PA Executor Guide

Do TOD Accounts Go on the PA REV-1500?

The account skipped probate. That doesn't mean it skipped the inheritance tax return — and the return itself says so.

Short answer: generally, yes. Page 3 of the REV-1500 asks whether the decedent owned an “in trust for” or payable-upon-death account or security, or other non-probate property with a beneficiary designation — and states that if any of those ovals are marked, you must complete Schedule G and file it as part of the return.

Transfer-on-death (TOD) and payable-on-death (POD) designations do one specific thing: they move the account directly to the named beneficiary without going through probate. In Pennsylvania, avoiding probate and avoiding the inheritance tax are two different questions. The Department of Revenue's REV-1500 instructions describe taxable property broadly — in general, property the decedent owned solely, as tenant-in-common, jointly, or in trust is taxable unless specifically excluded by law.

What the return itself says

You don't have to take anyone's word for this — the question is printed on the return. Page 3 of the REV-1500 (“Mark all ovals that apply”) includes:

3. Decedent owned an “in trust for” or payable-upon-death bank account or security at his or her death…

4. Decedent owned an individual retirement account, annuity, or other non-probate property, which contains a beneficiary designation…

“IF ANY OVALS ARE MARKED, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.”

So a decedent's TOD or POD account is squarely within what the return asks about, and a marked oval routes it to Schedule G (form REV-1510), Inter-Vivos Transfers and Miscellaneous Non-Probate Property. Schedule G's total carries to Line 7 of the REV-1500, and assets are valued as of the date of death.

The rate is the same as any other inheritance

A TOD designation doesn't change who the money goes to for tax purposes — so the ordinary relationship-based rates apply to the taxable transfer: 0% to a surviving spouse, 4.5% to children and other lineal heirs, 12% to siblings, 15% to everyone else, with charities exempt.

TOD securities have one extra step: the REV-516 notice

For stocks, bonds, securities, or brokerage accounts registered in beneficiary (TOD) form, Pennsylvania law (20 Pa.C.S. § 6411) separately requires that the transfer be reported to the Department of Revenue on form REV-516, Notice of Transfer. The financial institution or broker is the party required to file it — though the beneficiary or estate representative may file if they have the information — and the department issues an acknowledgment letter confirming the notice. That notice is about reporting the transfer; it is separate from the inheritance tax return itself.

Who pays the tax — the estate or the beneficiary?

If the will's tax clause says the estate pays tax on everything, the estate typically pays the tax on Schedule G transfers too.
Otherwise, the return has a built-in option: the estate representative can mark the Separate Billing Requested oval on Line 7, complete the transferee's information on Schedule G, and the Department of Revenue bills the beneficiary directly.
If no personal representative was appointed — or the estate's return leaves the account out — the department's instructions put the filing duty on the transferee, using the Individual-Transferee Return option on the REV-1500.

How a particular will's tax clause reads, and who ultimately bears the tax in your estate, is exactly the kind of question to put to a licensed Pennsylvania attorney.

Why people hear “it doesn't go on the return”

There's real room for confusion here, because some beneficiary-designation assets genuinely are exempt or treated differently:

Asset	General treatment
TOD / POD bank & brokerage accounts	Generally taxable; reported on Schedule G (the return's page-3 ovals ask about them by name).
Life insurance proceeds	Not subject to PA inheritance tax — the Schedule G instructions say so explicitly.
IRAs	Generally taxable if the decedent was 59½ or older (or disabled); often not taxable if younger. See what's taxable and what's exempt.
Employer pension plans	Exempt when the decedent had no right to possess, assign, or anticipate the payments during life.
Annuities	Fully taxable per the Schedule G instructions.

A quick phone answer about “a TOD account” can land differently depending on which of these the account actually is. For anything you plan to rely on, read the current REV-1500 and REV-1510 instructions on the department's website — or get the answer in writing from the department or a CPA.

Deadline context: the REV-1500 is due nine months after death, and there's a 5% discount for paying within three months. Non-probate assets are part of that same clock — a TOD account found late is what a supplemental filing is for, but finding it early is better.

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Frequently asked questions

Do TOD accounts go on the PA REV-1500?

Generally yes. Page 3 of the REV-1500 asks whether the decedent owned an in-trust-for or payable-upon-death bank account or security, or other non-probate property with a beneficiary designation — and states that if any of those ovals are marked, Schedule G (REV-1510) must be completed and filed as part of the return. Confirm the treatment of a specific account with the PA Department of Revenue or a CPA.

Are TOD and POD accounts subject to PA inheritance tax?

Generally yes. A transfer-on-death or payable-on-death designation lets an account skip probate — it does not remove it from the Pennsylvania inheritance tax. The Department of Revenue's guidance treats property the decedent owned solely, jointly, or in trust as taxable unless specifically excluded by law, and the tax rate depends on the beneficiary's relationship to the decedent.

Which schedule do TOD and POD accounts go on?

Schedule G (form REV-1510), Inter-Vivos Transfers and Miscellaneous Non-Probate Property. Its total carries to Line 7 of the REV-1500. Assets are valued as of the date of death.

What is the REV-516 Notice of Transfer?

A separate notice — not part of the tax return — required by 20 Pa.C.S. § 6411 for stocks, bonds, securities, or security accounts held in beneficiary (TOD) form. The financial institution or broker is required to report the transfer to the Department of Revenue; the beneficiary or estate representative may also file it. The department then issues an acknowledgment letter.

Who pays the inheritance tax on a TOD account — the estate or the beneficiary?

It depends on the will's tax clause. If the will directs the estate to pay tax on all transfers, the estate typically pays. Otherwise the estate representative can check the Separate Billing Requested oval on Line 7 so the Department of Revenue bills the transferee directly. How a specific estate's tax clause reads is a question for a licensed attorney.

What if I was told a TOD account doesn't need to be reported?

Answers about specific accounts can vary with details like the account type, the owner, and the beneficiary — and some assets, such as life insurance proceeds and certain retirement plans, genuinely are exempt. For anything you plan to rely on, check the current REV-1500 and Schedule G instructions on the Department of Revenue's website, or get the answer in writing from the department, a CPA, or a licensed Pennsylvania attorney.

General information, not advice. ExecutorPilot is an educational resource — not a law firm or a tax advisor — and this page does not interpret your specific estate. Whether and how a particular account is reported depends on the facts and can change. This page reflects the Pennsylvania Department of Revenue's REV-1500 (08-24 revision), REV-1510 Schedule G, and REV-516 forms and instructions as published at revenue.pa.gov, reviewed August 2026. Confirm current requirements with the Pennsylvania Department of Revenue, a CPA, or a licensed Pennsylvania attorney before filing.