PRINTER'S NOS. 827,1487 PRINTER'S NO. 1591
No. 768 Session of 1979
INTRODUCED BY SNYDER, REIBMAN, KELLEY, GREENLEAF AND GEKAS,
MAY 22, 1979
AS AMENDED ON THIRD CONSIDERATION, FEBRUARY 26, 1980
AN ACT
1 Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2 Pennsylvania Consolidated Statutes, providing for petitions
3 attested by verified statements, increasing intestate share
4 of surviving spouse; clarifying certain provisions relating
5 to spouses' elections; authorizing certain payments to family
6 and funeral directors; changing bond requirements; adding
7 provisions for information services and distributees; <--
8 increasing interest rates; changing provisions concerning
9 termination of trusts and combination of trusts; making
10 technical and editorial changes and making repeals.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 761 of Title 20, act of November 25, 1970
14 (P.L.707, No.230), known as the Pennsylvania Consolidated
15 Statutes, amended April 28, 1978 (P.L.202, No.53), is amended to
16 read:
17 § 761. Petitions.
18 All applications to the orphans' court division shall be by
19 petition in the form prescribed by general rules and shall be
20 attested either by an affidavit or by a verified statement. In
21 the case of the latter alternative, the statement shall set
22 forth that it is subject to the penalties of 18 Pa.C.S. § 4904
1 (relating to unsworn falsification to authorities).
2 Section 2. Section 2102, subsection (a) of section 2203 and
3 subsection (c) of section 2204 of Title 20, amended or added
4 April 18, 1978 (P.L.42, No.23), are amended to read:
5 § 2102. Share of surviving spouse.
6 The intestate share of a decedent's surviving spouse is:
7 (1) If there is no surviving issue or parent of the
8 decedent, the entire intestate estate.
9 (2) If there is no surviving issue of the decedent but
10 he is survived by a parent or parents, the first [$20,000]
11 $50,000 plus one-half of the balance of the intestate estate.
12 (3) If there are surviving issue of the decedent all of
13 whom are issue of the surviving spouse also, the first
14 [$20,000] $50,000 plus one-half of the balance of the
15 intestate estate.
16 (4) If there are surviving issue of the decedent one or
17 more of whom are not issue of the surviving spouse, one-half
18 of the intestate estate.
19 (5) In case of partial intestacy any property received
20 by the surviving spouse under the will shall satisfy pro
21 tanto the [$20,000] $50,000 allowance under paragraphs (2)
22 and (3).
23 § 2203. Right of election; resident decedent.
24 (a) Property subject to election.--When a married person
25 domiciled in this Commonwealth dies, his surviving spouse has a
26 right to an elective share of one-third of the following
27 property:
28 (1) Property passing from the decedent by will or
29 intestacy.
30 (2) Income or use for the remaining life of the spouse
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1 of property conveyed by the decedent during the marriage to
2 the extent that the decedent at the time of his death had the
3 use of the property or an interest in or power to withdraw
4 the income thereof.
5 (3) Property conveyed by the decedent during his
6 lifetime to the extent that the decedent at the time of his
7 death had a power to revoke the conveyance or to consume,
8 invade or dispose of the principal for his own benefit.
9 (4) Property conveyed by the decedent during the
10 marriage to himself and another or others with right of
11 survivorship to the extent of any interest in the property
12 that the decedent had the power at the time of his death
13 unilaterally to convey absolutely or in fee.
14 (5) Survivorship rights conveyed to a beneficiary of an
15 annuity contract to the extent it was purchased by the
16 decedent during the marriage and the decedent was receiving
17 annuity payments therefrom at the time of his death.
18 (6) [Property in excess of $3,000 in value conveyed to
19 any one donee by the decedent during the marriage within one
20 year of his death.] Property conveyed by the decedent during
21 the marriage and within one year of his death to the extent
22 that the aggregate amount so conveyed to each donee exceeds
23 $3,000, valued at the time of conveyance.
24 In construing this subsection, a power in the decedent to
25 withdraw income or principal, or a power in any person whose
26 interest is not adverse to the decedent to distribute to or use
27 for the benefit of the decedent any income or principal, shall
28 be deemed to be a power in the decedent to withdraw so much of
29 the income or principal as is subject to such power, even though
30 such income or principal may be distributed only for support or
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1 other particular purpose or only in limited periodic amounts.
2 * * *
3 § 2204. Disclaimers, releases and charges against elective
4 share.
5 * * *
6 (c) Charges against elective share.--Notwithstanding the
7 provisions of subsections (a) and (b), the spouse may elect to
8 retain any beneficial interest described in subsection (a) which
9 immediately after the decedent's death consists of property
10 owned by the spouse outright or in fee simple absolute, and have
11 the value thereof at the time of the decedent's death charged
12 against the elective share. The value at the time of the
13 decedent's death of any beneficial interest described in
14 subsection (a), regardless of its form, shall also be so charged
15 against the elective share to the extent that it cannot be
16 disclaimed, conveyed or released. If any property retained by
17 the spouse pursuant to this subsection would have reverted to
18 the personal representative of the decedent's estate under
19 section 2211(b)(2) and (3) (relating to determination of effect
20 of election; enforcement) had the property been disclaimed, its
21 value shall be added to the value of the property passing by
22 will or intestacy for the purpose of computing the spouse's
23 elective share under section 2203(a)(1) (relating to right of
24 election; resident decedent).
25 * * *
26 Section 3. Section 3101 SECTIONS 3101 AND 3102 of Title 20 <--
27 is ARE amended to read: <--
28 § 3101. Payments to family and funeral directors.
29 (a) Wages, salary or employee benefits.--Any employer of a
30 person dying domiciled in [the] THIS Commonwealth at any time <--
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1 after the death of the employee, whether or not a personal
2 representative has been appointed, may pay wages, salary or any
3 employee benefits due the deceased in an amount not exceeding
4 $3,500 to the spouse, any child, the father or mother, or any
5 sister or brother (preference being given in the order named) of
6 the deceased employee. Any employer making such a payment shall
7 be released to the same extent as if payment had been made to a
8 duly appointed personal representative of the decedent and he
9 shall not be required to see to the application thereof. Any
10 person to whom payment is made shall be answerable therefor to
11 anyone prejudiced by an improper distribution.
12 (b) Deposit account.--Any bank, savings association, savings
13 and loan association, building and loan association, credit
14 union or other savings organization, at any time after the death
15 of a depositor, member or certificate holder, may pay the amount
16 on deposit or represented by the certificate, when the total
17 standing to the credit of the decedent in that institution does
18 not exceed $1,500, to the spouse, any child, the father or
19 mother or any sister or brother (preference being given in the
20 order named) of the deceased depositor, member or certificate
21 holder, provided that a receipted funeral bill or an affidavit,
22 executed by a licensed funeral director which sets forth that
23 satisfactory arrangements for payment of funeral services have
24 been made, is presented. Any bank, association, union or other
25 savings organization making such a payment shall be released to
26 the same extent as if payment had been made to a duly appointed
27 personal representative of the decedent and it shall not be
28 required to see to the application thereof. Any person to whom
29 payment is made shall be answerable therefor to anyone
30 prejudiced by an improper distribution.
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1 (c) Payments to funeral directors.--When the decedent was a
2 qualified recipient of medical assistance from the Department of
3 Public Welfare of the Commonwealth of Pennsylvania, the facility <--
4 in which he was a patient may make payment of funds, if any,
5 remaining in the patient's care account, for the decedent's
6 burial expenses to a licensed funeral director in an amount not
7 exceeding $1,000 whether or not a personal representative has
8 been appointed. Any facility making such a payment shall be
9 released to the same extent as if payment had been made to a
10 duly appointed personal representative of the decedent and it
11 shall not be required to see to the application thereof. Any
12 licensed funeral director to whom payment is made shall be
13 answerable therefor to anyone prejudiced by an improper
14 distribution.
15 § 3102. SETTLEMENT OF SMALL ESTATES ON PETITION. <--
16 WHEN ANY PERSON DIES DOMICILED IN THE COMMONWEALTH OWNING
17 PROPERTY (EXCLUSIVE OF REAL ESTATE AND OF PROPERTY PAYABLE UNDER
18 SECTION 3101 (RELATING TO PAYMENTS TO FAMILY AND FUNERAL
19 DIRECTORS), BUT INCLUDING PERSONAL PROPERTY CLAIMED AS THE
20 FAMILY EXEMPTION) OF A GROSS VALUE NOT EXCEEDING $10,000, THE
21 ORPHANS' COURT DIVISION OF THE COUNTY WHEREIN THE DECEDENT WAS
22 DOMICILED AT THE TIME OF HIS DEATH, UPON PETITION OF ANY PARTY
23 IN INTEREST, IN ITS DISCRETION, WITH OR WITHOUT APPRAISEMENT,
24 AND WITH SUCH NOTICE AS THE COURT SHALL DIRECT, AND WHETHER OR
25 NOT LETTERS HAVE BEEN ISSUED OR A WILL PROBATED, MAY DIRECT
26 DISTRIBUTION OF THE PROPERTY (INCLUDING PROPERTY NOT PAID UNDER
27 SECTION 3101) TO THE PARTIES ENTITLED THERETO. THE AUTHORITY OF
28 THE COURT TO AWARD DISTRIBUTION OF PERSONAL PROPERTY UNDER THIS
29 SECTION SHALL NOT BE RESTRICTED BECAUSE OF THE DECEDENT'S
30 OWNERSHIP OF REAL ESTATE, REGARDLESS OF ITS VALUE. THE DECREE OF
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1 DISTRIBUTION SO MADE SHALL CONSTITUTE SUFFICIENT AUTHORITY TO
2 ALL TRANSFER AGENTS, REGISTRARS AND OTHERS DEALING WITH THE
3 PROPERTY OF THE ESTATE TO RECOGNIZE THE PERSONS NAMED THEREIN AS
4 ENTITLED TO RECEIVE THE PROPERTY TO BE DISTRIBUTED WITHOUT
5 ADMINISTRATION, AND SHALL IN ALL RESPECTS HAVE THE SAME EFFECT
6 AS A DECREE OF DISTRIBUTION AFTER AN ACCOUNTING BY A PERSONAL
7 REPRESENTATIVE. WITHIN ONE YEAR AFTER SUCH A DECREE OF
8 DISTRIBUTION HAS BEEN MADE, ANY PARTY IN INTEREST MAY FILE A
9 PETITION TO REVOKE IT BECAUSE AN IMPROPER DISTRIBUTION HAS BEEN
10 ORDERED. IF THE COURT SHALL FIND THAT AN IMPROPER DISTRIBUTION
11 HAS BEEN ORDERED, IT SHALL REVOKE THE DECREE AND SHALL DIRECT
12 RESTITUTION AS EQUITY AND JUSTICE SHALL REQUIRE.
13 Section 4. Subsection (c) of section 3133 and paragraph (1)
14 of section 3153 of Title 20 are amended to read:
15 § 3133. Limit of time for probate.
16 * * *
17 (c) Effect upon grantee or [mortgagee] lienholder.--A will
18 offered for original or subsequent probate more than [two years]
19 one year after the [decedent's] testator's death shall be void
20 against a bona fide grantee or [mortgagee of] holder of a lien
21 on real estate of the [decedent] testator if the conveyance or
22 [mortgage] lien is [recorded] entered of record before the will
23 is offered for probate.
24 § 3153. Contents of petition.
25 A petition for the grant of letters testamentary or of
26 administration shall state, under oath, so far as they are
27 known:
28 (1) The decedent's name, age, state or country of
29 domicile, his last family or principal residence, and the
30 place and day [and hour] of his death.
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1 * * *
2 Section 5. Section 3174 of Title 20, amended April 18, 1978
3 (P.L.42, No.23), is amended to read:
4 § 3174. When not required.
5 (a) Corporate personal representative.--No bond shall be
6 required of:
7 (1) A bank and trust company or of a trust company
8 incorporated in [the] THIS Commonwealth. <--
9 (2) A national bank having its principal office in [the] <--
10 THIS Commonwealth. <--
11 (3) A foreign corporate fiduciary or a national bank
12 having its principal office out of [the] THIS Commonwealth, <--
13 otherwise qualified to act if the laws of the state in which
14 it is incorporated or in which the national bank is located
15 provide a similar exemption for corporations existing under
16 the laws of this Commonwealth.
17 [(b) Resident personal representative.--No bond shall be
18 required of an individual personal representative who is a
19 resident of the Commonwealth if he is named in the will as an
20 original or as a successor personal representative unless it is
21 required by the will or is ordered by the court.
22 (b.1) Nonresident co-personal representative.--No bond shall
23 be required of an individual named in the will who is not a
24 resident of the Commonwealth but who will serve with a resident
25 co-personal representative who is also named in the will, if the
26 petition for letters includes an averment that all assets will
27 remain in the custody and control of the resident co-personal
28 representative, unless a bond is required by the will or is
29 ordered by the court.
30 (c) Nonresident personal representative.--No bond shall be
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1 required of an individual personal representative not a resident
2 of the Commonwealth who is named in the will and has been
3 excused from filing a bond by the express direction of the
4 testator in his will unless the register or the court, for
5 cause, deems it necessary, in which event the register or the
6 court, in fixing the amount of the bond, shall have regard to
7 all the circumstances, including the amount of inheritance tax
8 and estate tax due the Commonwealth and the amount of the
9 decedent's debts.
10 (d) Estates under $5,000.--No bond shall be required of a
11 personal representative of an estate having a value of less than
12 $5,000 unless a person having an interest in the estate requests
13 that a bond be required.]
14 (b) Instances when bond not required INDIVIDUAL PERSONAL <--
15 REPRESENTATIVE.--Unless a bond is ordered by the court or is
16 required by the will, if any, no bond shall be required of an
17 individual personal representative who:
18 (1) Is named in the will as an original or successor
19 personal representative and:
20 (i) is a resident of the THIS Commonwealth; or <--
21 (ii) has been excused from filing a bond by the
22 express direction of the testator in his will; or
23 (iii) is not a resident of the THIS Commonwealth but <--
24 will serve with a resident co-personal representative of
25 whom no bond is required if the petition for letters
26 includes an averment that all assets will remain in the
27 custody and control of the resident co-personal
28 representative.
29 (2) Is not named in the will, if any, as an original or
30 successor personal representative but is a resident of the <--
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1 THIS Commonwealth and is either the sole residuary legatee or <--
2 next of kin or is the nominee of all residuary legatees or
3 next of kin who are adult and sui juris.
4 Section 6. Title 20 is amended by adding sections to read:
5 § 3539. Information services. <--
6 When an agreement between a distributee and a person or
7 corporation that has informed the distributee who is a minor of
8 his interest in an estate provides for payment for services to
9 the informant, it shall, upon request of a party, be subject to
10 review and adjustment by the court as justice and equity
11 require. The provisions of this section may not be waived.
12 § 3539. (RESERVED) <--
13 § 3540. Absentee and additional distributees.
14 (a) Distributions due absentees.--
15 (1) If the continued existence or whereabouts of an
16 heir, devisee or legatee who once existed cannot be
17 ascertained at the time of the audit of the personal
18 representative's account, the court, unless it finds pursuant
19 to section 5701 (relating to proof of death) that the
20 absentee's death has disqualified him as a distributee of the
21 estate, or unless a trustee has been appointed for such
22 absentee pursuant to section 5702 (relating to trustee for
23 absentee), shall direct that any property distributable to
24 the absentee shall be converted into money that shall be paid
25 into the State Treasury, through the Department of Revenue.
26 The moneys shall be held in a custodial capacity subject to
27 refund, without appropriation, pursuant to Article III, <--
28 Section 24 of the Pennsylvania Constitution SECTION 24 OF <--
29 ARTICLE III OF THE CONSTITUTION OF PENNSYLVANIA.
30 (2) The court shall retain jurisdiction with respect to
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1 any claim to such moneys. Upon further findings and order of
2 court that a claimant is entitled to all or a part of the
3 moneys, the Board of Finance and Revenue, upon petition,
4 shall refund such moneys pursuant to the order of court.
5 (b) Possibility of additional distributees.--If the
6 existence of a person or persons would affect the distribution
7 of an estate but there is no proof that such a person ever
8 existed, and the court is satisfied that all reasonable steps
9 have been taken to determine whether such a person existed, the
10 court may award distribution of the estate to those who would be
11 entitled if no such person existed, with or without refunding
12 bonds. Any such bond shall be without security, shall be in such
13 form and amount as the court directs, shall be executed by each
14 distributee and filed with the clerk, and shall provide that if,
15 within seven years or any shorter period fixed by the court, it
16 is later established that there is an additional person or
17 persons entitled to share in the distribution of the estate, the
18 distributee upon demand will return such portion or all of the
19 property received by him as the court may direct or, if it has
20 been disposed of, will make such restitution as the court deems
21 equitable.
22 Section 7. Subsections (a) and (c) of section 3543 of Title
23 20 are amended to read:
24 § 3543. Interest or income on distributive shares.
25 (a) Pecuniary legacy.--A pecuniary legacy bequeathed in
26 trust shall bear interest at the rate of [3%] 5% per annum from
27 the death of the decedent until the payment of the legacy, and
28 when not in trust shall bear interest at the rate of [3%] 5% per
29 annum from one year after the death of the decedent until the
30 payment of the legacy.
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1 * * *
2 (c) Demonstrative legacy.--A demonstrative legacy shall bear
3 interest from the death of the decedent until the payment of the
4 legacy at the rate earned by the property out of which it is
5 primarily payable, and to the extent that it is not paid from
6 that source, shall bear interest at the rate of [3%] 5% per
7 annum from one year after the death of the decedent until the
8 payment of the legacy.
9 * * *
10 Section 8. Subsection (a) of section 6102 of Title 20, is
11 amended to read:
12 § 6102. Termination of trusts.
13 (a) Failure of original purpose.--The court having
14 jurisdiction of a trust heretofore or hereafter created,
15 regardless of any spendthrift or similar provision therein, in
16 its discretion may terminate such trust in whole or in part, or
17 make an allowance from principal to [a conveyor, his spouse,
18 issue, parents, or any of them, who is an income beneficiary,]
19 one or more beneficiaries provided the court after hearing is
20 satisfied that the original purpose of the conveyor cannot be
21 carried out or is impractical of fulfillment and that the
22 termination, partial termination, or allowance more nearly
23 approximates the intention of the conveyor, and notice is given
24 to all parties in interest or to their duly appointed
25 fiduciaries. [But, distributions of principal under this
26 section, whether by termination, partial termination, or
27 allowance, shall not exceed an aggregate value of $50,000 from
28 all trusts created by the same conveyor.]
29 * * *
30 Section 9. Section 6109 of Title 20 is repealed.
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1 Section 10. Section 7183 of Title 20 is amended by adding
2 paragraphs to read:
3 § 7183. Notice, audits, reviews, and distribution.
4 The provisions concerning accounts, audits, reviews,
5 distributions and rights of distributees in trust estates shall
6 be the same as those set forth in this title for the
7 administration of a decedent's estate, with regard to the
8 following:
9 * * *
10 (15) Information services, as in section 3539 (relating
11 to information services).
12 (16) Absentee and additional distributees, as in section
13 3540 (relating to absentee and additional distributees).
14 Section 11. Paragraph (1) of section 7187 and section 7192
15 of Title 20 are amended to read:
16 § 7187. Interest or income on distributive shares.
17 Except as otherwise provided by the trust instrument or by
18 the provisions of section 3543 (relating to interest or income
19 on distributive shares):
20 (1) Pecuniary gift.--When a sum of money is directed to
21 be set aside at a specified time as a separate trust, it
22 shall bear interest at the rate of [3%] 5% per annum from the
23 date it was to be set aside until it is set aside. When a sum
24 of money is directed to be paid outright, it shall bear
25 interest at the rate of [3%] 5% per annum from three months
26 after it became payable until it is paid.
27 * * *
28 § 7192. Combination of trusts.
29 [Whenever the trust instrument provides for the creation of
30 separate trusts, the court, for cause shown and with the consent
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1 of all parties in interest, may authorize the trusts to be
2 combined.] The court, for cause shown, may authorize the
3 combination of separate trusts with substantially similar
4 provisions upon such terms and conditions and with such notice
5 as the court shall direct notwithstanding that the trusts may
6 have been created by separate instruments and by different
7 persons. If necessary to protect possibly different future
8 interests, the assets shall be valued at the time of any such
9 combination and a record made of the proportionate interest of
10 each separate trust in the combined fund.
11 Section 12. The act of August 9, 1971 (P.L.286, No.74),
12 known as the "Disposition of Abandoned and Unclaimed Property
13 Act," is repealed insofar as it is inconsistent with the
14 provisions of 20 Pa.C.S. § 3540 (relating to absentee and
15 additional distributees).
16 Section 13. This act shall take effect in 60 days, except
17 that the provisions of section 20 PA.C.S. § 3540 (relating to <--
18 absentee and additional distributees) shall take effect
19 immediately and apply to estates and trusts now existing or
20 hereafter arising, and the change in interest rates in sections <--
21 PROVISIONS OF 20 PA.C.S. §§ 3543 (relating to interest or income <--
22 on distributive shares) and 7187 (relating to interest or income
23 on distributive shares) which shall take effect with respect <--
24 IMMEDIATELY AND APPLY to interest accruing on or after January 1 <--
25 of the year next following the date of final enactment.
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