What Families Need to Know After a Death in Pennsylvania

Pennsylvania has several estate rules that set it apart from most of the country — most notably its inheritance tax, which applies to nearly all beneficiaries at rates from 4.5% to 15%, and a creditor period of one full year that significantly extends the settlement timeline. This guide covers the six areas where Pennsylvania law most affects what families need to do after a death.

Probate
Probate & Small Estates in Pennsylvania

Pennsylvania probate is administered through the Register of Wills — an elected official in each of the state's 67 counties. The executor presents the will and death certificate to the Register of Wills in the county where the deceased lived, and receives Letters Testamentary granting authority to act on behalf of the estate.

Pennsylvania's simplified process applies to personal property valued at $50,000 or less (excluding real estate). Unlike states that use a pure affidavit procedure, Pennsylvania's small estate process still requires a petition to the court, typically handled through the county Register of Wills or Orphans' Court. It is simpler than full administration but is not a purely out-of-court process.

Full probate in Pennsylvania requires filing an inventory with the Register, paying the state inheritance tax (see below), and satisfying creditors. Pennsylvania's creditor period is one year from the date of death — one of the longest in the country. This means estates generally cannot make full final distributions to heirs until at least a year has passed, even if everything else is in order.

Wills
Will Signing Requirements in Pennsylvania

A valid Pennsylvania will requires the signature of the testator plus two witnesses who are at least 18 years old. Notarization is not required to create a valid will, though a self-proving affidavit (signed before a notary) is available and can simplify the probate process by eliminating the need for witness testimony at court.

Pennsylvania does recognize holographic wills — wills written entirely in the testator's own handwriting and signed by the testator, with no witnesses required. Holographic wills are legally valid in Pennsylvania, though they are more susceptible to challenge and should not substitute for a properly witnessed will when possible.

One notable Pennsylvania rule: a witness who is also a beneficiary under the will does not automatically lose their gift. Unlike some states that void gifts to witness-beneficiaries, Pennsylvania preserves those gifts but they may be subject to challenge on grounds of undue influence or improper execution. If you are reviewing a Pennsylvania will, always check whether any witnesses are also named as beneficiaries.

Advance Directive
Advance Health Care Directive in Pennsylvania

Pennsylvania uses the Advance Health Care Directive (AHCD), a combined document that includes both a living will (treatment preferences if incapacitated) and a healthcare power of attorney (designation of an agent to make healthcare decisions). The AHCD is widely accepted by hospitals, care facilities, and hospice providers throughout the state.

To be valid, the Pennsylvania AHCD must be signed by the principal and two witnesses. At least one witness cannot be the designated healthcare agent; at least one cannot be an heir, creditor, or healthcare provider. No notary is required.

Pennsylvania also has two additional documents worth knowing about when settling an estate or planning for a loved one:

• Out-of-Hospital Do Not Resuscitate Order (OOH DNR): A physician-signed form for patients who do not want resuscitation outside a hospital setting. This is a separate medical order, distinct from the AHCD, and carries immediate force for emergency responders.
• POLST (Physician Orders for Life-Sustaining Treatment): A medical order signed by a physician that governs immediate life-sustaining treatment decisions. The POLST and the AHCD can coexist; the POLST governs acute care decisions while the AHCD sets broader preferences and names an agent.

If you are settling an estate and the deceased had an AHCD on file, the designated agent's decisions during the final illness are legally binding. Disputes among family members about end-of-life care are resolved by the named agent, not by majority family vote.

Inheritance Tax
Pennsylvania Inheritance Tax

Pennsylvania is one of only six states in the country that imposes an inheritance tax (the others are Iowa, Kentucky, Maryland, Nebraska, and New Jersey). The tax is assessed on the value of property transferred to each beneficiary at the date of death, and the rate depends entirely on the beneficiary's relationship to the deceased.

The current Pennsylvania inheritance tax rates are:

• 0%: Surviving spouse; parents inheriting from a child under age 21; transfers to charitable organizations and exempt institutions
• 4.5%: Lineal descendants (children, grandchildren, great-grandchildren) and lineal ancestors (parents, grandparents)
• 12%: Siblings (brothers and sisters)
• 15%: All other beneficiaries — including aunts, uncles, cousins, nieces, nephews, friends, and unmarried partners

The inheritance tax return is due 9 months after the date of death. A 5% discount applies if the tax is paid within 3 months of death — a meaningful savings on large transfers, and worth planning for when distributing assets.

Two facts that surprise many Pennsylvania families:

• Retirement accounts (IRAs, 401(k)s) are subject to Pennsylvania inheritance tax. This differs from federal rules, where inherited retirement accounts do not trigger estate tax. PA inheritance tax applies to the full fair market value of inherited retirement accounts, even though the beneficiary will also owe federal income tax on distributions.
• Life insurance paid to a named beneficiary is generally exempt from Pennsylvania inheritance tax — making beneficiary designations on life insurance particularly valuable in PA.

Joint property held with right of survivorship is taxable in Pennsylvania on the decedent's proportionate share — typically 50% of the jointly held asset.

Vehicle Transfer
Transferring a Vehicle After Death in Pennsylvania

How a vehicle transfers after death in Pennsylvania depends on whether the estate goes through probate and who is inheriting the vehicle:

• Probate estate: The executor uses Letters Testamentary to transfer title through PennDOT using Form MV-1 (Application for Certificate of Title). The death certificate, existing title, and Form MV-4ST (Vehicle Sales Tax form) are also required.
• Small estates (under $50,000): A small estate affidavit obtained from the Register of Wills can be presented to PennDOT to transfer the vehicle without full probate.
• Surviving spouse: A surviving spouse can transfer a vehicle titled solely in the deceased's name by presenting a death certificate and completing Form MV-1, provided no other heirs contest the transfer and the estate qualifies under applicable procedures.

All Pennsylvania vehicle title transfers require: the death certificate, the existing title, Form MV-1, and Form MV-4ST. If there is a lien on the vehicle, the lienholder must release the title before transfer can proceed. Transfers are submitted to a PennDOT title office or authorized agent.

Medicaid Recovery
Medicaid Estate Recovery in Pennsylvania

Pennsylvania's Medicaid Estate Recovery Program (MERP) seeks reimbursement from the estate of Medicaid recipients age 55 or older who received long-term care services (nursing home care, home and community-based services, and related costs). The Pennsylvania Department of Human Services administers the program.

Pennsylvania uses the standard (non-expanded) probate estate definition for recovery. This means MERP can only recover from assets that pass through the probate process — it cannot recover from:

• Assets held in a revocable living trust
• Property held in joint tenancy with right of survivorship
• Accounts with designated beneficiaries (including POD bank accounts and TOD investment accounts)
• Life insurance with a named beneficiary

This makes living trusts and beneficiary designations particularly effective tools for Medicaid planning in Pennsylvania — assets structured to pass outside of probate are generally protected from MERP recovery.

Recovery is waived when any of the following survive the Medicaid recipient: a surviving spouse, a child under age 21, or a blind or disabled child of any age. The Department of Human Services sends a recovery notice to the estate; heirs typically have 60 days to respond or file an appeal.