Pennsylvania Probate Avoidance

As shown below, not all standard probate avoidance techniques are available in Pennsylvania. You'll need to follow state-specific rules and understand how federal laws might apply. Here's a breakdown:

1. Set Up Payable-on-Death Accounts:

   • The Paperwork: Complete bank-provided forms to designate a Payable-On-Death (POD) beneficiary.
   • Joint Accounts: Adding a POD designation to a joint account is typically straightforward, following the bank's procedures.
   • Choosing Beneficiaries: Decide who will receive the funds upon your death.
   • If a Beneficiary Dies Before You: Update the beneficiary designation.
   • Changing Your Mind: You can change POD beneficiaries anytime.
   • Claiming the Money: Beneficiaries need death certificates and identification to claim funds.
   • Pennsylvania Law: Generally follows standard banking rules for POD accounts.

2. Name a Beneficiary for Retirement Accounts:

   • Choosing a Beneficiary: Designate a beneficiary when you open the account or later.
   • Required Minimum Distributions: Adhere to IRS rules on distributions from retirement accounts.
   • Federal Law: Governed by IRS regulations.

3. Name a Beneficiary for Stocks and Bonds:

   • Transfer-on-Death Registration: Set up a TOD for stocks and bonds.
   • Government Bonds and Notes: Follow U.S. Treasury rules for registration.
   • Federal Law: Governed by securities and treasury regulations.

4. Name a Beneficiary for Vehicles:

   • Transfer-on-Death Registration: Pennsylvania allows for TOD registration of vehicles.
   • Joint Ownership: Consider joint ownership with right of survivorship.
   • Special Procedures for Vehicles: Follow PennDOT guidelines for transfer.
   • Pennsylvania Law: Governed by state vehicle registration laws.

5. Name a Beneficiary for Real Estate:

   • TOD Deed: Pennsylvania does not currently recognize Transfer on Death deeds for real estate.
   • Alternatives: Explore other methods like joint ownership or a living trust.
   • Pennsylvania Law: Real estate transfer is subject to state property laws.

6. Hold Property in Joint Ownership:

   • Joint Tenancy/Tenancy by the Entirety: These are recognized in Pennsylvania and avoid probate.
   • Community Property: Not recognized in Pennsylvania.
   • Pennsylvania Law: Specific rules govern joint ownership of property.

7. Create a Living Trust:

   • Avoiding Probate: A living trust can bypass probate for assets held in the trust.
   • Setting Up: Follow legal procedures to create a valid trust.
   • Taxes and Record Keeping: Maintain records and understand tax implications.
   • Amending/Revoking: Legal procedures exist for changes.
   • Pennsylvania Law: Trusts are governed by state trust laws.

8. Special Procedures for Small Estates:

   • Qualifications: Small estates may qualify for simplified probate processes. 
   • Claiming Assets with Affidavits: For assets below a certain threshold. 
   • Simplified Court Procedures: Used for estates that qualify under state-defined criteria.
   • Pennsylvania Law: Defines small estates and the applicable procedures. The threshold for qualifying as a small estate in Pennsylvania is $50,000. 

You may want to consult a legal professional to execute these strategies, as this overview provides general information, not legal advice. The laws can be complex and vary based on individual circumstances. Legal professionals can provide guidance tailored to your specific situation.