Probate, or the process of administering a deceased individual’s estate, can be very confusing and overwhelming. The probate process varies from state to state, as it is governed by state law and not federal law. In some states, probate is incredibly onerous, and clients create estate planning documents, such as revocable living trusts, with probate avoidance as the primary goal. For example, when I practiced in Virginia, I would frequently advise clients to create revocable trusts to avoid probate, as Virginia’s probate process was significantly more time-consuming and expensive than the process of administering a trust after a person’s death.However, for many clients in Pennsylvania, the process of wrapping up a decedent’s legal and financial affairs is not appreciably different if this happens through probate or by administering a trust. Thus, it is often more effort – and cost – than it’s worth to try to avoid probate in Pennsylvania. This is largely due to Pennsylvania’s Inheritance TaxIn Pennsylvania, regardless of whether assets pass to beneficiaries via “transfer on death” or “pay on death” designations on a particular account, through a revocable trust, or through probate, the assets are subject to the Inheritance Tax. The tax rate varies from zero percent (0%) to fifteen percent (15%) depending on the recipient’s relationship to the decedent. Thus, even if a Pennsylvania resident successfully avoids probate by transferring all of her assets into a revocable trust during her lifetime, her Personal Representative or Trustee will still need to work with an attorney to prepare and file the Inheritance Tax Return with Pennsylvania’s Department of Revenue after she dies. After the Inheritance Tax Return is submitted, the Trustee should wait until the Department of Revenue issues a “Notice of Appraisement,” or written acceptance of the Inheritance Tax Return as prepared, prior to distributing assets to the beneficiaries. On average, it can take between four and six months for the Department of Revenue to process the Inheritance Tax Return and issue the Notice of Appraisement.For Pennsylvania estates that do go through probate, the preparation of the Inheritance Tax Return (and waiting for the Department of Revenue to issue its Notice of Appraisement) is typically the most time-consuming part of the probate process, just as it is the most time-consuming part of administering a trust. The probate process does require a few other steps such as the actual “probating” or presentation of the decedent’s Will with the Register of Wills in the county where the decedent resided at the time of her death, that could be avoided by relying solely on beneficiary designations or a revocable trust. However, it does not typically take very long or cost very much to take these added steps. Often, it is more expensive to create a revocable trust and is more time-consuming to fund the trust by retitling assets out of the client’s name and into the name of the trust than the client would save her family in effort and expenses by simply allowing her assets to pass through Pennsylvania’s probate with a simple Will.With that said, for some clients, creating a trust may still make sense. For example, clients who reside in Pennsylvania but own real estate in another state may prefer to have a revocable trust and title the out-of-state property into the trust to avoid going through ancillary probate in that other state. Additionally, some clients may find tax benefits from creating certain irrevocable trusts to pass a portion of their assets to their loved ones, rather than relying solely on a Will to pass assets to the beneficiaries of their choice. Each family’s situation is unique, and it is important to talk to an experienced estates attorney who can advise you on the best option for your particular circumstances.