Columbia and Montour Counties have adopted new local Orphans’ Court rules, to be effective 30 days after publication. “Business of the Courts; Case No. X of 2016,” 46 Pa.B. 7255 (11/19/2016).
Northampton County has published an administrative order setting forth conditions for written depositions of expert testimony in incapacity proceedings. “Presentation of Expert Testimony by Written Deposition to Support a Finding of Incapacity in Guardianship Hearings; Administrative Order 2016-01,” 46 Pa.B. 6826 (Northampton Co. 10/29/2016).
Northampton County has published an administrative order providing additional requirements for adoption petitions filed on or after September 1, 2016. “Additional Requirements for Adoptions Petitions; Administrative Order 2016-02,” 46 Pa.B. 6825 (Northampton Co. 10/29/2016).
York County has published new fee schedules for the Register of Wills and Clerk of the Orphans’ Court, to be effective January 1, 2017. “Fee Bill for the Office of the Register of Wills and Clerk of Orphans’ Court; No. 67-01-0007,” 46 Pa.B. 5728 (York Co. 9/3/2016).
Beaver County has published a new Local O.C. Rule 15.1 relating to the assignment of judges in dependency proceedings, termination of parental rights, and adoptions. “Local Rules of Orphans’ Court; No. 10013 of 2016,” 46 Pa.B. 5894 (Beaver Co. 9/17/2016).
Montgomery County has published new fees schedules for the Register of Wills and the Orphans’ Court. Both schedules are effective 1/1/2017.
“Fees of Register of Wills,” 46 Pa.B. 8032 (Montgomery Co. 12/24/2016).
“Fees of Clerk of Orphans’ Court,” 46 Pa.B. 8031 (Montgomery Co. 12/24/2016).
Chester County has published new fees schedules for the Register of Wills and the Orphans’ Court. Both schedules are effective 2/1/2017. “Fee Bill for the Office of Register of Wills and Clerk of Orphans’ Court,” No. 1516-9999, 46 Pa.B. 8027 (Chester Co. 12/24/2016).
Pennsylvania courts have jurisdiction to dissolve a Vermont civil union because it is the “functional equivalent” of marriage. Neyman v. Buckley, 2016 PA Super 307 (12/28/2016). (The Montgomery Co. Court of Common Pleas had reached the opposite conclusion in Corrado v. Musto, 6 Fid.Rep.3d 237, 153 Montg. 173, No. 2015-14981 (Fam.Div., 9/24/2015), app. discontinued, 3101 EDA 2015.)
The IRS has issued another private letter ruling granting retroactive tax effect to a judicial modification of a trust.
In PLR 201652002, the IRS granted retroactive effect to a court “reformation” under Uniform Trust Code § 416, which allows a court to “modify” a trust in order to carry out the settlor’s tax objectives. The trusts in question were expressly intended to be grantor retained annuity trusts, but failed to prohibit the trustee from issuing a note or other financial instrument in satisfaction of an annuity payment, which failure was a violation of Treas. Reg. § 25.2702-3(d)(6). The IRS concluded that the judicial reformation was to correct a “scrivener’s error,” and that as a result of the reformation, the grantor’s interest in the trust was a qualified interest as of the date the trusts were created. This was a generous result, because for the reasons explained in my article “Tax Effects of Retroactive Reformations and Modifications,” the taxpayer should have sought a reformation under UTC § 415 and not a trust modification under UTC § 416.
The “21st Century Cures Act,” H.R. 34, which was signed into law on December 13, 2016, becoming P.L. 114-255, made a change to the Social Security Act in order to allow people with disabilities to create their own Medicaid-qualifying trusts without court approval.
Specifically, section 5007 of the Act provides as follows::
‘SEC. 5007. FAIRNESS IN MEDICAID SUPPLEMENTAL NEEDS TRUSTS.
‘(a) IN GENERAL.—Section 1917(d)(4)(A) of the Social Security Act (42 U.S.C. 1396p(d)(4)(A)) is amended by inserting ‘‘the individual,’’ after ‘‘for the benefit of such individual by’’.
‘(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to trusts established on or after the date of the enactment of this Act.’
Before this amendment, the relevant section of the Social Security Act referred to a trust established “for the benefit of such individual by a parent, grandparent, legal guardian of the individual, or a court….” So persons with disabilities who were nevertheless legally competent could add their assets to a trust created by a parent, grandparent, etc., but could not establish the trust themselves.