[wkaswen]

My aunt (Florida resident) died this year and left me $128,000 in POD CDs.
I am a Pennsylvania resident.
Next year I will probably receive another $100,000 through her probated estate.
Sounds like there is no Federal Tax on this (?), but
Would there be any PA Taxes on this money (this year or next year) ?
Would there be any FL taxes on this money (this year or next year) ?
Does any of these moneys need to show-up on any tax forms (even if no tax is owed) ?

Thanks - wkaswen

[LuK3]

No, don't worry about it

[AtlantaTaxExpert]

Agreed!

Most states do not even begin to query unless the estate in over $500K.

[wkaswen]

This website stimulated me to do more research.
Previous answers are correct, but only because the deceased did not reside in PA.
FL estate tax starts at $2,000,000 (same as federal).
FL has no inheritance tax (per FL DOR, FAQ Article no 870, revised 08/21/2002).
PA does have inheritance tax and it applies to any amount, no matter how small.
The rate varies depending on the relationship of the deceased to inheritor,
BUT (and the good new is) the PA inheritance tax only applies if the estate was in PA.
The PA Revenue FAQ did have a question and answer for this exact situation and the
Answer was:
"Inheritance tas is determined by the residency of the decedent - not by where the heir resides or where the assest are located".
So I am feeling pretty good about this. (had the estate been in PA then there would have been a 15% inheritance tax (Doh!) and that would have been a real bummer !

[AtlantaTaxExpert]

That's unusual. Most states have an exemption amount that mirrors the federal estate tax exemption.

If they did not, they would spend unbelievable amounts of time trying to collect small amounts of money from small estates.

Hardly worth the effort In my opinion.