The Inheritance Tax and the Estate Tax can be imposed on Pa estates
Unlike the income tax, which is very descriptive in its title as it is imposed upon your income, the phrases "Federal Estate Tax" and "Pa Inheritance Tax" are misnomers that may tend to belie the actual fact that these are taxes imposed by virtue of your death.
The Federal Estate Tax begins at a wealth threshold. If you possess less than the wealth threshold at your death, the federal estate tax will not be applicable. If it is applicable, the tax is imposed on a percentage scale according to the amount of wealth (i. e. , potentially 47% of the value of your assets above the current $1,500,000. 00 wealth threshold). This threshold has been, is, and is scheduled to continue to increase. In 2005, the threshold is $1,500,000. 00; in 2006, 2007, and 2008, the threshold is $2,000,000. 00; in 2009, the threshold is $3,500,000.00; in 2010, the Federal Estate Tax is scheduled to be eliminated; but in 2011, the Federal Estate Tax is scheduled to return with a threshold of $1,000,000.00. The Pennsylvania Inheritance Tax has no wealth threshold and starts immediately. It is imposed on a percentage based on the relationship of the beneficiary. Spouses and Charities are taxed at a 00.00% tax rate, lineal descendants are taxed at a 4.50%, brothers and sisters (but not brothers-in-law nor sisters-in-law) are taxed at a 12.00% tax rate, and everyone else is taxed at a 15.00% tax rate.
John B. Whalen, Jr., J.D., LL.M. is an
AV Peer Review Attorney and Counselor at Law and a member of the
Bar Register of Preeminent Lawyers. He has had his legal articles published on the Martindale.Com website and his law blogs published on the Lawyers.Com website.
John concentrates his legal practice solely in the areas of
Estate Law,
Estate Planning,
Estate Administration,
Executor Representation,
Probate, Ancillary Probate,
Last Wills, Decedents Estates,
Powers of Attorney, Advance Directives, Trust Law,
Living Wills,
Fiduciary Law,
Inheritance,
Inheritance Tax, Trusts and Estates, Trust Administration, Cemetery Law, Tax Law, Estates Taxation, and
Estate Planning for Unmarried Couples.
John serves, and has served, individuals and attorneys in the Southeastern Pennsylvania Metropolitan Area (and throughout the country), including Chester County Pa, Delaware County Pa, Lancaster County Pa, Montgomery County Pa, and Philadelphia County Pa.
John has served clients in Ambler Pa, in Ardmore Pa, in Aston Pa, in Berwyn Pa, in Blue Bell Pa, in Bridgeport Pa, in Broomall Pa, in Bryn Mawr Pa, in Chadds Ford Pa, in Chesterbrook Pa, in Chester Heights Pa, in Chester Springs Pa, in Coatesville Pa, in Collegeville Pa, in Conshohocken Pa, in Devon Pa, in Downingtown Pa, in Drexel Hill Pa, in Eagleville Pa, in Easttown Pa, in Elkins Park Pa, in Exton Pa, in Frazer Pa, in Great Valley Pa, in Haverford Pa, in Havertown Pa, in Jeffersonville Pa, in Kennett Square Pa, in King of Prussia Pa, in Lansdale Pa, in Limerick Pa, in Linfield Pa, in Linwood Pa, in Lower Merion Pa, in Malvern Pa, in Media Pa, in Narberth Pa, in Newtown Square Pa, in Norristown Pa, in Oaks Pa, in Overbrook Pa, in Paoli Pa, in Parkesburg Pa, in Phoenixville Pa, in Plymouth Meeting Pa, in Pottstown Pa, in Radnor Pa, in Ridley Park Pa, in Rosemont Pa, in St. Davids Pa, in Springfield Pa, in Strafford Pa, in Swarthmore Pa, in Thorndale Pa, in Tredyffrin Pa, in Trooper Pa, in Upper Merion Pa, in Valley Forge Pa, in Villanova Pa, in Wayne Pa, in West Chester Pa, in Westtown Pa, in Whitemarsh Pa, in Willistown Pa, in Wynnewood Pa, and in Yeadon Pa.