Collateral Class
One of four main classes which determine the Pennsylvania inheritance tax rate applied to the property acquired by reason of another person's death. The collateral class is taxed at the highest rate, 15 percent.
Taxation classes are determined by the family relationship each beneficiary or heir has with the decedent. The collateral class includes entities and any person who does not have a family relationship with the decedent closer than a sibling.
(It is sometimes easier to discuss the family members who are not in this class: spouse, child, grandchild, issue, parent, grandparent, and sibling.)
Although entities generally fall within this class, tax exempt entities, such as charitable organizations, are excluded for purposes of taxation.
One of four main classes which determine the Pennsylvania inheritance tax rate applied to the property acquired by reason of another person's death. The collateral class is taxed at the highest rate, 15 percent.
Taxation classes are determined by the family relationship each beneficiary or heir has with the decedent. The collateral class includes entities and any person who does not have a family relationship with the decedent closer than a sibling.
(It is sometimes easier to discuss the family members who are not in this class: spouse, child, grandchild, issue, parent, grandparent, and sibling.)
Although entities generally fall within this class, tax exempt entities, such as charitable organizations, are excluded for purposes of taxation.