Attorneys Representing Individuals with Tax Consequences of Administering an Estate
While most estates in Pennsylvania are exempt from the federal estate tax, the same cannot be said of the Pennsylvania inheritance tax. Pennsylvania assesses an inheritance tax on property owned by resident and nonresidents. If this tax is not paid within nine months of the decedent's death, interest and penalties begin to accrue.
At the Law Office of Stephen Ross in Pottstown, our lawyers have the experience required to help personal administrators pay all necessary state and federal taxes upon a loved one's death. We can also assist you with tax planning to help you minimize taxes and take advantage of all possible exemptions.
Taxation of estates can be complex in Pennsylvania and can cost the estate a lot of money if not handled correctly. Personal administrators can be personally liable for taxes and penalties if the estate is distributed to beneficiaries before taxes are paid.
Do I Owe Federal Estate Taxes?
Congress passed legislation that amends the federal estate tax to exempt estates of less than $5 million per person and $10 million per couple with a maximum tax rate of 35 percent. However, this exemption only applies for the 2011 and 2012 tax years. Unless congress takes further action, in 2013 the exemption will be reduced to $1 million per person with a maximum tax rate of 55 percent. Anyone with significant real estate or retirement savings accounts could be affected.
Our lawyers offer estate planning services to minimize the amount of estate taxes you may own. For example, by placing assets in an irrevocable life insurance trust, assets can be removed from the estate and distributed directly to beneficiaries.
Contact Our Reading Estate Tax Planning Attorneys Today
Our attorneys are ready to help you get positive results. Contact us for more information about the Pennsylvania tax consequences of administering an estate. We serve Pottstown, West Chester, Reading, Norristown, King of Prussia, Limerick, Lansdale, Spring City, Philadelphia and surrounding communities in Pennsylvania.