What Assets Are Subject to Probate in Pennsylvania? Your Complete Guide

Did you know that over 100,000 estates go through probate in Pennsylvania every year? If you’re dealing with the loss of a loved one and asking, “What assets are subject to probate in Pennsylvania?” you’re not alone. Probate can feel like a maze of legal jargon and paperwork, but here’s the good news: not everything has to go through it. 

Understanding which assets are subject to probate—and which ones aren’t—can save you time, stress, and even thousands of dollars in legal fees and taxes.

Pennsylvania’s probate laws have unique twists, like its inheritance tax (ranging from 0% to 15%) and a simplified process for small estates under $50,000. Whether you’re planning your own estate or handling a loved one’s affairs, knowing the ins and outs of probate in the Keystone State is crucial.

In this guide, we’ll break it all down in plain English. You’ll learn:

• Which assets must go through probate (and which ones can skip it entirely).
• How Pennsylvania’s local laws impact the process.
• Practical tips to avoid probate and make life easier for your loved ones.

What Is Probate, and Why Does It Matter in Pennsylvania?

Probate is the court-supervised process of authenticating a will (if one exists), paying off debts, and distributing assets to beneficiaries. In Pennsylvania, the probate process is handled by the Register of Wills in the county where the deceased lived. According to the Pennsylvania Unified Judicial System, over 100,000 estates are probated annually in the state, making it a common but often misunderstood process.

Not all assets are subject to probate, though. Some assets bypass probate entirely, which can simplify the process for beneficiaries. Understanding which assets fall into which category is crucial for effective estate planning and administration.

Assets Subject to Probate in Pennsylvania

Under Pennsylvania law (Title 20 of the Pennsylvania Consolidated Statutes, also known as the Decedents, Estates, and Fiduciaries Code), the following types of assets typically go through probate:

Solely Owned Property

Any asset owned solely by the deceased person is subject to probate. This includes:

• Real estate titled in their name alone (e.g., a house, land, or vacation property in Pennsylvania).
• Bank accounts held solely in their name.
• Vehicles, boats, or other personal property registered in their name.

For example, if your loved one owned a home in Philadelphia solely in their name, that property would need to go through probate before it could be transferred to heirs.

Assets Without a Designated Beneficiary

Some assets, like life insurance policies or retirement accounts, allow the owner to name a beneficiary. If no beneficiary is named—or if the named beneficiary has predeceased the owner—the asset becomes part of the probate estate.

Personal Belongings

Items like jewelry, furniture, art, and other personal possessions are subject to probate unless they are specifically addressed in a will or transferred through other means (e.g., a trust).

Business Interests

If the deceased owned a business or partnership interest in their name alone, those assets may also need to go through probate. This includes sole proprietorships, LLCs, or shares in a family business. For example, if your loved one ran a small business in Lancaster County, those assets would likely be subject to probate unless structured otherwise.

Digital Assets

In today’s digital age, many people overlook assets like cryptocurrency, PayPal accounts, or even social media profiles. If these assets are solely owned and lack a beneficiary designation, they may also be subject to probate.

Assets That Avoid Probate in Pennsylvania

Not everything has to go through probate. Here are some common assets that bypass the process:

Jointly Owned Property

Property held in joint tenancy with rights of survivorship automatically passes to the surviving owner. For example, if a married couple owns a home in Pittsburgh jointly, the surviving spouse would automatically inherit the property without probate.

Related article for you:
Do I Have to Go Through Probate If My Spouse Dies? 

Assets with Payable-on-Death (POD) or Transfer-on-Death (TOD) Designations

Bank accounts, investment accounts, and even vehicles can have POD or TOD designations, allowing them to transfer directly to the named beneficiary.

Trust Assets

Assets held in a revocable living trust avoid probate entirely. The trust document dictates how these assets are distributed, making the process faster and more private.

Life Insurance and Retirement Accounts

As long as a beneficiary is named, these assets pass directly to the beneficiary outside of probate.

Transfer-on-Death Deeds for Real Estate

Pennsylvania allows Transfer-on-Death (TOD) deeds for real estate, meaning property can pass directly to a named beneficiary without probate. This is especially useful for farmland or family homes in rural areas like Lancaster County.

Why Probate Matters in Pennsylvania: Local Considerations

Pennsylvania’s probate laws have some unique features that residents should be aware of:

• Inheritance Tax: Pennsylvania is one of the few states that imposes an inheritance tax. The tax rate varies depending on the beneficiary’s relationship to the deceased (e.g., 0% for spouses, 4.5% for children, and 15% for non-relatives). Probate assets are subject to this tax, so understanding which assets are included is critical for tax planning.
• Small Estate Simplification: If the estate is valued at $50,000 or less (excluding real estate), Pennsylvania offers a simplified probate process. This can save time and legal fees for smaller estates.
• Local Probate Courts: Each county in Pennsylvania has its own Register of Wills office. For example, if the deceased lived in Allegheny County, their probate case would be handled in Pittsburgh. Knowing your local court’s procedures can streamline the process.

How to Avoid Probate in Pennsylvania

If you’re planning your estate or helping a loved one, there are several strategies to minimize probate:

1. Create a Revocable Living Trust: This allows you to transfer assets into the trust, which are then distributed according to the trust terms without probate.
2. Use Joint Ownership: Holding property jointly with rights of survivorship ensures it passes directly to the co-owner.
3. Designate Beneficiaries: Ensure all applicable accounts (e.g., life insurance, retirement accounts) have up-to-date beneficiary designations.
4. Gift Assets During Your Lifetime: Reducing the size of your estate through gifting can also minimize probate.
5. Use Transfer-on-Death Deeds: For real estate, a TOD deed can ensure the property passes directly to your chosen beneficiary.

Common Mistakes to Avoid

Even with careful planning, mistakes can happen. Here are some pitfalls to watch out for:

• Outdated Beneficiary Designations: Failing to update beneficiaries on life insurance or retirement accounts can result in unintended probate.
• Improperly Funded Trusts: A trust only avoids probate if assets are correctly transferred into it.
• Ignoring Digital Assets: Make sure to include digital assets in your estate plan to avoid complications.

Key Takeaways

Understanding what assets are subject to probate in Pennsylvania is essential for effective estate planning and administration. Solely owned property, assets without designated beneficiaries, and personal belongings typically go through probate, while jointly owned property, trust assets, and accounts with beneficiary designations bypass the process.

Pennsylvania’s probate laws, including its inheritance tax and small estate simplification, add unique layers to the process. By planning ahead and utilizing tools like trusts, beneficiary designations, and TOD deeds, you can simplify the probate process for your loved ones.

Resources for Pennsylvania Residents

• Pennsylvania Unified Judicial System: Register of Wills Offices
• Pennsylvania Department of Revenue: Inheritance Tax Information
• Local Estate Planning Attorneys: Consult a Pennsylvania-licensed attorney for personalized advice.

By arming yourself with knowledge and asking for professional guidance, you can manage Pennsylvania’s probate process with confidence.