Governor Wolf signed PA House Bill 262 of 2019 into law on June 28, 2019 which included a significant change to the Pennsylvania Inheritance Tax rate for children under 21 years old that inherit from their parent.
Prior to this new law, the Inheritance Tax rate for transfers from a natural parent, an adoptive parent, or a stepparent to a child was assessed at a rate of 4.5%. House Bill 262 amended 72 P.S. §9116 to add a new section (1.4) that provides that the Pennsylvania Inheritance Tax rate for transfers “to or for the use of a child twenty-one years of age or younger from a natural parent, an adoptive parent, or a stepparent of the child shall be at a rate of zero per cent.”
The new inheritance tax rate provision shall apply to property of a natural parent, adoptive parent or stepparent who dies after December 31, 2019.
As a result of this new law, the Pennsylvania Inheritance Tax from a deceased parent to a child under age 21 is taxed at zero percent (0%) and vice versa- Namely, the Inheritance Tax from a deceased child under age 21 to a parent is also taxed at zero percent (0%).
The attorneys of Supinka & Supinka, PC, are experienced in preparing Wills and Trusts and in helping you when a loved one dies to assist with Probate. For more information and a consultation, please call Supinka & Supinka PC at (724) 349-6768.
