How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15318
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

Is it possible for my children to avoid inheritance tax on

This answer was rated:

Is it possible for my children to avoid inheritance tax on my house and property?

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
Pennsylvania collects an inheritance tax when property is left to people who weren’t closely related to the deceased person. The tax rate depends on how closely the inheritors and deceased person were related—the closer the family connection, the lower the tax rate.
This classification determines the tax rate that is applied to the value of the inherited property. Your children would be in a Class A. Members of Class A pay a 4.5% inheritance tax on what they inherit.
If you transferred the assets prior to your passing you would be required to report the gifts but you would not pay tax unless you are over your lifetime limit.
This would also mean that your children would not receive the step up in value and may owe tax when the dispose of the property.

Customer:

Essentially then, they will pay the taxes now or later.

Robin D. :

Yes, unfortunately. If you you did gift they may pay more on sale because their basis may be very low (depending on your basis which they would retain in a gift situation).

Customer:

Thank you, Robin.

Robin D. and other Tax Specialists are ready to help you