In the past, if a Pennsylvanian died without a will or heirs, the Commonwealth would get their estate, but under a change in law that took effect Jan. 23, those assets will now go to community foundations.
“If it just went into the state budget, it would be spent and gone. But if it stays at home in the community foundation in that county and is endowed forever, it multiplies," said Bryan Tate, the York County register of wills and clerk of Orphans’ Court.
Tate is also the president of the Registers of Wills and Clerks of Orphans’ Court Association of Pennsylvania. That organization and the Pennsylvania Community Foundation Association spearheaded the effort.
Under the law, if someone dies without a will or the will can’t be located, their estate goes first to their children, then to other family members. But if they don’t have any family or heirs, the estate can now be used to set up an endowment at a community foundation. Every county in Pennsylvania has a community foundation, according to the Pennsylvania Community Foundation Association.
Tate said a review looking back three years found that someone dying without a will or heirs only happened a handful of times. But it adds up to about $400,000 a year.
“In a state budget of $50 billion, that is a drop in the bucket," he said. "So it was an easy lift for legislators to say: Yeah, let's keep those dollars local. They would do so much more good if they were endowed in the community and live forever and support the greatest needs of each of our counties."
Tiffany Boschert, executive director of the Elk County and McKean County community foundations, said the funds could go to programs such as YMCAS, food banks and Boys and Girls Clubs.
“It's an exciting bill to pass because when money comes to the community foundation, we're going to be able to grant that back out to the community," she said. "It will go in our community fund — the Elk County community fund or the McKean County community fund — and just allow us to continue to benefit the organizations right here in our counties.”
Christine Millinder, Centre County’s register of wills and clerk of orphans’ court, said in her close to 40 years in the office, she’s only seen the situation a few times. Still, she thinks it’s a great idea for when it does happen.
"If the person was a resident of Centre County all their life and paid taxes here and there's no known relatives to go to, I think that it would be a good thing for the community to have," she said. "Because otherwise it goes to the state and who knows where it ends up. At least with (this), it stays within the community, and the money is used to enhance our community in some way.”
Tate said Pennsylvania is now the only state where the money of someone who dies without a will or heirs will stay local. He said in most states, any assets in this situation would go to the state’s general fund, with a handful of states directing the funds to a specific part of the budget, such as Veterans Affairs.
