(a)
Scope and application.
Subsection (c) sets forth specific criteria the Department will utilize to
determine whether a disclaimer executed in regard to either nonprobate taxable
assets or nontrust assets of a decedent is valid for Inheritance Tax purposes,
when the disclaimer is made by the disclaiming party, or the personal
representative of a deceased individual, or the guardian or attorney-in-fact of
an incapacitated person or minor to whom the interest would devolve, absent a
disclaimer.
(b)
Definitions. The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise:
Disclaimant-Any party in an
individual capacity, or a personal representative on behalf of a deceased
individual, or a guardian or attorney-in-fact on behalf of an incapacitated
person or a minor who renounces or refuses to accept a transfer of
property.
Disclaimer-A signed renunciation or
refusal to accept an interest in property that describes the interest
disclaimed. The disclaimer may disclaim, in whole or in part, any present or
future interest, vested or contingent, including a possible future right to
take as an appointee under an unexercised power of appointment or under a
discretionary power to distribute income or principal.
Nonprobate taxable asset-Property
transferred upon a decedent's death that is subject to Inheritance Tax but is
not subject to administration by the personal representative of the decedent's
estate.
(c)
Conditions. Disclaimers of nonprobate taxable assets,
including rights of survivorship interests in multiple-party accounts, titled
tangible personal property or real estate, beneficial interests in third-party
beneficiary contracts (that is, retirement benefit plans, annuity contracts,
individual retirement accounts, Keogh Plan proceeds, matured endowment
insurance policies and certain out-of-State government lottery contracts) and
intervivos gifts are valid for Inheritance Tax purposes if the following
conditions are met:
(1) The disclaimer is made
by a disclaimant.
(2) The
disclaimer is in writing and satisfies 20 Pa.C.S. Chapter 62 (relating to
disclaimers).
(3) The disclaimer is
signed and dated by the disclaimant.
(d)
Filing.
(1) When the will of the decedent authorizes
the personal representative to make a disclaimer on behalf of a decedent
without court authorization, or when a disclaimant acts in his individual
capacity, the personal representative or the individual shall sign and date the
disclaimer within 9 months of the date of death of the decedent as provided in
section 2116(c) of the TRC (72 P. S. §
9116(c)), attach a copy of
the probated last will and testament to the Inheritance Tax return and file the
documents referenced in this section with the Department.
(2) When the disclaimer is made by the
personal representative of a deceased individual, or the guardian or
attorney-in-fact, in accordance with
20 Pa.C.S. §
6202
(relating to disclaimers by fiduciaries or attorneys-in-fact), a petition,
motion or other pleading as required by local rule shall be filed with the
applicable county orphans' court and, within 9 months of the date of death of
the decedent, the personal representative of a deceased individual, or the
guardian or attorney-in-fact, shall attach a copy of the probated last will and
testament to the Inheritance Tax return and file the documents referenced in
this section with the Department. Filing the disclaimer with the applicable
county orphans' court within 9 months of the date of death of the decedent
satisfies the filing requirement. The disclaimer is not valid until the court
authorizes the disclaimer.
(e)
Notice. Notice of the
filing of an estate's account and of its call for audit or confirmation shall
include notice of the disclaimer under section 2116(c) of the TRC. This notice
shall be given to the Pennsylvania Department of Revenue, Bureau of Individual
Taxes, Inheritance Tax Division, Department 280601, Harrisburg, Pennsylvania
17128-0601.
