Q: Joint owner of deceased significant other checking account .inheritance tax ?
My significant other , added my name to his checking account prior to his death ,on 9/21 2020 .
He added my name to the account 9/15 2020. I closed the account few days after death transferred the money to my account , we both had the same bank. He had No will , no other assets . I just got PA inheritance tax notice letter , saying I owe inheritance tax on 50 percent of the amount . The Letter stated the bank Reported to pa department of revenue inheritance tax. That I was joint owner or beneficiary of the account at the descendants date of death. It indicates 15 percent . We had no joint credit cards , loans , no financial ties we lived in my home , Do I have to pay this ? . I’m worried because he has credit card debt , hospital bills ,etc . Can I be held responsible ? This is going to registry of wills , in my town york pa . Please help me , it’s 798.00 if paid within 3 mons . I’m 70;, it’s a lot of money to me , please advise.
A:
In PA, transfers of assets as gifts within 8 years of the date of death are considered to be "in contemplation of death", are by law are included in the taxable estate of a decedent.
The PA "death tax" has no exemptions, and taxes the very first dollar in a decedent's hands at the date of death, as well as every other dollar, or value of assets. Unless you can prove, with convincing evidence, that the money in the joint account was deposited by you, and not your significant other, then you must pay the inheritance tax, as the recipient.
With respect to the other debts, credit cards, hospital bills, etc., you should have no legal obligation to repay any of that, unless you were an authorized signer on the accounts, or have signed an agreement to be liable as a joint account holder.
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