Probate in Pennsylvania is likely to take at least several months and not uncommonly more than a year. Many factors can influence the time required to usher an estate through Pennsylvania. The timeline can vary significantly depending on the complexity of the estate, the presence of a will and the efficiency of the court system. A financial advisor can help you understand how the probate works and create an estate plan to avoid it.
How Does Probate Work in Pennsylvania?
Probate is the legal process of settling a deceased person's estate, where their assets are distributed according to their will or state law.
The Pennsylvania probate process begins when the executor or personal representative of the estate files a petition with the Register of Wills in the county where the deceased lived. If the deceased did not have a will, the court will appoint an administrator to manage the estate.
Once the probate petition is filed, the executor or administrator must take several steps to settle the estate. This includes notifying heirs and creditors, paying any outstanding debts and taxes, and inventorying the deceased person's assets.
Certain assets, such as bank accounts, real property and investments that are solely owned by the deceased must pass through probate. Other assets, such as life insurance policies with designated beneficiaries, jointly owned property and retirement accounts typically bypass probate.
After debts are settled and the inventory of assets is complete, the remaining estate is distributed according to the will or state intestacy laws if no will exists. Throughout this process, the court may oversee the actions of the executor to make sure that everything is handled appropriately.
Probate in Pennsylvania also involves filing an inheritance tax return, as the state imposes inheritance taxes on estates. The process can be more complicated if the estate is large, if there are disputes between heirs or if creditors make claims against the estate.
Pennsylvania Probate Timeline
How long probate takes in Pennsylvania varies depending on several factors, but the average process can take anywhere from nine months to over a year. Simple estates with few assets and no disputes may be completed in as little as six months, while more complex estates can take much longer.
One of the primary factors that affect the length of probate is the time it takes to notify creditors and allow them to make claims against the estate. In Pennsylvania, creditors have up to one year from the date of death to file claims. Assets can't be distributed to heirs until all credit claims received during the allowed year have been paid.
The time it takes to file and process the state's inheritance tax return can delay the probate process, especially if the estate includes complex assets such as businesses or real estate. At best, it typically takes the state three to six months to review inheritance tax returns.
Disputes among heirs can also extend the probate timeline. If beneficiaries disagree over the terms of the will or how the estate should be distributed, the court may need to intervene. This can add additional months or years to the process. Estates that lack a valid will may also take longer to probate. In these cases, the court has to appoint an administrator and follow intestacy laws to determine how to divide assets.
The complexity of the estate is also a factor. Large estates with multiple properties, investments and creditors can take longer to process. But small estates with few assets or debts may go through an expedited process.
In Pennsylvania, there is a simplified probate procedure available for estates valued under $50,000. If an estate qualifies, it can reduce the time it takes to settle the estate to a few weeks.
How to Avoid Pennsylvania Probate
Given that probate for many estates can take months or even years to complete, planners often seek to avoid the process altogether. Here are five common strategies used to bypass probate in Pennsylvania:
- Create a revocable living trust: One of the most effective ways to avoid probate is by placing your assets into a revocable living trust. Assets held in the trust are not subject to probate, as they are technically owned by the trust, not the individual. Upon death, the assets are transferred directly to the beneficiaries without the need for court involvement.
- Designate beneficiaries: For certain assets, such as life insurance policies, retirement accounts and payable-on-death (POD) bank accounts, you can designate beneficiaries who will automatically receive the funds upon your death. Designated assets bypass probate entirely, reducing the time and cost of estate administration.
- Joint ownership with right of survivorship: Property that is jointly owned with the right of survivorship automatically passes to the surviving owner upon death. This type of ownership is common with real estate and bank accounts and can help avoid probate.
- Small estate procedure: Pennsylvania allows for a simplified probate process for small estates valued under $50,000. This procedure can be quicker and less expensive than full probate, making it a good option for smaller estates.
- Gifting assets during your lifetime: By gifting assets while you are still alive, you can reduce the size of your estate and avoid probate for those assets. Consider potential gift tax implications before transferring significant amounts of wealth.
Bottom Line
Probate in Pennsylvania can be a lengthy and complicated process, often taking anywhere from six months to over a year to complete. The time it takes depends on factors such as the size of the estate, the existence of a will, creditor claims and whether there are disputes among beneficiaries. Strategies such as creating a living trust, designating beneficiaries or using joint ownership can help avoid probate and simplify the process, saving time and money.
Tips for Estate Planning
- Whether you have a complex or simple estate, a financial advisor could work with you to create a personalized plan. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.
- Required minimum distributions (RMDs) are not optional but can be an unwelcome complication when doing retirement tax planning. Find out how much your RMDs can be using SmartAsset's RMD calculator.
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