Legal Insights: Estate Planning
Estate Planning Documents Every Pennsylvania Adult Needs
Pennsylvania law requires specific statutory formalities for estate planning documents to be valid and enforceable under 20 Pa.C.S. § 2502 and related provisions. Without compliant documents, a family faces court guardianship proceedings under 20 Pa.C.S. Chapter 55 for incapacity and intestate succession rules for death. Estate planning addresses two distinct legal problems: what happens when you die, and what happens if you are alive but cannot act.
What Is Estate Planning in Pennsylvania?
Estate planning is the process of preparing legal documents that control what happens to your property after death and who has authority to act for you during incapacity. Pennsylvania law provides specific tools for these situations: a will directs asset distribution after death, a durable financial power of attorney authorizes an agent to manage finances during incapacity, and a health care power of attorney appoints an agent to make medical decisions when you cannot. Each document serves a distinct purpose and must comply with statutory requirements in the Probate, Estates and Fiduciaries Code to be enforceable. Without proper planning, Pennsylvania intestacy law determines who inherits property, and family members may need court-appointed guardianship to manage finances or make medical decisions.
For a complete overview of your options, see our Pennsylvania estate planning practice area.
The Will: Foundation of Estate Planning Documents in Pennsylvania
A last will and testament directs how assets in your estate are distributed after death under 20 Pa.C.S. § 2502. The will must be in writing, signed by the testator, and attested by two witnesses who sign in the testator’s presence. The will names an executor who administers the estate, identifies beneficiaries, and often designates a guardian for minor children. Without a valid will, Pennsylvania intestacy law under 20 Pa.C.S. § 2103 determines who inherits property based on family relationships, which may not reflect what you intended. A will does not avoid probate. Assets passing under a will go through the probate process with the Register of Wills in the county where the decedent lived, involving procedural filings, notice requirements, and estate administration by the executor.
A will does not control assets with named beneficiaries such as life insurance, retirement accounts, or jointly owned property with right of survivorship. Those assets pass outside the will by operation of law or contract. For a discussion of timing and procedure, see our guide on how long probate takes in Pennsylvania.
The Durable Financial Power of Attorney
A durable financial power of attorney authorizes an agent to manage financial affairs if the principal becomes incapacitated. This authority can include paying bills, managing investments, handling real estate transactions, interacting with banks, and dealing with tax matters. The term durable means the authority continues even if the principal becomes incapacitated, as provided under 20 Pa.C.S. § 5601.1. Pennsylvania powers of attorney must comply with statutory requirements contained in Chapter 56 of the Probate, Estates and Fiduciaries Code. Documents that do not meet those requirements may be rejected by financial institutions. Without a valid power of attorney, family members may need to petition the Orphans’ Court for guardianship under 20 Pa.C.S. Chapter 55 to manage finances, a process that involves court hearings, ongoing reporting requirements, and significant expense.
Health Care Power of Attorney and Living Will
A health care power of attorney appoints an agent to make medical decisions if a person cannot communicate or make decisions independently. The agent can consult with physicians, review treatment options, and authorize or decline medical procedures based on the patient’s wishes.
Pennsylvania also recognizes living wills or advance directives under 20 Pa.C.S. § 5404, which record specific end-of-life treatment preferences. While a living will provides written instructions, a health care power of attorney appoints a person who can interpret medical information and make decisions as circumstances change. Most comprehensive estate planning documents in Pennsylvania include both.
A will addresses what happens after death. Powers of attorney address what happens if you are alive but unable to act. A complete estate plan prepares for both situations.
Call 412-351-4422 or schedule a consultation to discuss your estate planning documents.
When a Revocable Living Trust May Be Appropriate
A revocable living trust allows a person to transfer assets into a trust while maintaining control during life. The individual typically serves as trustee and beneficiary while competent. A successor trustee manages the assets if incapacity occurs or after death. Property owned by the trust can pass to beneficiaries without probate.
Revocable trusts do not reduce Pennsylvania inheritance tax because the creator retains control during life. The trust’s primary benefits are privacy, administrative efficiency, and continuity of management. Even when a trust is used, families must still consider Pennsylvania inheritance tax when assets transfer after death.
Trusts are particularly useful when individuals own real estate in multiple states, wish to avoid multiple probate proceedings, or want greater privacy in asset distribution. However, the trust must be properly funded. Assets not transferred into the trust during life may still pass through probate.
When a Simple Will-Based Plan Is Enough
For many Pennsylvania residents, a will combined with a financial power of attorney and a health care power of attorney provides a practical and effective plan. Individuals with a primary residence, retirement accounts with named beneficiaries, and straightforward family structures often do not require a revocable trust.
The appropriate estate planning documents depend on the individual’s assets, family structure, and planning objectives. A plan designed around those facts provides far greater protection than generic documents prepared without legal guidance.
Common Mistakes in Estate Planning Documents
Incomplete will execution. A will that is not properly witnessed under 20 Pa.C.S. § 2502 may be invalid. Pennsylvania requires two witnesses who sign in the testator’s presence. Self-proved wills include notarized affidavits that simplify probate, but the witness requirement is mandatory.
Outdated beneficiary designations. Life insurance, retirement accounts, and payable-on-death accounts pass by beneficiary designation, not by will. Failing to update these designations after marriage, divorce, or the birth of children can result in unintended inheritance.
Unfunded trusts. A revocable trust only controls assets that have been transferred into the trust. Real estate must be deeded to the trust, financial accounts must be retitled, and personal property must be assigned. Assets not transferred into the trust pass through probate under the will.
No power of attorney. Powers of attorney cannot be created after incapacity occurs. Without a durable financial power of attorney, family members must petition for guardianship, which involves court hearings, ongoing reporting, and significant expense.
Generic forms without legal review. Online forms may not comply with Pennsylvania statutory requirements or address the individual’s specific circumstances. Documents that do not meet statutory formalities may be rejected by financial institutions or challenged in court.
Common Questions
Pennsylvania probate proceedings are governed by the Probate, Estates and Fiduciaries Code in Pennsylvania statutes. Estate administration is handled through the Pennsylvania Unified Judicial System in the Register of Wills and Orphans’ Court.
What estate planning documents does every Pennsylvania adult need?
Most adults should have a will, a durable financial power of attorney, and a health care power of attorney or advance directive. These documents address both death and incapacity.
Does a revocable trust avoid Pennsylvania inheritance tax?
No. Because the trust creator retains control during life, assets in a revocable trust remain subject to Pennsylvania inheritance tax at death.
How often should estate planning documents be reviewed?
Estate planning documents should be reviewed after major life events such as marriage, divorce, birth of a child, relocation, or significant financial changes.
Can a power of attorney be created after someone becomes incapacitated?
No. A person must have legal capacity to execute a power of attorney. Once incapacity occurs, only a court-appointed guardian can act on the person’s behalf.
Estate planning documents work best when coordinated with how assets are owned and titled
Contact Lebovitz & Lebovitz to review or prepare your estate planning documents.
