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COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280601
HARRISBURG, PA 17128-0601
Telephone
(717) 787-8014
July 14, 2007
Daniel R. Coldren
536 West Cumberland Road
Enola, PA 17025
Re: Estate of Linda C. Cohen
File Number 21 06-0489
Dear Mr. Coldren:
This is in response to your note of July 2, 2007 concerning the balance due on the joint
savings account you held with the decedent at PNC Bank. You indicate that you gave all the
money to the decedent's son, your grandson, and therefore did not receive the benefit of the
funds.
Please be advised that Inheritance Tax is a tax on the transfer of the funds at death, not
a tax on who ultimately ends up with the funds. Because at your daughter's death, you were an
equal joint owner on the savings account on deposit at PNC Bank, the funds became solely
yours at her death. Therefore, you are responsible for tax at a rate of 4.5% on the value of the
account. What you do with the funds after that date is up to you, but you are still responsible for
the tax due on the transfer of the funds to your possession on March 23, 2006.
I trust the above information is satisfactory; however, should you require additional
assistance, please feel free to contact me.
N
<:)
Steven Jame
Tax Account Collection Technician
Post Assessment Review Unit
Inheritance Tax Division
Fax (717) 772-0412
sjames@state.pa.us
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