During an estate administration process there are probate and non-probate assets. Non-probate assets typically transfer with ease to the surviving joint owner or named beneficiary. Now there may be an unexpected additional requirement that can slow the transfer process. Investment accounts such as stock, bond or mutual fund accounts owned through an adviser or investment house which have beneficiaries designated or are designated as TOD (Transfer on Death) or POD (Payable on Death) require an Inheritance Tax Waiver before they can be transferred to the intended recipient.
This requirement will potentially delay the release of these not probate assets and is presumably intended to help PA and other states to insure they receive the appropriate inheritance tax payment. Read more here about the Inheritance Tax Waiver by clicking here at the PA Department Of Revenue website. Be aware of this requirement so that the proper paperwork can be provided in order to transfer both qualified and non-qualified investment accounts.
For questions or to review other Estate Administration and Estate Planning issues please contact Douglas Kaune, Esq.