HomeMy WebLinkAbout06-20-11
June 16, 2011
FROM: Fred B. Owen III, 1465 Valley Road, Etters, PA 17319
FOR: Register of Wills, 1 Courthouse Square, Cazliske, PA 17013
Reference Pennsylvania Inheritance Tax Information Notice and Taxpayer Response, File
number 21, accounts 11130868 and 11130869, dated May 6, 2011, enclosures 1 and 2.
Under GENERAL INFORMATION, item number 5, on reverse side of enclosures 1 and
2, it states "Accounts established jointly between husband and wife more than one year
prior to death are not taxable." The savings account, account number 1664064958 and
checking account, aceouat number 2610$9986 were both established in January 2009.
This was appffoximately 22 months prior to my wife's death. In addition, my wife and i
have had joint savings and checking accountsfor years with Sovereign Bank and
reestablished our savings and checking accounts because of my wife's wallet being stolen
in eazly January 2009. To protect us from the possibility of someone making
unauthorized withdrawals frpm our accounts, we established new accounts.
Base on the above, I don't believe I should be charged with an inheritance tax on my
wife's death.
If there aze any questions, please call me at (717) 822-0021, or email me at
fredowen 1465Ca.comcast.net.
Thank you for your assistance in this matter.
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3 Encl re B. Owen III
1 and 2 as shown
3 bank statement
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BURFi1U OF INDIVIDUAL TAXES
APO BOX 280601
HARRISBURG PA 17128-0601
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PENNSYLVANIA INHERITANCE TAX
INFORMATION NOTICE
AND
TAXPAYER RESPONSE
FILE N0. 21 "~` ^ ~~ 5
ACN 11130869
DATE 05-06-2011
FRED B OWEN III
1465 VALLEY RD
ETTERS PA 17319
EST. OF ANTONIA M OWEN
SSN 149-54-7789
DATE OF DEATH 11-15-2010
COUNTY CUMBERLAND
REMIT PAYMENT AND FORMS T0:
REGISTER OF WILLS
1 COURTHOUSE SQUARE
CARLISLE PA 17013
TYPE OF ACCOUNT
® SAVINGS
CHECKING
TRUST
CERTIF.
SOVEREIGN BANK provided the Deoartaant with the infonat lon below, which has been used in ealculatinp the
potential tez due. Records indicate that at the death of the above-naaed decedent, you ware a joint owner/beneficiary of this account
If you foal the inforaation is incorrect, please obtain written correction frog the financial institution, attach a copy to this fora
and return it to the above address. This account is taxable in accordance with the Inheritance Tax laws of the Coaaonwaalth of
Pennsylvania. Plaas• cell C717) 787-8327 with questions.
CDMPLETE PART 1 BELOW ^ SEE REVERSE SIDE FOR FILING AND PAYMENT INSTRUCTIONS
Account No. 1664064958 Date 01-05-2009 To ensure proper credit to the account, two
Established copies of this notice must aecoapatn
Account Balance ~ 6, 135.24 cavment to the Register of Wills. Make chock
pavabla to "Rapister of Wills, Aeant".
Percent Taxable X 50.000
Amount Subject to lax ~ 3,067.62
Tax Rata )( .15
Potential Tax Due S 460.14
P~T TAXPAYER RESPON
1
NOTE, If tax payaents era wade within three
aonths of the tlacedent's data of death,
deduct a 5 percent discount on the tax due.
Arai Inheritance Tax due will becoae delfnquenL
nine aonths after the data of death.
A. ~ Tha above inforaation and tax due is correct.
Raait paywent to the Registor of Wills with two copies of this notice to obtain
CHECK a discount or avoid interest, or check box "A" and return thfs notice to the Register of
C ONE ~ Wills and an official assessaent will be issued by the PA Departaent of Revenue.
BLOC K B. ~ The above asset has bean or will be reported and tax paitl with the Pennsylvania Inheritance Tax return
ON L Y to be filed by the estate representative.
C. ~ Tha above inforaa fon is incorrect and/or debts and deductions were Daitl.
Coaplete PART 2~ and/or PART 3~ below.
PART If indicating a different tax rate, please state
relationship to docedent:
TAX RETURN - COMPUTATION OF TAX ON JDINT/TRUST ACCOUNTS
LINE 1. Date Established 1
2. Account Balanea 2
3. Percent Taxable 3 X
4. Amount Subject to Tax 4 ~
5. Debts and Deductions 5 -
6. Amount Taxable 6 $
7. Tax Rate 7 X
8. Taz Due a ~`
PART DEBTS AND DEDUCTIONS CLAIMED
DATE PAID PAYEE
DESCRIPTION
ANOIINT PATH
Undor penalties of perjury, I doelara that the facts I have reported above are true, correct and
comp late to the bast of my knowledge and belief. HOME C )
WORK ( )
TAXPAYER SIGNATURE TELEPHONE NUMBER DATE
GENERAL INFORMATION
1. FAILURE TO RESPOND WILL RESULT LN AN OFFICIAL TAX ASSESSMENT with applicable interest based an inforwation
subwitted by the financial institution.
2. Inheritance Tax becowes delinquent nine wonths after the decedent's date of death.
3. A joint account is taxable even when the decedent's nave was adtled as a wetter of convenience.
4. Accounts (including those held between husband and wife) the decedent put in joint naves within one year prior to
death are fully taxable.
5. Accounts established jointly between husband and wife wore than one year prior to death are not taxable.
6. Accounts held by a decedent "in trust for" another or others are fully taxable.
REPORTING INSTRUCTIONS - PART 1 - TAXPAYER RESPONSE
1. BLOCK A - If the infornatipn and cowDUtation in the notice are correct and deductions are not being claiwed, place an "X"
in Block A of Part 1 of the "Taxpayer Response" section. Sign two copies and subwit thew with a check f or the awount of
tax to the register of wills of the county indicated. The PA DeDartwent of Revenue will issue an official assesswent
(Forty REV-1548 EX) upon receipt of the return iron the register of wills.
2. BLOCK B - If the asset specified on this notice has been or will be reported and tax Daid with the Pennsylvania Inheritance
lax Return filed by the estate's representative. place an "X" in Block B of Part 1 of the "Taxpayer Response" section. Sign one
copy and return to the register of wills of the county indicatetl.
3. BLOCK C - If the notice inf orwation is incorrect and/or deductions are being claiwed, check Block C and eowplate Parts 2 and 3
according to the instructions below. Sign two copies and subwit thaw with your check for the awount of tax payable to the register
of wills of the county indicated. Tha PA Depertwent of Revenue will issue an off ieial assesswent (Forty REY-1548 EX) uDOn receipt
of the return frow the register of wills.
TAX RETURN - PART 2 - TAX COMPUTATION.
LINE
1. Enter the tlate the account original lY was established or titled in the wanner existing at date of death.
NOTE: for a decedent who died after l2/12/82, accounts the decedent put in joint naves within one Year of death are
fully taxable. However, there is an exclusion not to exceed 03,000 per transferee, regardless of the value of
the account or the nwber of accounts held.
If a double asterisk C}s) appears before your first nave in the address portion of this notice, the e3,000 exclusion
was deducted frog the account balance as reported by the finanei al institution.
2. Enter the total balance of the account including interest accrued to the date ofdeath.
3. The Darcenta0e of the account that is taxable to oath survivor is data rained as follows:
A. The Dercentag• taxable of joint assets established wore than one year prior to the decedent's death:
1 DIVIDED BY TOTAL NUMBER OF DIVIDED BY TOTAL NUMBER OF MULTIPLIED BY 100 = PERCENT TAXABLE
JOINT OWNERS SURVIVING JOINT OWNERS
Exawple: A joint asset registered in the nawa of the decedent and two other persons:
1 DIVIDED BY S (JOINT OWNERS) DIVIDED BV 2 (SURVIVORS) _ .167 X 100 = 16.7 Dereent (TAXABLE 70 EACH SURVIVOR)
B. The percentage taxable for assets created within one year of the decedent's death or accounts owned by the decadent but held
in trust for another individual(s) (trust benef iciaries)s
1 DIVIDED BY TOTAL NUMBER OF SURVIVING JOINT MULTIPLIED BY 100 = PERCENT TAXABLE
OWNERS OR TRUST BENEFICIARIES
Exawple: Joint account registered in the nave of the decedent end two other persons and established within one rear of death by
the tlecedent.
1 DIVIDED BY 2 CSURV IVORS) _ .50 X 100 = 50 percent (TAXABLE FOR EACH SURVIVOR)
4. The awount subject to tax (Line 4) is deterwined by aultiplying the account balance Cline 2) by the percent taxable (Line 3).
5. Eltter the total of the debts and deductions listed in Part 3.
6. The awount taxable IL in• 6) is deterwinedbY subtracting the debts and deductions (Line 5) frow the awount subject Lo tax (Line 4).
7. Enter the appropriate tax rate (Line 7) as deterwined below.
.Tha tax rate iwDOSe On • ne value of transfers frog a deceased child 21 Years of age or younger at
death to or for the use of a natural va rent, an adoptive parent or a stepparent of the child is 0 percent.
Tha lineal class of hairs includes grandparents, parents. children antl other lineal descendents. "Children" includes natural children
whether or not they have bean adopted by others. adopted children and step children. "Lineal descentlent s" includes all children of the
natural parents and the it descendents. whether or not they have been adoptetl by others; adopted descendents and their descendents;
and stop-descendants. "Siblings" ere daf fined as individuals who have at least one parent in couon with the decadent, whether by blood
or adoption. Tne Collateral class of heirs includes all other benef iciariea.
CLAIMED DEDUCTIONS - PART 3 - DEBTS AND DEDUCTIONS CLAIMED
Allowable debts end deductions are deterwined as follows:
Dste of Death Spouse Lineal Sibling Collateral
07/01/94 to 12/31/94 3 percent 6 percent 15 percent 15 percent
01/01/95 to 08/30/00 0 percent 6 percent 15 percent 15 portent
07/01/00 to present 0 percent 4.5 Dereent ~ 12 percent 15 percent
A. You ere legally responsible for Daywent, or the estate subject to adwinistration by a personal representative is insufficient
to Pay the deductible itews.
B. You actually void the debts after the death of the tlecedent end can furnish proof of paywent.
C. Debts being claiwed oust be itewized fully in Part 3. If additional space is needed. use 8 1/2" x 11" sheet of paper. Proof of
oaiywent say be requested by the PA Departwent of Revenue.
PENNSYLVANIA INHERITANCE T
• ' INFORMATION NOTICE
BUREAU OF INDIVIDUAL TAXES AND
' Po Box zao6ol TAXPAYER RESPONSE
Fg1RRISBURG PA 17128-0601
REY•1565 EX ~FP fRR-RR)
FILE NO. 21
ACN 11130868
DATE 05-06-2011
FRED B OWEN III
1465 VALLEY RD
ETTERS PA 17319
EST. OF ANTONIA M OWEN
SSN 149-54-7789
DATE OF DEATH 11-15-2010
COUNTY CUMBERLAND
REMIT PAYMENT AND FORMS T0:
REGISTER OF WILLS
1 COURTHOUSE SQUARE
CARLISLE PA 17013
TYPE OF ACCOUNT
SAVINGS
® CHECKING
TRUST
CERTIF.
SOVEREIGN BANK provided the Department with the information below, which has bean used in calculating the
potential tax due. Records indieat• that at the death of the above-named decedent, you were a ioint owner/banef ieiary of this account
If you feel the information is incorrect, please obtain written correction from the financial institution. attach a copy to this form
and return it to the above address. This account is taxable in accordance with the Inheritance Tax laws of the Cwaonwealth of
Pennsylvsnie. Plesse call C717) 7B7-8b27.with questions. _
CDMPLETE PART 1 BELOW ~ SEE REVERSE SIDE FOR FILING AND PAYMENT INSTRUCTIONS
ACCOUfIL No. 0261089986 Data 01-05-2009 To ensure proper credit to the account, two
Established copies of this notice must aeeoaparry
Account Balance $ 1,969.66 paym°nt to the Register of Wills. Make check
payebl• to "Register of Wills, Agent".
Percent Taxablo X 50.000
Amount Subjoet to NOTE: If tax pavaents are aade within three
Tax $ 984.83 aonths of the decedent's tlate of deatA,
Tax Rata X 1j deduct a 5 percent discount on the tax due.
Potential Tax Du• Arai Inheritance Tax due will beeoae delinquent
S 147.72 nine aonths after the data of death.
P~T
1 TAXPAYER RESPONSE
A. ~ The above inforaation and taX.tlue is correct.
Remit payment to'th• Ragistar of Wills with two copies of this notice to obtain
CHECK
ONE a discount or avoid interest, or chock box "A" and return this notice to the Register of
Wills and an official assessaent will be issued by the PA Dapartaent of Revenue.
BLOCK
ON L Y B. ~ The above asset has bean or will be reported and tax paid with the Pennsylvania Inheritance Tax return
to bs filed by the estate representative.
C. ~ Ths above info a ion is incorrect and/or debts and Deductions ware paid.
Coaplete PART ~ and/or PART ~ below.
PART If indieatiny a different tax rate, please state
relationship to decedent:
TAX RETURN - COMPUTATION OF TAX ON JOINT/TRUST ACCOUNTS
LINE 1. Data Established 1
2. Account Balance 2
3. Percent Taxable 3 X
4. Amount Subject to Tax 4
5. Debts and Deductions 5
6. Amount Taxable 6 $
7. Tax Rate 7 X
8. Tax Due 8 ~
PART DEBTS AND DEDUCTIONS CLAIMED
DATE PAID PAYEE
DESCRIPTION
AMOUNT PAID
TOTAL (Enter on Lino 5 of Tax Computation) i
Under ponalties of por~ury, I daelaro that the facts I havo reported above are true, correct and
complete to the best of my knowledge and belief. HOME C )
WORK ( )
TAXPAYER SIGNATURE TELEPHONE NUMBER DATE
GENERAL INFORMATION
1. FAILURE TO RESPOND WILL RESULT IN AN OFFICIAL TAX ASSESSMENT with applicable interest based on inforwation
subwitted by the financial institution.
2. Inhe ritanca Tax becowes tla linauent nine wonths after the decedent's date of death.
3. A joint account is taxable even when the decedent's name was added as a setter of convenience.
4. Accounts (including those held between husband and wife) the decedent put in joint naves within one year prior to
death are fully taxable.
5. Accounts established jointly between husband and wife wore than vne near prior to tleath are not taxable.
6. Accounts held by a decedent "in trust for" another or others are fully taxable.
REPORTING INSTRUCTIONS - PART 1 - TAXPAYER RESPONSE
1. BLOCK A - If the inforwation and cowputation in the notice are correct and deductions are not being elaiwed. place an "X"
in Block A of Part 1 of the "Taxpayer Response" section. Sign two copies and subeit thew with a check for the awount of
tax to the register of wills of the county indicated. The PA Department of Revenue will issue an official assess ant
(Fora REY-1548 EX) upon receipt of the return frow the register of wills.
2. BLOCK B - If the asset specified on this notice has been or will be reported and tax paid with the Pennsylvania Inheritance
lax Return filed by the estate's representative, place an "X" in Block B of Part 1 of the "Taxpayer Response" section. Sign one
copy and return to the register of wills of the county indicated.
3. BLOCK C - If the notice inf orwation is incorrect and/or deductions are being claiwetl, check Block C and cowplete Parts 2 and 3
according to the instructions below. Sign two copies and suhwit thaw with Your chock for the awount of tax payable to the register
of wills of the county indicated. The PA Departwent of Revenue Mill issue an official assesswent IFo rw REV-1548 IX) upon receipt
of the return frow the register of wills.
TAX RETURN - PART 2 - TAX COMPUTATION
LINE
1. Enter the date the account originally was established or titletl in the wanner existing at data of death.
NOTE: For a decedent who died of tar l2/12/82, accounts the decedent put in joint naves within one year of death are
fully taxable. However. there is en exclusion not to ezceed x3,000 per transferee, regardless of the value of
the account or the nuwber of accounts held.
If a double asterisk (vs) appears before your first nawa in the address portion of this notice, the 03,000 exclusion
was deducted frow the account balance as reported by the financial institution.
2. Enter the total balance of the account including interest accrued to the dat• of death.
3. The percentage of the account that is taxable to each survivor is deterwined es follows:
A. The percentage taxable of joint assets established wore than one Year prior to the decedent's death:
1 DIVIDED BY TOTAL NUMBER OF DIVIDED BY TOTAL NUMBER OF NULTIPLIED BY 100 = PERCENT TAXABLE
JOINT OWNERS SURVIVING JOINT OWNERS
Exawpla: A joint asset registered in the nawa of the decedent end two other porsons:
1 DIVIDED BY 3 (JOINT OWNERS) DIVIDED BY 2 (SURVIVORS) _ .167 X 100 = 16.7 percent (TAXABLE TO EACH SURVIVOR)
B. The percentage taxable for assets created within one year of the decedent's death or accounts owned by the decedent but held
in trust for another individual(s) (trust beneficiaries):
1 DIVIDED BY TOTAL NUMBER OF SURVIVING JOINT NULTIPLIED 8Y 100 = PERCENT TAXABLE
OWNERS OR TRUST BENEFICIARIES
Exawple: Joint account registered in the naae of the decedent and two other persons and established within one Year of tleath by
the decedent.
1 DIVIDED BY 2 (SURVIVORS) _ .50 X 100 = 50 percent (TAXABLE FOR EACH SURVIVOR)
4. The awount subject to tax Cline 4) is determined by ^ultivlving the account balance (Line 2) by the percent taxable (Line 3).
5. Enter the total of the debts and deductions listed in Part 3.
6. Tha awount taxable (Line 6) is deterwined by subtracting the debts and deductions (Line 5) frow the awount subject to tax Cline 4).
7. Enter the appropriate tax rate (Lino 7) as deterwined below.
Date of Death Spouse Lineal Sibling Collateral
07/01/94 to 12/31/94 3 percent 6 percent 15 percent 15 percent
01/01/95 to 06/30/00 0 percent 6 percent 15 percent 15 percent
07/01/00 to present ~ 0 percent 4.5 percent • 12 percent 15 percent
.The tax rate fwposed on the net value of transfers frow a deco ased child 21 Years of age or younger a.
death to or for the use of a natural parent, an adoptive parent or a stepparent of the child is 0 percent.
Tha lineal class of heirs includes grandparents, parents, children and other lineal descendants. "Children" includes natural children
whether or not that Nava been adopted by others. adopted children and step children. "Lineal descendents" includes all children of the
natural parents and the it descendants, whether or not then have been adopted by others; adopted descendants and their descendants;
and step-descendants. wSiblinBSw are defined as intlividuals who have at least one parent in cowwon with the dacadant, whether by blood
or adoption. The Collateral class of heirs includes all other beneficiaries.
CLAIMED DEDUCTIONS - PART 3 - DEBTS AND DEDUCTIONS CLAIMED
Allowable debts and deductions are determined as follows:
A. You are legally responsible for pavwent, or the estate subject to adwinistration by a personal representative is insufficient
to pay the deductible itews.
B. Vou actually paid the debts after the death of the decedent antl can furnish proof of payaent.
C. Debts being claiwed oust be itewized fully in Part 3. If additional space is needed, use 8 1/2" x 11" sheet of peoer. Proof of
payaent ^ay be requested bythe PA Departwent of Revenue.
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