Codicil upheld as valid even though witnessed by a minor and even though the date on the codicil was added after the death of the testator. Weitz Estate, 5 Fid.Rep.3d 372 (O.C. Luzerne 2015).
When will directed that real estate be sold and the proceeds divided among named beneficiaries, but contained no residuary clause, and agent sold real estate before death, proceeds of sale will be distributed to beneficiaries named in will and rest of estate to intestate heirs. Hotchkiss Estate, 5 Fid.Rep.3d 365 (O.C. Crawford 2015).
Individual retirement account of decedent over the age of 59-1/2 held to be taxable because the applicable of the federal estate tax unified credit, which excluded estate of $5,250,000 from federal estate tax, did not make account “exempt from Federal estate tax” within the meaning of 72 P.S. § 9111(r). Woolslare Estate, 5 Fid.Rep.3 363 (O.C. Allegh. 2015) (opinion by O’Toole, A.J.), aff’d, No. 1100 C.D. 2015 (Pa. Cmwlth. 2/19/2016) (unpublished).
Language in trust document regarding creditors of beneficiaries did not restrain voluntary assignments of beneficial interests and so was not a valid spendthrift clause. Further, even a valid spendthrift clause would not have prevented the beneficiary from assigning distributions as they became payable, and the assignee was entitled to the distributions until the beneficiary revoked the assignment. Lipowitz Trust, 5 Fid.Rep.3d 351 (O.C. Montg. 2015) (opinion by Murphy, J.).
The Supreme Court of Queensland, Australia, has admitted to probate a document written on a iPhone before the owner committed suicide, finding that the document exists, states the testamentary intentions of the deceased, and was intended to be the decedent’s will. Re: Yu, 2013 QSC 322, No. BS10313 of 2013 (11/6/2013).
Westmoreland County has rescinded local Rule WO407(b)(1) and adopted a new Rule WO407(b)(1), recognizing the new $50,000 limit on small estate petitions. “Rescinding Orphans’ Court Rule WO407(b)(1),” No. 3 of 2015, 45 Pa.B. 6116 (Westmoreland Co. 10/10/2015) (effective 30 days after publication).
Surviving spouse who unsuccessfully attempted to elect against the decedent’s will and who took other actions to challenge the validity of a prenuptial agreement ordered to pay reasonable legal fees to the estate in accordance with the prenuptial agreement, and conveyances by the surviving spouse to her second husband found to be void under the Uniform Fraudulent Transfer Act. Miller Estate, 5 Fid.Rep.3d 319 (O.C. Carbon Co. 2015).
Preliminary objections by Attorney General to petition of agent upheld, the court finding that it did not have the power to undo annuity beneficiary designations made by agent during decedent’s lifetime. Scutchall Estate, 4 Fid.Rep.3d 311 (O.C. Franklin Co. 2015) (applying statutes in effect before Act 95 of 2014).
According to a report of the Joint Committee on Taxation, President Obama’s fiscal year 2016 budget includes the following measures affecting estates and trusts:
- Restore the estate, gift, and generation-skipping exclusions and rates in effect in 2009 (i.e., $3,500,000 estate tax exclusion, $1,000,000 gift tax exclusion, and top tax rate of 45%). This has been proposed every year since 2010.
- For grantor retained annuity trusts (GRATs), the budget proposes that (a) GRATs have a minimum term of 10 years, (b) the remainder have a minimum value of either 25% of the initial funding or $500,000, whichever is less, and (c) grantors be prohibited from engaging in tax-free exchanges with the trust. The first proposal has been made before, but the other two are new.
- Limit the duration of generation-skipping tax exemption, which has been proposed before.
- Limit the total amounts of gifts qualifying for the annual exclusion to $50,000, which has been proposed before.
It was not an abuse of discretion for the Orphans’ Court to deny termination of mother’s parental rights when mother had maintained contact with child while in foster care and had made some progress in maintaining emotional stability, and there was evidence that child still cared for and wished to live with mother, so that court could conclude that termination of parental rights was not in the best interests of the child. In re: Adoption of G.L.L., 2015 PA Super 200 (9/21/2015).