What Assets Go Through Probate in PA?
Probate Info
Losing a loved one is hard enough. Afterward, you also have to navigate the probate process. Each state has specific rules about how an estate’s debts and assets are inventoried. This careful accounting can take months, locking up the estate’s assets for beneficiaries and heirs who need them.
However, not all assets go through probate. Whether an item must be probated depends on how it is titled and whether a beneficiary has been designated. Understanding the difference between probate and non-probate assets is an important step in planning your estate or settling a loved one’s affairs.
What Assets Go Through Probate in Pennsylvania?
Probate is a court-supervised process where the will is validated and put into action. An executor is placed in charge of making sure debts are paid and assets are distributed. If there isn’t a will, then an administrator is placed in charge instead, and the assets are divvied up according to Pennsylvania’s intestacy law, 20 Pa.C.S. §§ 2101–2108.
The following assets are required to undergo the PA probate process.
- Real estate titled only in the decedent’s name
- Personal property, like jewelry, artwork, vehicles, and furniture
- Bank accounts without a joint owner or “payable-on-death” designation
- Business interests
- Investment accounts without a transfer-on-death (TOD) designation
These assets are required to go through probate if they are held in just the decedent’s name. If something, like a property or bank account, is held jointly, it doesn’t have to go through probate. Similarly, assets in a trust account generally don’t go through probate. All securities must pass through probate if they don’t have a beneficiary named.
Once the individual passes on, the executor is the one responsible for inventorying all of these assets. Then, the assets must be valued and filed with the Register of Wills.
How To Keep Your Assets Out of Probate
The best way to keep your assets out of probate is to consult with an experienced estate attorney about your estate planning approach. At the Clause Law Group, we can help you carefully review all of your assets to figure out the best way to ensure your heirs are taken care of.
If an item is a non-probate asset, it will transfer automatically by contract, beneficiary designation, or ownership structure. Non-probate assets are not controlled by a will, so they do not pass through the probate court.
For example, a jointly owned property with rights of survivorship would pass to the co-owner immediately after the other owner dies. Similarly, property held as tenancy will pass to the other spouse. However, it’s important to note that this particular type of joint ownership is only an option for married couples in Pennsylvania.
Some financial accounts pass directly to the beneficiary. Your retirement account and life insurance proceeds will automatically go to whoever you named as the beneficiary. If you have a bank or investment account with payable-on-death (POD) or transfer-on-death (TOD), these will also transfer outside of probate. For other items, you can use a revocable living trust to keep assets out of probate.
While all of these assets can potentially skip the lengthy probate wait, there may still be some legal and financial requirements involved. Under 72 P.S. § 9101, these assets may still be subject to the state’s inheritance tax.
Can Small Estates Skip the Probate Process in PA?
Pennsylvania law offers a simplified procedure for estates that have non-real estate assets valued at $50,000 or less. In these instances, heirs may petition the court for distribution without going through the full probate process. Thanks to its ability to reduce costs and speed up the process, this can be a valuable option for families with smaller estates.
Why You Need the Help of a Skilled Attorney
Knowing which assets go through probate helps executors, heirs, and families better prepare for the estate administration process. For executors, this support clarifies which assets must be inventoried and filed with the court. Attorneys can also help heirs manage expectations about how quickly assets will be available. If there are disputes among the beneficiaries, an experienced probate lawyer can help add clarity.
A top-rated lawyer can also help you figure out the best way to avoid probate so that your loved ones can be financially secure. Our team has experience working with clients throughout Newfoundland, Gouldsboro, Pocono Pines, Stroudsburg, Tafton, and the surrounding areas.
To learn more about how the Clause Law Group can simplify your probate process, reach out to our team of trusted probate attorneys today.
