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Home My WebLink About12-05-07 BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION PO BOX 280601 HARRISBURG PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE RECORDED Gf-FICE CFINHERITANCE TAX (' LSRECORD ADJUSTMENT Z001 DEe - 5 AMII: t. 2, DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN 10-18-2007 TRACE 02-15-2006 21 06-0418 CUMBERLAND 101 CLERK OF ORP\-l.L,J",,;:') C~Ol.JRT JAMES A ULSH ESQ CU'/Y~ - ,-'n Db METTE EVANS & WOODSIDE PO BOX 5950 HBG PA 17110-0950 Amount Remitted * REV-1593 EX AFP (03-05) ROBERT J MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE --+ RETAIN LOWER PORTION FOR YOUR RECORDS +-- NOTE: To insu~e p~ope~ c~edit to you~ account, submit the uppe~ po~tion of this fo~m with you~ tax payment. REV-1593 EX AFP (03-05) .. INHERITANCE TAX RECORD ADJUSTMENT .. --------------------------------------------------------------------------------------------------------------------------------------- ESTATE OF TRACE ROBERT J FILE NO. 21 06-0418 ACN 101 ADJUSTMENT BASED ON: VALUE OF ESTATE: PROTEST BOARD DECISION 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Stock/Pa~tne~ship Inte~est (Schedule C) 4. Mo~tgages/Notes Receivable (Schedule D) 5. Cash/Bank Deposits/Misc. Pe~sonal P~ope~ty (Schedule E) 6. Jointly Owned P~ope~ty (Schedule F) 7. T~ansfe~s (Schedule G) 8. Total Assets (1) .00 (2) .00 (3) .00 (4) . 00 (5) .00 (6) 117,247.18 (7) 3,981,238.45 (8) DEDUCTIONS AND EXEMPTIONS: 9. Fune~al Expenses/Administ~ative Costs/ Miscellaneous Expenses (Schedule H) (9) (0) 95,430.00 644,426.21 (1) (2) (3) (4) 10. II. 12. 13. 14. Debts/Mo~tgage Liabilities/Liens (Schedule I) Total Deductions Net Value of Tax Retu~n Cha~itable/Gove~nmental Bequests; Non-elected 9113 T~usts (Schedule J) Net Value of Estate Subject to Tax TAX: 15. 16. Amount of Line 14 at Spousal ~ate OS) .00 X 00 Amount of Line 14 taxable at Lineal/Class A ~ate (6) 3,116,457.55X 045= Amount of Line 14 at Sibling ~ate (7) .00 X 12 = Amount of Line 14 taxable at Collate~al/Class B ~ate (8) 242 ,171. 87 X 15 = Tax Due (9) + INTEREST/PEN PAID (-) 4,736.84 1,052.63 526.32 .00 NUMBER AMOUNT PAID DATE 05-15-2006 CD006697 05-15-2006 CD006698 05-15-2006 CD006699 11-15-2006 CD007450 INTEREST IS CHARGED THROUGH 11-02-2007 AT THE RATES APPLICABLE AS OUTLINED ON THE REVERSE SIDE OF THIS FORM 90,000.00 20,000.00 10,000.00 33,826.41 TOTAL TAX CREDIT BALANCE OF TAX DUE INTEREST AND PEN. TOTAL DUE * IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. DATE 10-18-2007 4,098,485.63 739,856.21 3,358,629.42 .00 3,358,629.42 .00 140,240.59 .00 36,325.78 176,566.36 160,142.20 16,424.16 1,245.71 17,669.87 ( IF TOTAL DUE IS LESS THAN tl, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) ~ r , . BOARD OF APPEALS POBox 281021 HARRISBURG, PA 17128-1021 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE ......................:;.;01::::.. ..:.i I) . "\{:: ~, . I . JAMES A ULSH ESQ METTE EVANS & WOODSIDE PO BOX 5950 HARRISBURG PA 17110-0950 IN RE ESTATE OF: TRACE ROBERT J DOCKET NO. : TAX TYPE: APPEAL TYPE FILE NUMBER: ACN: APPRAISEMENT: PETITION FILED: EXAMINER: 0706256 Inheritance Protest 2106-0418 101 2/12/2007 4/2/2007 SHAWN E YOUNG Direct Dial: (717) 783-7894 Fax: (717) 787-7270 Email:shyoung@state.pa.us September 28, 2007 MAILING DATE: DECISION AND ORDER On February 12, 2007, the Department issued an appraisement and assessment which included tax on the decedent's fractional interest in two PNC Bank accounts which were held in the names of the decedent and Alfarata L. Dunn, and one PNC Bank account held in the names of the decedent, Ms. Dunn, and Margaret T. Foster, the decedent's daughter. The Department's action was based on information received from PNC Bank and confirmed in the inheritance tax return filed by Ms. Foster, as executrix. Petitioner has objected to the assessment of tax on the bank accounts because the decedent only managed the accounts as power of attorney for Ms. Dunn, and did not have an ownership interest in the accounts. Petitioner has filed a supplemental return in order to obtain a deduction for the claim of Ms. Dunn for the release of the funds into an account in her name alone. -- TRACE ROBERT J BOARD DOCKET NO. 0706256 Page 2 of 3 Section 21 08(a) of the Inheritance and Estate Tax Act of 1991 states: When any property is held in the names of two or more persons, or is deposited in a financial institution in the names of two or more persons, so that, upon the death of one of them, the survivor or survivors have a right to the immediate ownership or possession and enjoyment of the whole property, the accrual of such right, upon the death of one of them, shall be deemed a transfer subject to tax, of a fractional portion of such property to be determined by dividing the value of the whole property by the number of joint tenants in existence immediately preceding the death of the deceased jOint tenant. The execution of a jOint tenancy contract which provides that all monies are payable to either surviving party is sufficient to establish the Commonwealth's right to the tax. The Pennsylvania Supreme Court in Estate of Brant, 463 Pa. 230,344 A.2d 806 (1975), held specifically that jOint accounts created purely for the convenience of the creator are taxable, "thus entirely eliminating the issue of convenience accounts from inheritance tax law." There have been a line of cases where the Court has held that where parties establish a jOint account and there exists a signature card which explicitly indicates that the account is a joint tenancy with right of survivorship, the account is taxable in proportion to the number of jOint tenants in accordance with 921 08(a), and parol evidence is inadmissible even if one of the parties had not read the card. See also Estate of Gillespie, 462 Pa. 445,341 A.2d 471 (1975), Estate of Olson, 447 Pa. 483,291 A.2d 95 (1972) and Estate of Caldwell, 489 A.2d 955 (Pa.Cmwlth. 1985). The signature cards submitted by the Petitioner reflect the names of the decedent and Alfarata L. Dunn. Those cards do not indicate that the decedent's interest was limited to that of a power of attorney, nor has the Petitioner provided power of attorney documents given to the decedent by Ms. Dunn for the management of these or any other account. Further, by - TRACE ROBERT J BOARD DOCKET NO. 0706256 Page 3 of 3 signing the signature cards, all parties agreed to be legally bound by the terms and conditions of PNC Bank's Account Agreement. That Agreement provides that jOint accounts are owned "with right of survivorship and not as tenants in common." It is the opinion of this Board that the tax was appropriately imposed on the accounts listed as items 1 through 3 on Schedule F of the return. Accordingly, it is hereby Ordered that the protest is denied. The Department's appraisement and assessment shall stand as filed. FOR THE BOARD OF APPEALS JOSEPH R. SLEEK, MEMBER A STATEMENT OF ACCOUNT WILL BE MAILED TO YOU BY THE BUREAU OF INDIVIDUAL TAXES. ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS' COURT WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION. IF YOU REQUIRE THIS INFORMATION IN AN ALTERNATE FORMAT UNDER THE PROVISIONS OF AMERICANS WITH DISABILITIES ACT OF 1990, PLEASE CALL (717) 783-3664, OR FOR SERVICES FOR TAXPAYERS WITH SPECIAL HEARING AND SPEAKING NEEDS: 1-800-447-3020 (TT ONLY).