Estate Planning in Pennsylvania: What Families Should Know
Estate Planning in Pennsylvania: What Families Should Know
Estate planning helps Pennsylvania residents decide who will receive their property, who will manage financial and healthcare decisions if incapacity occurs, and how an estate should be administered after death. A useful plan is based on the person’s family, assets and goals rather than a one-size-fits-all document.
Why Estate Planning Matters in Pennsylvania
Control Over Your Legacy
Without a valid will, Pennsylvania intestacy law determines how probate property passes. Those statutory rules may not match your wishes. A properly prepared will can identify beneficiaries, nominate an executor and, when appropriate, nominate guardians for minor children.
Planning for Probate and Estate Administration
Probate matters are generally handled through the county Register of Wills. Clear documents and coordinated beneficiary designations can make administration more orderly. ZwickLaw also assists families with Pennsylvania probate and estate administration.
Pennsylvania Inheritance Tax
Pennsylvania imposes inheritance tax at rates that generally depend on the beneficiary’s relationship to the decedent. Current Pennsylvania Department of Revenue guidance generally identifies rates of 0% for transfers to a surviving spouse and certain qualifying beneficiaries, 4.5% for direct descendants and lineal heirs, 12% for siblings, and 15% for many other beneficiaries. Exemptions and special rules can apply, so current law and the particular estate should be reviewed. See the Pennsylvania Department of Revenue inheritance-tax guidance.
Planning for Incapacity
A complete estate plan often addresses lifetime decision-making as well as death. Depending on the circumstances, documents may include a financial power of attorney and healthcare planning documents. These documents can identify trusted decision-makers and provide instructions if you cannot act or communicate for yourself.
When Should an Estate Plan Be Reviewed?
Consider reviewing an estate plan after major life or financial changes, including:
- Marriage, divorce or the death of a spouse or beneficiary;
- The birth or adoption of a child;
- A significant change in assets or business interests;
- A move to another state;
- A change in the person you want to serve as executor, agent or trustee; or
- Changes in tax, estate or elder-law planning needs.
Digital Assets and Online Accounts
Modern estate plans should also consider digital assets and online accounts. Pennsylvania has enacted legislation governing fiduciary access to digital assets. The appropriate planning depends on the account, the provider’s terms, applicable law and the authority granted in estate-planning documents.
How to Get Started
- Identify your assets and liabilities. Include real estate, financial accounts, business interests, insurance and significant personal property.
- Review beneficiary designations. Retirement accounts, insurance and other assets may pass outside a will.
- Choose trusted decision-makers. Consider who should serve as executor, agent under a power of attorney, healthcare representative or trustee.
- Identify family and planning concerns. Minor children, beneficiaries with disabilities, blended families, long-term-care concerns and business ownership may require additional planning.
- Have the documents prepared and periodically reviewed. Execution requirements and legal consequences matter.
Frequently Asked Questions
Do I need an estate plan if I do not have a large estate?
Estate planning is useful for many families regardless of wealth because it addresses decision-making, beneficiaries, probate administration and incapacity.
Does a will avoid probate in Pennsylvania?
Not by itself. A will generally directs the disposition of probate assets. Some property can pass outside probate through beneficiary designations, joint ownership or other arrangements.
Should I use a trust?
A trust can be useful in some circumstances, but it is not automatically necessary for every Pennsylvania resident. The answer depends on the assets, beneficiaries, tax considerations and planning objectives.
Talk with a Pennsylvania Estate Planning Attorney
Learn more about ZwickLaw’s estate planning practice, Medicaid and asset-protection planning, and C.J. Zwick. To discuss your circumstances, call (814) 371-6400 or contact ZwickLaw.
This article provides general information and is not legal advice. Laws and individual circumstances can change. Reading this article or communicating through this website does not establish an attorney-client relationship.
