Yes, your mother may file a renunciation with the Register of Wills, and in that document she may recommend that her daughter be appointed instead. The final decision will, however, be up to the court.
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When someone in PA dies without a will state law determines who is entitled to be the personal representative of the estate. Since your mother and sister are the intestate beneficiaries, they are both entitle to serve and would become co-administrators. If your mother renunciates her right to serve, I think the Register of Wills would appoint your aunt as sole Administrator. Your mother's situation is one of the reasons for people to prepare a Will, even when they have few assets. Generally, the Will waives the requirement of a bond for out of state personal representatives.
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She can certainly refuse and then reccomend someone else, however it will be up to the court to determine who should take her place..It won't be your mother's decision.
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