Inheritance tax on money from other state? (Penn: insurance, credit)

[millwkr301]

If I live in PA and inherit money from someone in Ky. do I have to pay PA inheritance tax?

Ken

[trackstar13]

Originally Posted by millwkr301

If I live in PA and inherit money from someone in Ky. do I have to pay PA inheritance tax?

Ken

The short answer is it depends and I recently inherited money from a relative in Ohio and I didn't have to pay estate tax, but I had to pay income tax in PA on the inherited money. I highly recommend you work with an accountant and there should be an accountant working with the estate attorney if there is one. Sorry I couldn't be more specific, but estates are complicated, especially if you are dealing with trusts, life insurance, property, etc.

[jdhpa]

From the PA Department of Revenue I would say it depends on where it was located when the person died, but you should check with a CPA (or contact the Department of Revenue directly):


https://revenue-pa.custhelp.com/app/...OEhzLSpqTW8%3D

"All real property and all tangible personal property of a resident decedent, including but not limited to cash, automobiles, furniture, antiques, jewelry, etc., located in Pennsylvania at the time of the decedent's death is taxable. All intangible property of a resident decedent, including stocks, bonds, bank accounts, closely held business interests, loans receivable, etc., is also taxable regardless of where it is located at the time of the decedent's death.

In the case of a nonresident decedent, all real property and tangible personal property located in Pennsylvania at the time of the decedent's death is taxable. Intangible personal property of a nonresident is not taxable."

[Wells5]

No.

[trackstar13]

"Pennsylvania resident beneficiaries of estates and trusts must report income received or credited from estates or trusts on their PA-40 Pennsylvania Personal Income Tax return as a separate class of income—“income derived through estates or trusts”—for Pennsylvania personal income tax purposes."
https://www.revenue.pa.gov/FormsandP...%20beneficiary.

[Wells5]

Originally Posted by trackstar13

"Pennsylvania resident beneficiaries of estates and trusts must report income received or credited from estates or trusts on their PA-40 Pennsylvania Personal Income Tax return as a separate class of income—“income derived through estates or trusts”—for Pennsylvania personal income tax purposes."
https://www.revenue.pa.gov/FormsandP...%20beneficiary.

That is income from estates or trust. The actual inheritance principal is not subject to PA inheritance tax if the decedent is not a PA resident at the time of death.

[trackstar13]

Originally Posted by Wells5

That is income from estates or trust. The actual inheritance principal is not subject to PA inheritance tax if the decedent is not a PA resident at the time of death.

You are both right and wrong. Inheritance of trust principal distributions from out of state pre-tax retirement accounts such as annuities are subject to PA income tax. However, you are correct that inheritance principal is not subject to PA inheritance tax. I literally just went through this with my recent inheritance and had to hire an accountant because I inherited several different types of retirement funds that passed through multiple trusts and the tax filing was complicated. I highly recommend that the OP hire an accountant to help with this situation unless it is very straight forward.