Non-Resident Decedent Estates — Pennsylvania Property

When Pennsylvania Gets Involved

Pennsylvania imposes its inheritance tax on all real estate and tangible personal property located within the Commonwealth, regardless of where the decedent lived. If your parent lived in Florida but owned a vacation home in the Laurel Highlands, a hunting cabin in Potter County, or rental property in Pittsburgh, the estate owes Pennsylvania inheritance tax on those assets — and the property cannot be transferred to heirs without addressing that obligation.

The most common situations we handle involve:

• A decedent who lived in another state but owned Pennsylvania real estate (vacation homes, rental properties, farmland, mineral rights)
• A decedent who recently moved out of Pennsylvania but still owned property here
• A decedent whose estate includes tangible personal property stored or located in Pennsylvania (vehicles, equipment, collections)
• Multi-state estates where the executor in the domicile state needs Pennsylvania counsel to handle the local obligations

The Non-Resident Inheritance Tax Return

Non-resident decedents who owned Pennsylvania property require a separate inheritance tax return — the REV-1737-A, filed with the Pennsylvania Department of Revenue. This return covers only the Pennsylvania-situs assets, not the decedent's entire estate.

The same inheritance tax rates apply as for resident decedents:

• 0% — Transfers to a surviving spouse
• 4.5% — Transfers to children and lineal descendants
• 12% — Transfers to siblings
• 15% — Transfers to all others

The return is due nine months after the date of death, and the same 5% discount is available for tax paid within three months. Filing the return and paying the tax are prerequisites to transferring the Pennsylvania property to the heirs or selling it.

Ancillary Probate in Pennsylvania

If the decedent's will has already been probated in their home state, the executor can file for ancillary probate in the Pennsylvania county where the property is located. This involves filing an exemplified copy of the will and the Letters Testamentary from the domicile state with the Pennsylvania Register of Wills, and obtaining ancillary Letters that give the executor authority to act on the Pennsylvania property.

Ancillary probate is a streamlined process — there is no need to re-prove the will or go through full administration in Pennsylvania. The executor's authority in Pennsylvania is limited to the Pennsylvania assets, and once the inheritance tax is paid and the property is transferred or sold, the ancillary administration can be closed.

Coordination With Out-of-State Counsel

In most non-resident decedent matters, the estate is being administered by an attorney in the state where the decedent lived. We work alongside that attorney as Pennsylvania local counsel, handling the Pennsylvania-specific obligations so the primary estate attorney does not need to navigate an unfamiliar jurisdiction.

Our role typically includes:

• Preparing and filing the REV-1737-A non-resident inheritance tax return
• Filing for ancillary probate if needed
• Coordinating the transfer or sale of Pennsylvania real estate
• Obtaining tax clearance from the Pennsylvania Department of Revenue
• Recording deeds and handling title transfer

Practical Considerations

Several issues frequently arise in non-resident decedent estates:

• The property cannot be sold or transferred until the tax is addressed. Title companies will not issue title insurance on property owned by a decedent without a Pennsylvania inheritance tax clearance. This can delay sales if the return is not filed promptly.
• Pennsylvania may dispute domicile. If the decedent claimed residency in another state but maintained significant ties to Pennsylvania, the Department of Revenue may assert that the decedent was actually a Pennsylvania resident, subjecting the entire estate to Pennsylvania inheritance tax. We help resolve domicile disputes when they arise.
• Mineral rights and oil and gas interests count. In Western Pennsylvania, many families hold mineral rights or oil and gas interests that have been in the family for generations. These are Pennsylvania-situs assets subject to inheritance tax, even if the owner lived elsewhere.

If you are administering an estate for someone who lived outside Pennsylvania but owned property here, call (724) 733-3500 or schedule a consultation. We handle the Pennsylvania side so you can focus on the primary administration.