Bucks County has adopted a new Rule 4.7A for electronic filing in the Orphans’ Court. ”Order Approving Electronic Filing in the Office of the Clerk of the Orphans’ Court and Promulgating Rule of Orphans’ Court Procedure 4.7A; Administrative Order No. 108” (6/3/2002), 52 Pa.B. 3419 (6/18/2022).
A direction in a will that a beneficiary should have the right to receive the decedent’s residence as part of her one third share of the estate or purchase the house at fair market value did not give the beneficiary a share of the estate equal to the value of the house when her one third share of the estate would otherwise be less than the value of the house. Indelicato Estate, 12 Fid.Rep.3d 217 (Bucks O.C. 2022).
An agent’s deposit of a refund check payable to the principal into a bank account in the joint names of the principal and agent was an act of self-dealing and a breach of fiduciary duty by the agent because she commingled the funds of the principal with the funds of the agent, and so a surcharge on the agent was imposed. A receipt signed by a beneficiary for two rings of the decedent was upheld over the testimony of the beneficiary that she received only one ring. A tax penalty was directed to be paid by the estate and not imposed on one co-executor when there were delays and miscommunications between the one co-executor and the attorney for the estate. Other objections to the account of the executors and agent were was dismissed for failures of proof. Finnie Estate, 12 Fid.Rep.3d 203 (Montgomery O.C. 2022).
A right of first refusal granted to daughter and her husband by her father’s will was exercisable by daughter alone after her divorce from her husband when an offer to purchase the property was received by the executors more than 10 years after the death of the testator. Beck Estate, 12 Fid.Rep.3d 201 (Montgomery O.C. 2022).
The Superior Court has followed the plurality opinion in In re Estate of McAleer, 248 A.3d 416 (Pa. 2021), and held that the “fiduciary exception” to the attorney-client privilege and attorney work product doctrine is not contrary to the law in Pennsylvania, affirming an order of the Orphans’ Court compelling discovery of documents related to the legal services performed by counsel to trustees. In re: Trust Established under Agreement of Sarah Mellon Scaife, Deceased, Dated May 9, 1963, 276 A.3d 776, 2022 PA Super 93 (5/23/2022), app. den., 169 WAL 2022 (1/24/2023).
There were three appeals from the discovery order and the Superior Court released three opinions which appear to be identical in substance, but with different docket numbers and naming different appellants. The appeal of PNC Bank as corporate trustee (722 WDA 2021) was published as 2022 PA Super 93. The opinions related to the appeals of the individual trustees (696 WDA 2021) and counsel to the trustees (697 WDA 2021) were released as non-precedential.
Decedent gave instructions to attorney for the preparation of a will, but she died in the hospital without signing the will because COVID-19 protocols prevented her attorney or others from delivering the will to her for her signature, and so the will could not be probated. The conversations between the administrator and one of the intestate heirs were not sufficient to constitute a gift of the decedent’s real estate to the intended beneficiaries, or to apply equitable estoppel to the heirs. Administrator’s commission of 6% approved, but legal fees relating to equitable claims (but not the unsigned will) were denied. Bennett Estate, 12 Fid.Rep.3d 185 (Monroe O.C. 2022).
Value of rings determined by purchase prices from four years before, rather than an appraiser by a jeweler who did not actually examine the rings and misstated the size of the diamond in one of the rings. Compensation of the administrator at $104 an hour, or 14.3% of the estate, was reduced to 5% when there was nothing special or extraordinary in the estate warranting additional compensation. Johnson Estate, 12 Fid.Rep.3d 181 (Monroe O.C. 2022).
A will which directed the executor (who was the decedent’s long-time companion and later spouse) to distribute the residue of his estate “according to my wishes” would result in a distribution by intestacy, and so a later will which left the residue to the spouse was a substantial benefit. There was conclusive evidence that the decedent suffered from a weakened intellect before executing the new will, and that the decedent’s spouse influenced and controlled the decedent’s decisions, and that the new will was the product of the spouse’s undue influence. Roscher Estate, 12 Fid.Rep.3d 151 (Berks O.C. 2021), rev’d, 119 MDA 2022 (Pa. Super. 11/29/2022), (non-precedential; insufficient evidence of weakened intellect).
Executor surcharged for expenses of maintaining the decedent’s residence after it remained unsold four years after the death of the decedent, but not for the expenses of maintaining a vacation home which was made available for use by beneficiaries. Tobias Estate, 12 Fid.Rep.3d 143 (Montgomery O.C. 2021), affirmed in part, reversed in part, vacated in part, and remanded, 446 EDA 2021 and 2176 EDA 2020 (Pa. Super. 1/19/2022) (non-precedential).
[Note: Only the holding of the court that was affirmed has been summarized.]
The Supreme Court Orphans’ Court Procedural Rules Committee is planning to propose amendments to Pa.R.O.C.P. 5.50 governing the petition to settle a small estate in accordance with 20 Pa.C.S. § 3102.
In addition to technical and stylistic changes, the proposed amendments would address three issues:
- Requiring the probate or lodging of the original will with the Register, rather than attaching it to the petition.
- Allowing an explanation for why an inheritance tax return has not yet been filed.
- Clarifying that the petition may be served by notice to interested parties, rather than by citation.
Any comments on the proposed amendments should be submitted by July 15, 2022.
“Proposed Amendment of Pa. R.O.C.P. 5.50,” 52 Pa.B. 3057 (5/28/2022).
For previous comments on Rule 5.50, see “Proposed Rule for Small Estate Petitions and Rights of Creditors” and “New Rule for Small Estate Petition.”