John B. Whalen Taxation Law Blog on Lawyers.com

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http://www.johnbwhalenjr.com/_estate_taxes.jsp

There are - very simply - two (2) primary "death" taxes that may apply at a decedent's death in Pennsylvania - the Federal Estate Tax and the Pennsylvania Inheritance Tax.

Federal Estate Tax (our federal "death" tax) taxes bequests beginning at a 45.00% rate. The Federal Estate Tax has a threshold, and does not begin to tax estates unless they are currently over $2,000,000.00 (in 2006, 2007, and 2008).  In 2009, 2010, and 2011, the Federal Estate Tax Threshold is scheduled to change - quickly and drastically, and absent any legislative change - over the next few years.

Pennsylvania Inheritance Tax (our "state" death tax) taxes bequests to spouses and charities at a 0.00% rate; bequests to children, grandchildren, and parents at a 04.5% rate; bequests to siblings at a 12.00% rate; and bequests to everyone else at a 15.00% tax rate.   The Pennsylvania Inheritance Tax has no threshold, and begins to tax estates immediately.