04:33
Faizan
When you are named as executor of an estate, you will likely be concerned about meeting every deadline and time limit. An executor can face personal liability for intentionally causing a delay in an estate administration -- especially if a beneficiary experiences a financial hardship while waiting for an executor to progress with the probate process. However, Pennsylvania law allows a reasonable amount of time for an executor to complete the required tasks and milestones of the probate process.
Purpose of Probate
Understanding the purpose of the probate process at the outset is helpful so as not to become confused and overwhelmed by the procedures and deadlines. When a person dies, it becomes necessary to settle the affairs of his estate. The first priority is to pay the funeral expenses and the deceased's debts. The law also requires the executor to file an inventory and accounting of the deceased’s assets with the courts. Once all debts and claims against the estate are settled, the executor transfers the remaining assets to the beneficiaries of the estate as directed by the provisions of the will. If you are concerned about the amount of time probate will take, rest assured that Pennsylvania’s probate procedures are designed to make the process relatively efficient, as compared to other states. For instance, Pennsylvania probate laws do not require court approval for transactions such as liquidating assets or paying debts, which many other states do require.
Opening an Estate
The general rule in Pennsylvania is that an estate may be opened at any time as long as it is within 21 years from the date of death. However, there are incentives to opening the estate as quickly as possible. The register of wills, the agency responsible for administering Pennsylvania’s probate laws, must grant letters testamentary to the person named in the will as executor. In some situations, the executor named in the will may renounce the role or be unable to serve. If this happens, Pennsylvania law favors appointing the deceased’s beneficiaries, spouse or next of kin. However, if these persons do not appear at the register of wills within 30 days of the death of the deceased, the court may grant letters of administration to any interested party, including creditors.
Creditor Claims Period
Once the estate is open, the executor must then notify the deceased's creditors that the debtor has passed away. The executor must publish notice of the death in a local newspaper once a week for three weeks. Creditors have one year from the date of the first newspaper publication within which to file a claim against the estate. This is known as the creditor claims period. If a creditor files a claim after the one-year mark, it will be too late and the estate can contest the claim.
Final Accounting and Closing the Estate
As executor, you are also responsible for filing final tax returns for the deceased and in some instances, for the estate. Because tax laws are complicated and Pennsylvania collects an inheritance tax in certain cases, you may want to consult an attorney, CPA or financial adviser. Once the taxes are filed and after the one-year creditor claims period has expired, you must complete several tasks to officially close the estate. First, you must submit a final accounting of the estate and its property. The law does not give a hard deadline for submitting the final accounting, but you are expected to compile the information in a reasonably quick manner after the claims period expires. This milestone generally entails submitting an accounting of the estate accounts, values of real and personal property and the amount to be distributed to each beneficiary. If the court is satisfied with the final accounting, you will be immediately relieved of liability with regard to real and personal property of the estate. The final steps in your role as executor include distributing assets to beneficiaries. To officially close the estate, you must file a final status report with the register of wills.
Small Estate
If you are appointed to handle an estate valued at $50,000 or less -- excluding real estate -- the probate process will be even quicker than the typical timeline. This process requires you to submit a small estate affidavit to the court certifying that the amount of the deceased's estate does not exceed the threshold. If approved, the court issues a decree allowing distribution, which allows you to begin distributing assets to the beneficiaries. Within the small estate context, you are not required to obtain an appraisal, notify creditors or participate in formal probate. However, small estate law allows any interested party to file a petition to revoke the distribution decree within one year if an improper distribution is made.
Will Contests
Problems with an estate can arise even after the probate period closes. Pennsylvania law allows any financially interested party the opportunity to petition for a rehearing on matters pertaining to the final accounting, audits or final distributions to beneficiaries. However, the petitioner must raise the claim within five years of the final accounting and must specifically set forth facts as to the alleged errors.
Purpose of Probate
Understanding the purpose of the probate process at the outset is helpful so as not to become confused and overwhelmed by the procedures and deadlines. When a person dies, it becomes necessary to settle the affairs of his estate. The first priority is to pay the funeral expenses and the deceased's debts. The law also requires the executor to file an inventory and accounting of the deceased’s assets with the courts. Once all debts and claims against the estate are settled, the executor transfers the remaining assets to the beneficiaries of the estate as directed by the provisions of the will. If you are concerned about the amount of time probate will take, rest assured that Pennsylvania’s probate procedures are designed to make the process relatively efficient, as compared to other states. For instance, Pennsylvania probate laws do not require court approval for transactions such as liquidating assets or paying debts, which many other states do require.
Opening an Estate
The general rule in Pennsylvania is that an estate may be opened at any time as long as it is within 21 years from the date of death. However, there are incentives to opening the estate as quickly as possible. The register of wills, the agency responsible for administering Pennsylvania’s probate laws, must grant letters testamentary to the person named in the will as executor. In some situations, the executor named in the will may renounce the role or be unable to serve. If this happens, Pennsylvania law favors appointing the deceased’s beneficiaries, spouse or next of kin. However, if these persons do not appear at the register of wills within 30 days of the death of the deceased, the court may grant letters of administration to any interested party, including creditors.
Creditor Claims Period
Once the estate is open, the executor must then notify the deceased's creditors that the debtor has passed away. The executor must publish notice of the death in a local newspaper once a week for three weeks. Creditors have one year from the date of the first newspaper publication within which to file a claim against the estate. This is known as the creditor claims period. If a creditor files a claim after the one-year mark, it will be too late and the estate can contest the claim.
Final Accounting and Closing the Estate
As executor, you are also responsible for filing final tax returns for the deceased and in some instances, for the estate. Because tax laws are complicated and Pennsylvania collects an inheritance tax in certain cases, you may want to consult an attorney, CPA or financial adviser. Once the taxes are filed and after the one-year creditor claims period has expired, you must complete several tasks to officially close the estate. First, you must submit a final accounting of the estate and its property. The law does not give a hard deadline for submitting the final accounting, but you are expected to compile the information in a reasonably quick manner after the claims period expires. This milestone generally entails submitting an accounting of the estate accounts, values of real and personal property and the amount to be distributed to each beneficiary. If the court is satisfied with the final accounting, you will be immediately relieved of liability with regard to real and personal property of the estate. The final steps in your role as executor include distributing assets to beneficiaries. To officially close the estate, you must file a final status report with the register of wills.
Small Estate
If you are appointed to handle an estate valued at $50,000 or less -- excluding real estate -- the probate process will be even quicker than the typical timeline. This process requires you to submit a small estate affidavit to the court certifying that the amount of the deceased's estate does not exceed the threshold. If approved, the court issues a decree allowing distribution, which allows you to begin distributing assets to the beneficiaries. Within the small estate context, you are not required to obtain an appraisal, notify creditors or participate in formal probate. However, small estate law allows any interested party to file a petition to revoke the distribution decree within one year if an improper distribution is made.
Will Contests
Problems with an estate can arise even after the probate period closes. Pennsylvania law allows any financially interested party the opportunity to petition for a rehearing on matters pertaining to the final accounting, audits or final distributions to beneficiaries. However, the petitioner must raise the claim within five years of the final accounting and must specifically set forth facts as to the alleged errors.
Posted in: Estate Laws
