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HomeMy WebLinkAbout03-08-1302! ~ l3 - D~~/ Register of Wills 1 Courthouse Square Carlisle, Pennsylvania 17013 RE: ACN #: 13107787 ESTATE OF GEORGE MEALS Dear Register of Wills: Mazch 5, 2013 ~o `~' m ~ m n ~' 1a r- a2rn mm z~~ ~ ~~ C7 ~ ~ ~ d c~ 'Ti "`~'I C? C') .~ c~ ~ ~ a.: °n ai ~ _ ca 1a 4-.., cn O ~-~ ~ I am in receipt of the Department of Revenue's Information Notice and Taxpayer Response Form for a PNC Bank Account No. 5005751025 owfied by my pazents prior to my father's passing on December 6, 2012. I was made a joint owner on the (account as a "convenience", and typically, I would be subject to Pennsylvania Inheritance Tax on the transfer in contemplation of death. In this case, the total.amount subject to tax was $2,097.38. Because this is the sole gift that I have received within a year of his passing, the $3,OOp exclusion is applicable to the account and no inheritance tax is due. I have indicated that on the atlttached form and included the applicable law for your review. I am in the process of removing my name frojm the account as the name was only added because both of my parents fell ill for several months at the same time. I have neither used nor accepted ownership of this account. Please provide me with some evidence of proof of receipt of this letter and the ultimate disposition of the matter by email at jimna, .elosserste~l.com or at my home address 13 Victoria Way, Camp Hill,. Pennsylvania 17011. I am sending a duplicate copy of this letter to the Department of Revenue Post Assessment Review. Thank you for your time and consideration. Warm Regards, ~~!~~s~ ~im Meals V~~ BUREAU OF INDIVIDUAL TAXES PO BOX 280601 HARRISBURG PA 17120-0601 Pennsylvania Inheritance Tax Information Notice And Taxpayer Response Pennsylvania DEPARTMENT OF REVENUE EEY-1563 EX O.cE%EC (E1-ll> FILE N0.2170 ACN 13107787 DATE 02-18-2013 JAMES MEALS 13 VICTORIA WAY CAMP HILL PA 17011-1727 '.Estate of GEORGE C MEALS ' Date of Death 12-06.2012 ,County CUMBERLAND Type of Account Savings Checking Trust Certificate PNC BANK NA provided the department with the information below indicating that at the death of the above-named decedent you were a joint owner or beneficiary of the account identified. Account No. 5005751025 Remit Payment and Forms to: Date Established 11-06-2008 REGISTER OF WILLS Account Balance $12,584.00 1 COURTHOUSE SQUARE Percent Taxable X 16.667 CARLISLE PA 17013 Amount Subject to Tax $ 2,097.38 Tax Rate X 0.045 Potential Tax Due $ 94.38 NOTE': If tax payments are made within three months of the ' With 5% Discount (Tax x 0:95) $ (see NOTE') decedent s date of death, deduct a 5 percent discount on the tax due. Any inheritance tax due will become delinquent nine months after the date of death. PART Step 1: Please check the appropriate boxes below. 1 A ~ No tax is due. g The information is correct. C ~ The tax rate is incorrect. (Select correct tax rate at right, and complete Part 3 on reverse.) p ~ Changes or deductions listed. E ~ Asset will be reported on inheritance tax form REV-1500. I am the spouse of the deceased or I am the parent of a decedent who was 21 years old or younger at date of death. Proceed to Step 2 on reverse. Do not check any other boxes and disregard the amount shown above as Potential Tax Due. The above information is correct, no deductions are being taken, and payment will be sent with my respohse. Proceed to Step 2 on reverse. Do not check any other boxes. 4.5% I am a lineal beneficiary (parent, child, grandchild, etc.) of the deceased. 12% I am a sibling of the deceased. 15% All other relationships (including none). The information above is incorrect and/or debts and deductions were paid. Complete Part 2 and part 3 as appropriate on the back of this form. The above-identified asset has been or will be reported and tax paid with the PA Inheritance Tax Return filed by the estate representative. Proceed to Step 2 on reverse. Do not check any other boxes. Please sign and date the back of the form when finished. PART 2 Debts and Deductions Allowable debts and deductions must meet both of the following criteria: A. The decedent was legally responsible for payment, and the estate is insufficient to pay the deductble items. B. You paid the debts after the death of the decedent and can furnish proof of payment if requested by the department. (If additional space is required, you may attach 8 1/2" x 11"sheets of paper.) Date Paid Pavee Description Amount Paid Total Enter on Line 5 of Tax Calculation $ PART Tax Calculation 3 If you are making a correction to the establtshmeM date (Line 1) account balance (Line 2), or percent taxable (Line 3), please obtain a written comectlon from the financial Institution and attach k to this form. 1. Enter the date the account was established or titled as it existed at the date of death. 2. Enter the total balance of the account including any interest accrued at the date of death. 3. Enter the percentage of the account that is taxable to you. a. First, determine the percentage owned by the decedent. i. Accounts that are held "in trust for" another or others were 100% owned by the decedent. ii. For joint accounts established more than one year prior to the date of death, the percentage taxable is 100% divided by the total number of owners including the decedent. (For example: 2owners = 50%, 3 owners = 33:33%, 4 owners = 25%, etc.) b. Next, divide the decedent's percentage owned by the number of surviving owners or beneficiaries. 4. The amount subject to tax is determined by multiplying the account balance by the percent taxable. 5. Enter the total of any debts and deductions claimed from Part 2. 6. The amount taxable is determined by subtracting the debts and deductions from the amount subject to tax. 7. Enter the appropriate tax rata from Step 1 based on your relationship to the decedent. your relationship to the decedent: 1. Date Established 1 2. Account Balance ~ 3. Percent Taxable .. 4. Amount Subject to Tax 4 5. Debts-and Deductions c 6. Amount Taxable 6 7. Tax Rate 7 X 8. Tax Due 8 $ 9. With 5% Discount (Tax x .95) 9 x Step 2: Sign and date below. Return TWO completed and signed copies to the Register of Wills listed on the front of this form, along with a check for any payment you are making. Checks must be made payable to "Register of Wills, Agent " Do not send payment directly to the Department of Revenue. Under penalty of perjury, I declare that the facts I have reported above are true, correct and complete to the best of my knowledge and belief. Work Home Taxpayer Signature Telephone Number Date IF YOU NEED FURTHER ASSISTANCE, CONTACT CUMBERLAND COUNTY REGISTER OF WILLS, PA DEPARTMENT OF REVENUE DISTRICT OFFICE, OR THE INHERITANCE TAX DIVISION AT 717-787-8327. SERVICES FOR TAXPAYERS WITH SPECIAL HEARING AND/OR SPEAKING NEEDS ONLY: 1-800-447-3020 Inheritance tax is aself-reported tax. Inheritance tax becomes delinquent nine months after the decedent's date of death. Payments must be postmarked within nine months of the date of death to avoid interest.. If the tax is paid within three months of the date of death, a 5 percent discount of the amount of tax paid is allowed. Accounts made joint within one year of death ,__ Accounts made joint within one year of the date of death are fully taxable, minus an exclusion of up to $3,000 per transferee per calendar year. Regardless of the value of the account or number of accounts held, the total exclusion must not exceed $3,OOD per transferee per calendar year. If a double asterisk.. (**) appears .before your First name in the address portion of the notice, the exclusion was deducted from the account balance as reported. by the financial institution. Tax Rates and Definitions The lineal class of heirs includes grandparents, parents, children, grandchildren, etc. "Children" includes all children of the natural parents and their descendants, whether or not they have been adopted by others, adopted descendants and their descendants, and step-descendants. Lineal heirs are taxed at the rate of 4.5 percent. 'Siblings" are defined as individuals who have at least one parent in common with the decedent, whether by blood or adoption. Siblings are taxed at the rate of 12 percent. The collateral class of heirs includes all other beneficiaries. Collateral heirs are taxed at the rate of 15 percent. Calculating the Percentage Taxable (Part 2) The percentage of the account that is taxable to each survivor is determined as follows: A. The taxable percentage of a joint account established more than one year prior to the decedent's death: 1 - (Total number of - (Total number x 100 = Percent taxable joint owners) of joint survivors) B. The taxable percentage of a joint account created within one year of the decedent's death or accounts owned by the decedent but held intrust for another individual(s) (trust beneficiaries): 1 - (Total number of surviving joint owners x 100 = Percent taxable or trust beneficiaries) REV-S6SI DC. (4-06) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OP REVENllE BUREAU OF 1NDMDUAL TA)(ES PO BOX 280601 HARRISBURG. PA 17128-0601 INHERIT NCE TAX Q~iNERAL It~EORMATION R~SID~NT 1. iXEMPT'RO~EE;TY Property owned by husband and wile with fight of sunrlvorship is exempt from Inheritance Tax unless the joint ownership was created by the decedent within one yeaz of the decedent's death. Life insurance proceeds payable to a named beneficiary as weU as to ithe decedent's estate are tax exempt. S. TAXABLE T+ROPERTT All real property and all tangible personal property, including but not limited to cash; automobiles, furniture, antlques, jewelry, etc., located in Pennsylvania aze taxable. All intangible property including stocks, bonds, bank accounts, loans receivable, etc., is taxable regardless of where it is located. Jointly-owned property, except between husband and wife, including but not limited to real estate, securities, bank accounts, etc., with right of survivorship, is taxable. Joint property Is taxable even though the decedent's name was added as a matter of convenience. 3. TAXABLE TRANf1~EEtE If the decedent died after December 12, 1982, a transfer of property de within one (1) year of the death of tbe decedent, if made without valuable and adequate consideration bt money or money's worth at th time of the transfer, is taxable to the extent that the transfer exceeds 53,000 per transferee during any calendar year. For those decedents ying on or before Aecember 12, 1982, a transfer of property made within two (2) years of dearth of the decedent, if made without adeq~iate consideration; !s taxable. Property transferred by the decedent, but in which he/she retained a life Interest, ti taxable. 4. oEOUrnoNi UnsatLsfled liabWtles incurred by the decedent prior to his/her deaf}( are deductlble agatnst his/her taxable estate. In addition to debts incurred by the decedent or estate, the cost of adminigtratlon, attorn~y fees, fiduciary fees, funeral and burial expenses induding the cost of a burial lot, tombstone or grave marker and.other related burial expenses are deductible. The family exemption is a right given to specific individuals to retain ~r claim certain items of the decedent's property in accordance with Section 3121 of the Probate, Estates and Fiduciaries Code. For decedents dying after January 31, 1995 the famiy exemption is 53,500.00. From Jnne 27, 1974 through January 31, 1995 the amount of the farrhily exemption was 52,000.00. The family exemption may be claimed by a spouse of a decedent who died a resident of Pennsylvania. )f there is no spouse, or if the spouse has forfeited his/her rights, then any child of the decedent who is a member of the same household as the decedent may claim the exemp- tlon. In the event there is no spouse or chUd, the exempton may be claimed by a parent or parents who are members of the same household as the decedent. The family exempton is allowable only against assets which pass by a will or by the Pennsylvania Intestate Laws. 6. TRANfIEE',>i TO fPOYEE TOR pATEf OF pEATN OM OR ALTER JANYARY 1, 199a Trarrsfers in tmst for the sole use of the surviving spouse are not taxable in the current decedent's estate but are includable in the surviving spouse's estate when he or she dies. This exclusion of the asset in the first decedent spouse's estate may be bypassed If the estate elects to include the trust in the first decedent spouse's estate. This election must be made on a tlmely Bled inheritance tax return. See General Instrvctlon booklet for more details. 6. E'.ATEf TOR INHERITANCE TAX The rates of tax are based on the date of death of the decedent and are as follows: Date of Deat>, Spouse !Lineal SibNag Collateral 12/29/67 to 06/30/94 6% 6% 15% 15% 07/01/94 to 12/31/94 3% 16% 15% 15% 01/01/95 to 06/30/00 0% 6% 15% 15% 07/01/00 to present 0% '4.5% 12% 15% The tax rate imposed on the net value of transfers froml a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptilve parent, or a stepparent of the child is 0%. The Ilneal class of hens Includes grandpazents, parents, children, and lineal descendants. "Children' includes natural children whether or not they have been adopted by others, adopted children and stepchildren.,"Llneal descendants' includes all children of the natural parents and thetr descendants, whether or not they have been adopted by others, irdopted descendants and thew descendants and step-descendants. For estates of decedents dying before December 13, 1982, descendants of stepchildren are not included as lineal descendants. "Siblings" are defined as individuals who have at least one parent in common witlp the decedent, whether by blood or adoption. The "Collateral" class of heirs includes all other beneficiaries. Charitable organizations, exempt institutions and government entities are exempt from tax. 7. CREEHT FOR fPOYSAL T~ANSFiRf POVERTY CREpIT~ A credit exists for decedents dying on or after January 1, 1992 and before Jtmtrary 1, 1995 for transfers made to a spouse if three criteria are met. First, the transferee must be the decedent's spouse at the date of death. Second, the value of the gross estate must not exceed $200,000 after reduction for actual llabiRUes. Third, the average of the joint exemption income of the decedent and spouse for the three years prior to the decedent's death must not exceed $40,000. The credit is calculated up to the first $100,000 of taxable transfers to the spouse. The credit Is 2% for 1992, 4% For 1993 and 6% for January 1, 1994 through June 30, 1999. From July 1, 1994 through January 1, 1995, the amount of the spousal poverty credit shall not be greater than the tax imposed. There is no credit for spousal transfers after January 1, 1995. 8. OIfCOYNT FOR EARLY PAYMENT OF TAX If the tax is paid within three months after the decedent's death, a discount of 5% of the tax paid is allowed. 9. INTEREfT ON QELINQYENT TAX Interest is chazged on the amount of tax unpaid after nine months tram decedent's date of death. The rate of interest accrued on liabilities that became delinquent in 1981 is 6% per year. That rate will remain constant until all tax and interest are paid in full. All taxes that become delinquent on and after January 1, 1982 will bear a daily interest at a rate whkh wUl vary from calendar year to calendaz yeaz. The rates for subsequent years are: 1982 - 20%; 1983 - 16%; 1984 - 11%; 1985 - 13%; 1986 - 10%; 1987 - 9%; 1988 through 1991 - 11%; 1992 - 9%; 1993 - 7%; 1994 - 7%; 199,5 through 1998 - 9%; 1999 - 7%, 2000 - 8%, 2001 - 9%, 2002 - 6%, 2003 - 5%, 2009 - 4%, and 2005 - 5%. 1 O. PERfONf RlfPONf18LE FOR FILINO RETURN The personal representative (executor or administrator) appointed'', by the Register of Wills is responsible for filing the return. An individual who received property by right of survivorship or a transfe# is responsible for filing a return if the property was not reported by the personal representative. 1 1. PLACi FOR FILINO The return must be filed In duplicate with the Register of Wills of the county in which the decedent resided. 11. TIME FOR FILINO The Inheritance Tax Return is due within nine months after the decedent's death. 13. EXTENf1ON OF TIME !OR FILINO RETURN Requests for an extension (not to exceed six months) for filing musU be submitted within the nine-month flling period to the Bureau of Individual Taxes, Inheritance Tax Division, PO BOX 280601, Harrisburg PA 17128-0601. This extension will not relieve the estate of the interest which will accrete on any tax liability unpaid nine months 'after the decedent's death. 14. PLACE OF PAYMNiNT ]nheritance Taxes aze payable to the Register of Wills of the county in which the decedent resided. All checks should be made payable to 'Register of Wills, Agent "Payment of county filing fees must be made by separate check. t S. FILINO REQUIREMENTf OF FEpERAL EfTATt TAX INFORMATION All executors and administrators who are required to file a Federal Estate Tax Return must file a copy with the Register of Wills. within one month after the return is filed with the Federal Government. A copy of the Federal Closing Letter received from the Federal Government must also be filed with the Register of Wills within 30 days of receipt. Payment of Pennsylvania Estate Tax based upon the Fed- eral Estate lax Return must be made within nine months of the date df death to avoid interest. Payment of Pennsylvania Estate Tax based upon the Federal Closing Letter must be made within 30 days of rbceipt of the closing letter by the executor or administrator, or his representative, to avoid interest. 16. LIlN FOR oELiNdUENT TAXES A lien automatically attaches to real estate owned by the decedent if there are delinquent Inheritance Taxes and accreted interest. The lien will remain in effect until the tax and interest are paid in full. 17. PENALTY FOR FAILURE TO FILE INNERITANCE TA>~ RETURN A person who willfully fails to Ne a return will be personally Gable for penalty of 25% of the tax due or $1,000, whichever is less. 18. PENALTY FOR FILINO FALfE RETURN A person who willfully files a false return commits a misdemeanor of the third degree. 19. FORME OROERINO Forms and schedules may be obtained at the Register of Wills office or alt any of the Revenue district offices. You may order any Pennsylvania tax form or schedule by calling 1-888-PATAXFS (1-888-728-2937) (Much-tone service requtred) or 1-800-362-2050 (serving taxpayers without touch-tone phone service), TT# 1-800-947-3020 (services for{axpayers with special hearing and speaking needs only). ~~ ~° ~ «!~ hM!` ~~ ~~ _ if ,~1 ' ~ ' ( } f ~ ~~11 ~~qq W e t 1 S' 1 ~ V \. a , ~ r h 't i :.. ^a r r ... r ~:. :.~ ,~~ .: ..i^ .r ''r .,,,.,' "'ter r r ~~ l A t 1 ..~', ~~Y V ~, ~~ ~ V ~ _`.--~ _v ~., T'A ~M ~r ..~ ~ ,~ ` W ,~~ ~~ Q.~ ~~ LJ ~_~