HB 1176 — An Act amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, in intestate succession, further providing for shares of others than surviving spouse; and, in dispositions independent of letters, family exemption, probate of wills and grant of letters, further providing for payments to family and funeral directors.

PRIOR PRINTER'S NO.

1313 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

23821176 THE2025 GENERALINTRODUCED ASSEMBLYBY OFCIRESI, PENNSYLVANIASANCHEZ, HOUSEFREEMAN, BILLGIRAL, SessionHANBIDGE, ofVENKAT, No.HILL-EVANS, KHAN, DONAHUE, HOWARD, GAYDOS, MALAGARI, McANDREW, CERRATO, NEILSON, WARREN AND D.

1176WILLIAMS, APRIL 9, 2025 INTRODUCEDREFERRED BYTO CIRESI,COMMITTEE SANCHEZ,ON FREEMAN,FINANCE, GIRAL,APRIL HANBIDGE,9, VENKAT,2025 McANDREW,AN CERRATO,ACT NEILSON,Amending WARREN,Title D.20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, in dispositions independent of letters, family exemption, probate of wills family and funeral directors.

WILLIAMS,providing PARKER,for CEPEDA-FREYTIZ,payments SHUSTERMAN,to BOROWSKI,The GREEN,General BOYDAssembly ANDof MADSEN,the APRILCommonwealth 9, 2025 AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, SEPTEMBER 30, 2025 AN ACT Amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidatedhereby Statutes,enacts INas INTESTATEfollows: SUCCESSION, <-- FURTHER PROVIDING FOR SHARES OF OTHERS THAN SURVIVING SPOUSE;

AND, in dispositions independent of letters, family exemption, probate of wills and grant of letters, further providing for payments to family and funeral directors.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 3101(e)(1)(i) of Title 20 of the <-- Pennsylvania Consolidated Statutes, amended July 17, 2024 (P.L.805, No.65), is amended to read:

SECTION 1.

SECTION 2103 OF TITLE 20 OF THE PENNSYLVANIA <-- CONSOLIDATED STATUTES IS AMENDED TO READ:

§ 2103.

SHARES OF OTHERS THAN SURVIVING SPOUSE.

(A) ORDER OF SUCCESSION.--THE SHARE OF THE ESTATE, IF ANY, TO WHICH THE SURVIVING SPOUSE IS NOT ENTITLED, AND THE ENTIRE ESTATE IF THERE IS NO SURVIVING SPOUSE, SHALL PASS IN THE FOLLOWING ORDER:

(1) ISSUE.--TO THE ISSUE OF THE DECEDENT.

(2) PARENTS.--IF NO ISSUE SURVIVES THE DECEDENT, THEN TO THE PARENTS OR PARENT OF THE DECEDENT.

(3) BROTHERS, SISTERS, OR THEIR ISSUE.--IF NO PARENT SURVIVES THE DECEDENT, THEN TO THE ISSUE OF EACH OF THE DECEDENT'S PARENTS.

(4) GRANDPARENTS.--IF NO ISSUE OF EITHER OF THE DECEDENT'S PARENTS BUT AT LEAST ONE GRANDPARENT SURVIVES THE DECEDENT, THEN HALF TO THE PATERNAL GRANDPARENTS OR GRANDPARENT, OR IF BOTH ARE DEAD, TO THE CHILDREN OF EACH OF THEM AND THE CHILDREN OF THE DECEASED CHILDREN OF EACH OF THEM, AND HALF TO THE MATERNAL GRANDPARENTS OR GRANDPARENT, OR IF BOTH ARE DEAD TO THE CHILDREN OF EACH OF THEM AND THE CHILDREN OF THE DECEASED CHILDREN OF EACH OF THEM.

IF BOTH OF THE PATERNAL GRANDPARENTS OR BOTH OF THE MATERNAL GRANDPARENTS ARE DEAD LEAVING NO CHILD OR GRANDCHILD TO SURVIVE THE DECEDENT, THE HALF WHICH WOULD HAVE PASSED TO THEM OR TO THEIR CHILDREN AND GRANDCHILDREN SHALL BE ADDED TO THE HALF PASSING TO THE GRANDPARENTS OR GRANDPARENT OR TO THEIR CHILDREN AND GRANDCHILDREN ON THE OTHER SIDE.

(5) UNCLES, AUNTS AND THEIR CHILDREN, AND GRANDCHILDREN.--IF NO GRANDPARENT SURVIVES THE DECEDENT, THEN TO THE UNCLES AND AUNTS AND THE CHILDREN AND GRANDCHILDREN OF DECEASED UNCLES AND AUNTS OF THE DECEDENT AS PROVIDED IN SECTION 2104(1) (RELATING TO [TAKING IN DIFFERENT DEGREES] RULES OF SUCCESSION).

(6) [COMMONWEALTH] ENDOWED COMMUNITY FUND.--IN DEFAULT OF ALL PERSONS HEREINBEFORE DESCRIBED, THEN TO [THE COMMONWEALTH OF PENNSYLVANIA.] AN ENDOWED COMMUNITY FUND IN THE FOLLOWING ORDER:

20250HB1176PN2382 - 2 - (I) AN ENDOWED COMMUNITY FUND THAT IS LOCATED IN THE DECEDENT'S MUNICIPALITY.

(II) AN ENDOWED COMMUNITY FUND THAT IS LOCATED IN THE DECEDENT'S SCHOOL DISTRICT.

(III) AN ENDOWED COMMUNITY FUND THAT IS LOCATED IN THE DECEDENT'S COUNTY.

(IV) IF NO ENDOWED COMMUNITY FUND EXISTS IN THE MUNICIPALITY, COUNTY OR SCHOOL DISTRICT, THE COMMONWEALTH SHALL RETAIN CUSTODY OF THE ESTATE.

(B) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"COMMUNITY FOUNDATION." AN ORGANIZATION THAT MEETS ALL OF THE FOLLOWING REQUIREMENTS:

(1) HAS BEEN IN EXISTENCE FOR AT LEAST 10 YEARS.

(2) SUPPORTS A BROAD RANGE OF CHARITABLE ACTIVITIES.

(3) QUALIFIES FOR EXEMPTION FROM FEDERAL INCOME TAXATION UNDER 26 U.S.C.

§ 501(C)(3) (RELATING TO EXEMPTION FROM TAX ON CORPORATIONS, CERTAIN TRUSTS, ETC.).

(4) MAINTAINS AN ONGOING PROGRAM TO ATTRACT NEW ENDOWMENT MONEY BY SEEKING GIFTS AND BEQUESTS FROM A WIDE RANGE OF POTENTIAL DONORS.

(5) IS PUBLICLY SUPPORTED, AS DESCRIBED IN 26 CFR 1.170A-9(F) (RELATING TO DEFINITION OF SECTION 170(B)(1)(A) ORGANIZATION).

(6) MEETS THE REQUIREMENTS FOR TREATMENT AS A SINGLE ENTITY UNDER 26 CFR 1.170A-9(F)(11).

(7) HAS AN INDEPENDENT GOVERNING BODY THAT REPRESENTS THE INTERESTS OF THE GENERAL PUBLIC AND IS NOT APPOINTED BY A SINGLE OUTSIDE ENTITY.

20250HB1176PN2382 - 3 - (8) IS SUBJECT TO AN ANNUAL INDEPENDENT FINANCIAL AUDIT.

"ENDOWED COMMUNITY FUND." A FUND HELD BY A COMMUNITY FOUNDATION THAT PROVIDES GRANTS AND BENEFITS TO CHARITABLE CAUSES AND IS INTENDED TO EXIST IN PERPETUITY.

SECTION 2.

SECTION 3101(B) AND (E)(1)(I) OF TITLE 20, AMENDED JULY 17, 2024 (P.L.805, NO.65), ARE AMENDED TO READ:

* * * (B)(e) DEPOSITUnclaimed ACCOUNT.--ANYproperty.-- BANK,(1) SAVINGSIn ASSOCIATION,any SAVINGScase <--where ANDproperty LOANor ASSOCIATION,funds BUILDINGowned ANDby LOANan ASSOCIATION,individual CREDITwho UNIONhas ORdied OTHERa SAVINGSresident ORGANIZATION,of ATthis ANYCommonwealth TIMEhave AFTERbeen THEreported DEATHto OFthe ACommonwealth DEPOSITOR,and MEMBERare ORin CERTIFICATEthe HOLDER,custody SHALLof PAYthe THEState AMOUNTTreasurer ONas DEPOSITunclaimed ORor REPRESENTEDabandoned BYproperty, THEthe CERTIFICATE,State WHENTreasurer, THEat TOTALany STANDINGtime TOafter THEthe CREDITdeath OFof THEthe DECEDENTindividual, INshall THATonly INSTITUTIONbe DOESauthorized NOTunder EXCEEDthis [$10,000]section $20,000,to TOdistribute THEthe SPOUSE,property ANYor CHILD,to THEpay FATHERthe ORamount MOTHERbeing ORheld ANYin SISTERcustody ORwhere BROTHERall (PREFERENCEof BEINGthe GIVENfollowing INconditions THEare ORDERpresent: NAMED) OF THE DECEASED DEPOSITOR, MEMBER OR CERTIFICATE HOLDER, PROVIDED THAT A RECEIPTED FUNERAL BILL OR AN AFFIDAVIT, EXECUTED BY A LICENSED FUNERAL DIRECTOR WHICH SETS FORTH THAT SATISFACTORY ARRANGEMENTS FOR PAYMENT OF FUNERAL SERVICES HAVE BEEN MADE, IS PRESENTED.

ANY BANK, ASSOCIATION, CREDIT UNION OR OTHER SAVINGS ORGANIZATION MAKING SUCH A PAYMENT SHALL BE RELEASED TO THE SAME EXTENT AS IF PAYMENT HAD BEEN MADE TO A DULY APPOINTED PERSONAL REPRESENTATIVE OF THE DECEDENT AND IT SHALL NOT BE REQUIRED TO SEE TO THE APPLICATION THEREOF.