Pennsylvania Estate Administration
vs. Trust Administration

What Estates and Trusts Have in Common

Whether assets pass through a probate estate or a trust, the person responsible for administration must:

• Identify and collect assets
• Pay debts and expenses
• Manage Pennsylvania inheritance tax obligations
• Provide accountings to beneficiaries
• Resolve disputes when they arise

Pennsylvania Inheritance Tax Applies to Both

One of the biggest misconceptions about trusts is that they avoid Pennsylvania inheritance tax. In reality, inheritance tax applies to both estates and trusts. Because tax filings and deadlines are often the primary driver of administration timelines, a trust does not necessarily result in a significantly faster settlement process.

Key Differences Between Estate and Trust Administration

Trusts Must Be Properly Funded

A trust only controls assets that were transferred into it during the grantor's lifetime. Assets left outside the trust may still require probate.

No Court Oversight

Estate administration involves court appointments of an executor, while trust administration is handled by a trustee without court supervision. Although this can provide more privacy, it can also create additional challenges when disputes arise.

Trustee Responsibilities

Trustees have fiduciary duties and can face personal liability if they fail to properly administer trust assets, comply with legal requirements, or communicate with beneficiaries.