Pennsylvania estate administration has seen meaningful changes over the past two years — in how estates are opened, how retirement accounts are handled, and how courts process routine matters. If you are serving as an executor or anticipate administering an estate, here is what you need to know.
Remote Probate Appointments: A Lasting Change
One of the most practical improvements to come out of the pandemic era has proven durable: many Pennsylvania counties — including Westmoreland and Allegheny — now allow executors to qualify for their appointment via video call with the Register of Wills, rather than appearing in person.
This matters more than it might seem. The traditional process required the executor to take time off work, drive to the courthouse, wait, and be sworn in in person. For executors who live out of state, this was a significant logistical challenge. Remote qualification removes that barrier.
At Ament Law Group, we help clients complete the swearing-in process via video call — you can qualify as executor from your home, your office, or wherever is convenient. We handle all filings and court appearances on your behalf throughout the administration.
Not every county has adopted remote appointments, and procedures vary. If convenience is a priority, ask your attorney early in the process whether remote qualification is available in the county where the estate will be opened.
SECURE Act Impacts on Estate Administration: The Inherited IRA Problem
The SECURE Act and SECURE 2.0 have created one of the most common — and most misunderstood — issues in estate administration today: the treatment of inherited retirement accounts.
Under the old rules, most non-spouse beneficiaries could "stretch" an inherited IRA over their own life expectancy, taking small required minimum distributions each year. This allowed the tax-deferred growth to continue for decades.
Under the new rules, most non-spouse beneficiaries must fully distribute an inherited IRA or 401(k) within 10 years of the original owner's death. For beneficiaries in their 50s or 60s — peak earning years — this can create a significant income tax burden.
What executors need to understand:
The 10-year rule applies to most individual beneficiaries who are not a surviving spouse, minor child, disabled individual, or chronically ill person. Eligible designated beneficiaries — including spouses and certain others — still have different options.
Executors are not responsible for the income tax decisions that beneficiaries make about inherited retirement accounts, but they do need to ensure that beneficiary designation forms are located, that account custodians are properly notified of the death, and that the accounts are correctly re-titled or distributed. Delays in notifying custodians can cause administrative problems and, in some cases, result in missed distribution deadlines.
If the estate itself is named as a beneficiary of a retirement account — which is generally a poor estate planning outcome — the distribution rules are different and potentially more restrictive than if an individual beneficiary had been named.
Pennsylvania Inheritance Tax: Administrative Practice Notes
The inheritance tax return (REV-1500) must be filed within nine months of death. The 5% early-payment discount remains available for tax paid within three months — a discount that can represent thousands of dollars of savings on larger estates and should be on every executor's radar from day one.
A few administrative notes on inheritance tax practice:
Joint accounts with a right of survivorship are subject to inheritance tax to the extent of the decedent's contribution, with a presumption that the decedent contributed 50% if both spouses contributed to the account. This is often misunderstood — many families assume joint accounts pass entirely free of tax to the surviving owner.
IRAs and 401(k)s are subject to Pennsylvania inheritance tax, regardless of the named beneficiary. This surprises many families. The value of the retirement account at the date of death is included in the Pennsylvania taxable estate, even though it passes outside of probate.
Life insurance paid directly to a named beneficiary is generally exempt from Pennsylvania inheritance tax. This makes life insurance a useful planning tool for covering inheritance tax obligations.
The Johnson Estate Fee Schedule
Pennsylvania courts have long used the Johnson Estate fee schedule as a benchmark for reasonable attorney compensation in estate administration. The schedule provides for a percentage of the estate value — not an hourly rate — which in most cases results in a predictable and reasonable fee for both the attorney and the estate.
Understanding how attorney fees are calculated helps executors budget appropriately. The fee is based on the gross taxable estate for Pennsylvania inheritance tax purposes, and it covers the attorney's work throughout the administration — from opening the estate through final distribution.
At Ament Law Group, we disclose our fee in writing at the start of every estate administration matter, based on the Johnson Estate schedule. There are no surprise invoices and no hourly billing for routine estate work.
Executor Liability: A Reminder
Executors in Pennsylvania serve in a fiduciary capacity, which means they owe duties of loyalty and care to the beneficiaries of the estate. The most common sources of executor liability include:
- Distributing assets before creditor claims are resolved
- Failing to file the inheritance tax return on time
- Making investment decisions that are inappropriate for an estate account
- Failing to treat beneficiaries equally and impartially
- Missing deadlines for notifying beneficiaries or creditors
Working with an experienced probate attorney from the beginning of the administration is the most effective way to protect yourself as executor. The attorney's role is not just to file paperwork — it is to guide you through a process with real legal obligations and real personal liability.
If you are serving as executor of a Pennsylvania estate, or anticipate doing so, contact us for a free consultation.
This article is for general informational purposes only and does not constitute legal advice. Consult a licensed Pennsylvania attorney before making any decisions regarding estate administration.
Need Help with Your Estate?
At Ament Law Group, P.C., we help Pennsylvania families protect their wealth and plan for the future. Whether you need a trust, will, or probate administration assistance, our team is here to guide you every step of the way.
Call us today at (724) 733-3500 to schedule your consultation.