Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article IV - County Collections › Chapter 91 - REALTY TRANSFER TAX › Subchapter H - SPECIAL SITUATIONS › Section 91.159 - Transfers by will or intestate law

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A document which evidences a specific or
						residuary devise of real estate by will or under intestate law and a document
						under an orphan's court adjudication allocating realty to a surviving spouse as
						part of his exemption or allowance is not taxable under §
												91.193(b)(7)
						(relating to excluded transactions) if the document is without consideration or
						for nominal actual consideration. A transfer made under the exercise of an
						option to purchase realty under a will is for consideration and is taxable,
						whether the transfer is a bona fide sale or not.
(b) If a joint interest in realty passes to
						two or more heirs or devisees by will or under intestate law, a subsequent
						transfer of division in kind between the heirs or devisees is not taxable under
						§
												91.193(b)(5)
						unless the transfer is for consideration or an heir or devisee takes a share
						greater in value than his undivided interest. If the transfer is for
						consideration or an heir or devisee takes a share greater than his undivided
						interest, the property received by an heir or devisee is taxable to the extent
						of the value of the grantor's interest under the will or under intestate law.
Example 1
:
By will, A, B and C inherited three lots of equal value
						  as tenants in common. A, B and C convey one lot to A, one lot to B and one to
						  C. The deeds are for nominal actual consideration. The three conveyances are
						  not taxable under §
													91.193(b)(5),
						  because the value of each party's share is equal to his undivided interest, the
						  property divided passed by will, and the division was accomplished without
						  additional consideration.
Example 2
:
Assume the same facts as in Example 1, except that B
						  and C convey their interests in two lots to A for $10,000 and A conveys his
						  one-third interest in the remaining lot to B and C. These conveyances are not
						  wholly excludable under §
													91.193(b)(5) or
						  (7). Unless otherwise excludable-familial
						  relationship, and the like-the lots conveyed to A are excludable only to the
						  extent of A's one-third interest under the will. The interest conveyed by A is
						  fully taxable.
(c) If an
						interest in realty would have passed to an heir or devisee by will or under
						intestate law but for that heir's or devisee's disclaimer of the interest or
						family agreement, the value of the interest disclaimed is not wholly excludable
						from tax under §
												91.193(b)(5) or
						(7) unless there is no or nominal
						consideration passing from the grantee to the heir or devisee for the
						disclaimer or the conveyance is otherwise excludable from tax.
Example
:
Assume the same facts as in Example 1 of subsection
						  (b), except that B and C disclaim their interest in the two lots in exchange
						  for A's renunciation of all of his interest in the remaining lot and $10,000.
						  In this situation §
													91.193(b)(5) and
						  (7) are inapplicable. The conveyances would
						  be taxed the same as in Example 2 of subsection (b).
The provisions of this §
														91.159 issued under section 1107-C
							 of the Tax Reform Code of 1971 (72 P. S. §
															8107-C).
This section cited in 61 Pa. Code §
														91.193 (relating to excluded
							 transactions).