Estate Administration and Probate
Is Estate Administration Necessary?
When a loved one dies, a host of issues arise. Is it necessary to probate the will? What if the decedent had no will? Who has the authority to sell the decedent's property? What taxes need to be paid? The questions can seem endless.
Where to Start
Estate administration begins in the county where the decedent resided at the time of death (the decedent’s primary residence or domicile).
Probate and estate administration procedures differ from state to state and even county to county. Understanding the county-specific facets of the legal process is necessary to ensure that an estate is administered timely, efficiently, and properly.
What is Probate?
In Pennsylvania, the probate process begins with petitioning the Register of Wills for Letters Testamentary (if there is a will) or Letters of Administration (if there is no will). Probate involves presenting the necessary information to prove the decedent’s death, having the decedent’s will proven valid, and appointing the personal representative/executor of the estate.
Estate Administration
Once the county's Register of Wills office has verified the will (if applicable) and has granted the personal representative the authority to represent the estate, the administration process may begin. Some of the tasks involved include taking inventory of all the decedent’s assets, notifying creditors of the decedent’s death (including publication of notices), paying all valid claims/debts against the estate, filing and paying applicable taxes, distributing assets to beneficiaries, and closing the estate.
PA Inheritance Taxes
In general, the Commonwealth of Pennsylvania imposes an inheritance tax on the date of death value of assets transferred upon the death of a person. Inheritance tax is often imposed on assets that do not pass under a will. Nevertheless, there are a number of exempt assets, including assets transferred to a spouse and life insurance proceeds. The rates vary between 4.5% for lineal descendants to 15% for unrelated parties. With minor exceptions, an attorney is in the best position to file an inheritance tax return as he or she will know how to take advantage of numerous deductions, thereby reducing the tax liability and maximizing the payout to the beneficiaries.