Pennsylvania Estate Planning: A Step-by-Step Checklist for 2026

A car accident, a stroke, a fall at the grocery store — the event that triggers a Pennsylvania estate plan isn't always a death. It's often an emergency room where nobody knows who's authorized to make decisions, a frozen bank account that can't cover the mortgage, or a 15% inheritance tax bill that blindsides an unmarried partner.

Pennsylvania imposes unique pressures that make generic estate planning advice dangerous. The commonwealth taxes inheritances starting at the first dollar — no exemption threshold — and the rates depend entirely on the beneficiary's relationship to you. Meanwhile, medical decision-making authority defaults to a rigid statutory hierarchy that excludes unmarried partners entirely.

Here is how to build a Pennsylvania-specific estate plan that actually works.

The Foundation: Healthcare Documents Under Chapter 54

Pennsylvania's Advance Health Care Directive combines two documents into one: a Living Will (treatment instructions when you're terminal or permanently unconscious) and a Healthcare Power of Attorney (naming a trusted agent to make medical decisions when you can't).

Under 20 Pa.C.S. § 5452, execution requires only your signature and two adult witnesses — notarization is optional for healthcare documents. This is a critical distinction from the Financial Power of Attorney under Chapter 56, which demands two witnesses AND a notary.

Your witnesses cannot be your designated healthcare agent, a blood relative, an heir, a creditor, or an employee of your treating facility.

Without this document, Pennsylvania defaults to a statutory hierarchy under § 5461: spouse, then adult children, then parents, then siblings. An unmarried partner has zero standing — they can be shut out of the ICU entirely.

Financial Power of Attorney: The Other Half

A Financial POA under 20 Pa.C.S. § 5601 lets your agent manage bank accounts, pay bills, file taxes, and handle real estate transactions if you're incapacitated. Unlike the healthcare directive, this one requires two witnesses AND notarization to be valid.

Name a different agent than your healthcare representative or name the same person — the key is having both documents executed before you need them.

Asset Titling: Joint Tenancy With Right of Survivorship

How you title your property determines whether it goes through probate in Pennsylvania. Assets held in joint tenancy with right of survivorship (JTWROS) pass directly to the surviving owner outside of probate — and outside of Medicaid estate recovery.

For married couples, Pennsylvania's tenancy by the entireties provides even stronger protection: the surviving spouse inherits the entire property automatically, and creditors of one spouse generally cannot reach it.

The trap: if you add a non-spouse as a joint owner within one year of death, the entire asset value is taxable in your estate under Pennsylvania inheritance tax rules (minus a $3,000 statutory deduction). Plan early.

The Inheritance Tax Strategy

Pennsylvania's inheritance tax structure demands proactive planning:

• Surviving spouse: 0%
• Children, grandchildren, parents: 4.5%
• Siblings: 12%
• Everyone else (nieces, nephews, friends, unmarried partners): 15%

Two immediate strategies: First, pay the estimated inheritance tax within three months of death to claim a 5% discount on the total tax due. Second, order a certified date-of-death appraisal for any real estate — Pennsylvania law prohibits using a real estate agent's Comparative Market Analysis for tax filings.

Medicaid Protection for Adults 55 and Older

Pennsylvania's Estate Recovery Program can claim against your probate estate to recoup long-term care costs. The caregiver child exception protects the family home if an adult child lived there and provided care for at least two years before nursing home admission.

Assets titled in JTWROS or tenancy by the entireties bypass probate and are exempt from recovery. Assets titled as tenants in common are not.

Your Pennsylvania Estate Planning Checklist

1. Execute a Chapter 54 Advance Health Care Directive (Living Will + Healthcare POA)
2. Execute a Chapter 56 Financial Power of Attorney (with witnesses AND notary)
3. Review all asset titles — convert tenants-in-common to JTWROS or entireties where appropriate
4. Verify beneficiary designations on retirement accounts, life insurance, and bank accounts
5. If you're 55+, review Medicaid lookback period implications and asset protection options
6. Budget for the 3-month prepayment deadline to capture the inheritance tax discount
7. Order certified death certificates early — Pennsylvania charges $20 per copy
8. Distribute healthcare directive copies to your agent, your doctor, and your hospital's patient portal

The Pennsylvania Advance Directive & Living Will Kit walks you through every step with Pennsylvania-specific forms, witness requirements, and county-by-county filing guidance.

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