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Asked 2/9/2012

Do i have to pay state inheritance tax on a gift i have not received yet

My dad inherited a 10000 dollar cd from a friend that he has not gotten from the bank yet and now has a bill from state of pa to pay taxes on it. does he have to pay the taxes on it even though he can not get his money

 
 
 
 
 
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Answer 1/2 - Submitted 2/9/2012

Hi, Pitotan, and welcome to WebAnswers.

During the probate of the estate from which your father received the $10,000 CD, the executor had to file an inheritance tax return to the Commonwealth of Pennsylvania, which included your dad's CD and to whom it was bequeathed. So, yes, he will have to pay an inheritance tax based upon that return, as he will get it soon enough.

Thank you for your question.

 
 

Answer 2/2 - Submitted 2/10/2012

He has constructive receipt of the CD. It has been his choice (in the eyes of the government) not to make the time to take it to the bank.

 
 
 
 
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