HomeMy WebLinkAbout05-27-08COMMONWEALTH~OF PENNSYLVANIA
DEPR.ScTMEN'T OF REVENUE
BUREAU OF INDIVIDUAL raxES _ INHERITANCE TAX
INHERITANCE TAX DIVISION - RECORD ADJUSTMENT
PD eox zao6ol , , .. , '..., JOINTLY HELD OR TRUST ASSETS
HARRISBURG PA 17128-0601
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15 MARSHALL DR
CAMP HILL PA 17011
REV-1604 EX AFP (03-05)
DATE 05-14-2008
ESTATE OF MORGAN VINCENT E
DATE OF DEATH 01-15-2007
FILE NUMBER 21 07-0226
COUNTY CUMBERLAND
SSN/DC 179-09-7023
ACN 07113367
Amount Remitted
MAKE CHECK PAYABLE AND REMIT PAYMENT T0:
REGISTER OF WILLS
CUMBERLAND CO COURT HOUSE
CARLISLE, PA 17013
CUT ALONG THIS LINE ~- RETAIN LOWER PORTION FOR YOUR RECORDS ~
REV-1604 EX AFP C03-05)
** INHERITANCE TAX RECORD ADJUSTMENT JOINTLY HELD OR TRUST ASSETS *~
DATE 05-14-2008
ESTATE OF MORGAN VINCENT E DATE OF DEATH 01-15-2007 COUNTY CUMBERLAND
FILE N0. 21 07-0226 S.S/D.C. N0. 179-09-7023
ACN 07113367
ADJUSTMENT BASED ON: PROTEST BOARD DECISION
JOINT OR TRUST ASSET INFORMATION
FINANCIAL INSTITUTION: BELCO COMMUNITY Cu ACCOUNT N0. 837734
TYPE OF ACCOUNT: CX) SAVINGS ( ) CHECKING C ) TRUST C ) TIME CERTIFICATE
DATE ESTABLISHED 02-11-2003
Account Balance
Percent Taxable
Amount Subject to Tax
Debts and Deductions
Taxable Amount
Tax Rate
Tax Due
TAX CREDITS:
.00
X 0.166
.00
.00
.00
X .45
.00
NOTE: TO INSURE PROPER CREDIT TO YOUR
ACCOUNT, SUBMIT THE UPPER PORTION
OF THIS NOTICE WITH YOUR TAX
PAYMENT TO THE REGISTER OF WILLS
AT THE ADDRESS SHOWN ABOVE.
MAKE CHECK OR MONEY ORDER PAYABLE
T0: "REGISTER OF WILLS, AGENT."
PAYMENT
DATE RECEIPT
NUMBER DISCOUNT C+)
INTEREST/PEN PAID C-) AMOUNT PAID
03-08-2007 CD007881 .00 17.40
TOTAL TAX CREDIT 17.40
BALANCE OF TAX DUE 17.40CR
INTEREST AND PEN. .00
TOTAL DUE
^ IF PAID AFTER THIS DATE, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. /1
C IF TOTAL DUE IS LESS THAN 61, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" CCR), ( ~.,
YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) \./-V)
BOARD OF APPEALS
P O Box 281021
HARRISBURG, PA 17128-1021
COMMONWE`ALTH~OF PENNSYLVANIA
DEPARTMENT OF REVENUE
WILLIAM C KOLLAS ESQ
KOLLAS AND KENNEDY
1104 FERNWOOD AVE
CAMP HILL PA 17011
IN RE ESTATE OF:
MORGAN VINCENT E
DOCKET NO.
TAX TYPE:
APPEAL TYPE
FILE NUMBER:
ACN:
APPRAISEMENT:
PETITION FILED:
EXAMINER:
MAILING DATE
DECISION AND ORDER
ve'n'u e
0719372
Inheritance
Protest
2107-0226
07113367
9/3/2007
10/12/2007
WILLIAM J ZDRADZINSKI
Direct Dial: (717) 787-5761
Fax: (717) 787-7270
Email:wzdradzins@state.pa.us
May 1, 2008
On September 3, 2007, the Department issued notice of appraisement and
assessment ACN 07113367 advising Lois I. Morgan that she was liable for the payment of
tax on one-sixth of the $15,518.50 date of death balance in Belco Community Credit Union
Account #837734. The assessment was based upon information received from Belco
Community Credit Union that the account was jointly owned by the decedent, his wife and
their daughter (Lois Morgan) with right of survivorship. Petitioner argues that Ms. Morgan
never held an interest in the account and that her name was only placed on the account for
the convenience of her parents.
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 (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
MORGAN VINCENT E
BOARD DOCKET NO. 0719372
Page 2 of 2
a line of cases where the Court has held that where parties establish a joint account and there
exists an account agreement 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 § 2108(a) of the Inheritance and Estate Tax Act of 1991, and parol evidence
is inadmissible even if one of the parties had not read the agreement. 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).
By letter of October 24, 2007, the Board requested that Petitioner supply a copy of the
signature card/contract and any account agreement to show the manner in which the account
was held. Although Petitioner failed to provide that documentation, evidence was presented
that decedent's taxable interest in the funds was previously appraised and assessed under
ACN 07108364. To correct any duplication, ACN 07113367 should be stricken.
Accordingly, it is hereby, Ordered that the protest is sustained. ACN 07113367 is
hereby stricken.
FOR THE BOARD OF APPEALS
JOSEPH R. SLEEK, MEMBER
ANY APPLICABLE NOTICE REFLECTING ANY CHANGES TO THE ACCOUNT PURSUANT
TO THE BOARD'S DECISION AND ORDER MAY BE MAILED TO YOU BY THE
APPROPRIATE BUREAU.
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).