PA DOR Now Wants Proof to Clear Some Inheritance Tax Liens
An inheritance tax lien was customarily not an issue if a foreclosure or tax sale occurred if notice of same was given to the PA Department of Revenue (PA DOR). That is no longer the case, and the DOR is now pursuing claims for inheritance taxes against buyers of such sales.
To insure title out of a mortgage foreclosure or tax sale free of inheritance taxes, if the defendant was alive at the time of these sales, the title agent will now need to actively clear title rather than rely that the lien was cleared during the tax or foreclosure sale.
Proof that inheritance taxes were paid on the property at its fair market value, which is not necessarily what it sold for to the purchaser; Written confirmation from the DOR that no tax is payable or the DOR has no interest in the property. Why is this relevant to you? This could now complicate clearing title and may cause delays.