Berkshire Hathaway Inc. (BRK.A): These 6 States Tax Inheritances the Hardest

1. Pennsylvania
Pennsylvania has the most restrictive set of exempt individuals of the states mentioned here, limiting exempt transfers to surviving spouses or to a parent if the deceased is a child who’s 21 years old or younger. Transfers to children, grandchildren, and other direct descendants get taxed at 4.5%, while transfers to siblings incur a 12% tax. A 15% tax applies to other individual heirs and other recipients.

A last chance at the tax apple
Many policymakers believe that taxing transfers at death is an unconscionable insult to a grieving family, while others note that such taxes help to prevent massive accumulations of wealth among small groups of people. Regardless of your opinions on such taxes, you should be aware of the laws your state imposes on estates and inheritances in deciding where you want to live, especially during your retirement years.

The article These 6 States Tax Inheritances the Hardest originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Berkshire Hathaway Inc. (NYSE:BRK.A). You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of Berkshire Hathaway.

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