Losing a loved one is difficult. You hopefully do not need to think about how to pay bills or cover the costs of a funeral, but given the right circumstances, you can get some fast and much needed help. For many families, Pennsylvania’s 2026 changes to Act 50 make it easier to access certain funds without opening a formal estate.
This guide explains the updated $20,000 direct-release rule, which assets bypass probate and when formal estate administration is still necessary.
The new statutory update
Under prior law, certain accounts up to $10,000.00 could be accessed by close family members after someone dies to help defray the costs of funeral expenses. The threshold for direct-release bank transfers and unclaimed property held by the state Treasury has increased from $10,000 to $20,000.
If a deceased person had $20,000 or less in one bank, that bank should release the money directly to certain next of kin. It is important to know that employee benefits and wages and patient care accounts can also be accessed by these next of kin, which includes a spouse, children, parents, or siblings, but limits on those kinds of accounts remain at $10,000.00. Life insurance payable to an estate can be accessed up to $11,000.00.
However, this rule has important limits. It applies only to deposit accounts held at one bank and does not extend to real estate or to the total value of the person’s entire estate.
Other non-probate assets
When someone dies, not all property has to go through probate. Often, some accounts and benefits can go straight to family members or named beneficiaries, based on how the decedent set them up, including:
- Joint ownership: Accounts or property owned by spouses held as Joint Tenants with Rights of Survivorship
- Bank and Retirement account: Assets with Transfer on Death (TOD) or Payable on Death (POD) labels
- Life insurance: Life insurance policies with named beneficiaries
These types of assets can often be transferred directly to the named beneficiary or joint owner with a Death Certificate, helping families access funds when they need them most.
When probate is unavoidable
Probate is still necessary to transfer most real estate that was titled solely in the deceased’s name. In addition, any single bank account exceeding $20,000 also requires formal letters of administration or letters testamentary. Personal representatives would then need to appear in-person or virtually before the Register of Wills office for probate.
A faster path for simpler estates
The recent change in the law will help families whose loved ones had a bank account with $20,000.00 or less access those funds without needing to wait for probate. The team at Sikov and Love, P.A., can help determine if your loved one’s estate qualifies for direct transfer.