Pittsburgh Family Law Services, P.C. Blog

A lot of adult children whose parents just died without a will wonder if they have to go through the probate process if the only major asset is a house.  The answer to this question really depends on how the property was titled.  But to first clear up a common misconception, probate is not just focused on the single largest asset (such as a house).  A person’s estate also includes their bank accounts, cars, retirement accounts, and debts.  However, it is indeed true that the house is the single largest asset your parent owned, so this article is focused specifically on that issue.  

If a house is owned jointly with another person, it might avoid probate depending on how the property is titled.  A “tenancy in common,” where each person owns separate individual shares, will go through probate to address your deceased parent’s share.  This occurs when adult siblings inherited a house from their parents (your grandparents!) and they never discussed what to do with it.  If the house is owned as “joint tenants with right of survivorship,” it’s different.  The other person owns 100% of the property just as much as your parent did, and it will pass entirely to that person.  This is even the case if your parent owned a house jointly with one of their siblings but you or someone else is living in the house.  The new owner has the ability to do anything they want with the property (within reason and of course subject to Pennsylvania landlord/tenant laws).  If there is no co-owner, then the house will be part of the estate and its value will have to be divided according to the Pennsylvania Intestacy Statute, which is what applies when someone passes away without a will.  

One thing avoiding probate does not do though is avoid paying the Pennsylvania Inheritance Tax.  Unless the surviving owner falls under one of the very limited exceptions, the inheritance tax still has to be paid.  The amount of tax is different depending on the other person’s relationship to your deceased parent, and it ranges from 4.5% to 15%.  The rule is, the closer in relationship you are to the decedent, the lower the inheritance tax will be.  

Before you decide probate is unnecessary because the major asset is a house, it’s important to carefully review the deed to the house and determine how it is titled.  Not opening an estate or filing the Inheritance Tax Return can have costly consequences that only lead to confusion and delay.  If you are unsure whether your family needs to begin the probate process, talk to a Pennsylvania probate attorney today to determine your next steps and create a plan to move forward.