CHAPTER 33
ADMINISTRATION AND PERSONAL REPRESENTATIVES
Subchapter
A. Inventory
B. Personal Representatives; Powers, Duties and Liabilities
C. Sales, Pledges, Mortgages, Leases, Options and Exchanges
D. Abatement, Survival and Control of Actions
E. Claims; Charges; Rights of Creditors
Enactment. Chapter 33 was added June 30, 1972, P.L.508, No.164, effective July 1, 1972.
SUBCHAPTER A
INVENTORY
Sec.
3301. Duty of personal representative.
3302. Valuations.
3303. Supplemental inventory.
3304. Claims against personal representative.
3305. Objections to inventory.
§ 3301. Duty of personal representative.
(a) General assets.--Every personal representative shall file with the register a verified inventory of all real and personal estate of the decedent, except real estate outside of this Commonwealth. An ancillary personal representative shall include in the inventory only assets for which he is responsible.
(b) Real estate outside of Commonwealth.--The inventory shall include at the end a memorandum of real estate outside of this Commonwealth. The memorandum, at the election of the personal representative, may indicate the value of each item of real estate included therein, but the values so fixed shall not be extended into the total of the inventory or included as real estate in subsequent accountings.
(c) Time for filing.--The personal representative shall file his inventory no later than the date he files his account or the due date, including any extension, for the filing of the inheritance tax return for the estate, whichever is earlier. Any party in interest in the estate may request the filing of an inventory at an earlier date by writing delivered to the personal representative or his attorney in which event an inventory shall be filed within three months after the appointment of the personal representative or within 30 days after the request, whichever is later. The court may direct the personal representative to file an inventory of estate assets at any time.
(Oct. 12, 1984, P.L.929, No.182, eff. imd.; Oct. 27, 2010, P.L.837, No.85, eff. 60 days)
2010 Amendment. Act 85 amended subsec. (c).
§ 3302. Valuations.
The personal representative shall determine and state in figures opposite each item of the inventory its fair value as of the date of the decedent's death.
§ 3303. Supplemental inventory.
Whenever any property not included in the inventory comes to the knowledge of the personal representative, he shall file, within 30 days of its discovery, a supplemental inventory thereof with the register.
§ 3304. Claims against personal representative.
The appointment of a personal representative shall not operate as a discharge or bequest of any debt which he owes the decedent or of any claim which the decedent had against him, but any such debt or claim, if it survives, shall be included in the inventory.
§ 3305. Objections to inventory.
Objections to the inventory may be made by any party in interest at any time up to and including the time fixed by rule of court for making objections to the first account of the personal representative. Such objections in the discretion of the court may be heard at the audit of the account. Objections to the inventory also may be made in the form of objections to the account.
SUBCHAPTER B
PERSONAL REPRESENTATIVES; POWERS,
DUTIES AND LIABILITIES
Sec.
3311. Possession of real and personal estate; exception.
3312. Renunciation of right to administer property.
3313. Liability insurance.
3314. Continuation of business.
3315. Incorporation of or formation of entity to operate estate's business.
3316. Investment of funds.
3316.1. Set-aside.
3317. Claims against co-fiduciary.
3318. Revival of judgments against personal representative.
3319. Power of attorney; delegation of power over subscription rights and fractional shares; authorized delegations.
3320. Voting stock by proxy.
3321. Nominee registration; corporate fiduciary as agent; deposit of securities in a clearing corporation; book-entry securities.
3322. Acceptance of deed in lieu of foreclosure.
3323. Compromise of controversies.
3324. Death or incapacity of fiduciary.
3325. Administrator C.T.A.
3326. Administrator D.B.N. and D.B.N.C.T.A.
3327. Surviving or remaining personal representatives.
3328. Disagreement of personal representatives.
3329. Effect of revocation of letters, probate of will, later will or codicil.
3330. Notice of devise or bequest to corporation or association.
3331. Liability of personal representative on contracts.
3332. Inherent powers and duties.
§ 3311. Possession of real and personal estate; exception.
(a) Personal representative.--A personal representative shall have the right to and shall take possession of, maintain and administer all the real and personal estate of the decedent, except real estate occupied at the time of death by an heir or devisee with the consent of the decedent. He shall collect the rents and income from each asset in his possession until it is sold or distributed, and, during the administration of the estate, shall have the right to maintain any action with respect to it and shall make all reasonable expenditures necessary to preserve it. The court may direct the personal representative to take possession of, administer and maintain real estate so occupied by an heir or a devisee if this is necessary to protect the rights of claimants or other parties. Nothing in this section shall affect the personal representative's power to sell real estate occupied by an heir or devisee.
(b) Redevelopment authority.--A redevelopment authority granted letters of administration shall have the power to take, clear, combine or transfer title to real property of the estate as necessary to return such property to productive use and, upon payment of fair market value of the property in its current state, to the estate.
(Nov. 29, 2006, P.L.1536, No.171, eff. 60 days)
§ 3312. Renunciation of right to administer property.
When any property is of no value to the estate, the court may authorize the personal representative to renounce his right to administer it.
§ 3313. Liability insurance.
The personal representative, at the expense of the estate, may protect himself, his employees and the beneficiaries by insurance from liability to third persons arising from the administration of the estate.
Cross References. Section 3313 is referred to in sections 5144, 5521 of this title.
§ 3314. Continuation of business.
Giving due regard to the provisions of the governing instrument and any other factor that the court deems relevant, and aided by the report of a master if necessary, the court may authorize the personal representative to continue any business of the estate for the benefit of the estate. The order may be with or without notice. If prior notice is not given to all parties in interest, it shall be given within five days after the order or within such extended time as the court, for cause shown, shall allow. Any party in interest may, at any time, petition the court to revoke or modify the order. The order may provide:
(1) for the conduct of business, by the personal representative alone or jointly with others, or, unless restricted by the terms of the governing instrument, as a corporation, partnership, limited liability company or other entity to be formed;
(2) the extent of the liability of the estate or any part thereof, or of the personal representative, for obligations incurred in the continuation of the business;
(3) whether liabilities incurred in the conduct of the business are to be chargeable solely to the part of the estate set aside for use in the business or to the estate as a whole;
(4) the period of time the business may be conducted;
(4.1) for the compensation of a personal representative actively managing, supervising or engaging in the operation of an entity or business, from the estate's assets or from the entity or business, as appropriate, provided that the compensation is reasonably based upon the actual responsibilities assumed and performed; and
(5) such other regulations, including accountings, as the court shall deem advisable.
(July 8, 2016, P.L.497, No.79, eff. Jan. 1, 2017)
Cross References. Section 3314 is referred to in sections 5144, 5521 of this title.
§ 3315. Incorporation of or formation of entity to operate estate's business.
After notice to all parties in interest, aided by the report of a master if necessary, and giving due regard to the provisions of the governing instrument and any other factor that the court deems relevant, the court may authorize the personal representative alone or jointly with others, to organize a corporation, or form a partnership, limited liability company or other entity, to carry on the business of the estate, whether the business was owned solely or with others, and may contribute for stock of the corporation, as capital, or for an interest in a partnership, limited liability company or other entity, all or part of the property of the estate which was invested in the business.
(July 8, 2016, P.L.497, No.79, eff. Jan. 1, 2017)
Cross References. Section 3315 is referred to in sections 5144, 5521 of this title.
§ 3316. Investment of funds.
Subject to his duty to liquidate the estate for prompt distribution and to the provisions of the will, if any, the personal representative may invest the funds of the estate but shall have no duty to do so. Any such investment, except as the court or the will may otherwise authorize or direct, shall be restricted to:
(1) obligations of the United States or the United States Treasury, of the Commonwealth, or of any political subdivision of the Commonwealth;
(2) an interest-bearing deposit in any bank, bank and trust company, savings bank or national banking association located within this Commonwealth if:
(i) the maturity date or the permissible date of withdrawal does not exceed one year from the date of the deposit or any renewal thereof; and
(ii) the deposits do not exceed the amount which is fully insured by the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act (64 Stat. 873, 12 U.S.C. §§ 264 and 1811 et seq.);
(3) savings accounts of any savings association incorporated under the laws of this Commonwealth, or of any Federal savings and loan association incorporated under the laws of the United States, if the withdrawal or repurchase value thereof is insured by the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act; and
(4) a money market mutual fund affiliated with a corporate personal representative.
The personal representative may also make temporary investments as authorized by section 7207 (relating to retention of cash; temporary investments) without regard to any investment restrictions imposed by the will.
(Dec. 16, 1992, P.L.1163, No.152, eff. imd.; June 25, 1999, P.L.212, No.28, eff. 6 months)
1999 Amendment. See section 6(a) of Act 28 in the appendix to this title for special provisions relating to applicability.
1992 Amendment. See section 27(b) of Act 152 in the appendix to this title for special provisions relating to applicability.
§ 3316.1. Set-aside.
A personal representative may, without court approval, set aside property in a separate fund prior to actual distribution, after which income earned on the separate fund and appreciation or depreciation of the property set-aside shall belong to the separate fund.
(Oct. 12, 1999, P.L.422, No.39, eff. 60 days)
1999 Amendment. Act 39 added section 3316.1. See section 13(8) of Act 39 in the appendix to this title for special provisions relating to applicability.
§ 3317. Claims against co-fiduciary.
When one of two or more personal representatives shall be individually liable to the estate, the other or others shall take any legal action against him necessary to protect the estate.
Cross References. Section 3317 is referred to in sections 5144, 5521 of this title.
§ 3318. Revival of judgments against personal representative.
When the estate holds a judgment which is a lien on the real estate of the personal representative, any party in interest may suggest his interest in the judgment upon the record thereof and bring an appropriate action to revive it and to continue its lien. Any judgment so revived shall remain for the use of all parties in interest.
Cross References. Section 3318 is referred to in sections 5144, 5521 of this title.
§ 3319. Power of attorney; delegation of power over subscription rights and fractional shares; authorized delegations.
(a) Power of attorney.--A personal representative may convey real estate, transfer title to personal estate, or perform any other act of administration by an attorney or agent under a power of attorney. Nothing in this subsection authorizes the delegation of any discretionary power.
(b) Delegation of power over subscription rights and fractional shares.--Where there is more than one personal representative, one or more may delegate to another the power to decide whether rights to subscribe to stock should be sold or should be exercised, and also the power to decide whether a fractional share of stock should be sold or should be rounded out to a whole share through the purchase of an additional fraction, and also the power to carry out any such decision. Any delegation may extend to all subscription rights and fractional shares from time to time received by the personal representatives on account of stock held by them, or may be limited to any extent specified in the delegation. No exercise of any delegated power shall be valid, unless:
(1) the stock on which the subscription rights or fractional shares are issued are listed or traded on the New York Stock Exchange or any other exchange approved by the Department of Banking; and
(2) the shares held by the personal representatives on which the subscription rights or fractional shares are issued constitute less than 5% of the total outstanding shares of the same class of the same corporation.
(c) Delegation authorized by governing instrument.--Nothing in this section precludes a delegation authorized by the governing instrument.
(Oct. 12, 1999, P.L.422, No.39, eff. 60 days)
1999 Amendment. Act 39 amended subsec. (a). See section 13(8) of Act 39 in the appendix to this title for special provisions relating to applicability.
Cross References. Section 3319 is referred to in sections 5144, 5521 of this title.
§ 3320. Voting stock by proxy.
The personal representatives or a majority of them, either in person or by proxy, may vote stock owned by the estate.
Cross References. Section 3320 is referred to in sections 5144, 5521 of this title.
§ 3321. Nominee registration; corporate fiduciary as agent; deposit of securities in a clearing corporation; book-entry securities.
(a) Corporate personal representative.--A bank and trust company or a trust company incorporated in the Commonwealth, or a national bank with trust powers having its principal office in the Commonwealth, may keep investments or fractional interests in investments held by it, either as sole personal representative or jointly with other personal representatives, in the name or names of the personal representatives or in the name of the nominee of the corporate personal representative: Provided, That the consent thereto of all the personal representatives is obtained: And provided further, That all such investments shall be so designated upon the records of the corporate personal representative that the estate to which they belong shall appear clearly at all times.
(b) Individual personal representative.--A personal representative serving jointly with a bank and trust company or a trust company incorporated in the Commonwealth, or with a national bank having its principal office in the Commonwealth, may authorize or consent to the corporate personal representative having exclusive custody of the assets of the estate and to the holding of such investments in the name of a nominee of such corporate personal representative, to the same extent and subject to the same requirements that the corporate personal representative, if it were the sole personal representative, would be authorized to hold such investments in the name of its nominee.
(c) Corporate fiduciary as agent.--An individual personal representative may employ a bank and trust company or a trust company incorporated in the Commonwealth, or a national bank with trust powers having its principal office in the Commonwealth, to act as his agent under a power of attorney in the performance of ministerial duties, including the safekeeping of estate assets, and such agent, when so acting, may be authorized to hold such investments in the name of its nominee to the same extent and subject to the same requirements that such agent, if it were the personal representative, would be authorized to hold such investments in the name of the nominee.
(d) Deposit of securities in a clearing corporation.--A personal representative holding securities in its fiduciary capacity, any bank and trust company, trust company or National bank holding securities as an agent pursuant to subsection (c) of this section, is authorized to deposit or arrange for the deposit of such securities in a clearing corporation (as defined in Division 8 of Title 13 (relating to investment securities)). When such securities are so deposited, certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of such clearing corporation with any other such securities deposited in such clearing corporation by any person regardless of the ownership of such securities, and certificates of small denomination may be merged into one or more certificates of larger denomination. The records of such fiduciary and the records of such bank and trust company, trust company or National bank acting as an agent under a power of attorney for a personal representative shall at all times show the name of the party for whose account the securities are so deposited. Title to such securities may be transferred by bookkeeping entry on the books of such clearing corporation without physical delivery of certificates representing such securities. A bank and trust company, trust company or National bank so depositing securities pursuant to this section shall be subject to such rules and regulations as, in the case of State chartered institutions, the Department of Banking and, in the case of National banking associations, the comptroller of the currency may from time to time issue including, without limitation, standards for, or the method of making a determination of, the financial responsibility of any clearing corporation in which securities are deposited. A bank and trust company, trust company or National bank acting as custodian for a personal representative shall, on demand by the personal representative, certify in writing to the personal representative the securities so deposited by such bank and trust company, trust company or National bank in such clearing corporation for the account of such personal representative. A personal representative shall, on demand by any party to a judicial proceeding for the settlement of such personal representative's account or on demand by the attorney for such party, certify in writing to such party the securities deposited by such personal representative in such clearing corporation for its account as such personal representative.
(e) Accounting for book-entry securities.--With respect to securities which are available in book-entry form as an alternative to securities in definitive form, the receipt, holding or transfer of such securities in book-entry form by a bank and trust company, trust company or National bank acting as a sole or joint personal representative, or as an attorney-in-fact for a personal representative, is for all purposes equivalent to the receipt, holding or transfer of such securities in definitive form and no segregation of such book-entry securities shall be required other than by appropriate accounting records to identify the accounts for which such securities are held.
(Oct. 10, 1974, P.L.720, No.242, eff. imd.; Nov. 1, 1979, P.L.255, No.86, eff. Jan. 1, 1980; Dec. 16, 1992, P.L.1163, No.152, eff. imd.; Oct. 12, 1999, P.L.422, No.39, eff. 60 days)
1999 Amendment. Act 39 amended the section heading and subsecs. (c) and (d). See section 13(8) of Act 39 in the appendix to this title for special provisions relating to applicability.
1992 Amendment. Act 152 amended subsec. (e).
1974 Amendment. Act 242 amended the section heading and added subsecs. (d) and (e).
Cross References. Section 3321 is referred to in sections 5144, 5521, 5607, 7780, 7792 of this title.
§ 3322. Acceptance of deed in lieu of foreclosure.
The personal representative may take for the estate from the owner of property encumbered by a mortgage owned by the estate, a deed in lieu of foreclosure, in which event the real estate shall be considered personalty to the same extent as though title were acquired by foreclosure at sheriff's sale. Any deed or deeds heretofore so accepted are hereby made valid in accordance with the provisions hereof.
Cross References. Section 3322 is referred to in sections 5144, 5521 of this title.
§ 3323. Compromise of controversies.
(a) In general.--Whenever it shall be proposed to compromise or settle any claim, whether in suit or not, by or against an estate, or to compromise or settle any question or dispute concerning the validity or construction of any governing instrument, or the distribution of all or any part of any estate, or any other controversy affecting any estate, the court, on petition by the personal representative or by any party in interest setting forth all the facts and circumstances, and after such notice as the court shall direct, aided if necessary by the report of a master, may enter a decree authorizing the compromise or settlement to be made.
(b) Pending court action.--
(1) Court order.--Whenever it is desired to compromise or settle an action in which damages are sought to be recovered on behalf of an estate, any court or division thereof in which such action is pending and which has jurisdiction thereof may, upon oral motion by plaintiff's counsel of record in such action, or upon petition by the personal representative of such decedent, make an order approving such compromise or settlement. Such order may approve an agreement for the payment of counsel fees and other proper expenses incident to such action.
(2) Order not subject to collateral attack.--The order of the court approving such compromise or settlement or an agreement for the payment of counsel fees and other expenses shall not be subject to collateral attack in the orphans' court division in the settlement of an estate.
(3) Filing copy of order; additional security.--The personal representative shall file a copy of the order of the court approving such compromise or settlement in the office of the register of wills or clerk of the court having jurisdiction of the estate. When the personal representative has been required to give bond, he shall not receive the proceeds of any such compromise or settlement until the court of the county having jurisdiction of his estate has made an order excusing him from entering additional security or requiring additional security, and in the latter event, only after he has entered the additional security.
Cross References. Section 3323 is referred to in sections 5144, 5521, 7792 of this title.
§ 3324. Death or incapacity of fiduciary.
The personal representative of the estate of a deceased fiduciary or the guardian of an adjudged incapacitated fiduciary by reason of his position shall not succeed to the administration of, or have the right to possess, any asset of an estate which was being administered by the deceased or incapacitated fiduciary, except to protect it pending its delivery to the person entitled to it. The account of the deceased or incapacitated fiduciary may be filed by the fiduciary of his estate and it shall be filed if the court shall so direct. The court may direct the fiduciary of a deceased or incapacitated fiduciary to make the distribution and to make the transfers and assignments necessary to carry into effect a decree of distribution.
(Apr. 16, 1992, P.L.108, No.24, eff. 60 days)
1992 Amendment. See section 21 of Act 24 in the appendix to this title for special provisions relating to applicability.
Cross References. Section 3324 is referred to in sections 5144, 5521, 7792 of this title.
§ 3325. Administrator C.T.A.
An administrator with the will annexed shall have all the powers given by the will to the executor, unless otherwise provided by the will. When he has been required to give bond, no proceeds of real estate shall be paid to him until the court has made an order excusing him from entering additional security or requiring additional security, and in the latter event, only after he has entered the additional security.
§ 3326. Administrator D.B.N. and D.B.N.C.T.A.
An administrator de bonis non, with or without a will annexed, shall have the power to recover the assets of the estate from his predecessor in administration or from the personal representative of such predecessor and, except as the will shall provide otherwise, shall stand in his predecessor's stead for all purposes, except that he shall not be personally liable for the acts of his predecessor. When he has been required to give bond, no proceeds of real estate shall be paid to him until the court has made an order excusing him from entering additional security or requiring additional security, and in the latter event, only after he has entered the additional security.
§ 3327. Surviving or remaining personal representatives.
Surviving or remaining personal representatives shall have all the powers of the original personal representatives, unless otherwise provided by the governing instrument.
Cross References. Section 3327 is referred to in sections 5144, 5521 of this title.
§ 3328. Disagreement of personal representatives.
(a) Decision of majority.--If a dispute shall arise among personal representatives, the decision of the majority shall control unless otherwise provided by the governing instrument, if any. A dissenting personal representative shall join with the majority to carry out a majority decision requiring affirmative action and may be ordered to do so by the court. A dissenting personal representative shall not be liable for the consequences of any majority decision even though he joins in carrying it out, if his dissent is expressed promptly to all the other personal representatives: Provided, That liability for failure to join in administering the estate or to prevent a breach of trust may not be thus avoided.
(b) When no majority.--When a dispute shall arise among personal representatives as to the exercise or nonexercise of any of their powers and there shall be no agreement of a majority of them, unless otherwise provided by the governing instrument, the court, upon petition filed by any of the personal representatives or by any party in interest, aided if necessary by the report of a master, in its discretion, may direct the exercise or nonexercise of the power as the court shall deem for the best interest of the estate.
Cross References. Section 3328 is referred to in sections 5144, 5521 of this title.
§ 3329. Effect of revocation of letters, probate of will, later will or codicil.
No act of administration performed by a personal representative in good faith shall be impeached by the subsequent revocation of his letters or by the subsequent probate of a will, of a later will or of a codicil: Provided, That regardless of the good or bad faith of the personal representative, no person who deals in good faith with a duly qualified personal representative shall be prejudiced by the subsequent occurrence of any of these contingencies.
§ 3330. Notice of devise or bequest to corporation or association.
A personal representative to whom original letters are granted shall send a written notice, within three months after the grant of letters, to each corporation or association named as a beneficiary in the decedent's will, stating the date of the decedent's death, the county where the will has been probated, and that it is named as a beneficiary.
§ 3331. Liability of personal representative on contracts.
Unless he expressly contracts otherwise, in writing, a personal representative shall not be personally liable on any written contract which is within his authority as personal representative and discloses that he is contracting as personal representative of a named estate. Any action on such a contract shall be brought against the personal representative in his fiduciary capacity only, or against his successor in such capacity, and execution upon any judgment obtained therein shall be had only against property of the estate.
Cross References. Section 3331 is referred to in sections 5144, 5521 of this title.
§ 3332. Inherent powers and duties.
Except as otherwise provided in this title, nothing in this title shall be construed to limit the inherent powers and duties of a personal representative.
Cross References. Section 3332 is referred to in sections 5144, 5521, 7792 of this title.
SUBCHAPTER C
SALES, PLEDGES, MORTGAGES, LEASES,
OPTIONS AND EXCHANGES
Sec.
3351. Power to sell.
3352. Power to lease.
3353. Order of court.
3354. Power given in governing instrument.
3355. Restraint of sale.
3356. Purchase by personal representative.
3357. Title of purchaser.
3358. Collateral attack.
3359. Record of proceedings; county where real estate lies.
3360. Contracts, inadequacy of consideration or better offer; brokers' commissions.
§ 3351. Power to sell.
Except as otherwise provided by the will, if any, the personal representative may sell, at public or private sale, any personal property whether specifically bequeathed or not, and any real property not specifically devised, and with the joinder of the specific devisee real property specifically devised. When the personal representative has been required to give a bond, no proceeds of real estate, including proceeds arising by reason of involuntary conversion, shall be paid to him until the court has made an order excusing him from entering additional security or requiring additional security, and in the latter event, only after he has entered the additional security.
(Dec. 10, 1974, P.L.867, No.293, eff. imd.)
§ 3352. Power to lease.
Except as otherwise provided by the will, if any, the personal representative may lease any real or personal property which he is entitled to possess. The lease may be for a term expiring not more than one year after the decedent's death unless it is terminable by the personal representative at any later time on 30 days' notice, or unless a longer term is approved by the court.
§ 3353. Order of court.
When the personal representative is not authorized to do so by this title or is denied the power to do so by the governing instrument, if any, or when it is advisable that a sale have the effect of a judicial sale, he may sell any real or personal property of the estate, including property specifically devised, at public or private sale, or may pledge, mortgage, lease, or exchange any such property, or grant an option for the sale, lease, or exchange of any such property, under order of the orphans' court division of the county where letters testamentary or of administration were granted, upon such terms and upon such security and after such notice as the court shall direct, whenever the court shall find such sale, pledge, mortgage, lease, exchange, or option to be desirable for the proper administration and distribution of the estate.
(Dec. 10, 1974, P.L.867, No.293, eff. imd.)
Cross References. Section 3353 is referred to in sections 3357, 7792, 7794 of this title; section 8152 of Title 42 (Judiciary and Judicial Procedure).
§ 3354. Power given in governing instrument.
A testamentary power given in the governing instrument to sell, unless expressly restricted, shall include the power to sell at public or private sale or to pledge or mortgage for any purpose of administration or distribution, but shall not include the right to grant an option without court order. A private sale may be made, with court approval, under the provisions of this title, although the governing instrument has directed a public sale. A power in the governing instrument to sell, pledge, mortgage, lease, or exchange, or to grant an option for a purchase, lease, or exchange of property not given to any person by name or description shall be deemed to have been given to the personal representative and may be exercised without court approval. When the personal representative has been required to give bond, no proceeds of real estate shall be paid to him until the court has made an order excusing him from entering additional security or requiring additional security, and in the latter event, only after he has entered the additional security.
Cross References. Section 3354 is referred to in section 7792 of this title.
§ 3355. Restraint of sale.
The court, on its own motion or upon application of any party in interest, in its discretion, may restrain a personal representative from making any sale under an authority not given by the governing instrument or from carrying out any contract of sale made by him under an authority not so given. The order may be conditioned upon the applicant giving bond for the protection of parties in interest who may be prejudiced thereby. The order shall be void as against a bona fide grantee of, or holder of a lien on, real estate unless the decree restraining the sale, or a duplicate original or certified copy thereof, is recorded in the deed book in the office of the recorder of deeds in the county in which such real estate lies, before the recording or entering of the instrument or lien under which such grantee or lienholder claims.
Cross References. Section 3355 is referred to in sections 5153, 5521, 7792 of this title.
§ 3356. Purchase by personal representative.
In addition to any right conferred by a governing instrument, if any, the personal representative, in his individual capacity, may bid for, purchase, take a mortgage on, lease, or take by exchange, real or personal property belonging to the estate, subject, however, to the approval of the court, and under such terms and conditions and after such reasonable notice to parties in interest as it shall direct. The court may make an order directing a co-fiduciary, if any, or the court's clerk to execute a deed or other appropriate instrument to the purchasing personal representative.
(Dec. 10, 1974, P.L.867, No.293, eff. imd.)
Cross References. Section 3356 is referred to in sections 5153, 5521, 7792 of this title.
§ 3357. Title of purchaser.
(a) General rule.--If the personal representative has given such bond, if any, as shall be required in accordance with this title, any sale, mortgage, or exchange by him, whether pursuant to a decree or to the exercise of a testamentary power or of a power under this title, shall pass the full title of the decedent therein, unless otherwise specified, discharged from the lien of legacies, from liability for all debts and obligations of the decedent, from all liabilities incident to the administration of the decedent's estate, and from all claims of distributees and of persons claiming in their right, except that no such sale, mortgage or exchange by a personal representative, unless made under section 3353 (relating to order of court) for the purpose of divesting a lien existing at the decedent's death, shall divest the interest of a bona fide grantee of, or a holder of a lien on, real property of the decedent who has acquired such interest for value under a prior recorded document from or through those entitled to the interest of the decedent in the real property by will or by intestacy, either:
(1) more than one year after the death of the decedent and when no letters issued in the Commonwealth upon the decedent's estate were in effect; or
(2) within such year if no letters upon the decedent's estate have been issued in the Commonwealth during that year.
(b) Effect of certain circumstances.--Persons dealing with the personal representative shall have no obligation to see to the proper application of the cash or other assets given in exchange for the property of the estate. Any sale or exchange by a personal representative pursuant to a decree under section 3353 shall have the effect of a judicial sale, but the court may decree a sale or exchange freed and discharged from the lien of any mortgage otherwise preserved from discharge by existing law, if the holder of such mortgage shall consent by writing filed in the proceeding. No such sale, mortgage, exchange, or conveyance shall be prejudiced by the terms of any will or codicil thereafter probated or by the subsequent revocation of the letters of the personal representative who made the sale, mortgage, exchange, or conveyance if the person dealing with the personal representative did so in good faith.
(July 9, 1976, P.L.551, No.135, eff. imd.)
Cross References. Section 3357 is referred to in section 8152 of Title 42 (Judiciary and Judicial Procedure).
§ 3358. Collateral attack.
No decree entered pursuant to this title shall be subject to collateral attack on account of any irregularity if the court which entered it had jurisdiction to do so.
Cross References. Section 3358 is referred to in sections 5153, 7792 of this title.
§ 3359. Record of proceedings; county where real estate lies.
Certified copies of proceedings of any court of the Commonwealth relating to or affecting real estate may be recorded in the office for the recording of deeds in any county in which the real estate lies.
Cross References. Section 3359 is referred to in sections 5153, 5521, 7792 of this title.
§ 3360. Contracts, inadequacy of consideration or better offer; brokers' commissions.
(a) Inadequacy of consideration or better offer.--When a personal representative shall make a contract not requiring approval of court, or when the court shall approve a contract of a personal representative requiring approval of the court, neither inadequacy of consideration, nor the receipt of an offer to deal on other terms shall, except as otherwise agreed by the parties, relieve the personal representative of the obligation to perform his contract or shall constitute ground for any court to set aside the contract, or to refuse to enforce it by specific performance or otherwise: Provided, That this subsection shall not affect or change the inherent right of the court to set aside a contract for fraud, accident or mistake. Nothing in this subsection shall affect the liability of a personal representative for surcharge on the ground of negligence or bad faith in making a contract.
(b) Brokers' commissions.--When a personal representative shall enter into an agreement of sale of real estate in good faith, which is not binding under subsection (a) of this section and which is set aside upon receipt of a higher offer for such real estate, he shall not be relieved from the payment of real estate broker or broker's commissions to the broker who had procured such agreement of sale, and in the event that more than one real estate broker is entitled to commissions for said agreements of sale, then such commissions shall be equally divided between or among such real estate brokers: Provided further, That the total aggregate commission paid as a percentage of the gross consideration of the final sale shall in no event exceed a fair commission for a single sale of the property involved.
(Dec. 10, 1974, P.L.867, No.293, eff. imd.)
1974 Amendment. Act 293 amended subsec. (b).
Cross References. Section 3360 is referred to in sections 5153, 5521 of this title.
SUBCHAPTER D
ABATEMENT, SURVIVAL AND CONTROL OF ACTIONS
Sec.
3371. Actions which survive.
3372. Substitution of personal representative in pending action or proceedings.
3373. Action by or against personal representative.
3374. Death or removal of fiduciary.
3375. Abatement of action for failure to take out letters.
3376. Limitations against debt due estate.
3377. Execution on judgments.
§ 3371. Actions which survive.
All causes of action or proceedings shall survive as provided by 42 Pa.C.S. § 8302 (relating to survival action).
(Apr. 28, 1978, P.L.202, No.53, eff. 60 days).
§ 3372. Substitution of personal representative in pending action or proceedings.
Substitution of the personal representative of a deceased party to a pending action or proceeding shall be as provided by law.
Cross References. Section 3372 is referred to in section 5521 of this title.
§ 3373. Action by or against personal representative.
An action or proceeding to enforce any right or liability which survives a decedent may be brought by or against his personal representative alone or with other parties as though the decedent were alive.
§ 3374. Death or removal of fiduciary.
An action or proceeding to which a fiduciary is a party is not abated by his death or resignation or by the termination of his authority. The successor of the fiduciary may be substituted in the action or proceeding in the manner provided by law.
Cross References. Section 3374 is referred to in section 5521 of this title.
§ 3375. Abatement of action for failure to take out letters.
If a plaintiff or petitioner in any action or proceeding now pending or hereafter brought dies and a personal representative is not appointed within one year after a suggestion of such death is filed in the action or proceeding, any defendant or respondent may petition the court to abate the action as to the cause of action of the decedent. Copies of the petition shall be served upon the executor named in the will, if known to the defendant, and otherwise upon all known next of kin entitled to letters of administration. The court shall abate the action as to the cause of action of the decedent if the delay in taking out letters is not reasonably explained.
§ 3376. Limitations against debt due estate.
Any statute of limitation which would bar any debt or liability owed the estate of a decedent within one year after the decedent's death shall be extended until the end of one year following the decedent's death. Failure or delay in taking out letters testamentary or of administration shall not affect the operation of any statute of limitations applicable to a debt or liability owed the estate of a decedent.
(July 9, 1976, P.L.551, No.135, eff. imd.)
§ 3377. Execution on judgments.
(a) When prohibited.--No execution shall issue against, nor shall any levy be made upon, any real or personal property of the estate of a decedent by virtue of a judgment against him or his personal representative unless:
(1) agreed to by the personal representative in a writing filed in the action or proceeding; or
(2) approved by the orphans' court division of the county in which letters testamentary or of administration have been granted, or if none have been granted, then by the orphans' court division of the county in which the principal or family residence of the decedent was located. The court may require the giving of notice to the personal representative and to parties in interest or may waive all notice.
(b) When allowed.--The restrictions of subsection (a) of this section shall not apply to actions or proceedings to enforce mortgages, ground rents, pledges, or conditional sales of real or personal property.
Saved from Suspension. Pennsylvania Rule of Civil Procedure for Justices of the Peace No.482, as amended April 25, 1979, provided that section 3377 shall not be deemed suspended or affected. Rules 401 through 482 relate to execution of judgments for the payment of money rendered by justices of the peace. Act 207 of 2004 changed justices of the peace to magisterial district judges. Rule 482 can now be found in Rules of Conduct, Office Standards and Civil Procedure for Magisterial District Judges.
Pennsylvania Rule of Civil Procedure No. 3159(b)(1), adopted April 20, 1998, provided that section 5107 shall not be deemed suspended or affected by Rules 3101 through 3149 relating to enforcement of money judgments for the payment of money.
SUBCHAPTER E
CLAIMS; CHARGES; RIGHTS OF CREDITORS
Sec.
3381. Liens and charges existing at death not impaired.
3382. Judgments which are liens at death.
3383. Statutes of limitations; claims not barred at death.
3384. Notice of claim.
3384.1. Notice after settlor of revocable trust has died.
3385. Limitation upon claims.
3386. Failure to present claim at audit.
3387. Claims not due; certain to become due.
3388. Claims not certain to become due.
3389. Claims subject to litigation in other courts.
3390. Specific performance of contracts.
3391. Proceeding against personal representative.
3392. Classification and order of payment.
3393. Notice to Commonwealth and political subdivisions.
§ 3381. Liens and charges existing at death not impaired.
Nothing in this title shall be construed as impairing any lien or charge on real or personal estate of the decedent which existed at his death.
Cross References. Section 3381 is referred to in section 3385 of this title.
§ 3382. Judgments which are liens at death.
Any judgment which at the decedent's death was a lien on real estate then owned by him or on real estate which he had conveyed by deed not recorded during his life shall continue to bind the real estate for five years from the inception or last revival of the lien or for one year from the decedent's death, whichever shall be longer, although the judgment be not revived after his death. During this period, the judgment shall rank according to its priority at the time of death, and after this period, it shall not continue to be a lien on the real estate, unless revived. Any judgment against the decedent which is a lien on real estate aliened by him may be revived by an action of scire facias brought against the decedent, but before any judgment shall be entered thereon, the personal representative shall be made a party defendant and served with process in the action.
Cross References. Section 3382 is referred to in section 3385 of this title.
§ 3383. Statutes of limitations; claims not barred at death.
The death of a person shall not stop the running of the statute of limitations applicable to any claim against him, but a claim which otherwise would be barred within one year after the death of the decedent shall not be barred until the expiration of one year after his death. Nothing in this section shall be construed to shorten the period which would have been allowed by any applicable statute of limitations if the decedent had continued to live.
§ 3384. Notice of claim.
(a) Written notice.--Written notice of any claim against a decedent given to the personal representative or his attorney of record before the claim is barred shall toll the statute of limitations.
(b) Acts equivalent to written notice.--Any of the following acts by a claimant shall be equivalent to the giving of written notice of a claim to the personal representative:
(1) Instituting proceedings to compel the filing of an account.
(2) Bringing an action against the personal representative in any court having jurisdiction of the claim and having the writ or pleading duly served on the personal representative.
(3) Substituting the personal representative as a defendant in an action pending against the decedent.
(4) Receiving a written acknowledgment by the personal representative or his attorney of record of the existence of the claim.
Cross References. Section 3384 is referred to in section 7755 of this title.
§ 3384.1. Notice after settlor of revocable trust has died.
No later than 30 days after the date on which the trustee of a revocable trust learns that a personal representative has been appointed for the deceased settlor's estate, the trustee shall send to the settlor's personal representative the notice described in section 7780.3(i) (relating to duty to inform and report).
(July 7, 2006, P.L.625, No.98, eff. 120 days)
2006 Amendment. Act 98 added section 3384.1.
§ 3385. Limitation upon claims.
All claims against the decedent, subject only to the provisions of section 3381 (relating to liens and charges existing at death not impaired) and section 3382 (relating to judgments which are liens at death), shall become unenforceable after one year from the decedent's death against a bona fide grantee of, or holder of a lien on, real property of the decedent who has acquired his interest for value from or through those entitled to the property by will or by intestacy, either:
(1) more than one year after the death of the decedent and when no letters issued in the Commonwealth upon the decedent's estate were in effect; or
(2) within such year if no letters upon the decedent's estate have been issued in the Commonwealth during that year.
Nothing in this section shall be construed to limit the right of a personal representative subsequently appointed to recover from the heir or devisee the value of property so sold or encumbered.
§ 3386. Failure to present claim at audit.
If any claimant whose claim is not reported to the court by the personal representative as an admitted claim shall fail to present it at the call for audit or confirmation, he shall not be entitled to receive any share of the real and personal estate distributed pursuant to such audit or confirmation, whether the estate of the decedent be solvent or insolvent.
§ 3387. Claims not due; certain to become due.
Upon satisfactory proof or admission of a claim which is not due but certain to become due, the court may provide for payment by one of the following methods:
(1) Awarding the present value of the claim, as agreed to by the claimant and the personal representative.
(2) Ordering the personal representative to retain or pay into the court sufficient assets to pay on maturity of the claim the whole amount then due, or a proportionate amount in case of insolvency.
Cross References. Section 3387 is referred to in section 7755 of this title.
§ 3388. Claims not certain to become due.
Upon satisfactory proof or admission of a claim which may or may not become due at a future time, the court may provide for payment by one of the following methods:
(1) Awarding the present value of the claim, as agreed to by the claimant and the personal representative.
(2) Ordering the personal representative to distribute the estate but to retain or pay into court sufficient assets to pay the claim, or a proportionate amount in case of insolvency, if and when it becomes absolute.
(3) Making such other provisions for the disposition or satisfaction of the claim as shall be equitable.
Cross References. Section 3388 is referred to in section 7755 of this title.
§ 3389. Claims subject to litigation in other courts.
When any claim not proved in the orphans' court division is being litigated in any other division or court, State or Federal, having jurisdiction thereof, the court may make such provision for the disposition or satisfaction of the claim as shall be equitable.
§ 3390. Specific performance of contracts.
(a) Application to court.--If any person makes a legally binding agreement to purchase or sell real or personal estate and dies before its consummation, his personal representative shall have power to consummate it, but if he does not do so, the court, on the application of any party in interest and after such notice and with such security, if any, as it may direct, in its discretion, may order specific performance of the agreement if it would have been enforced specifically had the decedent not died.
(b) Execution and effect of deed or transfer.--Any necessary deed or transfer shall be executed by the personal representative or by such other person as the court shall direct. The title of any purchaser under an agreement in which the decedent was the vendor shall be the same as though the decedent had conveyed or transferred such property in his lifetime.
(c) Indexing in judgment or ejectment and miscellaneous indexes.--When any petition for specific performance of an agreement to purchase or sell real estate is filed, the prothonotary of the court of common pleas where the real estate or any part of it lies, upon the receipt of a certificate of such fact by the clerk of the court where the petition was filed, shall enter the petition upon either the judgment or ejectment and miscellaneous indexes against the defendants as directed by local rules of court and shall certify it as lis pendens in any certificate of search which he is required to make by virtue of his office.
Cross References. Section 3390 is referred to in sections 3546, 5521 of this title.
§ 3391. Proceeding against personal representative.
Any proceeding may be brought against a personal representative or the surety on his bond in the county where his letters have been granted, and if the personal representative or surety does not reside in that county, process may be served on either of them personally, or as follows:
(1) When resident of another county.--By a duly deputized sheriff of any other county of the Commonwealth in which he shall be found.
(2) When a nonresident of the Commonwealth.--By the sheriff of the county where letters have been granted sending, by registered mail, return receipt requested, a true and attested copy of the process to the Department of State, accompanied by the fee prescribed by law, and to the personal representative or surety at his last known address, with an endorsement thereon showing that service has been so made upon the Department of State.
§ 3392. Classification and order of payment.
If the applicable assets of the estate are insufficient to pay all proper charges and claims in full, the personal representative, subject to any preference given by law to claims due the United States, shall pay them in the following order, without priority as between claims of the same class:
(1) The costs of administration.
(2) The family exemption.
(3) The costs of the decedent's funeral and burial, and the costs of medicines furnished to him within six months of his death, of medical or nursing services performed for him within that time, of hospital services including maintenance provided him within that time, of services provided under the medical assistance program provided within that time and of services performed for him by any of his employees within that time.
(4) The cost of a gravemarker.
(5) Rents for the occupancy of the decedent's residence for six months immediately prior to his death.
(5.1) Claims by the Commonwealth and the political subdivisions of the Commonwealth.
(6) All other claims.
(Feb. 21, 2006, P.L.45, No.17, eff. imd.)
Cross References. Section 3392 is referred to in section 7755 of this title.
§ 3393. Notice to Commonwealth and political subdivisions.
When the Commonwealth or a political subdivision thereof has a claim for maintaining in an institution a person who has died in the institution, the personal representative, within three months after the grant of letters, shall give notice thereof to the Department of Revenue or to the proper officer of such political subdivision, as the case may be.
Cross References. Section 3393 is referred to in section 7755 of this title.