Executor’s Conflict of Interest for Defending Will

Appointment of administrator pro tem denied, when conflict of interest, which might incapacitate the executor, was steps taken to defend the will against a contest, which the executor had standing to do (even though without any personal interest under the will) unless the beneficiaries retained their own counsel to defend the will.  Blusius Estate, 4 Fid. Rep. 3d 207 (O.C. Frank. 2014) (Opinion by Meyers, J.)

Removal of Executor for Conflict Affirmed

The Superior Court has affirmed the removal of an executor for a conflict of interest when the executor had made loans to herself under a power of attorney during the decedent’s lifetime and was a major debtor of the estate.  The court also affirmed the Orphans’ Court’s direction that letters not be granted to the second successor executor named in the will due to a similar conflict and that letters be granted to the third successor, but reversed the appointment of a co-administrator.  Estate of Andrews, 2014 PA Super 110 (5/29/14), affirming Clearfield Co. O.C., No. 1711-0612 (4/4/13).

Partition of Estate Property

In a proceeding involving real property owned by three related estates and related individuals, the court approved a private sale among the parties, a partition of the proceeds of sale, and an allocation of costs among the parties.  The court also suggested that the appeal from the orders of the court should be dismissed because the orders were not final orders and were moot.  Cremers Estate, 4 Fid. Rep. 3d 152 and 161 (O.C. Chester 2014) (Opinions by Hall, J.)

Common Law Marriage not Proved

In divorce proceeding of common law marriage, case dismissed because of lack of subject matter jurisdiction (no marriage existed).  Court finds both parties in divorce to be untrustworthy, but party claiming common law marriage did not prove with clear and convincing evidence that a common law marriage existed, because, inter alia, the date of the marriage is in dispute, tax returns were never filed as joint returns, and property was not held by tenancy by the entirety.  Rotundo v. Jones, 4 Fid. Rep. 3d 139 (C.P. Berks 2014) (Opinion by Lash, J.)

Disqualification of Counsel for Former Representation

In an action by the one of executors to compel an accounting by the agents under a power of attorney, the law firm representing the petitioner-executor was disqualified when a principal of the firm had previously represented the decedent and his wife and the interests of the wife were adverse to the petitioner because the challenged actions of the agents benefited the wife.  Whitby Estate, 4 Fid. Rep. 3d 133 (O.C. Montg. 2014), (Opinion by Ott, J.)

Special Needs Trusts and Other Sources of Support

When two trusts for the same beneficiary have different remaindermen, and one trust is a special needs trust created by her parents and the other is a self-settled irrevocable special needs trust, the court found that the intentions of the settlors, as expressed in the trust documents, were that the (larger) parents’ trust should first be spent for the care of the beneficiary until both trusts were equal in value.  When both trusts became equal, the remainder beneficiaries may provide trustees with evidence of “probable future needs” to allow the trustees to consider in determining whether to continue to pay all of the beneficiary’s expenses from the parents’ trust or pay some expenses from the self-settled trust.  Brennen Trusts, 4 Fid. Rep. 3d 146 (O.C. Lehigh 2014) (Opinion by Johnson, J.)