Instructions For Form Rev-1500 - Pennsylvania Inheritance Tax Return Resident Decedent Page 16
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27plan to Inheritance Tax, as long as no other rights exist. In gen-
An estate representative may now request that the Department
issue a separate tax notice for tax due on jointly owned assets
eral IRAs are taxable if the decedent was 59 years and six
directly to the surviving owner by filling in the oval below Line
months old, or older, or considered disabled at any age. Schedule
7 of the REV-1500. All information requested on Schedule F
G also must be used to report assets that were created or trans-
must be completed, including the surviving joint owner’s
ferred into joint tenancy in the name of the decedent and anoth-
address, in order for the Department to issue a notice.This option
er or others, including the decedent’s surviving spouse, within
should only be used when the estate representative does not wish
one year of the decedent’s death. Any joint tenancy so created
to pay the tax on the jointly owned assets from estate funds and
if the decedent’s will does not have a stipulation stating that all
will cause the entire interest to be taxed in the estate of the per-
taxes from whatever conveyance shall be paid out of the probate
son creating the joint tenancy to the extent that the total value of
estate.
the assets placed in joint ownership with any one person exceeds
SCHEDULE H
$3,000. Fully describe the transferred property and show the
FUNERAL EXPENSES & ADMINISTRATIVE COSTS
total value and the value of the decedent’s interest in the asset.
You may submit copies of documentation supporting a position
of non-taxability or which explains how the reported values
were determined.
3. RETAINED REVERSIONARY INTEREST
Such transfers are those in which the transferor (decedent)
reserved the right to regain or reassert control over the corpus of
the transferred property, provided that the value of the reversion-
ary interest in the property immediately before the decedent’s
death was in excess of 5% of the value of the transferred prop-
erty.
4. TRANSFERS IN WHICH THE DECEDENT
RESERVED A LIFE INTEREST
Include transfers that the decedent expressly or impliedly
reserved for life or any period which does not, in fact, end before
death the income or the enjoyment of the property. For example,
A. FUNERAL EXPENSES
a reservation of life interest in real estate includes the right to use
Itemize, giving names of persons to whom payable and the exact
or occupy the real estate or receive rents. Continued occupancy
nature of the expense. Such expenses include, but are not limit-
without the actual payment of fair market value rent is one
ed to: opening of graves, services of mortician, embalming and
example of a reserved life estate.
transportation, casket, clothes, flowers, fee for religious service,
funeral refreshments, the cost of a burial lot or other resting
5. PROMISES BY TRANSFEREE
place, and purchase and erection of a marker, gravestone or
Such transfers are those under which the transferee promises to
monument on decedent’s final resting place. Bequests or devis-
make payments to or care for the transferor during the remain-
es in trust or funds placed in trust after decedent’s death, or funds
der of the transferor’s life.
paid under a contract after decedent’s death may be claimed to
the extent that such funds or the income therefrom are applied to
6. REVOCABLE AND TENTATIVE TRUSTS
the care and preservation of the final resting place of the dece-
dent’s remains, or for religious services.
Include transfers under which the decedent had, either alone or
in conjunction with another person, a power to alter, amend or
Funeral expenses paid by a prepaid funeral account are
revoke the interest of the beneficiary, for example, an account
deductible, provided that the prepaid account is reported as an
registered in the name of the decedent in trust for another per-
asset of the decedent on Schedule E. Itemize, giving the names
son. The relinquishment of such a power within one year of the
of the persons to whom payable and the exact nature of the
death of the transferor is a transfer subject to tax.
expense.
Note: The $3,000 exclusion is not applicable to the transfers
B. ADMINISTRATIVE COSTS
described in paragraphs 2 through 6 above. However, the $3,000
You may deduct, in reasonable amounts, fees for services ren-
exclusion would apply under paragraph 6, if the decedent relin-
dered to the estate which will be paid. Personal representative’s
quished the right to revoke within one (1) year of the date of the
fees constitute taxable income. When claiming the commission,
decedent’s death.
include the individual personal representative’s Social Security
When a trust as defined by Section 9113(a) is reported on this
number. Fees received by residents of Pennsylvania must be
schedule as a transfer by this decedent, it will be necessary to
reported as compensation for Personal Income Tax purposes in
submit documentation relative to the valuation of the assets and
the year in which they are received. Corporate representatives
a copy of the instrument creating the trust.
must include a federal identification number.
If the decedent had an irrevocable trust in effect at date of death,
Attorney fees must be reasonable given the number and nature
submit a copy of the trust and the value of the trust for the
of the assets to be administered, the value of those assets, the
D e p a r t m e n t to v e r i fy t h at t he t r u s t i s e x e m p t f r om i n h e r i t a n c e tax.
complexity of the issues involved, and the time necessary to set-
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