Pennsylvania Estate Tax and ITF Accounts: What You Need to Know

In Pennsylvania, "In Trust For" (ITF) accounts—also known as Totten trusts—are generally included in the decedent’s probate estate. Consequently, they are subject to Pennsylvania inheritance tax (often called an estate tax in common parlance).

The tax rate depends on the beneficiary’s relationship to the decedent (0% for spouses, 4.5% for lineal descendants, 12% for siblings, 15% for others). Proper estate planning can help mitigate this liability.