Inheritance tax is a tax assessed by the state as a percentage of the value of a decedent’s estate transferred to beneficiaries by will, heirs by intestacy and transferees by operation of law. The tax rate varies widely depending on the relationship of the heir to the decedent.

The rates for Pennsylvania inheritance tax are as follows:

  • 0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger;
  • 4.5 percent on transfers to direct descendants and lineal heirs;
  • 12 percent on transfers to siblings; and
  • 15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities exempt from tax.
Property owned jointly between spouses is exempt from inheritance tax.
Certain farm land and other agricultural property may be exempt from Pennsylvania inheritance tax, provided the property is transferred to eligible recipients.

Key aspects of our strategy

Seeking ways to minimize the Pennsylvania inheritance tax.

Knowing when to pay the Pennsylvania inheritance tax and the benefit of paying early.

Converting one type of asset for another.

Surprising Facts at a Glance

Social Security Income

Percentage of an average wage earner’s income after retiring that is replaced by Social Security.

Will or Trust?

Percentage of survey respondents in the 53 to 71-year-old age group that have a will or living trust.

Long-Term Care

Percentage of people over 65 that can expect to use some form of long-term care.