Posted: | December 7, 2018 03:06 PM |
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From: | Senator Patrick J. Stefano |
To: | All Senate members |
Subject: | Inheritance Tax Elimination for Children Age of 21 and Under |
In the near future, I plan to re-introduce legislation that will add a section to the current inheritance tax law by eliminating the inheritance tax rate for transfers of property to or for the use of a child aged 21 years or younger from a natural parent, adoptive parent or step-parent. Currently, the inheritance tax law provides an inheritance tax rate of 0% on property transferred from a child aged 21 or younger to a natural parent, adoptive parent or step-parent. However, when property is transferred from the parent to the minor child, it is currently subject to an inheritance tax rate of 4.5%. My legislation will ensure that minor children who inherit property when a natural, adoptive or step-parent passes way will not be subject to the inheritance tax. There have been cases in Somerset County where a minor child has had to pay inheritance tax on property that was jointly owned, such as a joint savings account, when the parent passed away. By changing the tax rate to 0%, this would eliminate the child from being subject to such a tax. This legislation was formerly Senate Bill 598 from the 2017-18 Legislative Session, and was co-sponsored by Senators Mensch, Aument, Baker, Bartolotta, Brester, Costa, DiSanto, Folmer, Hutchinson, Langerholc, Martin, Rafferty, Reschenthaler, Schwank, Vogel, Vulakovich, Wagner, Ward, and Yudichak. I sincerely hope that you will consider joining me in co-sponsoring this legislation. If you have any questions regarding this information, please contact Jake Gery in my office at jgery@pasen.gov. |
Introduced as SB342