Small Estate Options In Pennsylvania: Can You Simplify Probate?

In this article, you can discover…

• What qualified as a “small estate” in Pennsylvania law.
• Whether a small estate petition can be used in light of outstanding debts.
• When to choose a full instead of simplified probate, and how an attorney can help.

What Qualifies As A “Small Estate” Under Pennsylvania’s Small Estate Law?

In Pennsylvania, a “small estate” is any probate estate with a value of $50,000 or less. If your loved one’s estate qualifies and if assets are accessible, then there is a streamlined process that is much less expensive than traditional probate.

With small estate probate, you’ll be able to avoid appointing an executor, publishing newspaper ads, and formally filing an inventory for the estate. Many steps can be skipped, and the process is much simpler.

Is “Small Estate” Probate Automatic If Assets Are Under A Certain Amount?

“Small estate” probate is not automatic, and one of the heirs must still file a petition for small estate probate with the court.

The heir must inform the court of the estate’s assets and present bills for any expenses already paid (such as funeral expenses and credit card debt), or bills still due from the estate. Once the court reviews and approves the petition, remaining bills can be paid from the assets and assets can be distributed.

Be aware that the small estate petition (at least in Allegheny County) cannot be filed until the heirs have filed a Pennsylvania inheritance tax return and have received a notice of appraisement from the Department of Revenue stating that the inheritance tax return was accepted as filed. This process will take about four to six months after the inheritance tax return has been filed.

Attorney Deborah Lesko is a knowledgeable, skilled probate attorney serving Pennsylvania. Since 1983, she’s helped clients just like you understand the benefits and limits of “small estate” petitions and choose the legal options that work best for their loved one’s estate.

Have questions, or in need of probate guidance? Reach out to The Law and Mediation Offices of Deborah L. Lesko, P.C. for an initial consultation today.

Can A Small Estate Petition Still Be Used When The Deceased Had Outstanding Debts?

Yes, but those outstanding debts must still be paid. For example, if the only asset your loved one left behind is a bank account containing $30,000 and there are remaining debts of $10,000, those debts still need to be paid. Just because you’re filing a “small estate” petition doesn’t mean you can avoid having to pay creditors.

Creditors and the amounts each is owed must still be identified in the petition, and they must be paid before heirs can receive what is left over.

When Should A Family Choose Full Probate Instead Of The Simplified Small Estate Option?

It truly depends. It depends on what kinds of assets make up the estate, what kind of outstanding debt exists, and whether or not you’re able to access information and funds without being appointed as an executor.

As it happens, one of the frequent issues with “small estate” filings arises when money is sitting in a bank account that no one but the decedent was authorized to touch. As a result, accessing that money to pay the inheritance tax or pay creditors immediately after death is impossible without appointing an executor, otherwise these items will have to wait until a petition for small estate is filed and approved.

If you can’t access the funds needed to pay back creditors, pay taxes, and distribute assets, a “small estate” petition is unlikely to help you in an immediate manner, and traditional probate will be needed. If you’re unsure which option is best, come and talk with me. We’re here to help you evaluate the estate and see which type of probate will work best for you and your family.

Still Have Questions? Ready To Get Started?

For more information on small estate probate in Pennsylvania, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (412) 276-4200 today.