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HomeMy WebLinkAbout09-14-78 " JOHN ~lc':.::nE:\ III HAltflLTO:\ C DA VIS SALLY J. WJ~!)ER Law Offices McCREA & DAVIS 22 R. HIGH ST. r-.'EWVILLE, PA. 17241 (717) 776-3211 w. H. McCREA (1898-1930) JOlIN McCREA (1933-1071) W. H. MoCREA, JR. (1938-1976) McCREA 4 McCREA (1938-1977) 24 W. KING ST. SHIPPENSnURG. PA. 172.'17 (717) 632-5713 September 14, 1978 CUmberland County Inheritance Tax Office 411 South Second Street Harrisburg, Pa. 17127 Re: Estate of William B. Clippinger OOD 10/11/77 Estate No. 21-78-0097 Inheritance Tax Calculations Dear Sirs: This letter is being sul:mi.tted with our Inheritance Tax Schedules to explain the method of calculating the Pennsylvania Inheritance Tax due on this estate. This calculation is cx::I1lJlicated by the widow's (Sarah Clippinger's) election to take against the Will. This election also delayed our settlerrent of the estate by rraking liquidation of the real estate necessary. The statutory and decisional law of Pennsylvania has held that the elective spouses share of our estate in this case is one half of the net after payment of debts, administration expenses and inheritance taxes. This share is in lieu of any bequests under the will. In this estate, then, item seamd and item thirteenth and item seventeenth are void and I calculate the Pennsylvania inheritance tax due as follows: 1. Tax on specific bequests (non-charitable)-- Tbtal of Specific Bequests $ 8,900.00 Rate of Tax 15% Tax $ 1,335.00 2. Tax on widow's elective share-- Gross Value of Assets $ 80,572.59 Debts and r:eductions 13,098.34 Before Tax Net $ 67,474.25 Widow's Share (Before Tax) $ 33,737.12 Less l:; Tax on Specific Bequests 667.50 Taxable Share to Widow $ 33,069.62 Rate of Tax 6% Tax $ 1,984.17 JOHN McCREA III HAMILT{)~' C. DAVIS SALLY J. WINDER Law Offices McCREA & DAVIS 22 S, HIGH ST. NEWYILLE, PA. 17241 (717) 776-3211 W. H. McCREA (1898-1030) JOHN McCREA (1933-1971) W. H. McCItEA" JR. U93S-1976) McCREA &: MceltEA (193&-1977) 24 w. KING ST. SHIPPENSnURG, PA. 17257 (717) 632-5713 3. Tax on Residence (Item Sixteenth)-- Residue (before tax) $ 33,737.13 Less ~ Tax on Specific Bequests 667.50 Less Specific Bequests 8,900.00 Less Charitable Bequests 1,000.00 Taxable Residue Rate of Tax 23,169.63 15% Tax on Residue $ 3,475.45 4. Surrmary : (a) Tax on Specific Bequests $ 1,335.00 (b) Tax on Wicbw's Elective Share 1,984.17 (c) Tax on Residue 3,475.45 'ID'TI\L TAX DUE $ 6,794.62 Thank you very much. Very t:rW-Y yours, MrREA & Dl\VIS 1 / ~;t~r.t~ Hamilton C. Davis Please reply to the Shippensburg address. HOJ:ea