Do All Estates Have to Go Through Probate in Pennsylvania?

Many people assume that every estate must go through probate after someone dies, but in Pennsylvania, that’s not always the case. Whether probate is required depends on whether that person formally owned any property at the time of their death. It’s worth noting that many assets are either held by a legal entity or include another mechanism that causes ownership to transfer outside of probate court.

For some families, probate is unavoidable because the estate contains assets owned solely by the deceased. For others, much or even all of the estate may pass directly to beneficiaries without court involvement. Our attorneys can help you determine whether you need to go through probate and, if so, what the process will look like.

What Is Probate?

Probate is the legal process of administering a deceased person’s estate. If the deceased left a valid will, the Register of Wills appoints the executor named in the will. If there is no will, the court appoints an administrator to manage the estate. There are a number of estate planning tools that can help you remove assets from probate and avoid the costly, time-consuming probate process entirely.

Probate Requirements in Pennsylvania

Probate is generally required any time someone passes away while holding assets solely in their own name. This process has remained largely unchanged for years, and the rules are archaic. It has a purpose, however, as it provides clarity when it’s time to divide a deceased person’s assets and deal with their debts.

There isn’t a minimum or maximum value for an estate to be eligible for probate. In fact, these courts hear cases involving enormous estates with assets that span the globe, as well as small cases where a person owns only a car or some small investments.

Small Estate Petitions

There is another option for relatively small estates that is more streamlined than traditional probate. You may be eligible to file a small estate petition if the estate has less than $50,000 of total assets. It’s important to understand that this dollar limit doesn’t account for real estate, so more people might qualify than they realize.

This approach is popular because it can reduce costs, shorten the administration timeline, and allow beneficiaries to receive benefits quickly. Our attorneys can help you understand when this approach might be available.

What Assets Don’t Go Through Probate?

There are several types of assets that won’t go through probate after the owner passes away. Even people with substantial wealth could avoid probate entirely by relying on some of these options:

Property Held in Trust

Assets owned by a trust usually avoid probate. When you transfer property into a properly funded trust during your lifetime, the trust—not you individually—becomes the legal owner.

After your death, the successor trustee distributes or manages those assets according to the trust agreement without obtaining authority through probate court. Because you aren’t the legal owner of the property anymore, it’s not considered a part of your estate for probate purposes. This is true even if you were able to benefit from those assets during your lifetime.

Life Insurance Policies

Life insurance proceeds also generally pass directly to the beneficiaries named in the policy. Because the insurance company pays the proceeds according to the beneficiary designation, those funds usually do not become part of the probate estate. If no living beneficiary remains, or if the estate itself is named as the beneficiary, different rules may apply. While not everyone considers life insurance as a part of the estate planning process, it’s a useful tool to provide for your loved ones immediately after your death that doesn’t rely on probate.

Payable-on-Death Accounts

Many banks and financial institutions allow account owners to designate a payable-on-death (POD) beneficiary. When the account owner dies, the named beneficiary can typically claim the funds directly from the financial institution after providing the required documentation. The account generally does not pass through probate because ownership transfers according to the contractual beneficiary designation.

Jointly Owned Property

Joint ownership also typically allows you to avoid probate entirely. When two people own an asset, such as a vehicle or a home, equally, the interest in that asset usually passes entirely to one owner when the other dies. There are some exceptions to this rule that an attorney can help you understand.

Why Avoid Probate?

There are many reasons why avoiding probate court could benefit you and your loved ones. Some of the most common benefits include the following:

Greater Privacy

Probate filings become part of the public record, meaning that anyone can look up how an estate was divided after your death. Assets that transfer outside probate through trusts or beneficiary designations generally remain private because they do not require public court filings.

Faster Asset Distribution

One of the biggest benefits of avoiding probate is that beneficiaries can inherit much faster. In many cases, the transfer of ownership can occur immediately upon a person’s death.

Lower Costs

There are also costs associated with probate that you can avoid by relying on other methods. This includes court costs and potentially legal fees, depending on how complex a probate case might be.

Less Court Involvement

Probate always plays out through the court system, and most people don’t have the time or interest for multiple courtroom appearances. By avoiding probate, you also are able to miss out on long, drawn-out legal proceedings following the death of a beloved family member.

Learn How Our Firm Can Help

If you are planning for the future or have been tasked with administering a loved one’s estate, it’s important that you understand when property is required to go through probate. At Leeson & Leeson, our team can help you explore your options. Reach out today for a confidential consultation.