Being Organized Can Help Save Taxes on Your Estate in Pennsylvania

Posted January 18, 2023

  • Being Organized Can Help Save Taxes on Your Estate in Pennsylvania

Picture this scenario, your employment is the job of your dreams. You earn a wage that provides for your family now and into the future, including retirement. Then, the unthinkable happens, and you pass away unexpectedly. This scenario is scary, but it is not out of the question. This is especially true in light of the COVID-19 pandemic, which claimed the lives of many, far too soon. Most people dislike discussing the inevitable, much less planning for it. However, a little planning and organization now can save taxes on your estate later. These tax savings can be a significant amount of money for your family.

Pennsylvania’s Inheritance Tax Return

The Pennsylvania Department of Revenue requires an Estate to complete an inheritance tax return within nine months of the date of death. If an inheritance tax return is not timely filed, the Estate could face a penalty of 25% of the tax due or $1,000.00, whichever is lesser. The Department of Revenue offers a 5% discount on the tax due for Estates that file the inheritance tax return within three months of the date of death.

Depending upon the value of the Estate and the specific beneficiaries of the Estate, this can be substantial savings. It is important that your Estate plan is organized and easily accessible to your Personal Representative. Equally as important is having a Personal Representative with strong organizational skills. Accordingly, your Personal Representative can work quickly towards gathering the assets of your Estate. Likewise, they can file the necessary Pennsylvania inheritance tax return to maximize these potential savings for your Estate.

If you have any questions about your Estate plan, contact Bill Hutcheson. Bill works with clients and their Personal Representatives to make sense of Pennsylvania’s inheritance tax filing requirements. He can also assist with potentially saving taxes on your Estate.

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