Pennsylvania Joint Acct Estate/Fidelity Question

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Topic Author
TBillT
Posts: 1002
Joined: Sat Sep 17, 2011 1:43 pm

Pennsylvania Joint Acct Estate/Fidelity Question

Post by TBillT »

I am executor for my mother's estate in Pa.
I had a small joint account JWROS with her in Fidelity for expenses.

Fidelity is trying to tell me (1) they want to move this into new account in my name and (2) they need Pa Form REV 516 Waiver of Estate tax for this account. But Form REV-516 is for beneficiaries of TOD accounts, so filling it out for a Joint account is awkward, since the form does not seemingly apply to joint accounts (also it takes months for Pa to respond to the Form). The issue is my mother's SSN is the tax ID.

Anyone agree with Fido on this Pa-specific matter?
Last edited by TBillT on Mon Apr 03, 2023 12:11 pm, edited 1 time in total.
Topic Author
TBillT
Posts: 1002
Joined: Sat Sep 17, 2011 1:43 pm

Re: Pennsylvania Joint Acct Estate/Fidelity Question

Post by TBillT »

Well, I think I can answer my own question.

Pennsylvania wants to collect inheritance tax on joint accounts (I understand typically 50% of the joint account balance, if the joint owner is not a spouse). Pennsylvania was also worried that people are not paying up on joint accounts, so in 2018 they have enforced a law that Banks must tell Pa. about joint accounts.

Fidelity is not a Bank, but they are looking for protection from liability. So they are asking joint account owners to fill out above form. It then takes Pa. some months to approve Fido to transfer the joint account to the other account holder.

Its confusing because the form Fido is requesting does not appear designed for the purpose of disclosing joint accounts, but apparently close enough for government work as far as Pa. is concerned.

The other problem (according to Google) is Pa. does not really have the capability to correlate the form above with actual taxes paid. So even if you paid your inheritance tax properly, Pa. will sometimes come back and accuse you of failure to pay the tax on the joint account even if you did pay it, and you have to be smart enough to argue with them years later, or just pay double tax on it.
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