A beneficiary designation that was signed and mailed by the decedent was binding and effective even though the decedent died before the designation form was received by the State Employees’ Retirement System. Estate of Lynn D. Wilson v. State Employees’ Retirement Board, 8 Fid.Rep.3d 59, 1253 C.D. 2016 (Pa. Cmwlth. 12/20/2017).
The Orphans’ Court properly found that the burden of proof was on the surviving wife, as the surviving owner of property conveyed to her and the decedent by the decedent in a 2006 deed, as to whether the deeds to the same property executed and acknowledged by the decedent in 2004, but never recorded, were intended to be delivered and presently effective. Because the decedent was both the grantor and the grantee (as trustee), the usual presumption of delivery upon execution did not apply, but the presumption of delivery upon acknowledgment still applied. However, the circumstances (including the later recorded conveyance to the decedent and his wife) showed that the decedent never intended the 2004 deeds to be effective.
The surviving spouse’s claim that the decedent had revoked his will, and a copy should not have been allowed into probate by the Orphans’ Court, survived the waiver provisions of Pa.R.A.P. 342(c), even though the order was immediately appealable, because the issue was never raised in the courts below. Because the order was part of proceedings relating to the administration of the estate and those proceedings were not completed, the order was not a “final order” and so the doctrines of res judicata and collateral estoppel did not bar her claim.
In re: Estate of Alfred E. Plance, Jr., 644 Pa. 232, 175 A.3d 249, 25 WAP 2016 (Pa. 12/19/2017).
A surviving spouse who is not a beneficiary of a revocable trust executed before the marriage is not entitled to an intestate share of the trust under 20 Pa.C.S. § 2507(3) because that section is not a “rule of construction” within the meaning of 20 Pa.C.S. § 7710.2. In re: Trust under Deed of David P. Kulig, 175 A.3d 222, 97 MAP 2016 (Pa. 12/19/2017) (opinion by Justice Wecht, with Justices Todd and Dougherty joining; C.J. Saylor dissenting; Justices Donohue and Mundy not participating), rev’g 131 A.3d 494, 2015 PA Super 271 (2015), 5 Fid. Rep. 3d 93 (O.C. Bucks Co. 2014).
The former wife of the income beneficiary of an irrevocable inter vivos qualified terminable interest property (QTIP) trust had no standing to object to the trustee’s failure to collect income of the trust even though (a) the former wife would become the income beneficiary following her former husband’s death and (b) the arbitration award that divided their marital property following their divorce directed the former husband to pay to his former wife half of the income from the trust, the trust having a spendthrift clause. In re: Rosemary C. Ford Inter Vivos QTIP Trust, 176 A. 3d 992, 2017 PA Super 400 (12/18/2017) (one judge concurring in the result).
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— Short Term Rates for 2017 —
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan. | 0.96% | 0.96% | 0.96% | 0.96% |
| Feb. | 1.04% | 1.04% | 1.04% | 1.04% |
| March | 1.01% | 1.01% | 1.01% | 1.01% |
| April | 1.11% | 1.11% | 1.11% | 1.11% |
| May | 1.15% | 1.15% | 1.15% | 1.15% |
| June | 1.18% | 1.18% | 1.18% | 1.18% |
| July | 1.22% | 1.22% | 1.22% | 1.22% |
| Aug. | 1.29% | 1.29% | 1.29% | 1.29% |
| Sept. | 1.29% | 1.29% | 1.29% | 1.29% |
| Oct. | 1.27% | 1.27% | 1.27% | 1.27% |
| Nov. | 1.38% | 1.38% | 1.38% | 1.38% |
| Dec. | 1.52% | 1.51% | 1.51% | 1.51% |
— Mid Term Rates for 2017 —
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan. | 1.97% | 1.96% | 1.96% | 1.95% |
| Feb. | 2.10% | 2.09% | 2.08% | 2.08% |
| March | 2.05% | 2.04% | 2.03% | 2.03% |
| April | 2.12% | 2.11% | 2.10% | 2.10% |
| May | 2.04% | 2.03% | 2.02% | 2.02% |
| June | 1.96% | 1.95% | 1.95% | 1.94% |
| July | 1.89% | 1.88% | 1.88% | 1.87% |
| Aug. | 1.95% | 1.94% | 1.94% | 1.93% |
| Sept. | 1.94% | 1.93% | 1.93% | 1.92% |
| Oct. | 1.85% | 1.84% | 1.84% | 1.83% |
| Nov. | 2.00% | 1.99% | 1.99% | 1.98% |
| Dec. | 2.11% | 2.10% | 2.09% | 2.09% |
— Long Term Rates for 2017 —
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan. | 2.75% | 2.73% | 2.72% | 2.71% |
| Feb. | 2.81% | 2.79% | 2.78% | 2.77% |
| March | 2.78% | 2.76% | 2.75% | 2.74% |
| April | 2.82% | 2.80% | 2.79% | 2.78% |
| May | 2.75% | 2.73% | 2.72% | 2.71% |
| June | 2.68% | 2.66% | 2.65% | 2.65% |
| July | 2.60% | 2.58% | 2.57% | 2.57% |
| Aug. | 2.58% | 2.56% | 2.55% | 2.55% |
| Sept. | 2.60% | 2.58% | 2.57% | 2.57% |
| Oct. | 2.50% | 2.48% | 2.47% | 2.47% |
| Nov. | 2.60% | 2.58% | 2.57% | 2.57% |
| Dec. | 2.64% | 2.62% | 2.61% | 2.61% |
The revised text of the “Tax Cuts and Jobs Act” (H.R. 1) was released by the joint conference committee last Friday (12/15/2017), and the Republicans seem to have enough votes in the House and the Senate to pass the bill this week without any Democratic votes (although that could change).
A brief preview of provisions affecting estates and trusts:
- The estate tax basic exclusion amount (i.e., the unified credit exclusion) will be doubled, but only for gifts and estates in the years 2018 through 2015. Because of a change in the way future inflation adjustments are to be made, using the “chained consumer price index” instead of the regular CPI-U, the exclusion amount will most likely be $11.18 million in 2018 instead of $11.2 million. And the Treasury will be instructed to adopt regulations to prevent people who make gifts with the larger exclusion from having to pay estate or gift tax on those gifts when the exclusion goes back down.
- No income tax deductions will be allowed for miscellaneous itemized deductions (which includes deductions for the administration of income-producing property) for the years 2018 through 2025, which means that estates and trusts will not be entitled to any income tax deductions for legal fees or other administration fees that were previously subject to the 2% floor on miscellaneous itemized deductions. It is not yet clear whether estates and trusts will be able to continue to deduct expenses that were not subject to the 2% floor (i.e., expenses described in IRC section 67(e) “which would not have been incurred if the property were not held in such trust or estate”).
- The income tax brackets that apply to estates and trusts have not changed much, but the top rate will be reduced to 37% from 39.6%.
- Estates and trusts will also be subject to the $10,000 limitation for the years 2018 through 2025 on income tax deductions for state and local income taxes unrelated to a trade or business and property taxes unrelated to the production of income.
[Updated (12/19/2017) to revise description of limitation on state and local taxes.]
Seven more counties have adopted public access rules to comply with Section 7 of the Public Access Policy of the Unified Judicial System of Pennsylvania, which applies to the Clerks of the Orphans’ Courts.
“Local Rules Regarding Public Access Policy; No. 10149 of 2017” (Beaver Co.), 47 Pa.B. 7558 (12/16/2017).
“Local Rules of Judicial Administration; No. 2016IR0074” (Bradford Co. 12/4/2017), 47 Pa.B. 7558 (12/16/2017).
“Public Access Policy: Official Case Records of the Carbon County Court of Common Pleas C.C.R.J.A 5001; No. 17-2602; 17-9395; CP-13-AD-0000010-2017” (Carbon Co. 11/28/2017), 47 Pa.B. 7559 (12/16/2017).
“Public Access Policy of the Unified Judicial System of Pennsylvania: Case Records of the Appellate and Trial Courts; Doc. No. 90052-17” (Erie Co. 11/29/2017), 47 Pa.B. 7560 (12/16/2017).
“Adoption of Local Rule of Judicial Administration 510; No. 90182 of 2017, A.D.” (Lawrence Co. 11/22/2017), 47 Pa.B. 7560 (12/16/2017).
“Local Rule—NCV-001; No. AD-2017-6” (Northumberland Co. 11/29/2017), 47 Pa.B. 7561 (12/16/2017).
“Local Rules of Judicial Administration; 61-Civil-2017” (Wayne Co. 11/29/2017), 47 Pa.B. 7561 (12/16/2017).
A surviving spouse was not required to claim her intestate share of the estate within the six month period required for claiming an elective share, and she did not forfeit her intestate share by filing an action for divorce against the decedent, and obtaining an order granting her the exclusive right to live in the marital residence, when grounds for divorce were not established and the record provided no support for the conclusion that the surviving spouse had willfully neglected or refused to support the decedent. In Re: Estate of Thomas Paul Scarpaci, 176 A.3d 885, 2017 PA Super 393 (12/13/2017).
Lawrence County has published a new fee schedule for the Register of Wills to reflect the $4.75 increase in the Judicial Computer Project fee that became effective 11/30/2017. “Register of Wills; O.C. No. 90193/17 ADM” (Lawrence Co. 11/16/2017), 47 Pa.B. 7444 (12/9/2017).
Eight more counties have adopted public access rules to comply with Section 7 of the Public Access Policy of the Unified Judicial System of Pennsylvania, which applies to the Clerks of the Orphans’ Courts.
“Adoption of Local Rules Regarding Public Access Policy Case Records of the Trial Court; No. 1194 CD 2017” (Clarion Co. 11/15/2017), 47 Pa.B. 7439 (12/9/2017).
“Adoption of Local Rule of Judicial Administration 200; Misc. Doc. No. 2017-4415” (Franklin Co. 11/21/2017), 47 Pa.B. 7443 (12/9/2017).
“Adoption of Local Rule of Judicial Administration 200; Misc. Doc. No. 27-2017” (Fulton Co. 11/21/2017), 47 Pa.B. 7443 (12/9/2017).
“Local Rule 101 of Judicial Administration; CP-44-CV-2-2017” (Mifflin Co. 11/22/2017), 47 Pa.B. 7446 (12/9/2017).
“Pennsylvania Supreme Court Public Access Policy Local Procedure; 5 AD 2017; 51 ADM” (Monroe Co. 11/15/2017), 47 Pa.B. 7446 (12/9/2017).
“Adoption of Local Rule of Judicial Administration 520*—Public Access Policy; No. 2017-00001” (Montgomery Co. 11/21/2017), 47 Pa.B. 7448 (12/9/2017).
“Adoption of Local Rule of Orphans’ Court 1.99A— Confidential Information and Confidential Documents. Certification; Rescission of Local Rule of Orphans’ Court 4.7A(g)—Electronic Filing of Legal Papers” (Montgomery Co. 11/21/2017), 47 Pa.B. 7448 (12/9/2017).
“Judicial Administration Public Access Policy Local Rule 102; No. 213 MS 2017” (Tioga Co. 11/21/2017), 47 Pa.B. 7450 (12/9/2017).
“Adoption of Local Rules Re Public Access; CIV No. 1259-2017” (Venango Co. 11/14/2017), 47 Pa.B. 7451 (12/9/2017).