When someone dies, their executor, as named in their will, is responsible for settling their estate. This involves settling their debts, distributing their assets, and managing any other affairs the deceased left behind. There is no legal time limit in Pennsylvania for an executor to settle an estate. However, the actual settlement process can take between a few months and over a year. The process can take longer if the estate is complex, the will is unclear, or beneficiaries contest distributions. If you need more guidance on settling an estate in Pennsylvania, contact an estate planning attorney today.
Estate Settling Timeline in Pennsylvania
Below is a general timeline of the process of settling an estate in Pennsylvania. The exact process depends on the specifics of the will and estate, but all estates will go through the following steps. If, at any point, the deceased’s beneficiaries feel that the executor is taking too long or shirking their legal duties, they can petition the court and ask it to appoint a new executor.
Submit the Will
First, the executor must submit the deceased’s will to probate with the county’s Register of Wills, who will determine the will’s validity. If the will does not name an executor, the state will name one on the deceased’s behalf.
Inventory the Estate
Next, the executor must inventory and provide valuations for all the deceased’s possessions and property. Not all of the deceased’s property has to go through probate. Only assets the deceased owned entirely on their own must be submitted for probate. This excludes property like:
- Property the deceased co-owned with another person (e.g., house)
- Assets that have a named beneficiary different from the deceased (e.g., life insurance policy)
- Assets the deceased placed in a living trust
Any other assets and property must be accounted for with an inventory. As a general rule, the executor must provide this inventory within at least three months.
Settle Debts with Creditors
Before distributing the assets named in the will, the executor must settle the deceased’s remaining debts. The executor must contact all known creditors and notify them of the deceased’s death. Pennsylvania gives creditors one year to file a claim against the deceased’s estate.
Pay Taxes
The executor is responsible for filing the final tax returns for the estate and paying any applicable taxes.
Pennsylvania has no estate tax, but the federal government does. The final tax returns might include income taxes, any gift tax that is due, and any estate tax that is payable.
Distribute the Remaining Assets
The last major step of the settlement process is distributing the remainder of the assets. Beneficiaries can only receive assets once the executor has paid all creditors and tax obligations. If beneficiaries disagree with the distributions, they can contest the will and bring the issues to court. Disputes among beneficiaries can dramatically increase the timeline of settling an estate and make the process more expensive.
Final Steps
Once all the deceased’s assets have been distributed, the executor provides the beneficiaries with a final accounting recording all the financial transactions they made during settlement. After the beneficiaries receive this accounting, the executor can file a petition for discharge so the court can relieve them of their duties. When the courts release the executor, the estate is considered fully settled.
Estate Planning Attorneys in PA
It is never a bad time to start preparing for your future. A detailed will and other estate planning documents can help your loved ones during the estate settlement process. They can prevent ambiguities that could lead to conflict. The attorneys at Silverman, Tokarsky & Forman, LLC, understand that few things are as important as your legacy. We can help you with creating a will and trust to ensure your last wishes are honored.
Contact our offices online or reach out by phone today to speak to an estate planning attorney.
