Charitable Bequests and PA Inheritance Tax

Transfers to qualifying charities are fully exempt from Pennsylvania inheritance tax under 72 P.S. § 9111(c). The exemption applies to bequests, beneficiary designations, and trust distributions.

Qualifying charities

Any 501(c)(3) organization, government entity, or recognized religious organization qualifies. The PA Department of Revenue may request the IRS determination letter.

Partial bequests

A bequest of '$50,000 to a charity, residue to my children' splits cleanly — the $50,000 is exempt; the rest is taxed at the children's 4.5% rate.

CRTs

A Charitable Remainder Trust pays income to a family member for life, with the remainder to charity — combining family support with full PA tax exemption on the charitable portion.