There are several court opinions holding that the assets held in a Uniform Transfers to Minors Act (UTMA) account are subject to federal estate tax upon the death of the donor when the donor is serving as the custodian for…
The Supreme Court has amended Pa.R.O.C.P. 5.50, “Settlement of Small Estates by Petition,” to accommodate situations in which the original will has been lodged with the Register or a copy of a will is being admitted to probate, and situations in which it is not yet possible to file an inheritance tax return or pay the full amount of inheritance tax. The rule has also been amended to specify the manner of service of notice of the petition. The amendment is effective on July 1, 2024. “Order Amending Rule 5.50 of the Pennsylvania Rules of Orphans’ Court Procedure,” No. 895 S.C. Rules Doc. (5/2/2024), 54 Pa.B. 2735 (5/18/2024) (report of the Orphans’ Court Procedural Rules Committee is included with the order).
The decedent’s former wife and her sister had lent large amounts of money to the decedent for his support, and there were written communications sufficient to show an oral contract for enforceable claims against the decedent which were not barred by the four year statute of limitations because the statute did not begin to run until a demand for payment was made. In re: Estate of Fred Gitterman, Deceased, 1647 EDA 2023 (Pa. Super. 4/3/2024) (non-precedential).
The Orphans’ Court awarded legal fees to an executor against a beneficiary who had impeded the executor in his attempts to recover property of the decedent in the possession of the beneficiary, but the court allowed only about ten percent of the legal fees claimed by the executor. The Superior Court found that the Orphans’ Court judge had presided over the entire dispute, and had considered all of the LaRocca factors in determining reasonable legal fees, and so found no abuse of discretion. In re: Estate of Owen Eugene Meals, Sr., 394 MDA 2023 (Pa. Super. 4/22/2024) (non-precedential).
A photocopy of an alleged contract between a husband and wife not to change their wills was properly ruled to be inadmissable as evidence under the “best evidence rule” of Pa.R.E. 1002 because there was a “genuine issue” as to authenticity. The burden of proof was on the proponent of the contract to prove that the contract was authentic and not on the challenger to the contract to prove forgery. In re: Estate of Kathy A. MacRae, Deceased, 549 MDA 2023 (Pa. Super. 4/22/2024) (non-precedential).
The 39th Judicial District, covering both Franklin and Fulton Counties, has adopted a new local O.C. Rule 14.8.1, establishing a form of guardian acknowledgement of duties and liabilities, and rescinding local rules 39-2.6 (time for filing accounts), 39-2.7 (time for filing objections), 39-14.2 (adjudication of incompetency), 39-15.1 (practice and procedure), 39-15.5.4 (involuntary termination), 39-15.5.5 (adoption), 39-15.5.8 (confirmation of consents), 39-15.5.9 (compliance with Act 101 of 2010), and 39-16 (forms). “Adoption of 39th Jud.Dist.O.C. Rule 14.8.1 and Rescission of Other Orphans’ Court Rules; Administrative Order re: AD: 20-2024,” 54 Pa.B. 2221 (4/27/2024).
An action for divorce did not automatically abate upon the death of one spouse because grounds for divorce had been established. The trial court properly allowed a petition for abatement under 20 Pa.C.S. § 3375 because it was not a waiver of the right to petition for abatement for the surviving spouse to wait for almost two years before filing a petition for abatement and it was not an abuse of discretion for the court to find that the delay in obtaining letters of administration for the estate of the deceased spouse was not reasonably explained. Schmitt v. Schmitt, 424 WDA 2023 (Pa. Super. 4/25/2024) (non-precedential).
The Orphans’ Court properly concluded that there were no less restrictive alternatives for an alleged incapacitated person, and that a plenary guardian of his person and estate were necessary, when the alleged incapacitated person was shown to be suffering from “hallucinations, paranoid schizophrenia, diffuse cognitive dysfunction, psychotic disorder, and acute metabolic,” had no available family, friends, or other supports to help him make decisions, and had complicated health issues which he lacked the ability to comprehend and evaluate. In re: Estate of D.W., an Incapacitated Person, 1805 EDA 2023 (Pa. Super. 2/27/2024) (non-precedential).
The nephews of the incapacitated person had no standing to challenge the counsel fees and commissions claimed by the guardian of the estate when their father (the incapacitated person’s brother) was still living and their only interest in the incapacitated person’s estate was their understanding that the incapacitated person intended to make them beneficiaries under his will. In re: G.A.T., an Alleged Incapacitated Person, 146 EDA 2023 (Pa. Super. 3/11/2024) (non-precedential), dism’g app. of 2 Fid.Rep. 188 (Chester O.C. 2023), app. den., 177 MAL 2024 (Pa. 10/16/2024).
The claims by the beneficiaries of a trust against the trustee and others for fraud and conversion concerned the administration of the trust, and so were all within the exclusive jurisdiction of the Orphans’ Court, which has all of the powers of a court of Common Pleas and has nonmandatory jurisdiction to decide claims involving third parties and actions other than breaches of fiduciary duties. However, the remedy for the erroneous filing in the Civil Division was not dismissal the complaint but the transfer of the complaint to the Orphans’ Court division. Williams et al. v. Geer at al., 128 WDA 2023 (Pa. Super. 3/18/2024) (non-precedential).
[For other decisions involving this same trust, see “Contempt Affirmed over Situs Dispute” and “Choice of Law for Administration of Trust.”]