Taxation with Representation

Pennsylvania has enacted important changes to its intestacy statute through Act 50 of 2025, effective January 23, 2026. The legislation modifies how estates are distributed when an individual dies without a will and without identifiable heirs. While the core structure of Pennsylvania’s intestate succession law remains intact, the treatment of so-called “heirless” estates has been significantly revised.

Under prior law, if a decedent died intestate and no qualifying relatives could be located, the estate ultimately escheated to the Commonwealth of Pennsylvania. Act 50 changes that outcome.

Now when no heirs exist under 20 Pa.C.S. § 2103, the estate will instead pass to an endowed community fund serving the municipality, school district, or county where the decedent resided. These funds are administered for charitable purposes intended to benefit the local community. If no qualifying community fund exists, the estate will still revert to the Commonwealth as a final step.

The purpose of the amendment is to ensure that assets of Pennsylvanians who leave no will and no surviving family members remain in and support the communities in which they lived. By redirecting heirless estates to local charitable use, the legislature has replaced what was previously a transfer to the state’s general fund with a community-focused alternative. 

Pennsylvania is now the only state in the nation to guarantee that intestate estates with no surviving family are kept local, charitable, and permanent.  The Pennsylvania Community Foundation Association has certified that every county is served by a community foundation with an endowed community fund ensuring that no matter where someone lived, their final gift stays close to home.

Importantly, Act 50 does not alter the longstanding priority system governing distributions to spouses, descendants, parents, siblings, grandparents, and more remote relatives. Rather, it changes only the final disposition when no heirs can be identified.

For clients, this development underscores the continuing importance of thoughtful estate planning. A properly drafted will or trust remains the only way to ensure that assets are distributed according to one’s personal wishes rather than by statutory default.

If you would like to review or update your estate plan in light of these changes, please contact us to speak with a member of the Bowles Rice team.  We look forward to the opportunity to discuss how best to structure your plan to reflect your intentions and legacy goals.