Probate 101: What Happens to an Estate After Someone Passes Away

When someone dies in Pennsylvania, their estate goes through a legal process to transfer their assets, pay debts, and distribute property to the appropriate beneficiaries or heirs. This is called the probate process, but it is not exactly the same for everyone.

The process differs for each person. It depends on whether the person had a valid will and the type and value of the assets they owned.

Many Pennsylvania estates take six months to a year to settle, but larger or contested estates can take much longer.

Factors that can extend the process include:

Family disputes over the will

Difficulty locating heirs

Complex assets, such as businesses or multiple properties

Tax issues

Creditor claims

Litigation involving the estate

What does probate entail?

Here is a look at what happens to a person’s estate after they pass away.

The Estate is Identified

The deceased person's estate may include:

Real estate

Bank accounts

Investment accounts

Vehicles

Personal belongings

Business interests

Some assets do not become part of the probate estate, including:

Life insurance with a named beneficiary

Retirement accounts with designated beneficiaries

Payable-on-death (POD) or transfer-on-death (TOD) accounts

Property held in joint tenancy with rights of survivorship

The Will is Filed (if There is One)

If the deceased left a valid will, it is filed with the appropriate Pennsylvania county's Register of Wills. The will typically names an executor, who is responsible for administering the estate. If there is no will or no executor is named, the court appoints an administrator.

Probate Begins

Whether or not there is a will, probate needs to occur. Probate is the court-supervised process of settling the estate.

During probate, the personal representative:

Identifies and inventories assets

Notifies beneficiaries and heirs

Notifies creditors

Pays valid debts and taxes

Manages estate property until it can be distributed

Not every estate requires full probate. Some assets transfer automatically, and Pennsylvania also has simplified procedures for certain small estates.

Debts and Taxes are Paid

Before beneficiaries receive inheritances, the estate generally must pay:

Funeral expenses

Outstanding bills

Credit card balances

Medical expenses

Taxes owed by the estate or the deceased

Beneficiaries usually are not personally responsible for the deceased's debts unless they were jointly liable or another legal exception applies. It is still possible for debt collectors to contact you if you are a surviving spouse or executor, but they cannot harass you about the debt or tell you that you are responsible for paying from your own money. This is illegal.

However, tax returns for the deceased’s estate still need to be filed. This may seem complicated, but the good news is that most of the information you need to file income tax returns may be in the deceased’s personal records. The IRS can provide you with the following if necessary:

Income documents (such as Forms W-2 or 1099)

Filed tax returns

Tax transcripts

Pennsylvania Inheritance Tax is Addressed

Pennsylvania is one of the few states that imposes an inheritance tax. The tax rate depends on the beneficiary's relationship to the deceased:

0% for transfers to a surviving spouse and, in many cases, to a parent from a child age 21 or younger

4.5% for transfers to direct descendants (children, grandchildren)

12% for transfers to siblings

15% for transfers to most other beneficiaries

Certain assets and transfers may qualify for exemptions or special treatment.

Remaining Assets are Distributed

If there is a valid will, assets are distributed according to its terms. If there is no will, Pennsylvania's intestate succession laws determine who inherits, typically beginning with a surviving spouse and children, followed by other close relatives if there are no immediate family members.

The Estate is Closed

After all responsibilities are completed and assets are distributed, the executor or administrator closes the estate with the court, ending their legal duties.

When Does Probate Need to Be Opened?

In Pennsylvania, there is no specific legal deadline requiring probate to be opened after a person dies. You can technically open probate months or even years later. However, it is generally recommended that the sooner, the better.

Waiting too long can create problems such as:

Delaying access to estate bank accounts and other assets.

Preventing the executor from having legal authority to act on behalf of the estate.

Making it more difficult to preserve property or pay ongoing expenses, such as mortgage payments, utilities, or insurance.

Delaying distributions to beneficiaries.

FAQs

Q: Is probate always required in Pennsylvania?

A: No. Probate may not be necessary if the deceased's assets pass automatically to beneficiaries, such as jointly owned property with rights of survivorship, accounts with payable-on-death (POD) or transfer-on-death (TOD) beneficiaries, life insurance proceeds, retirement accounts with named beneficiaries, or assets held in a living trust.

Q: What happens if no one opens probate?

A: If probate is never opened, the deceased's probate assets may remain frozen or cannot be legally transferred to heirs. Creditors may still pursue valid claims, property may go unmanaged, and beneficiaries may experience significant delays in receiving their inheritances.

Q: Who can open probate in Pennsylvania?

If the deceased left a valid will, the person named as executor typically files the will with the county Register of Wills and petitions to begin probate. If there is no will, an eligible family member or another qualified individual may ask the court to appoint them as the estate administrator.

Q: What happens if someone dies without a will in Pennsylvania?

A: When a person dies without a valid will, they are said to have died intestate. Pennsylvania's intestacy laws determine who inherits the estate, with priority generally given to a surviving spouse, children, parents, siblings, and other close relatives.

Contact Us Today

Dealing with a loved one’s passing is hard enough. Having to handle the deceased’s estate and go through the probate process can be especially complicated and frustrating.

The Pennsylvania estate planning lawyers at Kuzma Law Group, P.C. can guide you through the probate process with ease. We can help you understand the dos and don’ts so you can resolve your loved one’s case with less time and money. Schedule a consultation today by filling out the online form or calling (412) 384-6181.