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Northeastern Pennsylvania Scranton, Wilkes-Barre, Pocono area
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Old 05-30-2018, 07:57 AM
 
46 posts, read 53,352 times
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Hello,
Does anyone here know about the tax laws in PA, specifically about inheritance laws of PA? If someone receives a monetary gift, does the state tax it? Also, is real estate that that is inherited taxed? WHat if the real estate is sold?
Thanks so much.
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Old 05-30-2018, 08:22 AM
 
2,861 posts, read 3,851,677 times
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The answers to your questions (2 through 4) as far as I understand them are: Yes, Yes, Yes

PA is not a good place to inherit stuff. Rates vary by willie's relationship to the willer

Here are two links. A simple search using PA inheritance tax will get you more info and sites that explain it.

https://www.thebalance.com/overview-...x-laws-3505422

Inheritance Tax
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Old 05-30-2018, 08:53 AM
 
46 posts, read 53,352 times
Reputation: 61
Quote:
Originally Posted by jimazee View Post
The answers to your questions (2 through 4) as far as I understand them are: Yes, Yes, Yes

PA is not a good place to inherit stuff. Rates vary by willie's relationship to the willer

Here are two links. A simple search using PA inheritance tax will get you more info and sites that explain it.

https://www.thebalance.com/overview-...x-laws-3505422

Inheritance Tax
Thank you. Sorry--I forgot to mention I am not a resident of PA. I am in NJ, but moving to Ohio. The person I am leaving money to however, is in PA.
I wonder how that would change things. I guess I need to speak with a lawyer.
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Old 05-30-2018, 10:49 AM
 
Location: Philadelphia
273 posts, read 318,221 times
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If you’re talking about a sizable sum of money (many tens or hundreds of thousands), it would definitely be worth your time to speak with an estate attorney. Not only would an attorney be able to answer your original questions, he/she may also be able to suggest alternative strategies that you haven’t considered—such as moving the property into an irrevocable trust, etc. Everyone’s situation is different and a good estate attorney will know the right questions to ask.
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Old 05-30-2018, 05:00 PM
 
41,813 posts, read 51,059,937 times
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Amy as already noted if it's sizable sum talk to the lawyer as much as I hate to say that.


If the gift is to Children or Grandchildren AFAIK there is no inheritance tax as long as you live X years after it was gifted.
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Old 05-30-2018, 05:16 PM
 
Location: Montco PA
2,214 posts, read 5,094,681 times
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Quote:
Originally Posted by Amy1022 View Post
Hello,
Does anyone here know about the tax laws in PA, specifically about inheritance laws of PA? If someone receives a monetary gift, does the state tax it? Also, is real estate that that is inherited taxed? WHat if the real estate is sold?
Thanks so much.
Gifts received are not taxed in PA. Receiving a gift is not taxable to the IRS, either.

I don’t believe that an inheritance received by a PA resident is taxable in PA if it’s from someone in another state. It may be subject to NJ’s inheritance tax, as you are a NJ resident. Or OH, if OH has such a tax.

Coalman is right regarding gifts. If someone makes a gift, and then dies (I think within two years of making the gift), the gifted amount is part of the PA inheritance return and is taxable. This only applies, though, if the gifting person who dies (the decedent) is a PA resident.

The receipt of a gift or an inheritance is not usually taxable to anyone, anywhere.
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