Distribution of Funds

ivanl3 · Apr 12, 2008

What is the name of your state? Pennsylvania

My wife's adult son died in 2003. He had no wife or kids. An estate was established. My wife (his mother) is the adminstritrix (sp.?). Currently there are no funds in, nor claims against, the estate. We are about to settle a wrongful death lawsuit which will result in funds being in the estate. I know that legal fees (1/3 of settlement amount plus fees for expert witnesses, etc.) will be deducted from the settlement amount and only the remainder will end up being in the estate.

Other immediate family of the deceased include a father and one brother (also an adult).

Questions:

1.) Are there laws that will dictate how long the money needs to stay in the estate before being distributed (i.e. - give creditors a chance to make a claim). The estate was established in the early part of 2004. If so, what are they?

2.) Are there laws which dictate how the funds are to be distributed to the survivors (mother, father, brother) or is it up to the discretion of the administratrix? If there are laws, what are they? Not looking for advice or opinions, I am looking for what PA law dictates. If there are no such laws in PA, are there laws in other states that are relatively consistent? If so, what are they?

Thanks.What is the name of your state?

anteater · Apr 12, 2008

ivanl3 said:
Questions:

1.) Are there laws that will dictate how long the money needs to stay in the estate before being distributed (i.e. - give creditors a chance to make a claim). The estate was established in the early part of 2004. If so, what are they?

Here is a link to Tile 20 of the PA code.
http://www.alignedpartners.com/Title_20_web_entry_page.htm

Take a look at Chapter 33 - Administration and Personal Representatives.

2.) Are there laws which dictate how the funds are to be distributed to the survivors (mother, father, brother) or is it up to the discretion of the administratrix? If there are laws, what are they? Not looking for advice or opinions, I am looking for what PA law dictates. If there are no such laws in PA, are there laws in other states that are relatively consistent? If so, what are they?

Yes, there are. Chapter 21 - Intestate Succession.

§ 2103. Shares of others than surviving spouse.

The share of the estate, if any, to which the surviving spouse is not entitled, and the entire estate if there is no surviving spouse, shall pass in the following order:

(1) Issue. – To the issue of the decedent.

(2) Parents. - If no issue survives the decedent, then to the parents or parent of the decedent.

(3) Brothers, sisters, or their issue. - If no parent survives the decedent, then to the issue of each of the decedent's parents.

(4) Grandparents. - If no issue of either of the decedent's parents but at least one grandparent survives the decedent, then half to the paternal grandparents or grandparent, or if both are dead, to the children of each of them and the children of the deceased children of each of them, and half to the maternal grandparents or grandparent, or if both are dead to the children of each of them and the children of the deceased children of each of them. If both of the paternal grandparents or both of the maternal grandparents are dead leaving no child or grandchild to survive the decedent, the half which would have passed to them or to their children and grandchildren shall be added to the half passing to the grandparents or grandparent or to their children and grandchildren on the other side.

(5) Uncles, aunts and their children. and grandchildren. - If no grandparent survives the decedent, then to the uncles and aunts and the children and grandchildren of deceased uncles and aunts of the decedent as provided in section 2104(1) (relating to taking in different degrees).

ivanl3 · Apr 12, 2008

Thank you. That was very helpful. Follow up questions/comments.

Related to Question 1 (how long until funds can be distributed?): I confess there is too much legalize in those links for me to follow all of them. Can you point me to a summary link or can I impose on someone to provide a summary themselves? I am basically looking to know how long my wife will have to give creditors a chance to file a claim.

Related to Question 2: Great info!!!! I actually can follow it too. I was surprised that siblings received no % if there were surviving parents. Keep in mind that there are no kids or spouse in this case. Am I interpreting this correnctly?

Related to Question 2: In our case, the father has refused to co-operate in the lawsuit altogehter. I suspect this may be irrelevant but I mention it anyway. He also has stated orally that he wants any funds to which he is entitled to go to his son (the decedent's brother). I assume he can change his mind ant any time and demand his share, which seems to be 50% or he can make a request to the probate court that his share go to his son, correct? What if he does nothing at all (which is what he has done to date -- won't return attorney phone calls, won't return our phone calls, etc.)?

New Question: Is the adminstratix entilted to some % of the funds for her time? I had heard that 5% is customary. Is a % dictated by law or is it discretionary?

anteater · Apr 12, 2008

ivanl3 said:
Related to Question 1 (how long until funds can be distributed?): I confess there is too much legalize in those links for me to follow all of them. Can you point me to a summary link or can I impose on someone to provide a summary themselves? I am basically looking to know how long my wife will have to give creditors a chance to file a claim.

If the estate was opened in 2004 and your wife made the proper advertisement, then she is probably in the clear. I believe that, if the proper advertisemsnt was made, creditors have 3 or 4 months to present a claim. However, check that with a PA estate attorney.

§ 3162. Advertisement of grant of letters.

The personal representative, immediately after the grant of letters, shall cause notice thereof to be given in one newspaper of general circulation published at or near the place where the decedent resided or, in the case of a nonresident decedent, at or near the place where the letters were granted, and in the legal periodical, if any, designated by rule of court for the publication of legal notices, once a week for three successive weeks, together with his name and address; and in every such notice, he shall request all persons having claims against the estate of the decedent to make known the same to him or his attorney, and all persons indebted to the decedent to make payment to him without delay.

Related to Question 2: Great info!!!! I actually can follow it too. I was surprised that siblings received no % if there were surviving parents. Keep in mind that there are no kids or spouse in this case. Am I interpreting this correnctly?

Related to Question 2: In our case, the father has refused to co-operate in the lawsuit altogehter. I suspect this may be irrelevant but I mention it anyway. He also has stated orally that he wants any funds to which he is entitled to go to his son (the decedent's brother). I assume he can change his mind ant any time and demand his share, which seems to be 50% or he can make a request to the probate court that his share go to his son, correct? What if he does nothing at all (which is what he has done to date -- won't return attorney phone calls, won't return our phone calls, etc.)?

New Question: Is the adminstratix entilted to some % of the funds for her time? I had heard that 5% is customary. Is a % dictated by law or is it discretionary?

Your wife is going to be in for a rough time if Father continues to be obstinate. Frankly, I would send him a check for his rightful share and tell him that he can do what he wants with it. Otherwise, he is going to waste the estate's and the court's time and money.

PA is a state that uses non-specific "reasonable and just" criteria when it comes to personal representative compensation. My guess is that 5% of estate value might be considered on the high side unless she was highly involved in the wrongful death suit. My advice would be for her to keep a record of what tasks she performed and at least an estimate of the time involved.

By the way, remember that PA has an inheritance tax. Run things by an attorney or tax professional familiar with the inheritance tax.

Distribution of Funds

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ivanl3

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anteater

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ivanl3

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anteater

Senior Member

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