Thank you for visiting our information page on Pennsylvania Probate.
Need information about the Probate Process in Pennsylvania? Check out our step-by-step guide.
We make probate and estate administration easy during a difficult time for you and your family. If you are seeking immediate assistance in your Pennsylvania probate or administration matter, please Contact Us today so that we can begin assisting you immediately.
When a loved one passes away, his or her estate, if not left in a funded living trust, often goes through a process called probate or estate administration where the assets of the deceased are managed and distributed. If your loved-one owned his or her assets through a well drafted and properly funded living trust, it is likely that no court-managed administration is necessary, though the successor trustee needs to administer the distribution of the deceased's assets. However, if your loved one had a Will and you need probate assistance in the Commonwealth of Pennsylvania, contact us immediately as there are many time-sensitive procedures that must be completed. The length of time needed to complete the probate of an estate depends on the size and complexity of the estate and the local rules and schedule of the probate court.
Every probate estate is unique, but most involve the following steps:
- Filing of a petition with the proper Pennsylvania Register of Wills (an office of the state Orphans Court).
- Notice to heirs under the Will or to statutory heirs (if no Will exists).
- Petition to appoint Executor (in the case of a Will) or Administrator for the estate.
- Inventory and appraisal of estate assets by Executor/Administrator.
- Payment of estate debt to rightful creditors.
- Sale of estate assets.
- Payment of federal estate taxes and Pennsylvania inheritance taxes, if applicable.
- Final distribution of assets to heirs.
Our firm takes the complexity out of probate, and handles the process for you to ensure that things go smoothly. You may have some questions about the process. Below are some frequently asked questions. If you have any other questions, please do not hesitate to schedule a free consultation.
FREQUENTLY ASKED QUESTIONS
What happens if someone objects to the Will?
An objection to a Will, also known as a “Will contest” is a fairly common occurrence during the probate proceedings and can be incredibly costly to litigate.
In order to contest a Will, one has to have legal “standing” to raise objections. This usually occurs when, for example children are to receive disproportionate shares under the Will, or when distribution schemes change from a prior Will to a later Will. In addition to disputes over the tangible distributions, Will contests can be a quarrel over the person designated to serve as Executor.
Does probate administer all property of the deceased?
Probate is primarily a process through which title is transferred from the name of the deceased to the names of the beneficiaries.
Certain types of assets are what is called “non-probate assets” do not go through probate. These include:
- Property in which you own title as “joint tenants with right of survivorship”. Such property passes to the co-owners by operation of law and do not go through probate.
- Retirement accounts such as IRA and 401(k) accounts where there are designated beneficiaries.
- Life insurance policies.
- Bank accounts with “pay on death” (POD) designations or “in trust for” designations.
- Property owned by a living trust. Legal title to such property passes to successor trustees without having to go through probate.
Do I get paid for serving as an Executor?
Executors are reimbursed for all legitimate out-of-pocket expenses incurred in the process of management and distribution of the deceased estate. In addition, you may be entitled to statutory fees, which vary from location to location and on the size of the probate estate. The Executor has to fulfill his or her fiduciary duties on behalf of the estate with the highest degree of integrity and can be held liable for mismanagement of estate assets in his or her care. It is advised that the Executor retain an attorney and an accountant to advise and assist him with his or her duties.
Can you explain the Pennsylvania Inheritance Tax?
Pennsylvania has an inheritance tax. Currently, property passed to a spouse is taxed at 0%, property passed to children are taxed at 4.5%, property passed to siblings taxed at 12% and property passed to all others taxed at 15%.
If you pay taxes within three months of the decedent's death, you can get a 5% discount on the inheritance tax. There are also several exemptions that can reduce your inheritance tax.
As part of the estate administration and probate process, we prepare your inheritance tax return.
How is the Pennsylvania Inheritance Tax different than the Federal Estate Tax?
The federal estate tax is currently not in force during the year 2010, although Congress may retroactively enforce the tax this year (this section will be updated accordingly, or check our Blog). In 2011, there is a federal estate tax exemption of $1 million for single adults and $2 million for married couples. After that, all assets are taxed at a rate of 45%. Pennsylvania does not have any income thresholds or exemptions like the federal estate tax. There are many well-grounded strategies to reduce and prolong federal estate tax dues.
How much does probate cost? How long does it take?
Like many states, the Commonwealth of Pennsylvania has streamlined the probate process, particularly for smaller estates. However, the cost and duration of probate can vary substantially depending on a number of factors such as the value and complexity of the estate, the existence of a Will and the location of real property owned by the estate. For instance, if you have several properties in different locations other than Pennsylvania, you must probate those assets in the state where the property is located. Will contests or disputes with alleged creditors over the debts of the estate can also add significant cost and delay. Common expenses of an estate include executors fees, attorneys fees, accounting fees, court fees, appraisal costs, and surety bonds. These typically add up to 2% to 7% of the total estate value. Most estates are settled though probate in about 9 to 18 months, assuming there is no litigation involved.
If we can be of assistance in your probate or estate administration matter, please Contact Us today for a free consultation.
|