spouse. No inventory is required for safe depositboxes jointly owned by husband and wife, so long asone spouse remains alive.Who may enter a safe deposit box after thedeath of a decedent?No one is allowed to enter a safe deposit box, noteven a joint owner, except to remove a will and/orburial instructions, which must be removed in thepresence of a bank employee. The bank employeemust complete PA Form REV-487 (Entry Into A SafeDeposit Box To Remove A Will Or Cemetery Deed) torecord the entry and mail it to the PA Department ofRevenue. The contents of safe deposit boxes must beinventoried before they can be removed.Who conducts safe deposit box inventories.A representative of the estate must present at theinventory. If the decedent and a surviving joint ownerowned the box, the surviving owner should bepresent. Additionally, an attorney representing theestate may be present.How do I arrange an inventory of a safe deposit box?An estate representative must provide written noticeto the department at least seven days in advance ofa safe deposit box inventory. The notice must includethe name of the estate and the person entering thebox; the name and address of the financial institutionwhere the box is located; and the date and time ofentry. The notice must be delivered to the departmentat the address below by the U.S. Postal Service withreturn receipt service, and a copy of the notice shouldbe provided to the financial institution where the boxis located.PA Dept. of RevenueSafe Deposit Box UnitPO Box 280601Harrisburg, PA 17128-0601

At the time of entry, the estate representative mustprovide a statement to the financial institutionverifying notice was provided to the department.Within 20 days of entry, the estate representativemust return a completed Safe Deposit Box Inventoryform, REV-485, to the departments Safe Deposit Box Unit.

REV-584 PO (2-14)

PennsylvaniaInheritance Tax &Safe Deposit Boxes

Inheritance tax is imposed as a percentage of thevalue of a decedents estate transferred tobeneficiaries by will or intestacy. The tax ratevaries depending on the relationship of the heir tothe decedent.

www.revenue.state.pa.us

CONTACT INFORMATION

For additional inheritance tax or safe depositbox information, please call 717-787-8327 orwrite to the following address:

PA Department of RevenueBureau of Individual TaxesPO Box 280601Harrisburg, PA 17128-0601

Online Customer Service Centerwww.revenue.state.pa.us

Taxpayer Service & Information CenterPersonal Taxes: 717-787-8201Business Taxes: 717-787-1064

e-Business Center: 717-783-6277

1-888-PATAXES (728-2937)Touch-tone service is required for this

automated 24-hour toll-free line. Call to orderforms or check the status of a personalincome tax account or property tax/rent

rebate.

Automated Forms Ordering Service1-800-362-2050

Services for Taxpayers with Special Hearingand/or Speaking Needs

1-800-447-3020

Call or visit the Revenue district office nearestyou, listed in the government pages of your

local phone directory.

FOR GENERAL TAX QUESTIONS:

limited to real estate, securities and bank accounts,is taxable based on the decedents interest in thejoint property. This interest is calculated by dividingthe value of the joint property by the number of jointowners at the time of the decedents death. Jointproperty is taxable even in situations where thedecedents name was added as a matter ofconvenience. Further, if the decedent created thejoint interest in the property within a year of hisdeath, the full value of the property is taxable in thedecedents estate, less $3,000.Can funeral expenses and the decedents unpaidbills be deducted from the amount subject to tax?Yes, unsatisfied liabilities incurred by the decedentprior to his death are deductible against his taxableestate. In addition to debts incurred by the decedentor the estate, costs of administration of the estateand funeral and burial expenses are deductible,including attorney fees, fiduciary fees and the cost ofthe burial lot, tombstone or grave marker.For the sake of convenience, I put my mothersname on my savings account. Recently mymother died, and now I am told I have to payinheritance tax on my own money. Is this true?Under inheritance tax law, the account was jointlyowned, since you and your mother had equal accessto the account. Therefore, in this case, the survivoris taxed on one-half of the amount in the account.What is the family exemption and how much canbe claimed?The family exemption is awarded to certainindividuals so they may retain or claim certain typesof a decedents property, in accordance with Section3121 of the Probate, Estates and Fiduciaries Code.For decedents who died after Jan. 29, 1995, thefamily exemption is $3,500. Who is entitled to claim the family exemption?The family exemption may be claimed by the spouseof a decedent who was a resident of Pennsylvania. Ifthere is no spouse or if the spouse forfeited hisrights, any child of the decedent who is a member ofthe decedents household may claim the exemption.In the event there is no spouse or child, theexemption may be claimed by a parent or parentswho are members of the decedents household. Thefamily exemption is allowed against assets passed onwith or without a will.

What is the inheritance tax rate in Pennsylvania?The rates for Pennsylvania inheritance tax are asfollows: 0 percent on transfers to a surviving spouse or to

a parent from a child aged 21 or younger; 4.5 percent on transfers to direct descendants

and lineal heirs; 12 percent on transfers to siblings; and 15 percent on transfers to other heirs, except

charitable organizations, exempt institutions andgovernment entities exempt from tax.

Property owned jointly between husband and wife isexempt from inheritance tax.Who are direct descendants and lineal heirs for thepurposes of inheritance tax?Direct descendants include all natural children ofparents and their descendants (whether or not theyhave been adopted by others), adopted descendantsand their descendants and step-descendants.Lineal heirs include grandfathers, grandmothers,fathers, mothers and their children. Children includenatural children (whether or not they have beenadopted by others), adopted children and stepchildren. Is there a discount on inheritance tax?Inheritance tax becomes due at death and must bereported and remitted before nine months pass fromthe date of death. If payment is made within threemonths of the date of death, a 5 percent discount ofthe tax paid or the tax due, whichever is less,applies.What property is subject to inheritance tax?All real and tangible personal property of a PAresident decedent, including but not limited to cash,oil and gas rights, automobiles, furniture, antiquesand jewelry located in Pennsylvania at the time of thedecedents death, is taxable. All intangible propertyof a resident decedent, including stocks, bonds, bankaccounts, loans receivable, etc., is also taxable,regardless of where it is located at the decedentsdeath. In the case of a nonresident decedent, all real andtangible personal property located in Pennsylvania atthe decedents death is taxable. Intangible personalproperty of a nonresident decedent is not taxable.Jointly-owned property with right of survivorship,except between husband and wife, including but not

Is an inheritance considered taxable for PApersonal income tax purposes?No, inheritances are not taxable for PA personalincome tax purposes. However, if you qualify for TaxForgiveness, you will need to include as income on PASchedule SPA the value of any inheritance receivedthe prior year.If an individual dies before he reaches the age of59 1/2, is the decedent's IRA or 401K subject toPA inheritance tax?IRAs typically are not subject to inheritance tax,unless the decedent was considered disabled. For401Ks, the same provision applies unless the ownerof a plan could have accessed the plan during hislifetime, without penalty. For most plans, the right toaccess without penalty is not realized untilretirement age is reached, usually 62 or 65 years ofage.Who files the inheritance tax return?Inheritance tax returns must be filed within ninemonths of a decedents death by the person namedin the will as personal representative or the individualapproved as administrator by the Register of Wills, incases where no will exists at death. If no personalrepresentative or administrator is named andproperty or transfers exist, then the person(s)receiving the property must file and pay the tax.Where is the inheritance tax return to be filed?If the decedent was a Pennsylvania resident atdeath, the inheritance tax return must be filed induplicate with the register of wills in the decedentscounty of residence.If the decedent was not a resident of Pennsylvania buthad assets located in Pennsylvania, the inheritancetax return must either be filed in duplicate with theregister of wills of the county where assets arelocated, when letters testamentary or letters ofadministration are obtained there, or the return mustbe filed directly with the PA Department of Revenue,when letters testamentary or letters of administrationare provided by a jurisdiction outside Pennsylvania.Do safe deposit boxes have to be inventoriedafter someone dies?Yes. Because safe deposit boxes may contain assetssubject to Pennsylvania inheritance tax, the lawrequires an inventory prior to the removal of contentsof any safe deposit box owned by a decedent orowned by a decedent and anyone other than a

www.revenue.state.pa.us

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