Pennsylvania Raises the Small Estate Threshold to $20,000

Two important thresholds just increased under Act 50, signed by Governor Shapiro in November 2025. If you’re trying to close out a loved one’s accounts without opening a full estate, this matters.

The change is significant, but it’s also partial, and that’s exactly why you need to understand what changed and what didn’t.

What Changed

Deposit accounts (Section 3101(b)): The threshold jumped from $10,000 to $20,000. Banks, credit unions, and savings institutions can now distribute up to $20,000 in account funds directly to family members (spouse, children, parents, or siblings, in that order) without requiring the estate to go through probate. You’ll need to present a receipted funeral bill or an affidavit from a funeral director confirming that funeral arrangements have been made. This change became effective 60 days after signing, around January 23, 2026.

Unclaimed property (Section 3101(e)): If your relative left behind unclaimed funds held by the State Treasurer, the threshold also rose to $20,000. The state can now distribute those funds to surviving family members without opening a formal estate. This takes effect 180 days after signing, around May 24, 2026.

What Stayed the Same

Here’s what didn’t change, and this matters for your planning:

Wages and salary (Section 3101(a)) remain capped at $10,000. An employer can still only release unpaid wages to family without probate up to that limit.

Patient care accounts (Section 3101(c)) stayed at $10,000. If your relative was a Medicaid patient in a long-term care facility, the facility can distribute remaining care account funds up to $10,000.

Life insurance payable to the estate (Section 3101(d)) is still $11,000. Note the distinction: this applies only when life insurance named the estate as beneficiary, not when it named an individual. If your relative named you directly as a beneficiary, insurance pays outside probate regardless of amount.

Real property received no change whatsoever. If your relative owned a house, land, or commercial property, probate is still required to transfer title, no matter the value.

One More Thing: The Endowed Community Fund

Act 50 also created something new. When someone in Pennsylvania dies without a will and leaves behind no heirs, the assets no longer automatically go to the state. Instead, they go to an “Endowed Community Fund” that benefits the municipality, school district, or county where the deceased person lived. It’s a small shift, but it reflects a conscious choice to keep assets local rather than letting them disappear into the general treasury.

The Bigger Picture

This change helps many families avoid the cost and delay of formal probate for smaller accounts. But it doesn’t eliminate probate for most estates. Real estate still requires it. And if your estate has multiple types of assets (a house, bank accounts, investments, and insurance proceeds), you’ll likely still need to go through the probate process.

These thresholds provide relief in specific, narrow circumstances. If your situation involves real property or mixed assets, you still need proper estate administration or planning to avoid complications.

Not sure whether your relative’s estate qualifies for these simplified procedures? Call us at (215) 949-0888. We can usually tell you in one conversation whether you need to open a formal estate or not.

Need help with a small estate or probate in Pennsylvania? Ballow & Lynde represents clients throughout Bucks County in estate administration and Orphans’ Court matters. Schedule a free consultation or call us at 215-949-0888.

Related Practice Areas:

• Estate Planning
• Small Estate Petitions & the Family Exemption
• Collecting Assets Without Opening an Estate
• Orphans’ Court