Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance on your unique situation, consult a licensed attorney.
Detailed Answer
1. Appoint a Personal Representative
To begin estate administration in Pennsylvania, an interested party files a petition with the Register of Wills in the county where the decedent resided. If the decedent left a valid will, the court issues Letters Testamentary. If no will exists, the court issues Letters of Administration. These letters authorize the personal representative to act on behalf of the estate. See 20 Pa.C.S. § 3151.
2. Locate and Appraise Assets
The personal representative must identify all estate assets. This includes real property, bank accounts, investments, business interests, and personal property. Common steps include:
- Reviewing financial statements, tax returns, and safe deposit boxes.
- Contacting banks, brokerage firms, and county recorder’s office.
- Obtaining professional appraisals for real estate, jewelry, artwork, and other high-value items.
3. File a Detailed Inventory
Pennsylvania law requires the personal representative to file a verified inventory of all estate assets within 90 days of appointment. The inventory must list each asset, its description, value, and any secured debts or liens. Failure to timely file may result in penalties. See 20 Pa.C.S. § 3104.
4. Notify Creditors and Settle Debts
The personal representative must notify known creditors by mail and publish a notice to unknown creditors in a local newspaper. Creditors generally have six months from the date of notice publication to file claims. After reviewing valid claims, the personal representative pays debts and administrative expenses in the following priority order:
- Funeral expenses and family allowance.
- Administration costs (e.g., appraisal fees, court costs).
- Secured and unsecured debts as required by the decedent.
- Other claims in order of statutory priority.
For detailed rules on notices, see 20 Pa.C.S. § 3102. For payment priorities, see 20 Pa.C.S. § 3302.
5. Distribute Remaining Assets
Once debts, taxes, and administrative expenses are paid, the personal representative distributes the remaining assets:
- If there’s a will, distribute per its terms.
- If no will exists, distribute under Pennsylvania’s intestacy rules found in Chapter 21 of Title 20.
For distribution by will, see 20 Pa.C.S. § 3131.
6. Final Accounting and Close the Estate
The court may require the personal representative to file a final account detailing all receipts, disbursements, and distributions. After court approval of the account, the representative petitions to formally close the estate, concluding the administration process.
Helpful Hints
- Maintain clear, dated records of every transaction.
- Open a separate estate bank account to track funds.
- Obtain multiple appraisals for unique or high-value assets.
- Meet all statutory deadlines for filing and publication to avoid penalties.
- Consult a tax professional to address estate and inheritance tax obligations.