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Pennsylvania Act 50 of 2025 Redirects Intestate Estates to Community Funds and Raises Small Estate Thresholds

Published on

May 21, 2026

Pennsylvania Act 50 of 2025, signed into law by Governor Shapiro on November 25, 2025, makes two notable changes to intestate succession and small estate administration. The law both redirects certain estates to local community foundations and increases the amount heirs can collect without opening a formal estate. The Act contains two main sections, which can be summarized as follows:

Section 1 of Act 50 amends 20 Pa.C.S. § 2103(a)(6) and updates Pennsylvania’s current intestate succession law so that when no heirs can be identified for an individual who dies without a will, the estate will now be placed into an “Endowed Community Fund” at the community foundation serving the decedent’s municipality, school district, or county of residence, before going to the general Commonwealth Fund. These funds are then used to provide grants and support to local nonprofits. Previously when no family survived a decedent, such estates passed directly to the Commonwealth to be used in the state’s annual budget. Act 50 amends the law to add endowed community funds as the final successor before assets would pass to the Commonwealth. The updated intestate succession provisions took effect on January 23, 2026.

Section 2 of Act 50 amends two subsections of 20 Pa.C.S. § 3101 by increasing the amount of assets the Pennsylvania Treasury and financial institutions can distribute to the heirs of a deceased resident of the Commonwealth of Pennsylvania:

  • 1. The Act increases the amount of Pennsylvania Unclaimed Property that heirs can claim from the Pennsylvania Treasury without the need to open a formal estate, from $11,000 to $20,000. This increase becomes effective May 25, 2026.
  • 2. The Act has increased the amount a financial institution can distribute to heirs of the deceased, without the need to open a formal estate, from $10,000 to $20,000. This increase took effect on January 23, 2026.

Act 50 simplifies the process for certain heirs by allowing more assets to be distributed without opening a formal estate, reducing time and cost. It also reinforces the importance of estate planning, as individuals without a will or identifiable heirs may have assets distributed to local community foundations.

To discuss how these changes impact your individual situation and to maximize estate planning strategies, please reach out to attorney Julia Parrish, Jonah Markle, or any member of Barley Snyder’s Trusts & Estate Practice Group.


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