“Information Bits from the Boss: Samantha provides brief answers to clients frequently asked questions”
What if I have beneficiaries that live in another state, does Pennsylvania inheritance tax apply when I die?
Pennsylvania inheritance tax is a tax that is on the beneficiaries right to receive assets as a result of a Pennsylvania resident passing away. For example, If I pass away, and I leave my assets to my nieces or nephews and I lived in Pennsylvania at the time of my death, my nieces or nephews would be subject to Pennsylvania inheritance tax and the rate at which they pay tax would depend on the relationship to me. As nieces and nephews, they would pay 15% inheritance tax. That tax would apply whether or not those nieces or nephews actually lived in Pennsylvania. I do have a niece and a nephew who live out of state, so they would still have to pay Pennsylvania inheritance tax at a rate of 15% because that’s the state that I lived in at the time of my passing. If you have additional questions, please contact our office.