Senate Co-Sponsorship Memoranda

In the near future I will be reintroducing legislation (SB 1201 of the previous Session, co-sponsored by: WASHINGTON, ERICKSON, HUGHES, VANCE, RAFFERTY, D. WHITE, MENSCH, ROBBINS, PICCOLA, SCARNATI, M. WHITE, BOSCOLA, FARNESE, BROWNE, WOZNIAK, FERLO, ALLOWAY, TARTAGLIONE, STACK, BREWSTER, ARGALL, YUDICHAK, KASUNIC, BLAKE, COSTA, DINNIMAN, SOLOBAY, WARD, LEACH , KITCHEN, WILLIAMS, PIPPY, WAUGH and BAKER) to allow disabled children to inherit their parent’s property at a tax rate of 0%. Currently the transfer of property of a deceased spouse or a deceased minor child is taxed at a 0% rate.

The definition of disabled child is determined only by governmental agencies. It is NOT a self-nominated status

Thankfully, this country no long routinely warehouses disabled children in state institutions. The most compassionate and cost effective place to raise, care for and educate a disabled child is in their parental home with appropriate supports.

But, for families with a disabled member, many estates have only one major asset to use to pay inheritance taxes-the real estate in which the child is living. When this is sold in order to the 4.5% inheritance tax, the child becomes homeless.

At the point of homelessness, the child must turn to the social safety net for care, housing and support. This is the most expensive, long term choice for the care of a disabled child.

Additionally, Pennsylvania is one of only three states that tax children who inherit from their parents.