Probate in Pennsylvania is not the disaster some marketing makes it out to be, but it does take time, it becomes public record, and it carries fees. Many people would rather have some or all of their assets pass directly to their loved ones without waiting on the county Register of Wills. Pennsylvania gives you several legitimate tools to do exactly that. This guide walks through the main ones, and it flags the one big gap in Pennsylvania law: there is no transfer-on-death deed for real estate here.
Ways to avoid probate in Pennsylvania
- A revocable living trust holding your assets.
- Payable-on-death (POD) and transfer-on-death (TOD) accounts.
- Beneficiary designations on life insurance and retirement accounts.
- Joint tenancy with right of survivorship.
- The small-estate petition for modest estates.
1. A revocable living trust
A revocable living trust is the most complete probate-avoidance tool. You create the trust, transfer your assets into it, and serve as your own trustee while you are alive. When you die, a successor trustee you named distributes the trust assets directly to your beneficiaries, with no probate.1 Because Pennsylvania has no transfer-on-death deed, a living trust is one of the few clean ways to pass real estate outside probate. It is more work to set up than a simple will, and it only helps for assets you actually retitle into the trust. Our guide comparing a living trust and a will in Pennsylvania explains when the effort is worth it.
2. POD and TOD accounts
The simplest tool of all is a beneficiary designation on a financial account. A payable-on-death (POD) designation on a bank account, or a transfer-on-death (TOD) registration on a brokerage account, lets the money pass directly to the person you name the moment you die.2 Pennsylvania permits TOD registration for securities (stocks, bonds, brokerage accounts), so these are widely available. You keep full control while you are alive, and you can change the beneficiary at any time. The account never enters probate.
3. Beneficiary designations on insurance and retirement accounts
Life insurance proceeds, IRAs, 401(k)s, and annuities pass to whoever you name as beneficiary, entirely outside probate. This happens automatically, so the single most important step is keeping those designations current. A beneficiary form that still lists an ex-spouse overrides whatever your will says, so review them after every major life change.
Avoiding probate is not the same as avoiding inheritance tax. Pennsylvania inheritance tax applies to most assets that pass at death, including those that skip probate, such as jointly owned property, POD and TOD accounts, and (with a narrow exception for life insurance) many beneficiary transfers.5 See our guide to Pennsylvania inheritance tax for the rates.
4. Joint tenancy with right of survivorship
When two people own property as joint tenants with right of survivorship, the survivor automatically becomes the sole owner when one of them dies, without probate.3 This is a common way for married couples to hold a home and bank accounts. It is also the main way Pennsylvanians pass real estate outside probate, precisely because the state has no transfer-on-death deed. Be careful, though: adding a co-owner is a present gift of an ownership interest, it exposes the asset to that person's creditors and divorce, and it can have inheritance tax consequences. Use it deliberately, not casually.
Real estate: what to use when there is no TOD deed
More than 30 states let you record a transfer-on-death (beneficiary) deed so a house passes automatically at death. Pennsylvania is not one of them.4 If you record a deed naming a beneficiary to take at your death, it will not work, and the property still goes through probate. For Pennsylvania real estate, the working alternatives are joint tenancy with right of survivorship, a revocable living trust, or a life estate deed. We cover the trade-offs in detail in our guide to the Pennsylvania transfer-on-death deed question.
5. The small-estate petition
If an estate is modest, Pennsylvania offers a streamlined alternative to full probate. Under 20 Pa.C.S. Section 3102, when the personal property (excluding real estate and certain payments) is worth $50,000 or less, an interested party can petition the Orphans' Court for a simplified distribution instead of opening a full estate.6 It is not automatic, but it is faster and cheaper than full administration. See our guide to the Pennsylvania small estate procedure.
You still need a will
Even a careful probate-avoidance plan should sit on top of a valid will, not replace it. A will catches anything you did not retitle or designate, and it names a guardian for minor children, which no trust or beneficiary form can do. To put that foundation in place, read our step-by-step guide on how to write a will in Pennsylvania, or start now with our will form.
Sources
- 1Avoiding Probate in Pennsylvania, Nolo (nolo.com)
- 2Title 20 Pa.C.S. Chapter 64, Transfer on death security registration (legis.state.pa.us)
- 3Probate Shortcuts in Pennsylvania, Nolo (nolo.com)
- 4Pennsylvania Transfer on Death Deed: What to Use Instead, LegalClarity (legalclarity.org)
- 5Inheritance Tax, Pennsylvania Department of Revenue (pa.gov)
- 620 Pa.C.S. Section 3102, Settlement of small estates on petition (Justia) (law.justia.com)
Frequently Asked Questions
Can you avoid probate entirely in Pennsylvania? Often yes, if you title everything to pass outside probate: a funded living trust, beneficiary designations, POD and TOD accounts, and joint tenancy with right of survivorship. Anything left in your sole name still needs probate.
Does Pennsylvania allow a transfer on death deed for a house? No. Pennsylvania does not authorize TOD deeds for real estate. To pass a home outside probate, use joint ownership with right of survivorship or a revocable living trust.
Does a living trust avoid Pennsylvania inheritance tax? No. Assets in a revocable living trust are taxed at the same inheritance tax rates as assets passing under a will. A trust avoids probate, not the tax.
What is the small estate limit in Pennsylvania? Under 20 Pa.C.S. 3102, an estate with $50,000 or less in personal property (excluding real estate and certain payments) can use a simplified Orphans Court petition.
About the author
Max Kuch
Max Kuch writes about estate planning, wills and inheritance for Pennsylvania Will Template. He gathers the rules from the Pennsylvania statutes and the leading public data, then explains them in plain, accessible language so anyone can put their wishes in writing.