HomeMy WebLinkAbout12-27-10`~i~~~.
BOARD OF iitPPEALS
P O Box 281021
HARRISBURG, PA 17128-1021
. i
pennsylvan~ ~
DEPARTMENT OF REVENUE
BOARD OF APPEALS
KRISTA SHEDLOSKY
312 W MAIN ST
SHIREMANSTOWN, PA 17011-6332
IN RE ESTATE OF:
BOYD JR CLARENCE C
DOCKET NO.
TAX TYPE
APPEAL TYPE
FILE NUMBER:
~'` -~- cc~ APPRAISEMENT:
~~ ,; ,o ~..~c~ PETITION FILED:
_
. ~,r, EXAMINER:
~
~ ~~` r„. ~
~
I. S ~.I- .J ~r~ ~ Cr..-.
~'
a ' ~ ~~ MAILING DATE:
;~~.~
DECISION AND ORDER
1013874
Inheritance
Protest
700400589
09149901
7/5/2010
7/23/2010
WILLIAM J. ZDRADZINSKI
Direct Dial: (717) 787-5761
Fax: (717} 787-7270
Emaii:wzdradzins@state.pa.us
December 9, 2010
On July 5, 2010, the Department informed Petitioner of her tax obligation
on one-sixth of the date of death value of PNC Bank NA account number
5140006298 at the 4.5% lineal tax rate.
Petitioner is requesting that the assessment be stricken. Petitioner avers
that on January 24, 2006 Petitioner was erroneously added to the account as a
joint owner. Petitioner states she requested to be placed on the account as
power of attorney only. Therefore, as it was the error of the bank to properly
set the account up as desired by Petitioner, Petitioner should not be held
responsible for the tax liability.
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
~~~ ~ 1
r
~'
BOYD )R CLARENCE C Page 2 of 3
BOARD DOCKET NO. 1013874
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 iaw." There have been 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).
As the account was set up as jointly owned, the tax obligation remains
due. The issue of the manner in which the account was set up is a matter
between the Petitioner and the financial institution.
Accordingly, it is hereby, Ordered that the protest is sustained. The
Department's appraisement and assessment shall stand as filed.
FOR THE BOARD OF APPEALS
LAUREN A. ZACCARELLI, CHAIR
ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS'
COURT WITHIN SIXTY (60} DAYS OF RECEIPT OF THIS DECISION. A COPY OF
THE APPEAL SHOULD BE SERVED ON THE DEPARTMENT OF REVENUE, OFFICE
OF CHIEF COUNSEL, P.O. BOX 281061, HARRISBURG, PA 17128-1061.
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.
Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.783.3664 ~ www.revenue.state.pa.us
BOYD JR CLARENCE C Page 3 of 3
BOARD DOCKET NO. 1013874
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}.
Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.783.3664 ~ www.revenue.state.pa.us