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Home My WebLink About07-18-08COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAxES ~ ~ ' - INHERITANCE TAX INHERITANCIE TAX DIVISION ' PD Box zao6ol _ ~ ~ RECORD ADJUSTMENT HARRISBURG PA 17128-0601 w~~ JiiL i ~ ~~~i (~!~ l 9 l~l.~~if~ it~- O~PHH~~'~ r~t)RT 'SUSAN E LEDERER CU~~ ,~ ~ ~ ~l ~.• PA 5 E LEDERER LAW OFCS 4811 JONESTOWN RD 226 HBG PA 17109 REV-1593 EX AFP (03-05) DATE 07-15-2008 ESTATE OF QUERRY KENNETH M DATE OF DEATH 09-09-2006 FILE NUMBER 21 07-0076 COUNTY CUMBERLAND ACN 101 Amount Remitted MAKE CHECK PAYABLE AND REMIT PAYMENT T0: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 NOTE:: To insure proper credit to your account, submit the upper portion of this form with your tax payment. CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR RECORDS ~ --------------------------------------------------------------------------------------------------------------------------------------- REV-1593 EX AFP C03-05~ ** INHERITANCE TAX RECORD ADJUSTMENT ** ESTATE OF QUERRY KENNETH M FILE N0. 21 07-0076 ACN 101 DATE 07-15-2008 ADJUSTMEINT BASED oN: PROTEST BOARD DECISION VALUE OF ESTATE: 1. Real Estate (Schedule A) C1) .00 2. Stocks and Bonds (Schedule B) (2) .00 3. Closely Held Stock/Partnership Interest (Schedule C) (3) .00 4. Mortgages/Notes Receivable (Schedule D) (4) .00 5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) C5) .00 6. Jointly Owned Property (Schedule F) (6) .00 7. Transfers (Schedule G) (7) 389,574.19 8. Total Assets (8) 389,574.19 DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Administrative Costs/ Miscellaneous Expenses (Schedule H) (9) 3,799.00 10. Debts/Mortgage Liabilities/Liens (Schedule I) (10) 78 5.29 11. Total Deductions (11) 4,584.29 12. Net Value of Tax Return (12) 384,989.90 13. Charitable/Governmental Bequests; Non-elected 9113 Trus ts (S chedule J) C13) .00 14. Net Value of Estate Subject to Tax (14) 384,989.90 TAX: 15. Amount of Line 14 at Spousal rate (15) 279, 917. 05 X 00 = . 00 16. Amount of Line 14 taxable at Lineal/Class A rate C16) 105, 072.85 X 045= 4,728.28 17. Amount of Line 14 at Sibling rate (17) . 00 X 12 = .00 18. Amount of Line 14 taxable at Collateral/Class B rate C18) .00 X 15 = .00 19. Principal Tax Due C19) 4,72$,27 TAX CREDITS: DA1"E NUMBER INTEREST/PEN PAID C-) AMOUNT PAID 10-22••2007 CD008844 .00 4,700.00 INTEREST ][S CHARGED THROUGH 07-30-2008 AT THE RATES APPLICABLE AS OUTLINED ON THE REVERSE S][DE OF THIS FORM TOTAL TAX CREDIT 4,700.00 BALANCE OF TAX DUE 28.27 INTEREST AND PEN. 141.37 TOTAL DUE 169.64 * IF PAID AFTER DATE INDICATED, SEE REVERSE ( IF TOTAL DUE IS LESS THAN S1, NO PAYMENT IS REQUIRED. FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) BOARD OF APPEALS P O Box 281021 COMMONWEALTH OF PENNSYLVANIA HARRISBURG, PA 17128-1021 DEPARTMENT OF REVENUE SUSAN E LEDERER ESQ S E LEDERER LAW OFCS 4811 JONESTOWN RD STE 226 HARRISURG PA 17109 IN RE ESTATE OF: QUERRY KENNETH M DOCKET NO. TAX TYPE: APPEAL TYPE FILE NUMBER: ACN: APPRAISEMENT PETITION FILED EXAMINER: ~~~., ,~.,~~:~ --venue 0719253 Inheritance Protest 2107-0076 101 8/27/2007 10/11 /2007 JEFFREY HOLLENBUSH Direct Dial: (717) 783-7891 Fax: (717) 787-7270 Email:jhollenbus@state.pa.us July 3, 2008 MAILING DATE DECISION AND ORDER In its appraisement and assessment of the original inheritance tax return, the Department concluded that the Family Trust created under Article Ten of the Kenneth M. (~uerry and Rebecca J. Querry Living Trust did not qualify for deferral under Section 2113 of the Inheritance and Estate Tax Act of 1991 as the Trust has a remarriage provision and allows for distributions of income and principal to decedent's issue during the lifetime of decedent's surviving spouse. Absent a request for a future interest compromise, the Department imposed tax on the entire $228,319.96 Family Trust at the 4.5% lineal rate, the highest rate in the chain of potential distributions. Petitioner now requests that the Family Trust be taxed as a life estate to the surviving spouse with a remainder interest to the children. In support of that request, Petitioner submitted evidence that decedent's issue timely disclaimed their "right, title or beneficial interest in or to the assets of the Family Trust" during the lifetime of the surviving spouse. QUERRY KENNETH M BOARD DOCKET NO. 0719253 Page2of2 In the opinion of this Board, Petitioner has established that the Family Trust should be taxed as a life estate to the surviving spouse and a remainder interest to decedent's issue. The life estate factor for a person nearest age 68 in September of 2006 using the federal 6% table applicable to decedents dying September 9, 2006 is .53980. By multiplying the $228,319.96 value of the Trust by .53980, the Board finds that $123,247.11 is taxable at the 0% spousal rate. The remainder interest of $105,072.85 is taxable at the 4.5% lineal rate. Accordingly, it is hereby Ordered that the protest is sustained-in-part. The Department is directed to increase the estate taxable at the 0% rate to $279,917.05 and decrease the estate taxable at the 4.5% rate to $105,072.85. FOR THE BOARD OF APPEALS JOSEPH R. SLEEK, MEMBER ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS' COURT WVTHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION. 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. 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).