Mother used Uniform Transfers to Minors custodial funds to purchase a home in her own name. Although children lived in home for at least part of the time, mother was ordered to pay over to the children the entire proceeds of the sale of the home, which was more than the original amount of the custodial accounts. However, award of attorney fees against mother were denied. Werner v. Werner, 2016 PA Super 221 (10/7/2016).
[This article was published in the PBA Real Property, Probate and Trust Law Newsletter, No. 73 (Summer 2013), p. 12.] Pennsylvania inheritance tax law allows a trust for the “sole use” of the surviving spouse to be taxed entirely at…
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The Act of November 2, 2016, No. 116, H.B. 447, adds a new section 514 to the Landlord and Tenant Act of 1951 that allows the personal representative to terminate the decedent’s lease of a residential unit, but only for leases entered into or extended after the effective date of the act, which is January 1, 2017.
The Act of July 8, 2016, No. 79 of 2016 (“Act 79”), enacting S.B. 1104, put into effect a number of changes to the Probate, Estates and Fiduciaries Code (PEF Code, Title 20 of Pa.C.S.) that had been recommended by…
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A perpetual charitable trust will not be modified to allow distributions of principal to one of the income beneficiaries when the trust document does not allow distributions of principal, notwithstanding the economic hardship and possible insolvency of the charitable beneficiary. In re Estate of Loucks, 2016 PA Super 206 (9/9/2016).
The beneficiaries of certificates of deposits which the decedent had titled “in trust for” their benefit had standing to challenge actions of decedent’s agents who removed the beneficiary designations before the decedent’s death, notwithstanding the general rule that only the principal or the personal representative of the principal’s estate have standing to challenge the actions of agents acting under a durable power of attorney. Rellick v. Rellick-Smith, 147 A.3d 897, 2016 PA Super 184 (Pa.Super. 8/22/2016).
[For a later decision in this same case, also addressing the issue of standing, see Rellick v. Rellick-Smith, 630 WDA 2022 (Pa. Super. 5/17/2023) (non-precedential).]
Mother may not obtain a termination of the parental rights of the father through an adoption when the adopting adult is the mother’s father, and not a spouse of the mother, and the mother is not agreeing to terminate her own parental rights. In re: Adoption of M.R.D. and T.M.D., No. 26 MAP 2016 (Pa. 8/29/2016), rev’ng No. 1728 MDA 2013 (Pa. Super. 12/8/2015).
With the release of the Consumer Price Index for August 2016, it’s possible to calculate various inflation adjustments for 2017. The following are the significant federal estate planning numbers:
- The base applicable exclusion amount (and generation-skipping tax exemption) will be $5,490,000.
- The annual gift tax exclusion will be $14,000 (i.e., no change).
- The annual gift tax exclusion for a non-citizen spouse will be $149,000.
- The “2 percent” amount for purposes of section 6166 will be $1,490,000.
- The limitation on the valuation reduction under section 2032A will be $1,120,000.
- The top (39.6%) income tax bracket for estates and trusts will begin at $12,500.
- The alternative minimum tax exemption for an estates and trusts will be $24,100.
[Update: The Internal Revenue Services confirmed these numbers, and published other inflation adjustments, in Rev. Proc. 2016-55., 2016-45 I.R.B. 707 (11/7/2016).]
The Pennsylvania Department of Revenue has published 2017 Tax Amnesty Program Guidelines, 46 Pa.B. 5856 (9/10/2016), in accordance with Act 84 of 2016. The program begins April 1, 2017, and inheritance tax liabilities owed on or before December 31, 2015 (i.e., decedents dying on or before March 31, 2015) will be covered by the program.
Attorney for administrator of estate held to be secondarily liable for surcharge against administrator for failing to make distribution to estate of deceased beneficiary; appeal not timely and should be quashed. Estate of Thomas Brawner Sr., 6 Fid.Rep.3d 386, No. 1043 DE of 2014 (Philadelphia O.C. 7/21/2016), reversed and remanded, No. 1144 EDA 2016 (4/13/2017 Pa. Super.) (non-precedential).