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PA small estate affidavit & estate beneficiary questions

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theresa_a_lux

Junior Member
What is the name of your state? Pennsylvania
My Dad recently passed away and left the following in my name as beneficiary:
two IRA accounts that total over $65,000.
two Death insurance policies that total $12,000
The county clerk's office says I don't have to probate because the estate is straight forward in that I am the beneficiary or joint on bank accounts. They said I would have to pay 4.5% inheritance tax on the money. Is this true? Is there anything else I need to do?

My name has been joint on my Dad's bank account for 8 years and that totals $30,000., but is decreasing as I've paid for the funeral, minor debt and medical bills. The clerk's office said I will have to pay a 4.5% tax on half the balance of these accounts. Do I need to hire an accountant to make sure everything is done correctly?

The Last Will lists me as the Executrix and sole Beneficiary.

There was one death insurance policy for $1,700.00 which was in the name of a divorced spouse - the Divorce decree nullifies this. This policy is now payable to my Dad's estate. The company wants me to get a Pennsylvania small estate affidavit (PA state code 3102). I don't want to hire an atty, the county clerk's office has not heard of this form and can't help me. Does anyone know where I can get this form? Or suggestions on how to proceed.

I still have to do my Dad's taxes for 2007, but probably not for 2008 - since he passed on Jan. 21, 2008. Thanks for any assistance in this matter.What is the name of your state?
 


anteater

Senior Member
The county clerk sounds about right. The PA Inheritance Tax rate for lineal descendants is 4.5%. And the PA Inheritance Tax is somewhat odd in that it does not ask any questions about relative contributions to jointly owned accounts to determine how much is taxable. As long as the joint ownership has been established for one year before death, PA considers all owners to be proportional owners. Hence, only 1/2 is subject to inheritance tax.

Don't know what you mean by "Death insurance policies." Do you mean life insurance policies? The good thing is that proceeds from life insurance policies are not subject to PA Inheritance Tax, even if the estate is the beneficiary.

I am not certain what the life insurance company is talking about either. This is Section 3101 (d), applying to life insurance:
d) Life insurance payable to estate. - Any insurance company which upon the death of an individual residing in this Commonwealth owes his estate a total amount of $11,000 or less under any policy of life, endowment, accident or health insurance, or under any annuity or pure endowment contract, may at any time after 60 days following his death pay all or any part of that amount to the spouse, any child, the father or mother or any sister or brother of the decedent (preference being given in the order named) provided that at the time of the payment no written claim for that money has been received at the office of the company specified in the policy or contract for the receipt of claims from any duly appointed personal representative of the decedent. Any insurance company making any payment in accordance with this section to an adult may rely on the affidavit of any of the persons named in this subsection concerning the existence and relationship of these persons and shall be released to the same extent as if payment had been made to a duly appointed personal representative of the decedent and the insurance company shall not be required to see to the application thereof. Any person to whom payment is made shall be answerable therefor to anyone prejudiced by an improper distribution.
I've never dealt with this, but it does not sound as if the "affadavit" needs to be a document that has the court's blessing.

Whether you need an accountant and/or lawyer depends upon your comfort level. PA probate is not necesarily terribly complicated, but you may well benefit from hiring an attorney on an hourly basis.

NOTE: Editing was partially due to misreading the size of the insurance policy mentioned by the OP.
 
Last edited:

Dandy Don

Senior Member
A CPA or local tax preparer can help you with the estate tax return.

You can contact the county probate court or surrogate court to get the form for the affidavit.

DANDY DON IN OKLAHOMA ([email protected])
 

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