Pennsylvania BFR Denies Realty Transfer Tax Exemption for Estate Transfer to Beneficiary

The Pennsylvania Board of Finance and Revenue (BFR) issued a decision denying a petition regarding the imposition of realty transfer tax on the transfer of real property from the decedent’s estate to their beneficiary. The Department of Revenue assessed tax on the transfer, finding that the assumption of the mortgage by the beneficiary constituted consideration, and, therefore, disqualifying this transfer from the realty transfer tax exemption for transfers from a decedent’s estate to an heir, for no or nominal consideration. Upon review, the BFR agreed with the Department’s reasoning, concluding that the assumption of the mortgage liability constituted consideration, rendering ...