Estate Planning in Pennsylvania

Pennsylvania is one of only six states that imposes an inheritance tax on bequests. The rates are 0% for surviving spouses, 4.5% for lineal descendants, 12% for siblings, and 15% for all others. This makes estate planning particularly important in Pennsylvania to minimize tax exposure. A simple will costs $500-$1,000, while comprehensive estate plans with trusts run $2,200-$5,000. Irrevocable trusts are frequently used to move assets outside the taxable estate. Pennsylvania's Register of Wills handles probate at the county level, with filing fees and complexity varying by county. Philadelphia and Pittsburgh probate proceedings tend to be more complex and expensive. Pennsylvania recognizes living wills and healthcare powers of attorney under the Advance Directive for Health Care Act. The state does not have a separate estate tax (only the inheritance tax), and the federal estate tax exemption applies. Joint ownership with right of survivorship is a popular but sometimes problematic probate avoidance tool in Pennsylvania.