The Pennsylvania Probate Process

The loss of someone we care about is difficult to deal with emotionally, and it may be compounded by the process of “winding up” their affairs. If you are the appointed representative for estate administration, your work will not be finished until sometime after the funeral because, as the administrator, you will collect assets of the estate, pay debts and taxes owed by the decedent, and distribute the estate in accordance with the will or the laws of intestacy, if there is no will.

There is a chain of events that unfolds as the estate administration process continues. The caveat, of course, is whether there are any challenges to the will, the administrator, or the actions of the administrator during the administration process. The person or entity in charge of estate administration is an executor or administrator. However, the responsibilities of each are the same once the probate process is commenced. The distinction is that an executor is named in the will and an administrator is used when there is no executor available, an executor is not named in the will, or a will is not discovered.

The following outline summarizes the administration process from prior to the funeral through estate administration:

Pre-Administration Process: During this phase you will arrange for the funeral; secure the residence of the decedent, if it is unoccupied; obtain several original death certificates; and schedule a time to be sworn in at the Register of Wills Office in the county in which the decedent lived.

Early Administration Process (within three months of death): Meet with the Register of Wills representative and obtain the proper documentation to permit you to contact third parties to sell or transfer assets and close accounts. Thereafter, begin identifying assets of the estate and notifying banks, insurance companies, investment professionals, and others of the death.

Mid-range Administration (within six months of death): Estimate the funds required for the payment of taxes and the decedent’s liabilities. These amounts are to be paid prior to any distribution to beneficiaries. Plan for the sale of assets. If an asset is not specifically designated for a beneficiary, it may be sold by the administrator for later distribution as cash. Prepare and file an inventory of estate assets.

Later Administration (within nine months of death): Prepare and file the Pennsylvania Inheritance Tax Return. If required, prepare and file the federal estate tax return. You may also have to file a status report with the Register of Wills. A status report indicates the disposition of the estate during administration.

Final Administration (necessary to close estate): Some of the items listed can be started early in the estate administration process, while others must wait until the final phase of administration. As the executor or administrator, you will have to make sure that the decedent’s final income tax return is filed by April 15 of the year following death. You will also have to file estate tax returns and prepare, and possibly provide, an accounting to the Orphan’s Court of all estate assets and expenses. This is a bookkeeping task. However, it may be invaluable in the event there is a challenge to the distribution of assets or the management of the estate.

Once all of the assets are organized and no other estate administration issues are present, including payment of expenses and debts, you may distribute assets. Lastly, a Settlement Agreement should be filed with the Register of Wills Office. This agreement indicates the approval of the estate administration process by the beneficiaries and it acts as a method to close the estate.

Managing an estate from start to finish can be overwhelming. There is a lot of follow-up work and documentation required. The keys are to secure the decedent’s residence early and make a list of all assets, stay organized and do your best not to get caught up in the emotional issues that may arise during the process. The administration of an estate is an important responsibility. So, think twice before you agree to become the executor of a will. •

David C. Bruening, Esquire, advises clients in the following areas: estate and trust planning; estate probate and administration, real estate (residential and commercial); business formations and transactions; commercial contract and lease drafting and review, insurance planning, personal injury and general litigation. He also has a Masters in Business Administration. David may be contacted at 412-901-2900 or brueninglaw@yahoo.com.