The Pennsylvania Inheritance Tax is levied on the net estate value at the date of death, meaning the fair market value of the estate’s assets less the expenses of the estate administration and existing debts.
If at your mother’s death, she left you the home specifically in the will, then you will receive that house as it existed at her death. The tax due will be on the value of that house at her death. Any repairs that you wish to make will not be deductible, but the cost of having your Montgomery County Probate attorney draft and file the deed transferring title into your name will be a deductible estate expense.
If you are the executor, you need be careful about spending estate money to repair the house. If you use money that would otherwise pass to other heirs, they can ask the Orphans’ Court to surcharge you for expending estate funds unreasonably, and ask you to make up the loss.
If you have questions about probate in Montgomery County, Pennsylvania, feel free to contact our office for a free consultation. Wills, Trusts and Estates, It’s all we do!
Peter Klenk, Esq