Estate Planning After the Death of a Spouse in Pennsylvania

The first year after a spouse's death is the worst possible time to make permanent decisions — and it is also the year in which Pennsylvania's tax deadlines force several of the biggest ones. This is a guide to what must be done, what can wait, and what should never be decided in the first 90 days.

The 9-month clock: inheritance tax

The Pennsylvania inheritance tax return is due within 9 months of the date of death. Transfers to a surviving spouse are taxed at 0% — so for many couples, the surviving spouse's return is straightforward. But filing is still required, and a 5% discount applies if the tax is paid within 3 months.

Re-titling — but only what's necessary now

• Joint accounts: present the death certificate; the bank removes the deceased spouse and re-titles
• Real estate held by tenancy by the entireties: title passes automatically; no probate action required, though a survivorship deed simplifies later transactions
• Vehicles: PennDOT requires a separate transfer
• Solely titled accounts of the deceased: these require probate (or a small estate petition if under threshold)

Updates to the surviving spouse's own plan

The deceased spouse was probably named as:

• Executor of the will
• Primary beneficiary on every retirement and insurance contract
• Agent under both powers of attorney
• Healthcare agent and surrogate decision-maker
• Trustee of any joint revocable trust

Every one of those roles now needs a new person. This is the work that should happen within the first 6 months — not because it's emotionally easy, but because the gap leaves the surviving spouse legally exposed.

Decisions that can wait

• Selling the house
• Liquidating retirement accounts beyond required distributions
• Restructuring the surviving spouse's own will
• Large gifts to children

Most of these benefit from being made after the first anniversary, when finances are clearer and grief is less acute.

The "stretch" / step-up issues

• Retirement accounts inherited by a spouse can usually be rolled into the survivor's own IRA — preserving the most flexible distribution options
• Appreciated assets receive a step-up in basis at death — make sure cost basis is captured before any sale
• Pennsylvania-titled real estate gets a step-up; this is important for any later sale

When to talk to a lawyer

Schedule a 60- to 90-minute appointment within 30 days, even if no immediate decisions are needed. The goal is to map the deadlines and identify what needs to be done first. See also when to update your estate plan.