|Posted:||December 3, 2018 11:18 AM|
|From:||Representative Carl Walker Metzgar|
|To:||All House members|
|Subject:||Inheritance Tax Elimination for Children Age of 21 and Under (Former HB 291)|
|In the near future, I am planning 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.
It was brought to my attention by the Register of Wills and Clerk of Courts of Orphans' Court in Somerset County that a change was made to Pennsylvania's inheritance tax law in 2000. The inheritance tax law was amended to provide 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.
Please join me in cosponsoring this important piece of legislation.
Introduced as HB262