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Ask Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 36595
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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My father gifted me his guns on 1/14/2014 and passed away on

Customer Question

My father gifted me his guns on 1/14/2014 and passed away on 12/16/2014. Are these considered part of the estate? Do I need to pay inheritence taxes? I have a signed letter by him that all ownership was transferred, witnesses of him signing the letter, and people who witnessed him giving me the guns. State is PA
Submitted: 2 years ago.
Category: Estate Law
Expert:  Barrister replied 2 years ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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""Are these considered part of the estate?""
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No, these would be intervivos gifts that would take those assets out of the estate.
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""Do I need to pay inheritence taxes?""
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No, there are only 6 states that still have an inheritance tax, and Ohio isn't one of them. Since they are not assets in his estate, there would also not be any estate taxes due.
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There could be potential gift taxes due from father's estate if the value is over the $14K annual gift tax exemption amount, but his executor could avoid any taxes by filing an IRS Form 709 with his final taxes and using up a small portion of his $5.34 million dollar "lifetime gift tax exemption".
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So bot***** *****ne is that these aren't part of the estate and there would be no taxes due from you at any point.
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thanks
Barrister
Customer: replied 2 years ago.
Barrister. I live in Ohio. But this is Pennsylvania we are talking about..What significance is section 9107 (c) (e)of the Pennsylvania Probate code mean?
Expert:  Barrister replied 2 years ago.
Sorry about that, I saw Ohio as the state and read over the PA part..
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PA is one of those 6 inheritance tax states I was talking about..
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Unfortunately, PA considers a gift made within one year of death as being taxable under PA Inheritance and Estate Tax Act
(3) A transfer conforming to subclause (1) and made within one year of the death of the transferor is subject to tax only to the extent that the value at the time of the transfer or transfers in the aggregate to or for the benefit of the transferee exceeds three thousand dollars ($3,000) during any calendar year.
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So if the guns are worth less than $3K, then there is no tax assessed.
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thanks
Barrister