IN Brentwood-Baldwin-Whitehall Winter 2017 | страница 3

INDUSTRY INSIGHT
LEGAL INSIGHT
SPONSORED CONTENT
C O V E L L I L AW O F F I C E S , P. C .
Inheritance Taxes
Are Not Just For The Wealthy
N
o one likes to hear that they owe taxes. It is
especially difficult to analyze tax issues after
a loved one has passed away. Will there be
taxes owed by the Decedent or the estate of the
decedent? If taxes are owed – what type of taxes?
Federal Estate Tax applies to the very wealthy
(estates over $5.6 million in 2018). The average
estate will likely not exceed this threshold.
“However, Pennsylvania is one of the few states
that also imposes a State Inheritance Tax. The
majority of states don’t charge any inheritance
tax at all,” said Joe Covelli of Covelli Law Offices.
Pennsylvania inheritance tax is based upon the
familial relationship – how close in blood you are
to the decedent. A Pennsylvania Inheritance Tax
Return includes assets and debts of the Decedent
in existence at the time of death. The taxes are
calculated based upon the way that assets are titled.
The corresponding tax rate is then determined in
accordance with the familial, or blood relationship
to the Decedent. “How assets are titled is a common
oversight for people,” states Attorney Covelli.
Financial investment accounts, real estate titles,
and other assets may have been established early
on in life without the thought that one day the
titled ownership would be important for future
tax purposes. Currently there is a discount rate if
Pennsylvania Inheritance Tax is paid within 90 days
from the date of the passing of a loved one. It is
therefore important to promptly initiate the estate
administration process.
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“Best Att
Life insurance is exempt from taxes, and transfers
made more than a year before death may also
be exempted from taxation. Jointly-owned
property between non-spouses is taxed according
to percentage ownership, which is why many
people put their homes in their children’s names
during their golden years. It’s also why it may be
a consideration to add children to a joint bank
account, which could also lessen the tax impact on
any savings. However, a careful assessment for each
person’s particular situation prior to changing asset
ownership should be considered. There may be
potential risks related to the possibility of divorce,
existing or future liens/judgments, etc.
It is important to review your Estate Planning
documents and asset title and beneficiary
designations regularly, in order to reduce the
anxiety and work for your grieving family members
and loved ones, who need to handle estate
administration when you pass away. If all of this
sounds complicated, Covelli Law Offices is available
to help you understand issues of inheritance taxes
and other aspects of estate administration. At Covelli
Law Offices, a free 30-minute initial consultation is
available.
For more information on Covelli Law Offices, go to
www.Covellilaw.com, or call 412.653.5000. Covelli
Law Offices is located at 357 Regis Avenue (across
from the Pleasant Hills-West Mifflin Post Office).
Joe Covelli has over 36 years’
legal experience and is a “5 Star
Professional Award” recipient. He is a
Member of the “National Academy of
Elder Law Attorneys”, and he heads
a team of attorneys with expertise
in several areas of the law. For more
information, call 412.653.5000, or
visit www.covellilaw.com.
FREE Consultation | Call Today! 412.653.5000
Brentwood-Baldwin-Whitehall | Winter 2017 | icmags.com 1