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Absolutely, and thank you for your comment. I almost cut that part out of the video, as it was initially meant to be a video on estate administration, but I thought the comparison to trust administration would be useful. Thanks for watching!

Good mention. I am in Pennsylvania and many people need to know for their loved ones or their own planning, so this would be very helpful. I am very glad to have found this channel. Ty-John's wife

@@johnkelly9451 I would like to know more about your channel and how to talk to you

Thank you for watching! I am glad you find the content helpful!

@@AttorneyFredLong yeah

My pleasure! Thank you for watching!

@@hmcdaniel10 great points! This is where a Donor Advised Fund can be useful. It allows an individual taxpayer to bunch contributions and take an immediate tax deduction in the taxable year the contribution is made, but spread out the distributions to charitable organizations over a longer period of time. Check out the videos on Donor Advised Funds!

If it is a true joint account and if you were a joint owner of the account, then yes, you will owe inheritance tax. There are many deductions that you may claim to reduce the amount of inheritance tax, but the nuances are beyond my ability to explain in this setting. My fear is crossing over the line of giving you actual legal advice, without knowing all of the relevant facts. My recommendation is that you contact the Pennsylvania Department of Revenue, or that you find a reputable estate attorney to guide you. You may want to start with the Pa. Dept. of Revenue to see if they can answer all of your questions and, thereby, save some costs of hiring an attorney.

@@AttorneyFredLong Thank you for the quick response. What happens if my mom should pass away? Do I pay inherited tax again on the same money that I paid when my dad passed?

@@antdel2309 Generally, no. Assuming this was truly a joint account, whereby you are each deemed to own a 1/3 interest - at the death of the first parent, you will owe tax on the 1/6th portion that passes to you (your mother's 1/6 portion that she received from your father's interest is exempt). If the account is still joint at your mother's death, you would owe tax on her 1/2 interest that passes to you.

Yes, it is considered a reimbursement for expenses of estate administration. Thank you for your question!

@@AttorneyFredLong Thank you for the videos and the answer!

@@MrFunchess1639 You’re welcome. Thank you for watching!

Hello! Thank you for your question. It makes perfect sense, but it is incredibly complicated! The short answer is yes, the PA Department of Revenue will have a lien against the real estate until the inheritance taxes are paid. The tricky part is that if no estate has been opened on behalf of the decedent, there isn't a person (executor or administrator) who is responsible for filing a PA Inheritance Tax Return to report the taxes, and seek approval that the appropriate amounts were paid, and without approval the lien may continue. The FMV is another tricky question; a lot depends on timing. i.e. how long ago the person has died. If it was more than 15 months ago, the Department of Revenue may not accept the sale price as FMV, in which case you would use the assessment times the Common Level Ratio (at the date of death) OR a retroactive appraisal. My recommendation is to contact the Department of Revenue and negotiate a Release of Lien. Purchasing real estate at a tax sale can be incredibly risky, and you likely will not be able to obtain title insurance, and neither will a potential buyer if your plan is to sell the property later. I highly recommend that you consult with a VERY GOOD real estate attorney in your county. Personally, I do not represent clients for these types of transactions because they are complicated and risky. Good luck!

@@AttorneyFredLong YES! i did try and call the PA DoR of course I sat on the phone forever and did not get any answers. I ended up buying a low cost property to see how it all pans out.. I paid $3500 total. The guy died in 10/2020 he has a son but the son took off to FL and just left everything to tax sale. the Register of Wills has his death filed but on the amount of the estate it says Unknown.. So there isnt an actual Lien on the property noted in the Prothonary Computer.. I will get the deed in January.. I know that i cant get TI with out Quieting the title which i likely wont do because its not worth it.. I just want to see when and how i will get hit with the Inheritance tax.. You think I should contact PA DofR again and follow up with the documents from the Register of Wills? This was the Upset Sale so everything goes with the property.. I wouldn't even worry about it if this was the Judicial Sale because everything would be wiped out.. Thank you for your response.. gave me some info to follow up with.. I just dont see the lien anywhere and I dont know if me taking the property puts me in the new posion of being an Executor? That would then file this on behalf of the deceased?

@@melyssaExplainsItAll The Department of Revenue has a statutory lien for non-payment of inheritance tax. You can think of it an an automatic lien that does not need to be filed or recorded as a lien against the property. Good luck!

Thanks for pointing that out! Transfers to an irrevocable trust would avoid inheritance tax if the transfer was made more than one year from the date of death. An irrevocable trust that is funded at death, or a transfer made within one year of death, would be subject to inheritance tax. I appreciate your feedback. Thanks for watching!

@@AttorneyFredLongCould you provide a video or guidance on establishing irrevocable trusts to avoid PA Inheritance Tax?

​@@brittchapman550 Thank you for your question! Irrevocable trusts are much more commonly used for federal estate tax planning because the federal estate tax are 40% under current laws. In Pennsylvania, however, the inheritance tax rates are relatively low-ranging from 0% to 15%, depending on the beneficiary’s relationship to the decedent. As a result, we work with fewer people to set up trusts fr the purpose of avoiding Pennsylvania Inheritance Tax. But, that is not to say that it shouldn't be a consideration; you'd just have to look at the numbers to see if it makes sense. The main idea behind using an irrevocable trust for tax purposes is that the Grantor (the person setting up the trust) needs to make a completed gift. This means they give up control over the assets by transferring them into the trust. Once the money or property is in the trust, the Grantor no longer has access to it, for the most part. When the Grantor passes away, because they gave up control during their lifetime, the assets in the trust can avoid inheritance tax altogether. Does this match the information you're looking for, or is there a specific aspect you'd like to explore more?

No, the law applied depends upon the state of the decedent's primary residence. If an out-of-state resident passes away, and a beneficiary of the decedent's estate lives in Pennsylvania, the laws of state in which the decedent resided apply, not Pennsylvania law. Thanks for watching!

Thanks for watching!

Thanks for watching!

Thank you for your inquiry! This is a topic that I have in the pipeline for videos to create. The rules surrounding inheritance tax exemptions for family farms and agricultural use land are quite complex, and - frankly - the statutes that address them are poorly drafted, adding to the complexity. My hope is to address them in a video by the end of the year.

Thank you for your support!

Thank you for the kind words and feedback!

Thanks for the kind words and support!

Hello! I do not have a video like that, and I have not come across any. The Inheritance Tax can be quite complex in some cases; but, maybe it would be a good idea to create a video covering the very basics...I will definitely consider that. I know that the PA Dept of Revenue has some good resources and the instructions are very helpful. I do have two follow-up videos discussing the tax rates and exclusions from tax, which I hope could provide some additional guidance for you as well.

Thank you so much for your fast response. I have the REV 1500 forms A I J H K pages. I have some instruction forms but honestly this is ALL Greek to me! I appreciate you even taking the time to answer me. Kind of shocked that you did. You are very informative. I’ve just been going in circles. No one teaches you about these things, no one talks about it in my experience.No one I know knows anything about this kind of situation so even if your video is too late for me, I am sure it will help someone else. I was trying to avoid paying for a lawyer but looks like that is my only option left. Thank you again.

@@CarlyUTubeYou're very welcome. That is the goal of the channel; to provide as much education and helpful tools as possible. Ultimately, it is each person's choice to handle their affairs on their own or hire a lawyer. A good and reputable estate planning/administration lawyer can provide tremendous value. This area of the law can get complicated very quickly.

Thank you for watching and for your support!

Thank you for your support, Krystle!

To obtain preferential tax treatment, it must be an irrevocable trust

Yes. A Roth IRA is subject to PA Inheritance Tax. A Roth IRA is a viable option for gifting because liquidations are not subject to income tax. However, I also like income tax benefits of an inherited Roth. Often, the beneficiary of an inherited Roth IRA receives at least 10 years of growth completely free of income tax. At the very least, it should be a consideration if you're interested in making gifts from a Roth IRA. Thanks for watching!

Thank you sir we’re in our mid 60s have significant savings for Retirement and I’m glad I found your channel and will continue to learn from you!

@@jpturner171 Thank you for the kind words and for your support!

Thank you Greg! I appreciate your kind words and support!

Thank you for watching! Yes, unfortunately, the entire IRA is subject to PA Inheritance Tax. The only exception is if the decedent was 59 1/2 years or younger at the time of death, in which case the entire IRA is exempt from PA Inheritance Tax. Thanks again for the kind words!

No, assets are taxed based upon where a decedent is domiciled (permanent residency) at the time of their passing. The only exception is if the decedent owned real estate or other property that is physically located in Pennsylvania. For example, if a resident of NY dies owning real estate in PA, the PA real estate is subject to PA inheritance tax. The domicile of a beneficiary is not relevant. I hope this helps, and thank you for watching!

Thank you

Thank you! I am not sure whether Maryland has Hot Powers. I definitely recommend meeting with a local estate planning attorney who is licensed in your state. Thanks for watching!

I touch on that issue briefly in the video about Intestacy Laws. Good idea for a future video focusing on that question!

Great question! Often, a Will directs the executor to pay estate and inheritance tax out of the estate assets. In that case, the executor will pay the taxes from estate assets, first, and then make distributions to beneficiaries; the beneficiaries will not owe any tax on his or her distribution, as it has already been paid by the executor from estate assets. If, however, the Will is silent on who pays the tax, PA law says that inheritance tax is the responsibility of the person who receives the asset. This can become problematic when an asset passing outside of probate (IRA, joint account, POD account) goes directly to the beneficiary, if they are not aware that THEY owe the tax.