Many people are surprised to learn that some gifts are taxable. You should be aware of gift tax laws to avoid making an unplanned gift that could leave you saddled with expensive taxes. If you or a family member is concerned about the gift tax, you should speak with an experienced Pennsylvania tax lawyer. At Herr Potts and Potts, our lawyers are available to help you with any tax matters you need resolved. Our lawyers are here to explain when an individual has to pay gift tax in Pennsylvania. Lifetime Gift Exceptions Gift taxes are primarily regulated by federal laws. This means that most states, including Pennsylvania, do not charge taxes for gifts that are given out of pure generosity. A gift can take many forms, such as property, money, or assets. If the gift is given while the grantor is alive, it is referred to as a lifetime gift.

If you have received an inheritance from one of your family members, you may be worried about the possibility of paying a tax on that inheritance. The inheritance tax does not apply to individual retirement accounts (IRAs) under certain circumstances. If you or a family member is concerned about Pennsylvania’s inheritance tax on IRAs, you should speak with an experienced Pennsylvania tax lawyer. At Herr Potts and Potts, our experienced lawyers are here to provide you with representation that will be tailored to your unique legal needs. The intricacies of tax law are difficult to navigate through, but we are here to help guide you through your tax matters. Our lawyers are here to explain when heirs must pay inheritance tax in Pennsylvania. When Do Heirs Pay Inheritance Tax on IRAs in Pennsylvania? IRAs are designed to help individuals save for retirement on a tax-deferred or tax-free basis. The owner

‘Tis the season for taxes and some may wonder what is the difference between Pennsylvania Inheritance Tax and Pennsylvania Income Tax? Pennsylvania Inheritance Tax Pennsylvania Inheritance Tax is collected when a decedent’s (someone who passed away) estate is transferred to beneficiaries by will, heirs by intestacy, or transferees by operation of law (for example, joint accounts, payable on death accounts or listed as beneficiary under a retirement account).  The percentage of the inheritance tax to be collected is determined by the value of the asset and the relationship that existed between the decedent and beneficiaries.  The rates for inheritance tax are state specific and the Pennsylvania inheritance tax rates are: 0% on transfers to a surviving spouse or to a parent from a child aged 21 years old or younger; 4.5% on transfers to direct descendants and lineal heirs; 12% on transfers to siblings; and 15% on transfers to other

If you’ve been online or watching tv lately, you probably haven’t been able to miss seeing the Guardianship process depicted in popular culture.  Whether you’ve watched the Netflix movie “I Care A Lot” or the recent documentary and press about the Britney Spears conservatorship controversy, it seems that Guardianships are everywhere these days.  It is natural to wonder . . . What is a Guardianship?  What is a Conservatorship?  And, are they safe? First, an explanation of terminology: Essentially, the terms Guardianship and Conservatorship generally refer to the same thing.  In some states, a Guardian has responsibility for the person while a Conservator handles that person’s financial decisions.  In other states, such as Pennsylvania, a Guardianship covers both the person and the estate.  For the purposes of this article, because we are in Pennsylvania, that is what we will use from here on. In our practice, we regularly handle Guardianships