Unlimited exemption for transfers to a surviving spouse, or transfers from a deceased child (under age 21) to a parent.Pennsylvania has a state income tax, structured as a flat tax on income.
The tax rate is 3.07%.
Pennsylvania is a common law state.
Pennsylvania imposes an inheritance tax. The inheritance tax rate and exemption amount depends on the relationship between the decedent and the beneficiary.
Unlimited exemption for transfers to a surviving spouse, or transfers from a deceased child (under age 21) to a parent.
Unlimited exemption for life insurance proceeds.
Class A beneficiaries include parents, grandparents, lineal descendants, sons-in-law, and daughters-in-law. The exemption amount for these transfers is $3,500. The flat tax rate on the excess is 4.5%.
Class B beneficiaries include siblings (including half-siblings but not step-siblings). No exemption amount. The flat tax rate is 12%.
Class C beneficiaries are all others persons. No exemption amount. The flat rate is 15%.
Pennsylvania imposes an estate tax equal to the maximum credit allowed under the federal tax code for paid state estate and inheritance taxes under IRC Sec. 2011. However, the current federal tax code does not permit a credit for paid state estate or inheritance taxes. Therefore, there is no credit estate tax in effect at this time.
Pennsylvania does not impose a GST tax.
Pennsylvania does not impose a gift tax.
The minimum age of a person competent to make a will is 18.
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when:
The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment. The transfer can be delayed until the child reaches age 25 if specified in writing.
The minor child reaches age 18 in regard to other custodial transfers.
The minor child dies.
For important general information about the following material, click here.
Each state describes its own distribution pattern of how property passes to a decedent's spouse, children, parents and siblings. If no such individuals are living, state laws specify other takers among more distant ancestors before awarding property to the state through "escheat" provisions. We do not trace devolution of property beyond those noted above, but cite appropriate statutes for those interested in additional detail.
Many states refer to their distribution regime by simply stating that the heirs of predeceased individuals take "by representation." We use only the statutory verbiage, but may cite other statutory guidance when it exists.
States vary in the way they refer to descendants, using such terms as "issue" or simply children or grandchildren. We use the term "descendant," unless usage of different term adds clarity.
Some states address situations where misconduct or abuse causes forfeiture of a right to receive a share of the estate. Those interested in this information should see the state statutes.
The estate goes to the surviving spouse, as follows:
If there are no surviving descendants or parents—100% of the estate
If one or both parents survive but there are no surviving descendants—the first $30,000 plus 50% of the balance of the estate
If all surviving descendants are also descendants of the spouse—the first $30,000 plus 50% of the balance of the estate
If one or more of the decedent's surviving descendants are not descendants of the spouse—50% of the estate
If there is no surviving spouse, or if a portion of the estate does not go to the spouse:
100% to descendants (descendants' representation is not mentioned, but is clarified under 20 Pa.C.S. §2104(1), (2))
If there is no surviving spouse or descendant:
100% to surviving parent or parents equally
If there is no surviving spouse, descendant or parent:
100% to the descendants of each of the decedent's parents (descendants' representation is not mentioned, but is clarified under 20 Pa.C.S. §2104(1), (2))
If none of the above:
Intestacy laws outline further distribution steps to the level of grandparents, related individuals and their descendants. See 20 Pa.C.S. §2103(4), (5).
If no legally described recipient can be found, estate assets go to the Commonwealth of Pennsylvania.
Click here for more information on intestacy.
Non-qualified Annuities: Payments made to the spouse, child or dependent relative of the insured are exempt from creditors of the insured. Payments are exempt from creditors of the beneficiary up to $100 per month.
Life Insurance Proceeds: Exempt from creditors of the insured if the beneficiary is a spouse, child or dependent relative of the insured. Exempt from creditors of the beneficiary to the extent required to provide an income or return of $100 per month.
Digital Assets: Pennsylvania follows the Revised Uniform Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.
Copyright © 2026, Endowment Development Services, a PGI Partners Company, 921 East 86th Street, Suite 100, Indianapolis, Indiana 46240. All rights reserved.
This service is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that neither the publisher nor any distributor is engaged in rendering legal, accounting, tax, investment, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought.
While the publisher has been diligent in attempting to provide accurate information, the accuracy of the information cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legal interpretations. Accordingly, neither the publisher nor any distributor of this service shall be liable for any loss or damage caused or alleged to have been caused by the use or reliance upon this service.