An adopted child was a member of a current beneficiary’s “immediate family” and therefore eligible to receive discretionary principal distributions even though distributions of principal upon the death of the beneficiary are limited to members of the settlor’s “blood line” and excludes adopted persons. Bristol Trust, 1 Fid.Rep.4th 1 (Philadelphia O.C. 2023).
The Orphans’ Court correctly concluded that the rent payable by a beneficiary to the estate under a family settlement agreement should be divided among all of the beneficiaries, including the beneficiary paying the rent, but incorrectly calculated the net rent owed by the beneficiary and the net estate estate distributable. Estate of Geraldine M. Price, 1501 EDA 2022 (Pa. Super. 4/5/2023) (non-precedential).
In Rev. Rul. 2023-2, ___ I.R.B. ___, the Internal Revenue Service has held that assets held in an irrevocable trust that was a grantor trust do not receive a new basis under I.R.C. § 1014 on the death of the grantor if the assets are not included in the grantor’s gross estate for federal estate tax purposes.
[For a brief explanation of grantor trusts, see “Overview: Benefits/Costs of Grantor Trusts.”]
In an ejectment action brought by the administrator of an estate, the heirs of the decedent were not indispensible parties even though title to the property had passed to the heirs at the death of the decedent under 20 Pa.C.S. § 301(b), but the decree of the Orphans’ Court was vacated and remanded because the administrator had failed to introduce any proof that the decedent had owned the property at death. In re: Estate of Vernell Smith, 378 EDA 2022 (Super. 3/24/2023) (non-precedential).
Westmoreland County has adopted a new local form of report for adoption intermediaries. “Order Adopting New Form for Report of Intermediary; No. 3 of 2023” (3/14/2023), 53 Pa.B. 1665 (3/25/2023).
The discovery of a later will may be the subject of an appeal to the Orphans’ Court within one year of the probate of the earlier will even though the appeal is after the end of the three month period within which the Register may admit the later will to probate under 20 Pa.C.S. § 3138. In re: Estate of Kathryn V. Ruhlman, 2023 PA Super 43, ___ A.3d ___ (3/15/2023).
Philadelphia has adopted new local Orphans’ Court Rules 3.5A (“Procedure for Determination when No Response is Filed to a Petition under Pa.R.O.C.P. 3.5(a) or 3.5(b)”) and 5.50A (“Settlement of Small Estates by Petition”), and has amended and restated Rule 14.2A (“Petition for Adjudication of Incapacity and Appointment of a Guardian of the Person or Estate of an Incapacitated Person). “Adoption of Philadelphia Court of Common Pleas Orphans’ Court Rules 3.5A, 5.50A and 14.2A; President Judge General Court Regulation; No. 3 of 2023” (2/15/2023), 53 Pa.B. 1169 (3/4/2023).
It was not an abuse of discretion or an error of law for the Orphans’ Court to allow a late spousal election under 20 Pa.C.S. § 2210 by the guardian of an incapacitated spouse when the COVID-19 pandemic struck between the date of death and the six month filing deadline, the estate was not harmed by the delay, all parties were aware that the guardian intended to make the election, and inequities and gross injustice would otherwise result. In re: Estate of Terri Garbutt, 616 EDA 2022 (Pa. Super. 2/27/2023) (non-precedential), aff’g Garbutt Estate, 1 Fid.Rep.4th 29 (Chester O.C. 2022). [Updated on 6/5/2023 to add citation to the O.C. opinion.]
The Orphans’ Court had the power to set aside a conveyance of real estate by the executor after his removal from office as a remedy for self-dealing, and not a surcharge, and under the doctrine of “the law of the case,” the appellate court would not reconsider its holding in a prior appeal that the executor had engaged in self-dealing. In re: Estate of Angela DiMatteo, 363 WDA 2022 (Pa. Super. 2/22/2023), (non-precedential).
[For a related decision in the same case, see “Executor’s Transferto Wife Voided as Self-Dealing.”]
Wife in divorce action died on the same day the decree of divorce was entered, and the family court later issued a final order for the equitable division of marital property. The family court, and not the Orphans’ Court, had jurisdiction to order the executor to sell and transfer assets in accordance with the order for equitable division and to impose sanctions on the executor for failing to comply with that order. Tomasetti v. Suarez, 1004 EDA 2022 (Pa. Super. 2/22/2023), (non-precedential).