New Pennsylvania legislation, specifically Act 50 of 2025 (formerly House Bill 1176), signed into law on November 24, 2025, and taking effect on January 23, 2026, fundamentally alters how the estates of individuals who die without a will (intestate) and without heirs are handled.

The significance of this law for community foundations is that it directs heirless, intestate estates into local community foundation endowed funds instead of having those assets escheat to the Commonwealth’s general state budget.

Here is a breakdown of the significance:

• Keeps Assets Local: Previously, if a Pennsylvanian died without a will and no living relatives, their estate was taken by the state. Act 50 allows these assets stay in the county where the individual resided, supporting local, charitable, and community needs permanently.

• Unique Nationwide Status: Pennsylvania is now the only state in the nation to guarantee that intestate estates with no surviving family are kept local, charitable, and permanent.

• Increased Funding for Local Nonprofits: The assets will be placed into an "endowed community fund" at the community foundation serving the decedent's county, providing a permanent source of funding for local nonprofits and community services.

• Specific Criteria for Funds: The legislation defines qualifying "community foundations" and "endowed community funds" with the requirements that they are reputable, in existence for at least 10 years, and have an independent governing body, which provides a secure, structured home for these assets.

• Statewide Coverage: The Pennsylvania Community Foundation Association has confirmed that every county in Pennsylvania is served by a community foundation, ensuring that this new directive applies uniformly across the state.

• End-of-Life Dignity: The act changes what was described as a "100% tax" on dying without family into a "final gift" that honors the decedent's life, even without a formal, written will.

This, in effect, turns the state's formerly vacant "heirless" funds into a, new source of community-driven philanthropy.

The legislation carefully defines what qualifies as a recipient community foundation and endowed community fund, ensuring public trust and long-term stability. To qualify, a foundation must:

• Be a Pennsylvania-based charitable organization

• Have been in continuous existence for at least 10 years

• Maintain an independent governing body

• Operate an endowed fund designed for permanent charitable use

These criteria sets up standards that heirless estates are placed with institutions that have proven governance, fiduciary controls, and a long-term commitment to community benefit.

Statewide Impact, County by County

The Pennsylvania Community Foundation Association has confirmed that every county in the Commonwealth is served by a community foundation. This guarantees uniform application of Act 50 across the state—urban and rural alike—and no estate falls through the cracks due to geographic gaps in charitable infrastructure.

As a result, Act 50 quietly converts dormant, overlooked estates into a new pipeline of community-driven philanthropy, creating a permanent funding source for local nonprofits without raising taxes or reallocating public dollars.

A properly drafted will or trust still provides far greater control, flexibility, and personalization. However, for those who fail to plan—or who simply outlive their families—the law transfers wealth accumulated over a lifetime and does not allow it to vanish into anonymity.

Take charge of your legacy. Lets have a conversation today.

For Informational Purposes only and not for legal or tax advice.

About the Author – Marie Feindt, JD 

Marie Feindt is the Planning Specialist – Estate Attorney at Members’ Wealth, a boutique wealth management firm that offers a comprehensive and holistic approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of estate planning experience, Marie and the Members’ Wealth team thrive on bringing clarity and confidence to clients’ unique situations. She believes everyone, young adults and older, need the essential documents to conserve and preserve and transfer assets accumulated during lifetime to the next generation.

Marie received her JD from Widener University School of Law, her bachelor’s degree from Penn State University, University Park and is currently enrolled in the Villanova University Charles Widger School of Law Graduate Tax Program.

Marie is an Adjunct Faculty at the Villanova University College of Professional Studies Paralegal Professional Certificate Program where she teaches Estates & Trusts and Civil Procedure & Litigation and Torts & Personal Injury Law.

Marie volunteers for a monthly legal clinic at The Salvation Army in Chester, PA facilitated by the Christian Legal Clinic of Philadelphia. She has served on the Women’s Commission of Delaware County and as a Board Member for the Delaware County Literacy Council.

Marie enjoys biking, reading, yoga and walking in her free time with her husband and three children.

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