What’s Changing: PA Trust Reforms Reshape Philadelphia Estate Plans
Pennsylvania finished a quiet but important overhaul of its trust and estate framework, and the practical consequences are now landing in Philadelphia plans being drafted this year. The changes were two waves. First, on July 15, 2024, Governor Josh Shapiro signed Act 64 (the Directed Trust Act), effective October 14, 2024. Then, for taxable years beginning January 1, 2025, Pennsylvania adopted federal grantor trust rules under SB 815 — making Pennsylvania the last state to align with the rest of the country. If you need an estate planning lawyer Philadelphia can put to work on a current draft, the right attorney is already updating templates around both reforms.
The Directed Trust Act lets a settlor split traditional trustee responsibilities among several people. One person can manage investments, another can decide distributions, another can act as a trust protector. That structure was previously cumbersome under Pennsylvania common law. Now it has clear statutory backing, which matters for higher-net-worth Philadelphia families wanting to keep professional financial advisors in role-specific positions while a family member or institutional fiduciary handles administration.
The grantor trust alignment changes how irrevocable trusts created by Pennsylvania residents are taxed at the state level. Under the old framework, Pennsylvania’s separate treatment created administrative friction and surprise tax bills. The 2025 alignment ends that. As a result, planning techniques that have been standard in Pennsylvania can now be deployed cleanly. For Philadelphia practitioners, that means revisiting older trust documents that were drafted around the old rules.
Common Estate Planning Lawyer Philadelphia Cases Today
Philadelphia’s Register of Wills processes wills, opens estates, and serves as Clerk of the Orphans’ Court. Roughly 8,000 estates open in Philadelphia each year. The recurring matters local attorneys handle include:
- Will drafting and updates — including revisions to incorporate the Directed Trust Act framework.
- Revocable living trusts for probate avoidance.
- Irrevocable trusts — now markedly simpler under the grantor trust alignment.
- Powers of attorney (financial and health care).
- Probate administration through the Orphans’ Court Division.
- Pennsylvania inheritance tax filings — Pennsylvania remains one of the few states with an inheritance tax (4.5% to 15% depending on relationship).
- Trust modification and decanting petitions to update older trusts.
- Will contests and fiduciary disputes heard in Orphans’ Court.
- Special needs trusts for disabled beneficiaries on Medicaid.
Pennsylvania Laws and Philadelphia’s Orphans’ Court
Philadelphia probate runs through the Orphans’ Court Division of the Court of Common Pleas, with the Register of Wills handling filings at City Hall Room 180. According to Philadelphia’s Fiscal 2026 Operating Budget, the Register of Wills targets a median 10-day turn from filing to issuance of letters testamentary, with in-person waits averaging just five minutes. Research requests aim to fulfill within 40 days. By Philadelphia standards, that’s brisk.
Pennsylvania inheritance tax remains the trickiest piece for Philadelphia families. Spouses pay 0%, lineal descendants 4.5%, siblings 12%, and other heirs 15%. Returns are due nine months after death, with a 5% discount for payments within three months. Federal estate tax applies separately, but the federal exemption is high enough that few Philadelphia estates hit it. The Orphans’ Court also handles trust modifications, including post-Act 64 petitions to add directed-trust provisions to older instruments.
| Beneficiary Class | PA Inheritance Tax Rate | Notes |
|---|---|---|
| Surviving spouse | 0% | Full exemption |
| Children, grandchildren, parents | 4.5% | Lineal descendants and ascendants |
| Siblings | 12% | Brothers and sisters of decedent |
| All other heirs | 15% | Nieces, nephews, friends, charities not exempt |
Did you know? Pennsylvania was the final state in the United States to recognize federal grantor trust rules, aligning with the other 49 states and the District of Columbia for taxable years beginning January 1, 2025. For decades, Philadelphia practitioners had to work around state-federal mismatches. The 2025 alignment closes a planning gap that cost some families thousands per year in unnecessary administrative complexity.
What to Look for in an Estate Planning Lawyer Philadelphia Families Trust
Pick someone who handles Orphans’ Court matters regularly and can speak to recent Register of Wills practice. Ask whether their trust templates have been updated to incorporate Directed Trust Act provisions. Ask how they’re handling older Pennsylvania irrevocable trusts in light of the 2025 grantor trust alignment — the answer reveals whether the lawyer has actually engaged with the changes or is still using pre-2024 forms.
For higher-net-worth Philadelphia families, look for membership in the Philadelphia Bar Association Probate and Trust Law Section. Board certification through the American College of Trust and Estate Counsel (ACTEC) is the strongest credential, held by only a few hundred Pennsylvania attorneys statewide. Specifically, ACTEC Fellows tend to hold themselves to higher technical standards on trust drafting.
For middle-market and lower-asset matters, simpler engagement letters and flat fees are common. Many Philadelphia estate planning attorneys offer flat-fee will-and-power-of-attorney packages in the $400 to $1,500 range. Inheritance tax preparation is often quoted separately, since complexity varies widely with the size and composition of the estate.
Our take: If your Pennsylvania estate plan was drafted before October 2024, it almost certainly does not take advantage of the Directed Trust Act. That alone usually does not require a rewrite. But if your plan involves outside investment advisors, multiple trustees, or trust protectors, an update can simplify administration meaningfully. The grantor trust alignment is a stronger reason to revisit older irrevocable trust structures with your tax counsel.
Find an Estate Planning Lawyer Philadelphia on ReachAttorneys
ReachAttorneys lists estate planning attorneys serving Philadelphia, with profiles showing practice focus, ACTEC affiliation where applicable, and contact details. You can compare offices serving Center City, Northwest Philadelphia, and the surrounding Bucks, Montgomery, Delaware, and Chester County areas on a single page.
For broader Pennsylvania coverage, the Pennsylvania attorney directory includes estate planning lawyers in Pittsburgh, Allentown, Harrisburg, and other markets across the state.
Related Guides
See also: NC’s Electronic Wills Law Hits Raleigh Estate Plans for a parallel state-statute story affecting another Atlantic-coast market. Also looking at multi-state planning? Pennsylvania’s grantor trust alignment finally brings the state in line with neighbors like New Jersey, Delaware, and New York.
Frequently Asked Questions
How much does an estate planning lawyer Philadelphia charge?
A simple will-and-power-of-attorney package typically runs $400 to $1,500. Revocable living trust packages often range from $1,500 to $4,500. Higher-net-worth plans with directed trusts run higher.
How long does Philadelphia probate take?
Letters testamentary typically issue within 10 days. Routine estates often close within 9 to 12 months. Contested estates or those facing tax disputes can extend to two years or more.
Do I need to pay Pennsylvania inheritance tax?
Yes, unless the entire estate passes to a surviving spouse. Lineal descendants pay 4.5%, siblings 12%, others 15%. Returns are due within nine months of death; pay within three months for a 5% discount.
What is the Directed Trust Act?
Pennsylvania’s Act 64 of 2024 lets a settlor divide trustee responsibilities among multiple people. One handles investments, another distributions, another protector duties. It went into effect October 14, 2024.
Should I update an older Pennsylvania trust?
Often yes, especially if it predates 2025. Trust modification or decanting under the Pennsylvania Uniform Trust Act can incorporate the new directed-trust and grantor-trust frameworks without starting from scratch.
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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
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