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HomeMy WebLinkAbout07-23-12+ ~INHERI7ANCE TAX P@t111S~/~V81118 ~ RE~C~InuED~JFFiCE1dECORD ADJUSTMENT DEPARTMENT OFREVENUE BNHERpUNDCE TAXDD VISI NL TAXES "~I)`i'~r ~yf (,t nl-~C REV-1593 IX AFP (1241) PO BOX 280601 ll~ l {i HARRISBURG PA 1]128-0601 7012 JUL 23 Phi i ~ 33 ~J'.. Iii ORPiiAN'~ CC~UR?' CUMBERLAND CO., PA MARK E HALBRUNER ESq STE 100 1013 MUMMA RD LEMOYNE PA 17043 DATE 07-16-2012 ESTATE OF G'~U STIN EVELYN F DATE OF DEATH OS-15-2010 FILE NUMBER 2'1 10-0866 COUNTY CUMBERLAND ACN 101 Amount Re ml tted MAKE CHECK PAYABLE AND REMIT PAYMENT T0: REGISTER OF WILLS 1 COURTHOUSE SQUARE CARLISLE PA 17013 NOTE: To ensure proper credit to your account, submit the upper portion of this Form with your tax payment. CU7 ALONG THIS LINE ______ _ 1 RETAIN LOWER PORTION FOR YOUR RECORDS (- REV-1593 EX AFP C12-11) ^^ INHERITANCE TAX RECORD ADJUSTMENI" ~^ ESTATE OF: GUSTIN EVELYN F FILE N0.:21 10-0866 ACN: 101 DATE: 07-16-2012 ADJUSTMENT BASED oN: BOARD OF APPEALS REFUND VALUE OF ESTATE: 1 . Real Estate (Schedule A) I1) .00 2 . Stocks and Bonds (Schetlule B) Q) .00 3 . Closely Held Stock/Partnership Interest (Schedule C) (3) .00 4 . Mprt9ages/Notes Receivable [Schetlule D) (4) .00 5 . Lash/Bank Deppsits/Misc. Personal Property (Schedule E7 (5) 26,047.11 6 . Jointly Owned Property (Schedule F) I6) .00 7 . Transfers (Schedule G) (7) .00 B. Total Assets (e) 26,047.11 DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Atlministrative Costs/ Miscellaneous Expenses (Schetlule H) (9) 12,964.01 10. Dobts/Mortgage Liabilities/Liens (Schetlule I) (!0) 388.57 11. Total Deductions (11) 13,352.58 12. Net Value of Tax Return (127 12.694.53 13. Charitable/GOVernmenial Bequests; Non-eleetatl 9113 Tru sts (Schetlule J) (137 .00 14. Net Value of Estate Subject to Tax (147 12,694.53 TAX: 15. Amount of Line 14 at Spousal rata (157 .00X.00 = .00 16. Amount of Line 14 kaxable at Lineal/Class A rate (16) 12,694.53 y.045= 571.25 17. Amount of Line 14 at Sibling rake (17) .OOy.12 = .00 18. Amount of Lino 14 taxable at Collateral/Glass B rate C187 .00 y.15 .00 19. Pri neipal Tax Due (19) 571.25 TAX CREDITS: PAYMENT REC DISLOUN + DATE NUMBER INTEREST/PEN PAID C-) AMOUNT PAID I10-25-2010 CD013545 28.56 r 7,700.00 TOTAL TA:K PAYMENT 7,728.56 3ALANCE OF TAX DUE 7,157.31 INTEREST AND PEN. .00 ~ TOTAL DUE 7,157. ~ IF PAID AFTER DATE INDICATED, SEE REVERSE IF TOTAL DUE IS REFLECTED A5. A "CREDIT" (CRT, YOU MAY BE DUE FOR CALCULATION OF ADDITIONAL INTEREST. A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS .7 r BOARD OF APPEALS P O Box 281021 HARRISBURG, PA 17128-1021 MARK E HALBRUNER ESQ STE 100 1013 MUMMA RD LEMOYNE, PA 17043 BOAR.) OF APPEALS pennsylvania ~ DEPARTMENT OF REVENUE IN RE ESTATE OF: GUSTIN EVELYN F DOCKET N0. TAX TYPE: APPEAL TYPE FILE NUMBER: ACN: APPRAISEMENT: PETITION FILED EXAMINER: 1122830 Inheritance Refund 2110-0866 101 10/10/2011 11/2/2011 JEFFREY HOLLENBUSH Direct Dial: (717) 783-7891 Fax: (717)787-7270 Email:jhollenbus@pa.gov July 10, 2012 MAILING DATE DECISION AND ORDER The Department issued an appraisement and assessment on October 10, 2011 which assessed tax on $156,924.75, less the $3,00() exclusion in trust assets stating the trust was transferred within one year of the decedent's date of death. The Decedent and Kenneth L Martin created and funded the Evelyn F Gustin Family Irrevocable Trust dated November 23, 1993. The decedent under Article IV 4.02 could receive income provided that >he did not reside in a long term facility for more than 30 days. Petitioner notes the decedent entered a long term care facility May 5, 2010 and remained a resident for more than 30 days, expiring August 15, 2010. The trust further provided that it shall terminate upon the decedents' date of death and the remaining assets were to be transferred to her son. ' GUSTIN EVELYN F Page 2 of 3 BOARD DOCKET N0. 1122830 Section 2107(c)(5) of the Inheritance and Estate Tax Act of 1991, 72 P.S. § 9107(c)(5), states that a transfer made without valuable and adequate consideration is subject to tax if the transferor expressly or impliedly reserves for his life or any period which does not in fact end before his death, the possession or enjoyment of, or the right to the income from, the property transferred. The decedent created an irrevocable trust on November 23, 1993, in which she appointed herself and her son as trustees. The decedent as trustee did not have discretionary powers of withdrawal of principal and income during her lifetime for herself. Petitioner has documented that the decedent's distribution of trust income was for specific period of time with an end period prior to her death. Petitioner has sufficiently established that the trust account was irrevocable and decedent held no taxable interest in the assets at her death. Any refund must be reduced by the 5% discount originally credited by the Department to the estate. Board of Appeals PO Box 281021 Harrisburg, PA 17128 717.783.36641 Nww.revenue.state. pa.us l ' ` GUSTIN EVELYN F Page 3 of 3 BOARD DOCKET NO. 1122830 Accordingly, it is hereby Ordered that the protest is sustained in part. The Department is directed to reduce the 4.5% lineal taxable amount to $12,694.53 as originally filed. It is further Ordered that the estate be issued a cash refund, plus appropriate interest, of any resulting overpayment, IE>ss the 5% discount. FOR THE BOARD OF APPEALS LAUREN ZACCARELI, CHAIR ANY APPEAL FROM THIS DECISION MUST BE FILED ON OR BEFORE OCTOBER 9, 2012 WITH THE BOARD OF FINANCE AND REVENUE, 1:L01 SOUTH FRONT STREET, SUITE 400, HARRISBURG, PA 17104, TELEPHONE (717) 787-2974. A REFUND CHECK WILL BE MAILED TO YOU BY THE BUREAU OF INDIVIDUAL TAXES. 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 F=ORMAT 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). w.x_ Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.763.3664 ~ www.revenue.state. pa.us