Earlier this year my Great Aunt who lived in Philadelphia, PA passed away and she named my sister and I in her will to inherit $10k each. We both typically do our own taxes each year. My sister lives near Tappahannock, VA and I live in Baltimore, MD. I’m having a difficult time determining the inheritance tax laws for each of us as they seem to vary greatly state by state, if the state even requires it at all.
Can someone please help me with if and which taxes we each have to pay?
Inheritance tax is based upon the domicile of the decedent - - here, your great aunt, in Pennsylvania. You can read more about Pennsylvania inheritance tax rates online, as here: https://www.montcopa.org/284/Inheritance-Tax-for-Pennsylvania-Residen
ABOUT THE PENNSYLVANIA INHERITANCE TAX
The tax rate for Pennsylvania Inheritance Tax is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs (except charitable organizations, exempt institutions, and government entities that are exempt from tax). Property owned jointly between husband and wife is exempt from inheritance tax, while property inherited from a spouse, or from a child aged 21 or younger by a parent, is taxed a rate of 0%.
Inheritance tax returns are due nine calendar months after a person’s death. The responsible party is the person named in the will as executor or, if the person dies without a will, the individual who is approved as administrator by the register of wills after a petition is filed. If no executor or administrator is named, and property or transfers exist, then the person receiving the property is required to file a return and pay the tax.
No attorney-client relationship is created by this communication.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline