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Home My WebLink About06-13-08COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE "INHERITANCE TAX BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION ~ RECORD ADJUSTMENT Po Box ze66o1 - JOINTLY HELD OR TRUST ASSETS HARRISBURG PA 17128-0601 (~i (1:- V~rii4~ \.~r OF;= ~-Ir~~'~'''~ rr-~~ )~T ~, vi ~;. ~ WARREN L EASTW ~~ 2103 MARIETTA AVE APT A LANCASTER PA 17603 REV-1604 EX AFP (03-05) DATE 06-05-2008 ESTATE OF CONSTANTINE EMMANUEL DATE OF DEATH 10-21-2006 FILE NUMBER 21 06-0967 COUNTY CUMBERLAND SSN/DC 170-30-9393 ACN 07002304 ~- 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 (03-05) ** INHERITANCE TAX RECORD ADJUSTMENT JOINTLY HELD OR TRUST ASSETS *~ DATE 06-05-2008 ESTATE OF CONSTANTINE EMMANUEL DATE OF DEATH 10-21-2006 COUNTY CUMBERLAND FILE N0. 21 06-0967 S.S/D.C. N0. 170-30-9393 ACN 07002304 ADJUSTMENT BASED ON: PROTEST BOARD DECISION JOINT OR TRUST ASSET INFORMATION FINANCIAL INSTITUTION: PRUDENTIAL FINANCIAL ACCOUNT N0. E0259919 TYPE OF ACCOUNT: ( ) SAVINGS C ) CHECKING C ) TRUST ( 3 TIME CERTIFICATE DATE ESTABLISHED 10-21-2006 Account Balance Percent Taxable Amount Subject to Tax Debts and Deductions Taxable Amount Tax Rate Tax Due TAX CREDITS: .00 NOTE: X 1.000 .00 .00 .00 X .15 .00 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 TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE * IF PAID AFTER THIS DATE, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. C IF TOTAL DUE IS LESS THAN S1, 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.) BOAFlf7 GF APPEALS COMMON'lVEALTH OF PENNSYLVANIA P O Box 281021 HARRISBURG, PA 17128-1021 DEPARTMENT OF REVENUE JEFFREY S SHANK ESQ 222 S MARKET ST STE 201 PO BOX 267 ELIZABETHTOWN PA 17022 ^a _~ _~ ~~ ;~ ~L ~C i ,~ `--, c z_~~r~r. ~.=' -_ ,~y ~~_ - ~E:r, C~ - ~- ~ ; r_. _ r_:C --> o =-=, c~ IN RE ESTATE OF: CONSTANTINE EMMANUEL DOCKET NO. TAX TYPE: APPEAL TYPE FILE NUMBER: ACN: APPRAISEMENT PETITION FILED EXAMINER: MAILING DATE PC~Y~JS ILVA^JIA ~EPA~~, ~~~,,, o~ venue 0720523 Inheritance Protest 2106-0967 07002304 9/11 /2007 10/30/2007 SHAWN E YOUNG Direct Dial: (717) 783-7894 Fax: (717) 787-7270 Email:shyoung@state.pa.us May 28, 2008 DECISION AND ORDER On September 11, 2007, the Department issued notice of appraisement and assessment ACN 07002304 advising Warren L. Eastwood that he was liable for the payment of tax at the 15% collateral rate on the $50,371.97 date of death value of Prudential Financial Strategic Partners Select Contract #E0259919. Mr. Eastwood argues that he is not liable for the tax since the decedent's probated Will provides for payment of all tax due from the residue of the estate. Section 2144(f) of the Inheritance and Estate Tax Act of 1991, 72 P.S. § 9144(f) states "In the absence of a contrary intent appearing in the will or other instrument of transfer and except as otherwise provided in this section, the ultimate liability for the inheritance tax, including interest, shall be upon each transferee." The general rule as found in Cochrane's Estate, 342 Pa. 108, is that, absent any testamentary direction to the contrary, a personal representative is liable for the payment of the Pennsylvania inheritance tax only on those assets which pass through his hands, but x CONSTANTINE EMMANUEL f BOARD DOCKET NO. 0720523 Page 2 of 2 not for tax on any property which is transferred to the beneficiary or surviving joint owner by operation of law. In Estate of Lander, 416 Pa. 605, the Court found that, where the decedent's Will provides a clear directive that "all" taxes are to be paid in full by the personal representative, this direction clearly includes the Pennsylvania Inheritance taxes on her jointly-owned (extra-testamentary) property. In the present case, the decedent's Will states that "All taxes and government fees associated with the transfer of my property are to be paid out of the residuary estate and all fees satisfied". In the opinion of this Board, the decedent intended for the tax due as a result of the transfer of the Prudential annuity to Mr. Eastwood to be paid by the personal representative from the residue of the estate. Accordingly, it is hereby Ordered that the protest is sustained. The Department is directed to strike ACN 07002304. The Department is further directed to pursue collection on Prudential Financial Strategic Partners Select Contract #E0259919 against the personal representative. 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).