An inheritance question according to the PA Probate, Estate, and Fiduciary Code

It will depend upon the wording of the bequest. Since nephew predeceased testator the bequest lapses unless the man has provided provided in the will another disposition of the $5,000 in the event his nephew predeceased him. The money falls into the residue of the man's estate for distribution. The nephew's will does not control the disposition of the $5,000 under any circumstances as you outlined in your question. If you found this response the "best" or "helpful" please mark it as such.

It depends on the wording of the will and/or if the nephew survived the uncle (sounds like he didn't). If the nephew outlived the uncle the bequest goes to nephew's estate. If nephew predeceased uncle it depends if the will says the gift goes ot the nephew's heirs/beneficiaries or if it is silent the gift probably lapses and goes to the residuary legatee (beneficiary).

Since the nephew died while the uncle still had possession of the $5000, the nephew never legally owned the money. Unless the uncle indicated in his will that the gift would go to the nephew's estate or to the nephew's issue (descendants) if the nephew predeceased the uncle, then the nephew's son does not get the $5000.