What taxes are owed after someone
has passed away?
There are ordinarily three kinds of taxes that
can apply to value of the estate left behind:
• Pennsylvania
inheritance tax: on net estates left to anyone
other than a spouse or charity;
• Federal estate
tax: on larger estates; and
• Income tax on
assets and deferred income (such as IRAs and
Annuities).
Who is responsible for paying bills and taxes after
someone has died?
Generally, the debts that were owed by the person
at the time of and that arise after death (such as
medical bills, credit card balances and funeral expenses)
are paid from the probate estate assets. These debts
may sometimes be paid by family members from other
non-probate sources, such as joint bank accounts or
life insurance proceeds. If so, the estate may owe
reimbursement to the person who paid. In Pennsylvania,
estate tax is generally owed by the person who receives
the inheritance (but may sometimes be paid directly
from the estate). Federal estate tax is generally
owed by the estate.
