Selling an inherited house in Pennsylvania: Register of Wills, inheritance tax, and when you can sign
Short answer
To sell an inherited house in Pennsylvania, someone first needs authority from the county Register of Wills: letters testamentary for an executor named in a will, or letters of administration when there is no will. Once letters are granted, that personal representative can generally sign the deed. Pennsylvania inheritance tax, 4.5% when a child inherits, becomes delinquent nine months after death, and unpaid tax is a lien on the house.
- The personal representative may sell estate real estate at public or private sale, unless the will says otherwise (20 Pa.C.S. § 3351).
- Inheritance tax rates: 0% to a spouse, 4.5% to children and other lineal heirs, 12% to siblings, 15% to most others (PA Department of Revenue).
- The tax becomes delinquent nine months after death; paying within three months earns a 5% discount (PA Department of Revenue).
- Unpaid inheritance tax and interest are a lien on real property until paid in full (REV-1500 instructions).
Who can sign the deed?
The personal representative of the estate signs. That is the executor or administrator appointed by the Register of Wills (REV-1500 instructions). The document that proves the appointment is called letters.
- With a will: the Register grants letters testamentary to the executor the will names (20 Pa.C.S. § 3155(a)).
- Without a will: the Register grants letters of administration, usually in this order of priority: those entitled to the residuary estate under a will, the surviving spouse, then the heirs under the intestate law, then creditors and other fit persons (§ 3155(b)).
Pennsylvania law gives the personal representative the power to sell "any real property not specifically devised" at public or private sale, unless the will provides otherwise (20 Pa.C.S. § 3351). If the will leaves the house to a specific person, that person must join in the sale. If the will takes away the power to sell, the personal representative can ask the Orphans' Court for an order (§ 3353).
One more detail: if the court required the personal representative to post a bond, real estate proceeds are not paid to them until the court rules on additional security (§ 3351). Ask your title company whether this applies to your estate.
Step by step at the Register of Wills
Each county has a Register of Wills, which also serves as the agent that collects Pennsylvania inheritance tax. Procedures differ by county, so check your county's page before you go. Philadelphia's process is a good example:
- Make an appointment. Philadelphia's Register of Wills is in City Hall, Room 180, and can be reached at (215) 686-6255 (City of Philadelphia).
- Bring the documents. With a will: the original will, an original death certificate, an estimate of the estate's value, and a valid ID. Without a will, the same list minus the will.
- Agree on who will serve. When there is no will and several heirs, the City says the heirs must agree and either renounce in favor of one administrator or serve together as co-administrators (City of Philadelphia).
- Pay the filing fees, which depend on the size of the estate.
- Advertise the letters. Right after letters are granted, the personal representative must publish notice once a week for three successive weeks in a local newspaper and the county's legal periodical, asking creditors to come forward (20 Pa.C.S. § 3162).
Outside Philadelphia, see the Register of Wills pages for Bucks, Lancaster and Lebanon counties.
Pennsylvania inheritance tax on the house
Pennsylvania taxes property passing at death, and the rate depends on who receives it. Real estate is generally valued at its fair market value on the date of death, and funeral expenses, administration costs and the decedent's debts are deductible (REV-1500 instructions).
| Who inherits | Rate |
|---|---|
| Surviving spouse | 0% |
| Parent, from a child age 21 or younger | 0% |
| Child age 21 or younger, from a parent (deaths on or after Jan. 1, 2020) | 0% |
| Children, grandchildren, parents, grandparents and other lineal heirs | 4.5% |
| Brothers and sisters, including half-siblings | 12% |
| Others: nieces, nephews, aunts, uncles, cousins, brothers- and sisters-in-law, friends, stepsiblings | 15% |
| Charities, exempt institutions, government | Exempt |
Sources: PA Department of Revenue; REV-1500 instructions. Property owned jointly between spouses is exempt.
The deadlines. The tax is due at death and becomes delinquent nine months later. If it is paid within three months of the death, a 5% discount applies. Interest starts nine months and one day after death. The return (REV-1500) is filed in duplicate with the Register of Wills of the county where the person lived.
A simple example. Say a house worth $200,000 at the date of death passes to two adult children, and there are no deductions. The tax is 4.5%, or $9,000. Paid within three months, the 5% discount ($450) brings it to $8,550. Your real numbers will depend on the estate's other assets and debts.
Can you sell before the tax is paid?
Yes. The personal representative's power to sell does not depend on the tax being paid first, and the estate has nine months before the tax is delinquent. But unpaid inheritance tax and interest are a lien on the real property until they are paid in full (REV-1500 instructions). So the tax has to be dealt with for the buyer to get clear title. Ask your title company how it will handle the lien at closing.
The REV-1500 instructions also say you can prepay tax at the Register of Wills before the return is filed. That can matter if a sale closes inside the three-month discount window.
The sale itself is a normal sale for transfer tax purposes. See our transfer tax guide for Pennsylvania's state and local rates.
Multiple heirs disagree: what now?
When heirs can't agree, the law offers a few paths:
- If there is a personal representative with power to sell, the heirs generally do not all need to sign. But any party in interest can ask the court to restrain a sale made under authority the will does not give (20 Pa.C.S. § 3355).
- If an heir lives in the house, the personal representative's right to take possession has an exception for real estate an heir occupied with the decedent's consent, but that does not affect the power to sell it (20 Pa.C.S. § 3311).
- If the heirs already own the house together and cannot agree, a co-owner can bring an action for partition (Pa.R.C.P. 1551).
An estate attorney can tell you which path fits. Other options include one heir buying out the others, or everyone agreeing on a sale price.
Selling as-is with belongings inside
The personal representative has to maintain the house and "make all reasonable expenditures necessary to preserve it" until it is sold or distributed (20 Pa.C.S. § 3311). Utilities, insurance, taxes and upkeep keep running while the estate is open.
That is why some families sell as-is. The family takes what it wants to keep, and an as-is buyer takes the house with the remaining contents and repairs. It is one option, not the only one; listing with an agent may bring a higher price if the house is in good shape and the estate can wait. If you're settling an estate in Philadelphia, Bucks County, Lancaster, Lebanon or elsewhere in Pennsylvania, we can give the personal representative a written offer to compare, with no obligation.
Frequently asked questions
Can I sell an inherited house in Pennsylvania before probate is finished?
Usually, yes. Once the Register of Wills grants letters, the personal representative may sell estate real estate at public or private sale unless the will says otherwise (20 Pa.C.S. 3351). The estate does not have to be closed first.
Who signs the deed if there is no will?
The administrator named in letters of administration from the Register of Wills. Priority goes to the surviving spouse and then the heirs, and heirs can renounce in favor of one administrator or serve together.
How much is Pennsylvania inheritance tax on a house left to a child?
Generally 4.5% of the net value passing to the child. Transfers from a parent to a child age 21 or younger are taxed at 0% for deaths on or after January 1, 2020.
When is Pennsylvania inheritance tax due?
It is due at death and becomes delinquent nine months later. Paying within three months of the death earns a 5% discount, and interest starts nine months and one day after death.
Can the house be sold before the inheritance tax is paid?
Yes, but unpaid inheritance tax and interest are a lien on Pennsylvania real property until paid in full, so the tax has to be dealt with for the buyer to get clear title. Ask the title company how it will handle it at closing.
Is a house owned jointly by spouses subject to inheritance tax?
No. The Department of Revenue says property owned jointly between spouses is exempt from Pennsylvania inheritance tax.
Sources
- Pennsylvania Department of Revenue, Inheritance Tax; Make an Inheritance Tax Payment; REV-1500 return and instructions
- 20 Pa.C.S. § 3155, § 3162, § 3311, § 3351, § 3353 and § 3355 (Pennsylvania General Assembly)
- City of Philadelphia, Begin the probate process (with a will) and (without a will)
- Register of Wills: Bucks County, Lancaster County, Lebanon County
- Pennsylvania Rules of Civil Procedure, Rule 1551 (partition) (Pennsylvania Code & Bulletin)
This is general information, not legal or tax advice. Estate and tax rules change, and county procedures differ. For advice on your situation, talk to a Pennsylvania estate attorney or tax professional, or call the Department of Revenue's inheritance tax line at 717-787-8327.