Estate & Trust Administration

Administering an estate or trust after the passing of a loved one can be a complex and emotionally challenging task. “Probate” is the legal process of settling a decedent’s debts and distributing their assets to their heirs. A probate asset is solely owned by the individual decedent – there is no surviving joint owner, no named beneficiary, and it is not part of a trust. A decedent’s Last Will and Testament (“Will”) dictates where and how probate assets are distributed. If the decedent did not have a Will, the Pennsylvania intestate laws determine the distribution of probate assets. In contrast, assets that are held in a trust prior to death will bypass the probate process and be distributed to the beneficiaries pursuant to the terms of the trust document. A trust administration is typically more streamlined and offers continuity in the management and control of the assets.

Pennsylvania requires the payment of inheritance tax on most assets owned by a decedent who died as a Pennsylvania resident. Certain assets, such as life insurance death benefits or out-of-state real estate, are not subject to Pennsylvania inheritance tax. Inheritance taxes are due within nine (9) months of death. If paid within three (3) months of death, you may receive a 5% discount. An executor or trustee is required to file a Pennsylvania Rev-1500 Inheritance Tax Return to report all estate or trust assets of a deceased Pennsylvania resident and pay the appropriate taxes to the Pennsylvania Department of Revenue. Non-probate assets that pass directly to beneficiaries, such as an IRA, may also be subject to Pennsylvania inheritance tax. As of 2023, the inheritance tax rates in Pennsylvania are:

• Spouses: 0%
• Children/Grandchildren: 4.5%
• Siblings: 12%
• Collateral (Niece/nephew, aunt/uncle, Friend, Neighbor, Cousin): 15%

At Ayres Presser Elder Law, we are dedicated to guiding families through the estate or trust administration process with compassion, expertise, and efficiency. Our experienced team represents executors and trustees with all aspects of the administration:

• Initial Guidance: We provide clear guidance to executors and trustees on their responsibilities and the steps involved in the estate or trust administration.
• Document Preparation: Our team prepares all required documents including notices to beneficiaries, advertisements, petitions, deeds to transfer or sell real estate, inventories, and accountings. We also prepare and file the required Pennsylvania Rev-1500 Inheritance Tax Return.
• Debt Payment: We work diligently to identify and resolve outstanding debts and obligations of the estate.
• Asset Distribution: We assist executors and trustees in identifying and collecting the decedent’s assets and facilitating the proper distribution of the assets in accordance with the Will or Pennsylvania intestate laws.

If you have recently lost a loved one, please call Ayres Presser Elder Law for compassionate representation and assistance.