David from Hamlin asks, “How much money do I owe in Pennsylvania inheritance tax?” In Pennsylvania, an estate owes inheritance tax on the net estate or the property and money left after expenses are paid. The amount of tax owed depends on the relationship the beneficiary had to the decedent. For example, a charitable bequest, no tax is owed. Children, or what are referred to as issue, owe 4.5 percent tax rate. Siblings owe 12 percent and all others owe 15 percent. Unlike an income tax return, estates come under the scrutiny of Orphans Court and, in addition to the tax return, a final accounting has to be approved by the court. It’s always a good idea to have a will prepared and talk to an attorney about effective ways you can reduce your tax consequences.
