lawyer

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Stephen T.

Peter and his staff handled all of our needs in a very professional and timely matter.

Klenk Law Logo
Stars

Chris B.

AWESOME LAWYER! Peter Klenk is an exceptional attorney and a very nice person! Today I spoke with Peter about estate planning and was impressed with by his professionalism, cordiality, and attention to detail. I highly recommend Klenk Law for probates, wills, trusts, and other issues germane to estate planning!

Klenk Law Logo
Stars

Anne W.

I saw four lawyers and was told by all of them; I should just forget contesting my mother's will. I knew what happened, but it is very hard to prove undue influence. I contacted the Law Offices of Peter L. Klenk & Associates. Attorney Amanda DiChello took my case. They were very honest and upfront about what would be involved trying to prove what I knew was true. Attorney DiChello may be young but she is extremely knowledgeable and skilled. She listened and understood what I conveyed to her. She knew exactly what information to use and crafted an outstanding interrogatory and many powerful depositions. Attorney DiChello understood the various emotional feelings this case created for my family and me; she was always there for us with a kind and encouraging word. We went to trial. The amount of work which she and her Paralegal did for the trial was incredible. They both knew my case inside and out! Attorney DiChello's powerful interrogative and thinking skills produced a positive outcome. Attorney DiChello did what other seasoned lawyers said was impossible!

Klenk Law Logo
Stars

A Google User

Peter Klenk & Associates is my go-to firm for estate planning and advice in probate and estate administration. Peter and his attorneys are top-notch and exceptionally responsive. Peter has the knack of being able to explain extremely complex tax and estate planning issues in a manner that clients are easily able to understand and comprehend allowing them to confidently make important decisions.

Klenk Law Logo
Stars

Susan W.

Tremendous firm with bright, kind and tenacious people. Great representation for our family.

Let us put our expertise to work for you.

Free consultation within 24 hours.