Pennsylvania is one of a small number of states that still levies an inheritance tax — a tax paid by the heirs, not the estate, based on their relationship to the deceased. Understanding who pays what rate is essential for Pennsylvania families navigating estate settlement.
How Probate Works in Pennsylvania
Pennsylvania probate begins at the Register of Wills in the county where the deceased lived — not at a general court. The Register validates the will, issues Letters Testamentary to the executor, and maintains public records of the estate. Most substantive disputes go to the Orphans' Court.
The process is relatively straightforward once Letters Testamentary are issued. Pennsylvania's one-year creditor period is one of the longest in the country — measured from the date of death, not from the date of publication — which extends the minimum timeline considerably.
Small Estate Shortcuts in Pennsylvania
When the gross probate estate is $50,000 or less, heirs can petition the Register of Wills for a simplified small estate proceeding. This avoids full probate administration and can be completed relatively quickly. As with all states, assets with named beneficiaries or jointly held with right of survivorship don't count toward the threshold.
Pennsylvania Inheritance Tax
Pennsylvania levies an inheritance tax on assets transferred to beneficiaries — the rate depends on the heir's relationship to the deceased:
- 0% — surviving spouse and children under 21
- 4.5% — children over 21, grandchildren, and other lineal descendants
- 12% — siblings
- 15% — all other heirs (nieces, nephews, friends, etc.)
The inheritance tax is due within 9 months of death. There is a 5% discount if the tax is paid within 3 months of death — an incentive worth taking advantage of if the estate has liquidity. The tax applies to most assets, including those that pass outside probate like life insurance (when paid to the estate) and jointly held property.
How Long Does Probate Take in Pennsylvania?
Pennsylvania probate typically takes 9 to 18 months. The one-year creditor period measured from death — rather than from publication — means the estate cannot be fully closed for at least a year in most cases. Straightforward estates with no disputes can close shortly after the one-year mark; complex estates take longer.
Executor Compensation
Pennsylvania does not set a statutory executor fee. Compensation must be "reasonable" based on the size and complexity of the estate. In practice, many Pennsylvania executors receive between 2–5% of the estate value, approved by the Orphans' Court or agreed upon by beneficiaries. Attorney fees are similarly based on reasonableness.