Settle Estate in PA

[fejm]

Person died Sept 1998. Most of decedents $ was in life insurance, mutual funds and retirement. None of this passed through the estate and each heir withdrew their own share. Home finally sold in Feb 2000. Executor sold household furnishings. $ was also in a joint account in another state, but was never turned over to the estate & kept by one of the heirs. Executor had decendent sign her car over to Executor less than 6 months before death occured while on heave duty pain meds. Executor has not paid PA inheritance tax although requested to do so by one of the heirs. The inheritance tax is now delinquet and Estate now owes interest which started 9 months after death. PA revenue is after the estate to pay. Executor is ignoring letters from revenue. Executor refuses to provide accounting of estate. Executor refuses to disburse rest of $ from the estate to the heirs. Executor has disbursed additional $ to grandchildren that was not listed in the will or codicil.
1. Should $ that was in joint account be part of the Estate?
2. Should the car be part of the estate?
3. Is the Executor liable for the interest that has been accuring for non payment of PA inheritance tax?
4. Do heirs have a right to an accounting?
5. Can executor disburse additional $ not included in the will or codicil to grandchildren?
6. Is the money made from the sale of household furnishings included as part of the estate.
7. Is there a time limit on settling a small estate in PA.
8. What recourse does an heir have without hiring an attorney?
Thanks

 

[advisor10]

AUG. 27, 2001

DEAR FEJM:

The mutual funds and retirement funds should have been included in the probate of the estate.

How much is the inheritance tax that is now being requested from the estate?

The dishonest actions of this executor is leaving him/her open to some serious legal charges.

Has the estate been officially closed yet? You need to go to the county courthouse (of the city where this person died) to look at the probate file to see what financial records (if any) are there, just to get an idea of how the estate was handled and distributed.

(1) Joint account may not necessarily need to be part of the estate if executor was named as co-account owner. Ask the bank what their procedures are (normally they ask for a claimant to provide legal papers proving they are executor before releasing the funds).

(2) Car probably should be part of the estate, but there seems to be not much you can do about this if it was handled properly through the paperwork. Estate should have paid to put title in name of new owner.

(3) Executor is liable for the interest and full amount of the inheritance tax, but who is receiving the letters about this matter--are they being sent to the executor or to an heir?

(4) Heirs to have the right to see an accounting, but that should have been filed along with the will (if there was one) in the probate file at the county courthouse. Was there a will? If there wasn't (called intestate proceedings), then there still should be something filed at the courthouse about this estate by the executor. If no accounting was filed, that would be highly irregular and you should file a petition with the probate court to ask that the executor be required to produce one.

(5) Disbursing additional monies without having any record of it in the probate court is improper if not accounted for in the probate court.

(6) What does the will say about who gets the household furnishings? That is who gets the money from the sale.

(7) I don't know the answer about time limits for estates in Pennsylvania.

(8) It would be stupid to pursue this matter without hiring an attorney. It doesn't cost very much for you to ask an attorney to file a petition with the probate court to inform them about the actions of this dishonest executor so the court can take proper action. Heirs should get together to split the cost of hiring the attorney.

First you need to calculate how much the heirs would benefit (if at all) by correcting the actions of the executor (if he/she is refusing to disburse the rest of estate and being secretive about it, then she needs to be severely reprimanded by the court and possibly find out about what other assets he/she knows about that aren't being distributed!). At the very least, if you do nothing else, find out if this executor can afford to pay the inheritance tax so that no one else is stuck with it, and have the court make sure that that bill is paid for as an estate expense.

SINCERELY,

[email protected]

 

[fejm]

Yes Will

1. Yes there was a will dividing assests between 3 children. Executor is a beneficary as he is one of the 3 children.
2. PA inheritance tax is @ 9% annually from 9 months from date of death (the past 2 yrs 3 months)
3. Joint owner wasn't the executor was one of the children who was a beneficary. Joint owner closed account even though executor knew about the account he didn't try to get money.
4. PA Dept of Revenue has sent letter to executor about the Inheritance Tax that is deliquent.
5. Additional money disbursed to grandchildren has not been probated. ONly will and codicil were.
6. Will only states assests are to be equally divided among the 3 children, doesn't state who gets household furnishings.
7. Does the interest that has accurred for the past 2years 3 months come directily out of the pocket of the executor or from the estate?
Thanks

 

[advisor10]

AUG. 27, 2001

DEAR FEJM:

Since I am not familiar with Pennsylvania law, you should post your question on the website www.lawguru.com, where it is more likely that an experience Pennsylvania probate attorney will see your question and can give a more accurate response.

If the estate has not closed, then it is possible that the inheritance tax might be submitted as an estate expense, but if the estate has already officially closed, then the executor will have to come up with the money to pay this item, if the revenue agency knows how to contact him at his address.

SINCERELY,

[email protected]