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.).
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, 584 MDA 2023 (Pa. Super. 1/4/2024) (non-precedential).
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).
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“).
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).
Although the decedent’s daughter denied acting as agent for her father under the power of attorney for which she had signed an agent’s acknowledgement, she was found to have acted as agent, and to have fiduciary duties to her father, based on the checks and other documents she had signed, and the testimony of third parties who had received copies of the power of attorney and would not have provided information to her about her father’s affairs without the power of attorney. The daughter therefore had a duty to account and was surcharged for transactions for which she did not provide explanations or receipts. There was also a presumption of undue influence with respect to beneficiary designations in favor of the daughter and the daughter failed to rebut that presumption. Garrison Estate, Principal, 1 Fid.Rep.4th 109 (Montgomery O.C. 2022).
Both houses of the Pennsylvania legislature have passed, and the governor has signed, S.B. 815, which became the Act of December 14, 2023, No. 64. The act conforms the Pennsylvania income tax on resident trusts with the grantor trust rules of the federal income tax, so the income of a PA resident trust will be taxed to the grantor of the trust and not the trust or its beneficiaries. However, this change will not take effect until 2025 (tax years beginning on or after the January 1 that is 60 or more days after enactment).
Both houses of the Pennsylvania legislature have passed, and the governor has signed, S.B. 506, which became the Act of December 14, 2023, No. 61. The act amends guardianship procedures relating to the representation of the alleged incapacitated person, the consideration of less restrictive alternatives, the certification of persons seeing guardianship of three or more persons, and reviews of changing conditions, and takes effect in 180 days.
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— Short Term Rates for 2023 —
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan. | 4.50% | 4.45% | 4.43% | 4.41% |
| Feb. | 4.47% | 4.42% | 4.40% | 4.38% |
| March | 4.50% | 4.45% | 4.43% | 4.41% |
| April | 4.86% | 4.80% | 4.77% | 4.75% |
| May | 4.30% | 4.25% | 4.23% | 4.21% |
| June | 4.43% | 4.38% | 4.36% | 4.34% |
| July | 4.80% | 4.74% | 4.71% | 4.69% |
| Aug. | 5.07% | 5.01% | 4.98% | 4.96% |
| Sept. | 5.12% | 5.06% | 5.03% | 5.01% |
| Oct. | 5.22% | 5.15% | 5.12% | 5.10% |
| Nov. | 5.30% | 5.23% | 5.20% | 5.17% |
| Dec. | 5.26% | 5.19% | 5.16% | 5.13% |
— Mid Term Rates for 2023 —
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan. | 3.85% | 3.81% | 3.79% | 3.78% |
| Feb. | 3.82% | 3.78% | 3.76% | 3.75% |
| March | 3.70% | 3.67% | 3.65% | 3.64% |
| April | 4.15% | 4.11% | 4.09% | 4.08% |
| May | 3.57% | 3.54% | 3.52% | 3.51% |
| June | 3.56% | 3.53% | 3.51% | 3.50% |
| July | 3.85% | 3.81% | 3.79% | 3.78% |
| Aug. | 4.09% | 4.05% | 4.03% | 4.02% |
| Sept. | 4.19% | 4.15% | 4.13% | 4.11% |
| Oct. | 4.43% | 4.38% | 4.36% | 4.34% |
| Nov. | 4.69% | 4.64% | 4.61% | 4.60% |
| Dec. | 4.82% | 4.76% | 4.73% | 4.71% |
— Long Term Rates for 2023 —
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan. | 3.84% | 3.80% | 3.78% | 3.77% |
| Feb. | 3.86% | 3.82% | 3.80% | 3.79% |
| March | 3.74% | 3.71% | 3.69% | 3.68% |
| April | 4.02% | 3.98% | 3.96% | 3.95% |
| May | 3.72% | 3.69% | 3.67% | 3.66% |
| June | 3.79% | 3.75% | 3.73% | 3.72% |
| July | 3.98% | 3.94% | 3.92% | 3.91% |
| Aug. | 4.03% | 3.99% | 3.97% | 3.96% |
| Sept. | 4.19% | 4.15% | 4.13% | 4.11% |
| Oct. | 4.46% | 4.41% | 4.39% | 4.37% |
| Nov. | 4.83% | 4.77% | 4.74% | 4.72% |
| Dec. | 5.03% | 4.97% | 4.94% | 4.92% |
Montgomery County has adopted new fee schedules for both the Register of Wills and the Clerk of the Orphans’ Court, effective January 1, 2024. “Fees of Register of Wills” (12/1/2023), 53 Pa.B. 7730 (12/16/2023); “Fees of Clerk of Orphans’ Court” (12/1/2023), 53 Pa.B. 7729 (12/16/2023).