One of the most common concerns families have after a loved one passes away is how long the probate process will take and how much it will cost. The good news is that not every asset has to go through probate law in Pennsylvania. Depending on how the deceased person’s property was titled and structured, some assets can transfer directly to the intended recipient without court involvement at all.

Determining which assets fall outside of probate can save your family significant time and expense. Read on for a closer look at how this works based on Pennsylvania law.

Assets That Typically Bypass Probate Under Pennsylvania Law

Pennsylvania law allows several types of property to pass outside of the probate process, which include:

• Jointly owned property with right of survivorship: When two people own property together with a right of survivorship, the surviving owner automatically takes full ownership when the other person dies. This applies to real estate and other assets held in joint names. No court filing is needed for the transfer to take effect.
• Accounts with beneficiary designations: Life insurance policies, 401(k) plans, and other retirement accounts pass directly to whoever is listed as the beneficiary. The same is true for payable-on-death (POD) bank accounts and transfer-on-death (TOD) investment accounts. As long as a valid beneficiary is on file, these assets do not go through probate.
• Assets held in a living trust: Property that has been transferred into a revocable living trust during the owner’s lifetime is distributed by the trustee according to the terms of the trust. Since the trust technically owns the assets rather than the individual, probate does not apply.
• Small deposit accounts: If a deceased person’s deposit accounts at a single financial institution total $20,000 or less, eligible family members may be able to claim those funds without opening a formal estate.

Ultimately, the key factor in most cases is how the asset is owned and whether a beneficiary has been designated. 

What Still Has To Go Through Probate?

Any asset that was owned solely in the deceased person’s name and does not have a beneficiary designation or survivorship arrangement will generally need to go through probate. 

Common examples include, but are not limited to, the following:

• Real estate titled only in the deceased person’s name
• Personal belongings like vehicles, furniture, and jewelry
• Bank and investment accounts without a POD or TOD designation
• Business interests held individually

Pennsylvania does offer a simplified petition process for personal property estates valued under $50,000, which can speed things up for smaller estates. However, if the estate includes real property, full probate administration is typically required regardless of the total value in question.

Schedule a Free Consultation With a Pennsylvania Probate Lawyer

Knowing which assets can skip probate is valuable for families who are in the process of settling an estate. However, it’s just one piece of what can be a relatively complicated puzzle, making it wise to seek legal advice before you move forward in earnest. 

Get in touch with an experienced probate lawyer in Pennsylvania with ThePeoplesLawFirm.com today at 610-600-9844 for trusted legal guidance with your case. We offer a free initial consultation and have decades of experience practicing probate law, giving us a track record that you can count on.