Agent Surcharged and Ownership of Homeowner’s Insurance Proceeds Determined

When the principal and agent shared a home that was in the joint names of the principal and agent, and had agreed to divide living and maintenance expenses, the agent was not surcharged for installing new windows when there was no evidence the principal did not agree to pay for the improvements, but was surcharged for unexplained payments from petty cash, for monies paid by check to the agent without explanation, for half of the real estate taxes and homeowner’s insurance which the agent failed to pay, for dividend checks and Agency on Aging checks that were cashed but not deposited into the principal’s account, for half of the cost of a roof replacement, and for missing rent payments received.  The agent was only entitled to half of the insurance proceeds for a fire that destroyed the jointly owned property before the decedent’s death.  Miscella Estate (No. 2), 7 Fid.Rep.3d 206 (Monroe Co. O.C. 2017), aff’d, 1905 EDA 2017 (Pa. Super. 6/27/2018) (non-precedential).

In affirming, the Superior Court specifically affirmed only the division of the insurance proceeds.  The other issue raised on appeal was found not to have been raised before the Orphans’ Court and was therefore waived.

Tips

Posted on by June 29, 2018

One of the categories of resources that can be found at Evans Estate Law Resources is “tips,” which are snippets of information that seem useful, but don’t fit into an existing “article” or other kind of resource. To see a…

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Things To Do Before Closing an Estate

Posted on by June 29, 2018

Some things to consider doing before ending an estate administration: Check with the Life Policy Locator Service provided by the National Association of Insurance Commissioners to see if there are any policies insuring the decedent that were overlooked or not known…

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Life Policy Locator Service

The Act of June 28, 2018, No. 48 (H.B. 152), requires the Pennsylvania Insurance Department and all insurance companies with life insurance policies or annuity contracts in force in Pennsylvania to participate in the Life Policy Locator Service provided by the National Association of Insurance Commissioners.

The Act also amends the rules requiring that recommendations for the purchase or replacement annuity contracts be suitable to the consumer to expand the scope and substance of those rules.

Applicable Authorities Restricting Public Access

The administrative office of Pennsylvania Courts has published an updated and revised chart of limits on public access to judicial system case records.  “Case  Records Public Access Policy of the Unified Judicial System of Pennsylvania,” 48 Pa.B. 3847 (6/30/2018), updating 204 Pa.Code § 213.81.

There are no changes to the limits previously published for the Orphans’ Court, which can be found in “Public Access Policy Compliance for Orphans’ Court Filings” on this site.

Executor Liable for Attorney Malfeasance

The executor of an estate, who had experience as a professional bookkeeper, was liable for the misappropriation of funds by her attorney because she failed to act as a prudent person would, allowing the attorney to have access to bank accounts without oversight and failing to investigate overdrafts and transfers of funds.  The executor was also surcharged for acts of self-dealing despite claims that she relied on the advice of her attorney. In re: Estate of Carryl L. Walter, Deceased, 2018 PA Super 179, 844 MDA 2017 (6/22/2018), aff’g 8 Fid.Rep.3d 1 (Cumberland Co. O.C. 2017).

Probable Cause for Will Contest despite Compulsory Nonsuit

The contestant to a will had probable cause to challenge the validity of the will, based on her personal knowledge of the testator’s health issues and the dramatic change the testator made in her last will, and so the contestant did not forfeit her share of the estate under in terrorem clause in the will even though the will contest had been dismissed by a compulsory nonsuit.  It was also not an abuse of discretion or a violation of due process for the court to refuse to allow the proponent of the will to introduce additional evidence on the issue of forfeiture after the trial was concluded and the nonsuit had been granted.  Powell Estate, 8 Fid.Rep.3d 147 (Philadelphia Co. O.C. 2018), vacated and remanded, 2019 PA Super 140 (5/1/2019).

Proposed Amendments to O.C. Rules

The Orphans’ Court Procedural Rules Committee has proposed several amendments to Pa. O.C. Rules, including the following substantive changes:

  • The explanatory comment to Rule 1.7 will be changed to exclude withdrawals of appearances before the Register of Wills from the scope of Rule 1.7.
  • Rule 2.5 will require notice of the filing of accounts to co-fiduciaries who do not join in the account, and allow beneficiaries who are outside of the United States 60 days to file objections, instead of 20 days.
  • Rule 10.5 will require notices of estate administration to a beneficiary named in a will without regard to whether the beneficiary is an “outright beneficiary.”

Other proposed amendments are intended to be clarifications.

Comments on the proposed amendments should be submitted by July 16, 2018.

“Proposed Amendment of Pa. O.C. Rules 1.7, 2.5, 2.7, 5.1, and 10.5,” 48 Pa.B. 3571 (6/16/18).