Pennsylvania Estate Law Changes to Watch in 2026

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Pennsylvania estate law changes often make headlines before they become law. Right now, two issues are getting attention: proposals to eliminate Pennsylvania’s inheritance tax and legislation that would allow electronic wills.

Both ideas could affect estate planning. However, neither change is currently law. As of August 27, 2026, Pennsylvania still imposes an inheritance tax, and the electronic wills proposal remains in the legislative process.

That distinction matters. Families should understand proposed changes, but estate planning decisions need to reflect the law that applies today.

Pennsylvania Estate Law Changes Are Still Proposals

A proposed law can sound certain when it appears in a headline. In reality, bills can stay in committee, change during debate, or fail to pass.

Pennsylvania currently has proposals involving both inheritance tax and electronic estate planning documents.

For example, House Bill 2066 would repeal provisions of Pennsylvania’s inheritance tax law. As of August 27, 2026, the bill remains referred to the House Finance Committee.

Meanwhile, Senate Bill 1138 would create a legal framework for electronic wills and certain electronic estate planning documents. The bill was referred to the Senate Judiciary Committee on January 9, 2026, and remains there as of August 27, 2026.

Therefore, neither proposal should be treated as a change that has already taken effect.

Could Pennsylvania Eliminate the Inheritance Tax?

Pennsylvania lawmakers are considering legislation that would eliminate the inheritance tax.

House Bill 2066 specifically proposes repealing the inheritance tax provisions of the Tax Reform Code.

For many families, that sounds like welcome news. Pennsylvania inheritance tax can affect assets that pass after death, and the rate depends largely on the relationship between the deceased person and the beneficiary.

However, the tax still applies today.

According to the Pennsylvania Department of Revenue’s current inheritance tax guidance, the present rates include:

• Zero percent for transfers to a surviving spouse and certain transfers involving a parent and a child age twenty-one or younger

• 4.5 percent for transfers to direct descendants and lineal heirs

• 12 percent for transfers to siblings

• 15 percent for most other heirs, subject to exemptions

  
  

The Department of Revenue continues to publish these rates as the current rules.

Entrusted Legacy Law also has a separate guide that explains how Pennsylvania inheritance tax currently works. That resource focuses on the existing tax rules. This article focuses instead on what families should know while lawmakers consider changing them.

You Should Not Plan as Though the Tax Is Already Gone

When lawmakers propose eliminating a tax, it can be tempting to assume the change will eventually happen.

That approach can create problems.

Until a bill becomes law, Pennsylvania families still need to follow the rules that exist. If someone dies while the current inheritance tax remains in effect, the estate cannot simply assume that a pending repeal will apply.

In addition, the final version of a law may differ from the original proposal. Lawmakers may change the effective date, scope, or other provisions before passage.

Therefore, estate planning should not depend on the hope that a future law will solve a current planning issue.

Instead, families can build a plan that works under current law and review it if Pennsylvania later makes a meaningful change.

What Would Inheritance Tax Repeal Mean for Estate Planning?

If Pennsylvania eventually eliminates its inheritance tax, some estate planning decisions could become simpler from a state tax perspective.

Still, inheritance tax is only one part of an estate plan.

A family may also need to consider who will receive assets, whether property will pass through probate, who will manage financial affairs during incapacity, who can make health care decisions, whether a trust is appropriate, and how beneficiary designations fit into the overall plan.

Families may also need to think about how property is owned, whether a loved one has special needs, and whether long-term care planning should be part of the conversation.

As a result, eliminating inheritance tax would not eliminate the need for estate planning.

Families who want to understand how wills, trusts, powers of attorney, beneficiary planning, and other documents work together can review Entrusted Legacy Law’s estate planning services.

Pennsylvania Is Also Considering Electronic Wills

The second major proposal involves electronic wills.

Senate Bill 1138 would change Pennsylvania law to recognize electronic wills and create rules for certain electronic estate planning documents. The proposal addresses several issues, including electronic execution, revocation, self-proving wills, and related procedures.

At first, the idea may sound simple. People sign many important documents electronically, so why not wills?

The challenge is that wills become especially important after the person who created the document has died. At that point, the person cannot answer questions about the document, explain how it was signed, or confirm whether a digital version is authentic.

Therefore, electronic wills require more than simply allowing someone to type a name on a screen.

What Does Pennsylvania Law Require for Wills Today?

Pennsylvania’s current statute states that a will must be in writing and signed by the person making the will at the end of the document, subject to specific statutory rules and exceptions.

The current requirements are found in Pennsylvania Title 20, Section 2502.

Senate Bill 1138 would create a new framework for electronic wills if lawmakers ultimately enact it. However, the proposal has not replaced the existing law.

That means families should not assume they can create a legally effective electronic will simply because an online platform allows digital signatures.

Technology can make document creation easier. Legal validity is a separate question.

Why Electronic Wills Could Affect Probate

Electronic wills could change more than the way someone signs an estate planning document.

They could also affect probate administration.

Probate is the legal process used to authenticate a will, appoint a personal representative, address estate obligations, and distribute probate assets.

A paper will provides a physical document that can be presented during that process. An electronic will creates additional questions.

For example, how will the electronic document be authenticated? Which version is considered the final will? How will the system show whether someone changed the document? How will witnesses complete their role? How will a paper copy of an electronic will be handled?

There are also practical questions about how an electronic document would be presented and reviewed during estate administration.

Senate Bill 1138 addresses several of these issues. The official bill text includes provisions related to electronic execution, revocation, self-proving electronic wills, and certified paper copies of electronic wills.

Those details show why electronic wills involve more than convenience.

Families who want a better understanding of what happens after someone dies can also review Entrusted Legacy Law’s information about the Pennsylvania probate process.

Would Electronic Wills Eliminate Probate?

No.

Even if Pennsylvania eventually allows electronic wills, an electronic will would not automatically eliminate probate.

A will generally provides instructions for assets that become part of a probate estate. The format of the will does not determine whether every asset must pass through probate.

For example, certain assets may transfer through beneficiary designations, joint ownership, or properly funded trusts. Other assets may remain subject to probate.

Therefore, the better estate planning question is not simply whether a will is paper or electronic. Families should also consider how their assets are titled and how those assets will transfer after death.

Should You Wait for Pennsylvania Estate Law Changes?

For most families, waiting for proposed legislation is not a planning strategy.

No one knows when a bill will pass, whether lawmakers will change it, or whether it will pass at all.

Meanwhile, life continues.

Families get married. Children are born. Relationships change. People buy homes, open businesses, retire, inherit property, and move between states.

Those changes can affect an estate plan long before lawmakers finish debating a bill.

A plan created under current Pennsylvania law can still be reviewed later. If inheritance tax rules change or electronic wills become legal, an attorney can evaluate whether the new law creates a useful opportunity.

In contrast, waiting can leave a family without the protections they need under the law that currently applies.

What Should Pennsylvania Families Do Now?

First, continue planning under current Pennsylvania law. Pennsylvania inheritance tax still exists. Therefore, families who may face inheritance tax should continue considering it as part of their planning.

Second, use properly executed estate planning documents. Do not assume that a digital document or electronic signature satisfies Pennsylvania’s requirements for a will.

Third, review your estate plan periodically. Changes in your family, finances, property, or the law may create reasons to update it.

Finally, pay attention to enacted laws rather than relying only on proposed legislation.

Proposals are worth watching. However, the most useful point comes when lawmakers finish the process. At that point, families can look at the final language, effective date, and practical effect.

Planning Based on the Law That Exists Today

Pennsylvania estate law changes may eventually create new planning opportunities.

Inheritance tax repeal could affect how families think about wealth transfers. Electronic wills could change how certain estate planning documents are created and handled.

For now, both issues remain proposals.

The best estate plan is not one built around what might happen. It is one that works for your family under the law that applies today and can be reviewed when circumstances change.

Entrusted Legacy Law helps Pennsylvania families understand their options and create plans based on their goals, assets, and family relationships. If you have questions about how current Pennsylvania law affects your plan, you can schedule a consultation with Entrusted Legacy Law.

This article is for educational purposes only and does not constitute legal advice. Legislative status and legal requirements can change, so current law should be reviewed before making estate planning decisions.

As of August 27, 2026, proposed Pennsylvania estate law changes involving inheritance tax and electronic wills have not become law. Pennsylvania still imposes inheritance tax, while Senate Bill 1138, which would authorize electronic wills and certain electronic estate planning documents, remains in the Senate Judiciary Committee.

Frequently Asked Questions

Has Pennsylvania eliminated its inheritance tax?

No. Pennsylvania inheritance tax remains in effect as of August 27, 2026. Lawmakers have introduced proposals to repeal it, but those proposals have not become law.

Is Pennsylvania considering getting rid of inheritance tax?

Yes. House Bill 2066 proposes repealing Pennsylvania’s inheritance tax provisions. As of August 27, 2026, it remains referred to the House Finance Committee.

Are electronic wills legal in Pennsylvania?

Pennsylvania has not enacted Senate Bill 1138, the pending legislation that would create a specific framework for electronic wills. Current Pennsylvania law continues to govern how wills must be executed.

What would Senate Bill 1138 change?

Senate Bill 1138 would establish rules for electronic wills and certain electronic estate planning documents. The proposal addresses electronic execution, revocation, self-proving wills, and related procedures.

Would an electronic will avoid probate?

No. An electronic will would change the form and execution of a will. It would not automatically prevent assets from becoming part of a probate estate.

Should I wait for Pennsylvania inheritance tax laws to change before updating my estate plan?

Generally, an estate plan should work under current law. If Pennsylvania later changes its inheritance tax rules, you can review the plan and determine whether the new law affects your goals.

Does eliminating inheritance tax eliminate the need for an estate plan?

No. Estate planning also addresses asset distribution, incapacity, powers of attorney, trusts, beneficiary designations, probate, guardianship, and other family concerns.

Can an online will be valid in Pennsylvania?

Validity depends on whether the document satisfies Pennsylvania law. The fact that a website allows someone to create or electronically sign a document does not, by itself, establish that the document satisfies Pennsylvania’s legal requirements.