Disclaimer: This information is for educational purposes only and does not constitute legal advice.
Detailed Answer: Steps to Include Real Property in a Pennsylvania Estate
Including real property in your estate in Pennsylvania requires careful planning and compliance with state law. Below are the key steps:
- Verify Current Ownership: Review the deed to confirm fee simple ownership and vesting. Ensure no outstanding liens or encumbrances.
- Choose a Transfer Method:
- Last Will and Testament: Draft a valid will under 20 Pa.C.S. § 1502 20 Pa.C.S. § 1502. Include clear language devising the property to beneficiaries. Probate the will upon death to pass title.
- Revocable Living Trust: Create a trust document. Transfer title by executing a warranty or quitclaim deed from yourself to the trustee. Deed must be signed by the grantor, acknowledged before a notary, and recorded under the Pennsylvania Recording of Instruments Relating to Lands, 21 Pa.C.S. Ch. 3 21 Pa.C.S. Ch. 3. This avoids probate.
- Transfer on Death Deed (TODD): Execute a TOD deed under 21 Pa.C.S. §§ 67.101–67.109 21 Pa.C.S. Ch. 67. Record before death. You retain full ownership until death. The deed automatically transfers title to the designated beneficiary.
- Joint Ownership with Right of Survivorship: Add a co-owner as joint tenant. Upon death, property passes directly to the survivor. Consider gift and tax implications before creating joint tenancy.
- Record the Deed: File the deed with the county recorder’s office under the Pennsylvania Recording of Instruments Relating to Lands, 21 Pa.C.S. Ch. 3 21 Pa.C.S. Ch. 3. Pay required recording fees.
- Update Tax and Insurance Records: Notify the county assessment office. Update homeowner’s insurance to reflect the new title holder.
- Probate and Estate Tax Filing: Upon death, submit an inventory of real property to the Register of Wills. File the Pennsylvania Inheritance Tax return within nine months under 72 P.S. § 9101.201 72 P.S. § 9101.201. Pay any inheritance taxes due.
- Transfer Title Post-Death: Provide certified letters testamentary or letters of administration to the recorder. File a death certificate. The recorder will update title to reflect the final beneficiaries or trust.
Helpful Hints
- Review title insurance policy for exceptions before transfer.
- Confirm deed forms comply with local county requirements.
- Consult a qualified attorney or title company to avoid errors.
- Keep original deed and trust documents in a safe location.
- Regularly review your estate plan to reflect life changes.