Pennsylvania law provides an easy way to save 5% on inheritance tax. Simply make an estimated payments within three months of the date of death.

Suppose you are the executor for the estate of your mother, who died August 1. She had assets estimated, after allowable deductions, to be worth $1 million. Her will leaves those assets to her children.

Pennsylvania taxes inheritance to children at the rate of 4.5%. Estimated tax on your mother’s estate would be $45,000 ($1 million X 4.5% = $45,000).

You will save $2,250 (5% of $45,000) by making an estimated payment on or before November 1, the third month anniversary of your mother’s date of death.

For best results in estate administration, use the services of an experienced estate administration attorney, who can help you look for ways to save taxes and maximize the estate for beneficiaries.

Related Posts

Who has capacity to make a will?

Who has capacity to make a will?

Fundamental to the validity of any last will and testament is that the testator (person whose will it is, and who is signing the documents) had capacity at the time of execution. By statute, a testator in Pennsylvania must be “of sound mind” to make a will. (20 Pa....

Share This