We have more money than that and we have a son and a daughter. We learned that we can give each of them as a gift per year $13,000. If either of us have to enter a nursing home, this would help us in that regard. In addition, my husband in June was diagnosed with pancreatic cancer, and this complicates the problem. We are glad to have a good local attorney to guide us.

A Revocable Agreement is an agreement where flexibility and income to the living grantor is provided. The living grantor can adjust the trust provision and earn income with the knowledge of transferring the estate upon death.

If the deceased has no children, his assets of less than $100,000 will pass to his heirs--determined by his state or where he once live.

About Pennsylvania Inheritance Tax:

The Pennsylvania Inheritance Tax is a tax on the beneficiaries right to acquire or receive the property. There are many factors to consider to influence the amount of inheritance tax your estate is going to pay. The type of property, the way you own the property, and your relationship to your beneficiaries. If you have planned this issue properly, you will save more in taxes.

In Pennsylvania, inheritance tax applies no matter the size of your estate. There are two tax rates in Pennsylvania before. The six percent rate (6%) is good for the assets that passed to lineal descendants like children, grandchildren and stepchildren.

The fifteen percent rate (15%) is applied to collateral beneficiaries like brothers, sisters, nephews, nieces and others. However, in 1995, a third rate has been made. This third rate is applicable to assets left to a spouse, which is zero percent rate (0%.)

This new tax act also provides a new rate for siblings transfer. Siblings should have at least one parent in common, either by blood or adoption. The tax for this new act is 12% (applies if deceased after June 30, 2000.)