61 Pa. Code § 94.3 - Taxation of trusts terminated under 20 Pa.C.S.§7710.1
(a) Effective for
Resident and Non-Resident Pennsylvania Inheritance Tax Returns filed on or
after July 1, 2012, wherein the person responsible for filing the return has
not made an election to prepay tax under section 2113(a) of the Inheritance and
Estate Tax Act (act) (72 P. S. §
9113(a)) concerning trust
assets reported on the return as part of a qualified spousal trust under
section 2113 of the act, the Department will reserve the right to assess
Pennsylvania Inheritance Tax at the highest applicable rate in effect at the
time the Department issues its initial Notice of Inheritance Tax Appraisement,
Allowance or Disallowance of Deductions and Assessment of Tax, unless the
person responsible for filing the return requests a Future Interest Compromise
from the Department in conjunction with the filing and in the manner prescribed
by the Department.
(b) If a Future
Interest Compromise is not requested in accordance with subsection (a), the
person responsible for filing the return shall acknowledge in writing, in the
form and manner provided by the Department, the person's assumption of
liability for inheritance tax consequences that result from the termination of
a trust under
20 Pa.C.S. §
7710.1
(relating to nonjudicial settlement agreements-UTC 111) that occurs after the
return has been filed. This assumption of liability applies to a termination
made without court approval or notice to the Department. This liability does
not apply to a termination made under a specified termination date as contained
within the trust instrument provided to the Department.
(c) If a trust has been terminated under
20 Pa.C.S. §
7710.1,
without request for a Future Interest Compromise in accordance with subsection
(a), the assets of the trust will be valued for Pennsylvania Inheritance Tax
purposes as of the date of termination and tax will be due and owing as of the
date of termination. Interest will accrue on an inheritance tax liability as of
the termination date and in accordance with section 806 of The Fiscal Code
(72 P. S. §
806).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.