Webcalculators SECURE Act Update

The Required Minimum Distribution Webcalculator has been updated to incorporate the changes made by the SECURE Act (Division O of P.L. 116-94).

Specifically:

  • The required beginning age for lifetime distributions has been changed from 70-1/2 to 72 for persons who were not 70-1/2 before 2020.
  • For post-death distributions, the types of designated beneficiaries that can be selected now include “Minor child,” “Eligible” (meaning an eligible designated beneficiary other than a minor child), and “Other” (meaning a designated beneficiary other than an eligible designated beneficiary).
    • Distribution projections for “Minor child” are based on the child’s remaining life expectancy until age 21 (the assumed age of majority), with no additional required distributions until 10 years later, when the entire account must be distributed.
    • Distributions to “Eligible” beneficiaries are based on the beneficiary’s remaining life expectancy.
    • Distributions to “Other” designated beneficiaries must be completed within 10 years.
  • The Overview and Details files have been updated to explain these changes.

For a more complete analysis of minimum required distributions, see “New (and Old) Minimum Required Distribution Rules Summarized.”

Common Law Marriage not Established

Judgment on the pleadings in an action for ejectment will be granted where the allegation of a common law marriage is based solely on cohabitation and an employer’s classification of one of the parties as a “domestic partner.” The grant of a testamentary life estate is also not relevant when the property owner is still living and her agent acts to sell the property. Cummins v. Ramos, 10 Fid.Rep.3d 44 (Bucks C.D. 2019), on appeal, 2945 EDA 2019.

Treating Trust as Marital Trust was Patent Error

The decedent’s inter vivos trust directed the division of the trust into a marital deduction trust and nonmarital trust, but no marital trust was necessary because the gross estate was less than the federal estate tax exclusion amount. The administration of the trust as though it was a marital trust, over which the surviving spouse had greater powers, was a patent error for which the trustees will be surcharged, and the counsel for the trustees is surcharged for failing to properly counsel the trustees. Jean Goodwin Trust, 10 Fid.Rep.3d 31 (Montgomery O.C. 2019).

Surcharge for Unauthorized Distributions

Executor is surcharged for distributions to individuals when the will made no specific gifts to anyone and the distributions were in violation of the provisions of the decedent’s will. Jean Goodwin Estate, 10 Fid.Rep.3d 29 (Montgomery O.C. 2019).

Original Will Produced on Appeal

On an appeal from the decree of the Register denying probate of a photocopy of a will, the appeal will be upheld when the proponent is able to produce the original will and prove the will by the testimony of two witnesses. Estate of William O. Walden, No. 1390AP of 2018 (Philadelphia O.C. 2/18/2020).

Deed Executed before Letters Granted, and Mortgage Based on Deed, are Void

Deed of decedent’s property to administrator individually, executed two months before being appointed administrator, was voidable and voided by the court, and the mortgage of the property executed after letters were granted, but signed by administrator in her individual capacity, was void because the mortgagee had constructive notice of the fraudulent deed. Estate of Mable Floyd, Deceased, 10 Fid.Rep.3d 40, No. 783DE of 2019 (Philadelphia O.C. 12/11/2019).

Application of Cy Pres Denied for Decertified Volunteer Fire Company

Although a nonprofit corporation formed as a volunteer fire company had been decertified and could no longer fight fires in accordance with its original charitable purposes, involuntary dissolution and cy pres would not be applied when the corporation continues to perform charitable services and may be able to qualify to fight fires in other nearby communities. In re: Independent Fire Co. No. 1, 9 Fid.Rep.3d 20 (Lycoming O.C. 2018), aff’d on other grounds, No. 1489 C.D. 2018 (Cmwlth Ct. 2/5/2020).

Ambiguous and Incomplete Document not a Will

Three handwritten pages labeled “Pg 1,” “Pg 3,” and “Pg 4,” with all three paragraphs on the first page page struck through diagonally and a signature on page 4, were found to be notes of the decedent, and not a will, when the pages were found with other unsigned pages with later dates that refer to an earlier (1999) will and there was extrinsic evidence that the decedent had told her lawyer she did not want to make changes to her 1999 will. Estate of Helen C. Citino, Deceased, 9 Fid.Rep.3d 11 (Chester O.C. 2018).

Person Suffering from Dementia cannot Change Domicile

A ninety year old woman suffering from dementia was unable to change her domicile, so her estate was not subject to inheritance tax even though her son had moved her from New York to an assisted living facility in Pennsylvania before her death. Opinion by Office of Chief Counsel, Department of Revenue, INH-05-002, 9 Fid.Rep.3d 8 (5/6/2005) (reissued 5/6/2010).

A similar opinion with similar facts, is INH-06-003, 9 Fid.Rep.3d 10 (10/10/2006).