Are you a parent of a child or children under 21? If so, then this update is for you.
On June 28, 2019, Governor Wolf approved HB-262, which amends Pennsylvania's Inheritance Tax law by updating the inheritance tax rate for children age 21 or younger who inherit assets outright or in trust from their parents.
The last amendment to the Inheritance Tax law was in 2000, which changed the inheritance tax rate from 4.5% to 0% for property passing transferred from a child age 21 or younger to a natural parent, adoptive parent, or step-parent.
However, property transferred from the parent to a minor child was, until now, still subject to a 4.5% inheritance tax rate.
The new law changes that tax rate from 4.5% to 0% for children age 21 or younger who inherit assets from a natural parent, adoptive parent, or step-parent.
The amendment to the Inheritance Tax rate is effective for dates of death on or after January 1, 2020.
For more legal updates or to update your Wills or Trusts, contact David M. Frees, III or Douglas L. Kaune today at (610) 933-8069 for information regarding the recent changes in the Pennsylvania Inheritance Tax law.
The estate partners of UTBF represent thousands of clients regarding their estate and trust planning, including clients from Chester County, Montgomery County, Delaware County, Philadelphia County and Lancaster County and many clients from communities such as Wayne, Berwyn, Devon, Paoli, Exton, Phoenixville, West Chester, Malvern, Chester Springs, Ardmore, Bryn Mawr, Villanova, Rosemont, Newtown Square, Gladwyn and surrounding areas.