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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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My mother recently died. Left a total of approx 50 k to 3 surviving

Customer Question

My mother recently died. Left a total of approx 50 k to 3 surviving children. Mother and children all residence of Pa. Oldest sibling was also listed jointly on account where all funds reside. How do we go about resolving the inheritance tax.
Submitted: 2 years ago.
Category: Tax
Expert:  Stephen G. replied 2 years ago.
Hello, my name is***** & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.
The child who is listed as the joint owner of the account will need to file
PA Form REV-1500 (INHERITANCE TAX RETURN RESIDENT DECEDENT) & pay the inheritance tax.
The form is available online at the PA Department of Revenue website & should be filed as follows:
Bureau of Individual Taxes
PO BOX 280601
Harrisburg, PA###-##-####
Here's a link to the PA Department of Revenue for the Inheritance Tax Form.
The way that the PA law works is that in the case of Joint Accounts, the amount subject to the inheritance tax is the total amount in the account at the decedent's date of death, divided by the number of Joint owners of the account.
Unfortunately, even though the intention is to split the funds equally among your mother's children, you will only be allowed to reduce the balance in the account by 1/2 if your oldest sibling is the only Joint Owner on the account.
So, for example if the total in the account was $50,000. at your mother's date of death, then $25,000. will be subject to tax at 4.5%.
$25,000. x 4.5% = $1,125.
Also, if the tax is paid within 3 months of the date of death, there is a 5% discount. ($1,125 x .05 = $56.25).
Expert:  Stephen G. replied 2 years ago.
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