Disclaimer: This article does not provide legal advice. It offers general information under Pennsylvania law.
Detailed Answer
When you administer an estate in Pennsylvania, multiple factors drive the total cost. Understanding these costs helps you budget and plan. Below are the primary elements that affect overall expenses:
1. Executor or Administrator Commissions
Pennsylvania law grants personal representatives (executors or administrators) a commission based on the estate’s value. Under 20 Pa.C.S. § 3071, a representative typically earns 5% of the first $200,000, 4% of the next $1.8 million, and 3% on any excess. You can review the statute here: 20 Pa.C.S. § 3071.
2. Attorney Fees
Pennsylvania does not impose fixed attorney rates in probate. Attorneys may charge hourly or flat fees. Courts approve fees for reasonableness under 20 Pa.C.S. § 3072 (link). Complexity, estate size and document review drive fee levels.
3. Court Filing and Administrative Costs
Petition fees, docketing costs and other filing fees vary by county. Expect several hundred dollars in basic probate filings. Publication fees for required newspaper notices can add $50–$200 or more.
4. Bond Premiums
If the will or beneficiaries require a bond, you must secure it. Premiums depend on estate value and bond rates, often 1–3% of the bond amount.
5. Appraisal and Accounting Fees
Pennsylvania law requires you to value real estate, securities and business interests at fair market value. You may hire appraisers, each charging $300–$1,000 or more per asset. An accountant may cost $150–$300 per hour to prepare tax returns and estate accounts.
6. Taxes
Pennsylvania imposes an inheritance tax on transfers under 72 P.S. § 9101 et seq. (PA Inheritance Tax). Tax rates vary by relationship to the decedent. Federal estate tax may apply to very large estates.
7. Miscellaneous Expenses
This category includes mailing costs, postage, certified copies of documents, record retrieval and any contested litigation. Contested estates can multiply costs through additional attorney time and court hearings.
Helpful Hints
- Obtain detailed fee schedules from potential attorneys and personal representative candidates.
- Shop around for competitive bond and appraisal quotes early in the process.
- Ask the court to approve all commissions and fees to avoid later disputes.
- Keep accurate records of all expenses for final accounting to beneficiaries and the court.
- Plan for inheritance tax liabilities and consider pre‐filing tax estimates.
Disclaimer: This article does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.