- Someone who dies with a written will is said to die "testate." A person who dies without a written will is said to die "intestate."
- Courts generally honor the wishes of a person who makes a written will distributing her property. Pennsylvania's special rules on dividing up property when someone dies without a will are called "intestate succession" and dictate fixed percentage distributions of property in varying amounts to lineal and collateral descendants.
- Inheritance tax rates vary based on the closeness of the relationship between the decedent and the beneficiary, including:
* to a surviving spouse - 0%;
* to lineal heirs (children/grandchildren and their spouses,etc.) 4.5%;
* to siblings (brother/sister) - 12%; and
* to collateral heirs (nephew/niece, aunt/uncle, friends, etc.) - 15%. - Certain transfers of property that occur following someone's death are not subject to Pennsylvania inheritance taxes. One example is proceeds of life insurance on the life of the decedent.
- In Pennsylvania, property is usually valued for inheritance tax purposes as of the date of the transferor's death, though for some types of property, alternate valuation dates are permissible.
Testate or Intestate: Meaning
Testate or Intestate: Significance
Rates of Inheritance Tax on Transfers
Transfers Not Subject to Tax
Valuation of Estate Property
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