Pennsylvania Passes Historic HB 1176

This week marks a transformative moment for communities across Pennsylvania — and for community foundations like Bridge Builders Community Foundations. Governor Josh Shapiro has officially signed HB 1176 into law, creating a new statewide standard for how unclaimed estates are handled when an individual passes away without a will and without family.

With this legislation, Pennsylvania becomes the only state in the nation with a law designed to ensure that these assets remain in the counties where people lived, working permanently to strengthen the places they once called home. It is a landmark victory that reflects years of advocacy, collaboration, and a belief in the power of community.

Understanding HB 1176 in Plain Language

Many people are surprised to learn what happens when someone dies without a will (“intestate”) and without an identifiable next of kin. Traditionally, once the courts determine that no relatives can be found, the person’s remaining assets are turned over to the state’s general fund. Those resources — regardless of how long the individual lived in a community or how deeply they were connected to it — effectively disappear into statewide budgets.

HB 1176 changes that.

Under the new law:

  • Assets from an intestate estate remain in the county where the individual lived
  • Those assets are endowed through the local community foundation, such as Bridge Builders Community Foundations
  • The endowed fund will generate annual grants, year after year, to support community needs
  • Local nonprofits, services, and initiatives benefit from permanent, locally controlled resources

This model turns what used to be a loss of community wealth into a continuous stream of local support.

Why This Is a Big Deal for Northwest Pennsylvania

This legislation reinforces a principle that has shaped BBCF’s work for decades: Communities are strongest when local resources stay rooted in local people.

Our region is full of individuals who spent their entire lives contributing to the fabric of life here — working in local businesses, volunteering, raising families, building neighborhoods, and supporting the causes they believed in. HB 1176 ensures that even when someone’s final chapter is left without direction, their legacy continues to echo through the community they helped shape.

These endowed funds can help address critical needs such as:

  • Educational opportunities for students
  • Support for local nonprofits
  • Grants for community projects
  • Assistance for organizations addressing homelessness, hunger, or crisis response
  • Initiatives that strengthen rural communities

And because the funds are endowed — meaning they’re invested and grow over time — the impact is not temporary. Instead, these local dollars generate support forever, providing stability and consistency for local organizations.

A Victory Years in the Making

HB 1176 didn’t appear overnight. It is the result of more than three years of partnership and advocacy between:

Their shared goal was simple but powerful:
Ensure that when someone dies without family, the community they spent their life in becomes the steward of their legacy.

This marks the first time in U.S. history that a state has adopted this model.

Strengthening the Role of Community Foundations

For community foundations, including BBCF, HB 1176 validates the essential role we play in local philanthropy. It recognizes our responsibility to be long-term stewards of community resources and acknowledges the trust we have earned across counties like Venango, Clarion, Forest, and Jefferson.

This legislation aligns perfectly with our mission:

  • Connecting people who care with causes that matter
  • Supporting the long-term health and vitality of our region
  • Building bridges between generosity and community need
  • Ensuring that every gift — large or small — strengthens our communities for generations

It also reinforces that community foundations are uniquely positioned to make local dollars work efficiently and meaningfully.

What This Means for Donors, Advisors, and Community Members

HB 1176 also opens the door for important conversations about estate planning, end-of-life decisions, and the power of leaving a charitable legacy.

For donors: It’s a reminder that thoughtful planning ensures your wishes are honored and directed to the causes you believe in.

For professional advisors: It underscores the growing role of community foundations in helping clients make informed, meaningful decisions about their estates.

For residents: It’s a reassurance that the state of Pennsylvania values local communities enough to keep their resources at home.

Have Questions About Legacy Giving or HB 1176?

We’re here to help. Whether you’re considering your own legacy, advising clients, or simply want to understand how this legislation affects our region, BBCF is always ready to answer questions.

Call us at (814) 677-8687 or contact us today. 

 

HB 1176 represents more than a law — it represents a commitment to honoring people, strengthening local communities, and ensuring that generosity endures far beyond a single lifetime. We are honored to be trusted with this responsibility and proud to share this historic moment with our region.