Legal Question in Wills and Trusts in Pennsylvania
inheritance tax on money used for funeral expenses
My grandmother's only son, my father, passed away suddenly last year, leaving myself and my three siblings responsible for my elderly and ailing grandmother. I am her power of attorney and know that I will need to make all of the necessary arrangements in the event of her passing, and will also be responsible for readying her home for sale when she passes. My siblings and I do not have a lot of money that is readily available for this. My question is: will we be able to use the funds that my grandmother has willed to us, for her funeral expenses, etc. and will that portion of the money be subject to inheritance taxes. My grandmother has a small ($5,000) insurance policy, $50,000 in savings, and a home worth approx. $220,000. We live in Pa. Thank you for any information you can provice.
1 Answer from Attorneys
Re: inheritance tax on money used for funeral expenses
Just a quick correction in your question. Being that you are the power of attorney does not necessarily make you responsible for her estate when she passes. The power of attorney is no longer valid when a person dies. The person who is named as the executor in her will would be responsible. If she does not have a will, then all four of you could be the administrator of her estate. If you all agree that you will be the administrator then your siblings will have to sign renunciations, renouncing their right to be the administrator in favor of you being appointed.
That being said, you will be able to use her savings account to pay for the funeral and the funeral expenses can be taken as a deduction on the inheritance tax return.
If the life insurance policy has a beneficiary named on it, it will pass directly to that person.
If you have any additional questions, please do not hesitate to contact me. I do give free consultations. 412.963.8495 or [email protected]
Hillary N. Snyder, Esquire
1384 Old Freeport Road
Suite 3B
Pittsburgh, PA 15238
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