Avoiding Probate: Strategies Every Pennsylvania Family Should Know

Probate is the legal process of proving a will and settling a person’s estate after death. In Pennsylvania, it begins with the Register of Wills in the county where the person lived. Probate is often more manageable than its reputation suggests, but it can still add time, cost, and public scrutiny to settling an estate. At Anderson Law Firm, LLC, our Pittsburgh estate planning attorneys help families plan so more of their assets can pass outside probate.

Why Families Attempt to Limit Probate

Probate files are generally public, so anyone can review the will and, in many cases, the inventory of assets. The process can also take months, and executors may need court filings, legal notices, and appraisals before distributing property. For families with real estate in more than one state, a separate probate proceeding may be required in each state. Finally, probate gives interested parties a formal opportunity to challenge the will.

Probate is not always a problem, though. It provides a structured process, sets a deadline for creditor claims, and gives the court a way to resolve disputes. The right approach depends on the size of the estate, the type of assets, and family circumstances.

Common Probate Avoidance Strategies

Several tools allow assets to pass directly to the people you choose:

• Revocable living trusts that hold real estate, investment accounts, and other property
• Beneficiary designations on life insurance, retirement accounts, and annuities
• Payable-on-death and transfer-on-death designations on bank and brokerage accounts
• Joint ownership with right of survivorship, including tenancy by the entirety for married couples

A revocable trust can avoid probate only for assets actually transferred into it. A common mistake is failing to retitle a home or account in the trust’s name. A pour-over will can catch assets left outside the trust, but those assets may still go through probate.

Joint ownership requires caution. Adding a child to a deed or account can expose the asset to that child’s creditors, create gift tax reporting issues, and limit your control over the property. It can also leave out other children you intended to treat equally.

Unlike many states, Pennsylvania does not currently recognize transfer-on-death deeds for real estate, so homeowners who want to keep a house out of probate often use a trust instead.

Probate Avoidance and Pennsylvania Inheritance Tax

Avoiding probate generally does not avoid the Pennsylvania inheritance tax. Assets held in a revocable trust, jointly owned accounts, and many other non-probate transfers may still be taxable. The tax rate depends on the beneficiary’s relationship to the decedent, so planning should account for both probate and tax consequences.

Simplified Options for Smaller Estates

Pennsylvania law offers a simplified process for some small estates under 20 Pa.C.S. § 3102, and certain limited payments can be made without formal estate administration. Whether these options apply depends on the value and type of assets involved.

Talk With a Pittsburgh Estate Planning Lawyer

A strategy that works for one estate may create problems for another. To review your options with Anderson Law Firm, call (412) 209-3200 or reach out online to schedule a consultation.