This is one of the most useful — and least understood — provisions in Pennsylvania probate law. 20 Pa.C.S. § 3101 allows certain small assets to be collected by family members without opening an estate, without getting letters, and without any court involvement whatsoever. The asset holder (bank, employer, insurance company) pays directly to the family member and is released from liability.
The statute identifies five categories of assets that can be paid this way, each with its own dollar limit and requirements. All five share the same family preference hierarchy: spouse → child → parent → sibling (in that order).
An employer may pay up to $10,000 in unpaid wages, salary, or employee benefits (vacation pay, commissions, etc.) directly to the family — no letters required. The employer simply needs to identify the highest-priority family member and make the payment.
Practical Tip
This is often the first money available after a death. If your parent had a final paycheck, unused vacation days, or a small pension benefit, the employer can cut a check directly to you. Bring a death certificate and proof of relationship. Most HR departments know about this provision; if they don't, cite 20 Pa.C.S. § 3101(a).
This is the provision people use most often. Any bank, credit union, or savings institution must pay the balance of a decedent's account directly to family when the total held at that institution does not exceed $20,000.
⚠ Recent Change — Act 50 of 2025
This limit was just increased from $10,000 to $20,000, effective January 23, 2026. Many banks may not yet have updated their internal procedures. If a bank tells you the limit is $10,000, they're working from outdated information.
What you'll need to bring to the bank:
The funeral bill requirement is key — the legislature wants to ensure the funeral gets paid before remaining funds go to family. You cannot collect under § 3101(b) without it.
The "Per Institution" Rule
The $20,000 limit applies per institution. If the decedent had $15,000 at Bank A and $12,000 at Bank B, you can collect from both under § 3101(b) without opening an estate — because neither exceeds the limit individually. This is a crucial distinction that many people miss.
When a Medicaid recipient dies in a nursing facility, the facility may pay up to $10,000 from the patient's care account — first to a licensed funeral director for burial expenses, then any remaining balance to the family in the same preference order.
If the decedent had a life insurance policy, annuity, or endowment contract payable to the estate (not to a named beneficiary) totaling $11,000 or less, the insurance company may pay directly to family. There is a 60-day waiting period after death, and the insurer will only pay if no written claim has been received from a personal representative. The company can rely on an affidavit of relationship from the claimant.
Important Distinction
This only applies to insurance payable to "the estate." If the policy names a specific beneficiary (spouse, child, trust), the insurance company pays that beneficiary directly under the policy terms — no probate and no § 3101 needed. Section 3101(d) catches the situation where someone named "my estate" as beneficiary on a small policy.
If the decedent had unclaimed property being held by the Pennsylvania State Treasurer, the Treasurer can release it to family if the value is $11,000 or less, provided no personal representative has been appointed (or five years have lapsed since appointment). This requires a sworn affidavit of relationship. Under Act 50 of 2025, this limit increases to $20,000 effective approximately May 23, 2026.
⚠ You Are Personally Answerable
Every subsection of § 3101 includes the same clause: the person who receives the payment is "answerable therefor to anyone prejudiced by an improper distribution." This means if you collect Mom's bank account and there are unpaid creditors, other heirs, or a will that directs the money elsewhere, you can be held personally liable. Section 3101 is not a free pass — it's a streamlined payment mechanism that shifts liability from the institution to the family member.
Section 3101 works when the assets fit neatly into its categories and dollar limits. When they don't — or when the estate involves real estate, disputed claims, or assets above the limits — you move to § 3102 (Small Estate Petition) or full probate:
| Feature | § 3101 Direct Payment | § 3102 Small Estate Petition | Full Probate |
|---|---|---|---|
| Court involvement | None | Orphans' Court petition required | Full administration |
| Letters needed | No | Not necessarily | Yes |
| Asset limit | Per-category limits ($10K–$20K) | $50,000 personal property (excl. real estate & § 3101 assets) | No limit |
| Real estate | Not covered | Ownership of real estate doesn't disqualify, but court decree covers personal property only | Covered |
| Cost | Free (just collect) | Filing fee + possible attorney | Filing fees + attorney + advertising + tax returns |
| Timeline | Immediately after death (60 days for insurance) | Petition after death; court discretion | Months to years |
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