Death Taxes: What to Expect
How Death Taxes in Philadelphia affect your Inheritance
The death of a property owner in Philadelphia can trigger several taxes. Your estate may be subject to income taxes, inheritance taxes, capital gain taxes, and estate taxes. You must learn how taxes affect your assets when writing a will and subdividing your wealth to the children.
Luckily, Philadelphia estate planning & business law attorneys can help to write a will that equalizes the benefits for your beneficiaries. When death occurs in Philadelphia, the property of the deceased, when it is not in a funded living trust, will go through a probate process for management and eventual distribution.
The Probate Procedure
Probate refers to the transfer of the assets deceased’s name to the beneficiaries’ names.
Probate may include the following steps:
• Filing your claim with the Philadelphia Register of Wills
• Notifying the heirs of the property owner’s demise
• The appointment of the estate executor or administrator.
• Payment of debts to the creditors.
• Payment of Federal and inheritance taxes.
• The transfer of property to the heirs.
The Last Testament
The probate process allows the heirs to prove the will. When the deceased person does not have a testament, Pozzuolo Rodden P.C., a lawyer who understands the probate process and estate administration, is ready to help always.
The probate process is time-bound, so you should ask Philadelphia estate planning & business law attorneys for legal assistance as soon as the property owner passes on. The lawyer’s brief must include giving notice to the creditors.
Inheritance Tax in Philadelphia
Your Philadelphia PA estate planning attorney can take you through the inheritance tax process to avoid disputes with the IRA in future. Currently, there is a 0% tax on the property that the spouse inherits and a 4.5% tax if the property goes to the children. When the siblings get the inheritance, taxation is at 12%. Any other inheritor pays a 15% tax.
Tax Exemptions on Inheritance
The beneficiaries who pay their taxes not more three months after the owner’s demise can benefit from a 5% discount. Pozzuolo Rodden P.C. can offer guidance on the several other exemptions that reduce the inheritance tax.