Erie County has adopted new Orphans’ Court rules, to be effective 30 days after publication in the Pa. Bulletin, and superseding all previous rules. “Order Adopting Orphans’ Court Rules; Doc. No. 360 of 2022,” 52 Pa.B. 7366 (12/3/2022).
Washington County has adopted new local Orphans’ Court rules relating to the records and files of the court. “Adoption of Local Rules of Orphans’ Court Procedure L-O.C. Rule 1.41 and L-O.C. Rule 15.21; No. 2022-1,” 52 Pa.B. 7269 (11/26/2022).
Orphans’ Court had jurisdiction to clarify its own order despite lapse of time, and had jurisdiction over retirement funds which had been liquidated, and so its order enforcing settlement of estate and distribution of retirement funds was affirmed, along with sanctions against appellant, and additional sanctions imposed on appeal for “obdurate, dilatory and vexatious conduct.” In re: Estate of Coleen Tomcik, 2022 PA Super 192, ___ A.3d ___ (11/15/2022).
Testamentary gifts to step-grandchildren that were conditioned upon their grandmother (the decedent’s wife) not electing against the will and not recovering assets “in our divorce after my death” were ineffective by reason of a final decree of divorce (and equitable division of marital assets) even though the decree was entered before death and even though the scrivener of the will testified that the testator was concerned about equitable division after his death and not before. Cassidy Estate, 12 Fid.Rep.3d 423 (Bucks O.C. 2022), rev’d, d, 2023 PA Super 101, ___ A.3d. ___ (6/9/2023).
[Revised on 6/26/2023 to correct error in summary of holding.]
Small estate petition dismissed for failure to include a statement that the Pennsylvania inheritance tax return had been filed and the tax paid and failure to include a copy of a notice of appraisement, as required by Pa.R.O.C.P. 5.50(b)(5) and (c)(3), the provisions of which are mandatory and cannot be waived by the court. Eddinger Estate, 12 Fid.Rep.3d 419, 114 Berks 410 (Berks O.C. 2022).
Because the decedent’s will granted an option to purchase real estate at “the value as finally determined for Federal Estate Tax purposes,” the court ordered the executor to file a federal estate tax return even though the estate was too small to require one and even though the filling of the return will not resolve the dispute because the executors may claim special use valuation under I.R.C. section 2032A and some of the beneficiaries may refuse to join in the required agreement to pay the additional estate tax that might become due if the property ceases to be used for a “qualified use.” Finck Estate, 12 Fid.Rep.3d 381 (Lycoming O.C. 2022)
An individual trustee who is not a lawyer may not represent the trust in court. Delaware Valley Landscape Stone, Inc. v. RRQ, LLC, ___ A.3d ___, 2022 PA Super 173 (10/13/2022).
The Internal Revenue Service has released Rev. Proc. 2022-38 with inflation adjustments for 2023 and, consistent with earlier predictions, the changes in the most significant federal estate and trust planning numbers will be as follows:
- The federal estate tax base applicable exclusion amount (and generation-skipping tax exemption) will be $12,920,000 (was $12,060,000 for 2022).
- The annual gift tax exclusion will be $17,000 (was $16,000).
- The annual gift tax exclusion for a non-citizen spouse will be $175,000 (was $164,000).
- The “2 percent” amount for purposes of section 6166 will be $1,750,000 (was $1,640,000).
- The limitation on the special use valuation reduction under section 2032A will be $1,310,000 (was $1,230,000).
- The top (37%) income tax bracket for estates and trusts will begin at $14,450 (was $13,450).
- The alternative minimum tax exemption for estates and trusts will be $28,400 (was $26,500), and the phaseout of the exemption will start at $94,600 (was $88,300).
The Register of Wills of Lehigh County has adopted a new fee schedule, to be effective January 1, 2023. “Clerk of Judicial Records—Register of Wills Division Fee Schedule; Case No. 2022-J-0133” (9/19/2022), 52 Pa.B. 6452 (10/15/2022).
A mortgage on property owned by husband and wife as tenants by entireties was valid, even though signed by only one spouse, when the signing spouse normally handled the finances for the family and the non-signing spouse benefitted from the mortgage because the proceeds were used to repay an existing mortgage, and so the “entireties presumption” applied and the signing spouse had the authority to act for both spouses with respect to entireties property without the specific authority the other spouse. Wykel v. Knapp, 288 A.3d 889, 2022 PA Super 167 (9/30/2022), app. den., ___ A.3d ___, 167 MAL 2023 (8/28/2023).