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Mom died Wednesday. My brother is saying that we can be 'gifted' $13000 without having to pay any taxes in PA. Is this true if the person has died? Also, could the gift for more than one person be deposited into one account?
Optional Information: Country relating to Question: United States State (if USA): Pennsylvania Already Tried: New situation
Good morning. Once a person has died, no more gifts can be made by that person. The estate is what it is at the date of death. Whether or not there are any estate and/or inheritance taxes due depends upon the amount of the estate as of death. No gifts can be made after death that will reduce the amount of the estate.
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In Pennsylvania, is there an amount that is exempt from estate taxes? The total amount of Mom's estate is probably less than $125,000. We don't want to face problems down the road by not doing things correctly
Did you see my reply with request for additional information?
Relist: Incomplete answer.
I'm sorry for the delay....took a break to go to church.
Pennsylvania imposes an inheritance tax based on the value on the date of death of a decedent's taxable assets less the amount of allowable deductions. The tax rate is determined by the relationship of the beneficiaries to the decedent and can be 0 percent (spouse); 4.5 percent (lineal heirs - children, grandchildren, etc.); 12 percent (siblings - brother/sister) or 15 percent (collateral heirs - everyone else!)
Experience: 29 Years Practicing Law - Including Tax and Estate Planning