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HomeMy WebLinkAbout10-23-09 (2)r` REV-1d70 EX (8-88) ~ INHERITANCE TAX EXPLANATION COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE OF CHANGES BUREAU OF INDIVIDUAL TAXES PO Box 280601 HARRISBURG PA 17128-0601 DECEDENTS NAME FILE NUMBER Julio Murphy 21/700399249 REVIEWED BY Michael Kodosky 09144585 SCHEDULE EXPLANATION OF CHANGES Please be advised that the execution of a joint tenancy contract (signature card) which provides that all monies are payable to either surviving party is sufficient to establish Commonwealth's right to the tax. The Supreme Court in Olson Estate 447 PA 483 (1972) held that under Section 241 (9108 of the Pennsylvania Inheritance and Estate Tax Act of 1995), such accounts are taxable in proportion to the number of joint tenants. The court rejected the convenience account argument by noting that under Section 241 (9108), it is improper to apply principles of ownership to determine the taxable portion of a joint bank account. Joint property is taxable even though the decedent's name was added as a matter of convenience. An adjustment has been made to reflect this change. Row Page 1