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Small Estate Limits for Pennsylvania

In Pennsylvannia, there's no Affidavit procedure. You can use a summary probate procedure if an estate's property is $50,000 or less, not counting real estate, certain payments the family is entitled to and funeral costs.

20 Pa. Cons. Stat. Ann. 3102.

What's Included in valuing the estate?

Not everything a person owns is part of their "Estate" for probate purposes.

If you're wrapping up the estate of a Pennsylvania resident who died with an estate that's worth less than a certain dollar amount, you won't have to go through a formal probate court proceeding. 

It doesn't matter whether or not the deceased person left a will; what matters is the value of the assets left behind. If the estate's value is under the "small estates" limit in Pennsylvania, you can take advantage of a simplified probate procedure, often called a "summary probate." Instead of having a court hearing in front of a judge, you may need only to file a simple form or two and wait for a certain amount of time before distributing the assets.

In some states, it can be even easier: Inheritors can use a simple affidavit to claim assets. (An affidavit is a statement you sign in front of a notary, swearing something is true.) If you live in one of those states, you just have to wait a required period of time, then sign a simple, sworn statement that no probate proceeding is happening in your state and that you are the person entitled to inherit a particular asset--a bank account, for example. 

Adding it up, what's in, what's not

When you are trying to determine whether or not an estate's value is below the Pennsylvania small estates limit, the first thing to do is make a list of the assets. A simple spreadsheet or list will do.

Not everything a person owns counts, though.

Include only the things that pass to heirs and beneficiaries by will or, if there's no will, by Pennsylvania intestacy laws, which determine who inherits if there is no will.

Don't count:

  • assets that are held in joint tenancy,
  • retirement plans,
  • payable-on-death (POD) bank accounts,
  • real estate transferred by a transfer-on-death deed, or
  • transfer-on-death brokerage accounts.

These assets don't count towards the small estate limit because they pass to the named beneficiaries regardless of what a will (or state intestacy law) says. If a person had a life insurance policy with a named beneficiary, the insurance proceeds won't count either.

Loans on the property?

Some states also don't count the amount of money owed on a car, or a house, while others count the fair market value of an asset, even it is subject to a loan or a mortgage.

For example, say Donald died in Pennsylvania and owned the following assets:

  • A checking account with $2,345
  • A savings account with $2,567
  • A car with a blue book value of $6,500 (and no loan)
  • An IRA with $32,000, naming his son and daughter as beneficiaries
  • A life insurance policy worth $15,000, naming his son and daughter as beneficiaries

To figure out whether Donald is above or below Pennsylvania's small estate limit, only the bank accounts and car would be counted, for a total of $11,412.

His IRA and the life insurance proceeds aren't counted towards the limit because they will go to his beneficiaries directly. The value of the car is included because he doesn't owe money on it.

That means the value of Donald's estate is under the Pennsylvania small estates limit. His son and daughter, who inherit his assets under Pennsylvania's intestacy laws because Donald had no will, would follow the small estates procedure.

Options for Small Estates in Pennsylvania

Pennsylvania offers options for more expedited probate procedures. These are known as "Small Estate" procedures and "Voluntary Administration".

  1. Small Estate Procedure

    In Pennsylvania, a simplified probate process, also known as a small estate process, is available for estates that consist solely of personal property and are valued at less than $50,000 (not counting funeral expenses and certain property, such as real estate). Here's a step-by-step guide:

    1. File a request with the Register of Wills office in the county where the deceased person lived. You need to fill out a form called a Petition for Grant of Letters.
    2. If the Register of Wills approves the petition, they will issue a short certificate, which gives you the legal authority to distribute the assets of the estate.
    3. Collect the assets, pay the debts, and distribute the remaining assets to the beneficiaries.

    This process bypasses the need for a full probate process, which can involve more detailed accounting and reporting, court hearings, and more extensive paperwork. The small estate procedure is outlined in 20 Pa.C.S.A. § 3102.

  2. Voluntary Administration

    Pennsylvania law allows an heir or other interested party to take control of a decedent's estate without probate in certain circumstances. This is usually used when the deceased person owned only personal property (no real estate) and had few assets. The process is as follows:

    1. The person who wishes to administer the estate (usually a surviving spouse or adult child) files a request with the Register of Wills in the county where the decedent lived.
    2. The Register of Wills can issue a decree allowing the petitioner to distribute the assets of the estate without going through probate.

    This process allows the avoidance of court involvement, legal fees, and the longer timeline that comes with standard probate procedures. This procedure is outlined in 20 Pa.C.S.A. § 3101.


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