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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session


Posted: March 17, 2015 09:11 AM
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 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 away 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. Changing the tax rate to 0% would eliminate the child from being subject to such a tax.

I ask you to please join me in co-sponsoring this important piece of legislation. If you have any questions regarding this information, please contact Mark Fetzko (mfetzko@pasen.gov) or Ben Wren (bwren@pasen.gov) of my office.

Introduced as SB734