Estate Planning and Probate FAQs
Wills, Trusts, and Estate Administration in Pennsylvania
This page addresses common questions individuals and families ask about estate planning and probate in Pennsylvania.
The information below is intended to provide general guidance and context, not legal advice for a specific situation.
Pennsylvania Specific Notes
Estate planning and probate rules vary by state. Pennsylvania has its own inheritance tax structure,
probate procedures, and fiduciary requirements that differ from federal law and other states.
Many estate administration problems arise not from missing documents, but from poor coordination between
wills, trusts, beneficiary designations, deeds, and powers of attorney.
Estate Planning Questions
Why is estate planning important in Pennsylvania?
Estate planning allows you to decide who manages your affairs during incapacity and how property is distributed at death.
Without a plan, Pennsylvania intestacy law controls inheritance and court involvement is often required.
What documents are included in a typical estate plan?
Most estate plans include a last will and testament, a financial power of attorney, and a durable power of attorney for health care.
Many plans also include an advance directive and, when appropriate, a revocable living trust with coordinated asset transfers.
Why do you emphasize a durable power of attorney for health care?
Most medical decisions are not simple yes or no questions. A durable power of attorney for health care appoints a trusted person
to make real-time medical decisions based on current facts, prognosis, and physician guidance if you are unable to do so.
Do I still need a living will or advance directive?
A living will or advance directive can be useful as supplemental guidance, but it does not replace the need for a health care decision maker.
Many clients choose to focus on appointing a trusted agent first, with written preferences serving as secondary guidance rather than rigid instructions.
What happens if I become incapacitated without powers of attorney?
Without valid powers of attorney, family members may need to seek court-appointed guardianship to manage finances or medical decisions.
Guardianship proceedings are public, time-consuming, and often more restrictive than planned authority.
What is the difference between a will and a trust?
A will controls assets at death and typically requires probate. A properly funded revocable trust can allow assets to pass privately,
provide continuity during incapacity, and reduce administrative delay.
Do I need a trust or is a will enough?
It depends on what you own and what you want to accomplish. A will is often sufficient for straightforward estates.
A revocable trust is commonly considered when there is real estate, privacy concerns, complex distributions, blended family planning,
incapacity planning goals, or a desire to reduce probate administration.
Will a pour over will move my house into my trust?
A pour over will is a backstop, but relying on it can defeat the purpose of a trust for certain assets.
If the goal is to keep a house out of probate, the house generally must be titled to the trust during life
or structured to pass outside probate through an appropriate transfer method.
What are POD and TOD beneficiary designations?
Payable on death and transfer on death designations allow certain accounts to pass outside probate.
They can be helpful, but they must be coordinated with your overall plan to avoid conflicts, omissions, or unintended outcomes.
Beneficiary designations generally control even if a will says something different.
What is a transfer on death deed in Pennsylvania?
Pennsylvania allows transfer on death deeds for real estate. These deeds can pass property outside probate,
but they are not appropriate in every situation and should be coordinated with tax, creditor, and long-term planning considerations.
Can I just add my child to the deed to avoid probate?
Often no. Adding someone to title can create creditor and divorce exposure, reduce your control during life, and create unintended tax results.
There are usually cleaner options that preserve control and coordinate better with the rest of your plan.
What is a stepped-up basis and why does it matter?
When someone dies, many assets receive a new tax basis equal to their fair market value at the date of death.
This can significantly reduce or eliminate capital gains tax if heirs later sell the asset, particularly for real estate and long-held investments.
Do assets in a revocable living trust receive a stepped-up basis?
Yes. Assets held in a revocable living trust are generally treated as owned by the individual for tax purposes.
Because the trust can be amended or revoked during life, those assets typically receive a stepped-up basis at death just like assets passing through a will.
Do gifted assets receive a stepped-up basis?
No. Assets gifted during life generally carry the original owner’s tax basis, which can increase capital gains tax when the recipient later sells the asset.
This is why gifting appreciated assets should be evaluated carefully rather than assumed to be tax-efficient.
Does Pennsylvania have a gift tax?
Pennsylvania does not impose a separate gift tax. However, gifts made within one year of death may be subject to Pennsylvania inheritance tax,
making timing and planning important.
Do most people pay federal gift or estate tax?
Most people do not pay federal gift or estate tax. Some gifts require reporting, and large transfers can affect long-term planning.
In Pennsylvania, the more common tax issue in estate administration is inheritance tax, not federal estate tax.
How often should an estate plan be reviewed?
Estate plans should be reviewed every few years and after major life events such as marriage, divorce, births, deaths,
significant financial changes, or relocation.
Can estate planning help with family real estate or closely held business interests?
Yes. Trust planning, coordinated deeds, and entity structures can clarify ownership, consolidate management authority,
and reduce future disputes involving family property or closely held businesses.
Probate and Estate Administration Questions
What is probate?
Probate is the court-supervised process of settling a person’s estate after death.
It involves collecting assets, paying debts and taxes, and distributing property to heirs or beneficiaries.
What happens if someone dies without a will?
If a person dies without a will, Pennsylvania intestacy law determines who inherits and who may serve as administrator.
The estate proceeds through the Register of Wills.
How long does probate take in Pennsylvania?
The timeline depends on complexity, tax issues, and disputes. Many estates take nine months to a year or longer to complete.
What is Pennsylvania inheritance tax?
Pennsylvania inheritance tax applies based on the relationship between the decedent and the beneficiary.
Rates differ for spouses, children, siblings, and unrelated beneficiaries.
Are there deadlines for Pennsylvania inheritance tax?
Inheritance tax returns are generally due nine months after death. A discount may apply if tax is paid within the first three months.
Does probate include real estate?
Yes. Estates that include real property may require deed preparation, valuation, sale coordination,
or transfer to heirs during administration.
What are the responsibilities of an executor or administrator?
Duties commonly include safeguarding assets, providing required notices, addressing creditor claims,
paying valid debts and taxes, maintaining records, and distributing property according to the governing documents or Pennsylvania law.
What if there is a dispute during probate?
Disputes may involve will challenges, fiduciary conduct, creditor claims, or disagreements among beneficiaries.
These matters are addressed through Orphans’ Court proceedings when necessary.
Related Pages
For planning during life, see our
Estate Planning page.
For estate settlement after death, see our
Estate Administration and Probate page.