In Pennsylvania, there is an inheritance tax, which is based on the gross estate value. The tax return must be filed within nine months after the death of the descendent (of Bucks County). Beneficiary taxpayers might qualify for deductions when they file their income tax returns. An additional tax payment is required and is payable to the Register of Wills of Bucks County in Pennsylvania (within nine months after the descendent dies).
Inheritance planning and taxation is a complex thing for people to deal with alone. It is always wise to seek assistance from an expert in this field. A Bucks County estate planning attorney has extensive knowledge regarding inheritance and estate taxes. Olen Law Office has served clients in Pennsylvania for many years; assisting them with all their tax questions, helping them file the proper income tax returns (on time), and assisting them with filling out the forms properly.
According to the Pennsylvania Department of Revenue, Forms 706 (a Federal Form) and the PA Inheritance Tax Return REV-1500 must be filed at the Register of Wills of Bucks County. If the taxpayer must pay federal estate taxes, he or she must file a Federal Estate Tax Return (Form 706). These forms must be prepared accurately and filed within the deadline.
The amount of tax you might pay is based upon different criteria (type of family or other kind of relationship the beneficiary had with the person who left the inherited property):
Beneficiary Tax Rate
Lineal descendants: (children, grandchildren, etc.) 4.5%
An additional reduction in taxes is available regarding inheritance tax in Pennsylvania as well. If you, the beneficiary, files the adequate tax forms within three months of the descendant’s death, you can lower your tax debt by 5% more (besides other allowable deductions).
It takes a skilled Bucks County estate planning lawyer who has prepared several inheritance tax returns to assist taxpayers and help them pay less taxes on inherited property. There are several tactics that can be utilized regarding taxation of inherited real estate, assets and/or cash; all of which can be used to help you save money and stress. The estate planning lawyers at Olen Law Office prepare these types of tax forms daily and have served clients for years and helped them pay less taxes.
For those in need of an attorney regarding inheritance tax, contact Olen Law Office today to begin building your defense. We are here to help you.