Distribution of Royalties under Will after Disclaimer and with Ineffective Residuary Clause

Posted on by January 21, 2024

The charitable bequest under the residuary clause being impossible to carry out, the Attorney General and all interested parties agreed that the clause was ineffective, so the residue of the estate would pass by intestacy. A disclaimer by one of the intestate heirs was valid, but the direction that the disclaimed share of the estate pass to another beneficiary of the estate was ineffective. The right to oil and gas royalties was intangible personal property and did not pass as part of a gift of personal belongings and tangible personal property. Hooper Estate (No. 1), 1 Fid.Rep.4th 208 (Susquehanna O.C. 2022).

In a supplemental opinion, the court held that the court’s questions during oral arguments about the executor’s changing legal positions was not evidence of judicial bias, and it was not improper for the court to cite as persuasive the reasoning of an unpublished opinion of a court of common pleas or deny a motion for reconsideration without any additional hearing. Hooper Estate (No. 2), 1 Fid.Rep.4th 216 (Susquehanna O.C. 2022), appeal quashed, 1183 MDA 2022 (Pa. Super. 9/8/2023) (non-precedential) (see “Appeal of Reconsideration Quashed“).

Common Law Marriage Not Proved and Barred by Laches

Posted on by February 12, 2024

Claimant failed to prove common law marriage by clear and convincing evidence of constant cohabitation and general reputation when the decedent also maintained a relationship and household with another woman and there was an unclear reputation of marriage between the claimant and the decedent. The Dead Man’s Act made the claiming incompetent to testify to statements or agreements of the decedent, but she was competent to testify and present evidence as to proof of cohabitation and general reputation. The claimant’s appeal from the decree of the Register of Wills was also barred by laches because she failed to pursue her claim for thirteen years after filing the appeal in the Orphans’ Court. Coleman Estate, 1 Fid.Rep.4th 191 (Bucks O.C. 2023), aff’d, 535 EDA 2023 (Pa. Super. 2/6/2024) (non-precedential).

Interpretations of Directions in Will for Home

Posted on by January 21, 2024

Direction in will that the decedent’s youngest daughter (to whom letters of administration were granted) should provide “shelter” at the decedent’s home for any other child “with no place to live” did not prevent the ejectment of a child who was found to spend at least two or three nights every week at his wife’s residence and so had another place to live. The designation of the daughter to be the “principal owner” of the decedent’s home was interpreted to be a specific gift to her, so the consent of the other children was not needed for the sale of the house, and the decedent’s “whiches” that “all my children have to sign” to sell the home was found to be precatory. Flores Estate, 1 Fid.Rep.4th 201 (Philadelphia O.C. 2020).

Error to Apply Cy Pres to Dissolving Fire Company

Posted on by January 21, 2024

The Orphans’ Court properly refused to approve the distribution of the assets of a dissolving nonprofit corporation to organizations that did not provide firefighting services, but it was error to apply the cy pres doctrine to order distributions to two other firefighting organizations chosen by the court when the by-laws of the dissolving corporation allowed its members to choose the recipients. In re: Lincoln Fire Company, ___ A.4th ___, 479 C.D. 2022 (Pa. Cmwlth. 1/16/2024), aff’g in part and rev’g in part, 12 Fid.Rep.3d 312 (Montgomery O.C. 2022).

Inexperienced Administrator Removed from Complex Estate

Posted on by January 8, 2024

Decedent died owning several LLCs owning real estate in various states of disrepair, and with possible debts in excess of assets, and so the estate was possibly insolvent. The interests of the estate were likely to be jeopardized by the current administrator, who was the decedent’s daughter but only 20 years old, working full time, and inexperienced in real estate matters. Upon the petition of a creditor of the estate, and after two properties were sold without appraisals, the administrator was removed, and the decedent’s business partner (and girlfriend) was appointed as successor administrator. Price Estate, 1 Fid.Rep.4th 185 (Monroe O.C. 2023).

Abatement of Appeal from Probate Denied for Lack of Service

Posted on by January 8, 2024

Following the probate of the decedent’s will, the aunt of the decedent filed an appeal, but then died. A notice of death was filed, and heirs of the deceased aunt filed a notice of substitution. After conducting discovery, the beneficiaries of the estate filed a petition to abate the appeal under 20 Pa.C.S. 3375 because no personal representative had been appointed for the aunt within one year after the filing of the notice of death. The court held that the right to petition for abatement had not been waived, but denied the petition because the aunt’s heirs had not been served with the petition and because the delay in taking out letters was reasonably explained. Camlibel Estate, 1 Fid.Rep.4th 147 (Allegheny O.C. 2023), appeal quashed, 476 WDA 2023 (Pa. Super. 9/1/2023), pet. for alloc., 240 WAL 2023 (Pa.).

Will with No Residuary Clause Excluded Daughter

Posted on by October 27, 2024

The daughter of the decedent was not entitled to an intestate share of the residue of the estate, even though the will contained no residuary clause and the residue would pass by intestate succession, because the will included a gift to the daughter of $5.00 and directed that “this is all she is to receive from me.” In re: Estate of George Leland Bebout, 313 A.3d 156, 584 MDA 2023 (Pa. Super. 1/4/2024) (non-precedential), aff’g 2 Fid.Rep.4th 171 (Tioga O.C. 2023).

Inheritance Tax on Non-Pennsylvania 529 Plans is Unconstitutional

Posted on by March 25, 2024

Section 529 plans (also known as “qualified tuition plans”) created under the laws of states other than Pennsylvania are also exempt from inheritance tax, because the limitation on the exemption from tax in 24 P.S. § 6901.316 (Section 316 of the Act of April 3, 1992, No. 11, as amended) for only Pennsylvania tuition plans violates the uniformity clause of the Pennsylvania constitution. Calihan Estate, 2 Fid.Rep.4th 1, No. 0024 of 2021 (Allegheny O.C. 11/7/2023).

Decedent Approved Sale of Real Estate

Posted on by December 20, 2023

The testimony of decedent’s lawyer showed that the sale of the real estate previously used by the decedent as his home and accounting office to his son who had worked with the decedent was at the direction of the decedent, and was not a gift by the son who signed the deed as his father’s agent under a power of attorney, even though the value of the property was less than the purchase price. Rush Estate, 1 Fid.Rep.4th 143 (Washington O.C. 2022), aff’d,  2023 PA Super 185, ___ A.3d ___ (9/26/2023) (see “Agent Acted at Direction of Principal“).

Decedent Made Own Financial Decisions

Posted on by December 20, 2023

Testimony and evidence showed that the decedent was strong willed and made his own financial decisions, and that the gifts to the decedent’s agent were the decisions of the decedent and not the agent. Various objections to expenses of the agent as executor were denied, as well as objections to the compensation of the executor and the petition to remove the executor because there was no evidence of any conflict of interest or any hostility to the petitioners other than in opposing their petitions. Toft Estate, 1 Fid.Rep.4th 129 (Adams O.C. 2023).