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Home My WebLink About05-09-13 FREY & TILEY ATTORNEYS-AT-LAW 5 SOUTH HANOVER STREET CARLISLE,PENNSYLVANIA 17013 ROBERT M. FREY RETIRED TELEPHONE (717) 243-5838 STEPHEN D.TILEY stiley @freytiley.com FACSIMILE (717) 243-6441 ROBERT G. FREY rfreygfreytiley.com May 8, 2013 c w r Pennsylvania Department of Revenue I m C/O Cumberland County Register of Wills I�1 One Courthouse Square T cn ni rr Carlisle, PA 17013 to Re: Estate of Winifred Williams c 21-13-0217 ' r`', X. C...1 ('11) _c7 Dear Sir or Madam: rf I would appreciate it if this letter of explanation would be included with the inheritance tax return filed in the above referenced estate. On schedule "E," items 1 and 2 were treated as property specifically devised to the Decedent's sister, Shirley Lucas, rather than being treated as part of the residuary of the estate. The result of this treatment is that the entire balance and these accounts were taxed at the 12°% lineal rate. If the accounts were treated as being ii1F6lGc]ed in the residuary of the estate, one half of the balance would have been taxed at 12% and=the other half would have been taxed at 15%. These accounts were set up for the sole purpose of holding the funds from the sale of the Decedent's residence which had been specifically devised to Shirley Lucas. While the sale of specifically devised property normally results in the ademption-of.that devise, in this case there is a statutory exception at 20 PA. C. S. A. § 2514(16.2). I have included a copy with this letter. At the time of the sale, the Decedent was a resident of a nursing home suffering from dementia. The entire transaction was handled by her agent under a Power of Attorney. Therefore no ademption should apply and the net proceeds of the sale should be distributed to the devisee. I thank'you for your review-of this matter. Sincerely yours, f� Robert G. Frey EnC9S.. pc, .➢. iT.O 20 Pa.C.S.A. §2514 the right Lion, i t sr casualty,, the specific le o hiW aid at th g P pe gatee r dV 1 a„y proceeds unpaid property the condemnation award or the ro rty received '"�1� (n ' urance on the P P graph does not apply if subsequent to the sa erexc d In C j,4-t, CS(1V or obtained intlieu of nation, or casualty, the testator has been Drs` incapacitated person and survives the adludscatednru; i'' a ?hwallybequeathed obligatio', adjudication b k. `� (16.2) Nonademption; agent.—If an a 1 ` ; Y�• i19) Employee benefits.—Benefit, enefits:Benefit attorney, gent under i allied profit sharing, y during the time that his principal is d i M%,,.r '' prdan"h qualified for the paym person within the meaning of section 5501 (relating to C4 p'' '" ill net incapacitated person), sells or exchanges me h,:r.c a drat or of his estate. which is specifically devised or bequeathed te property of the p,,", a i20) Corporate fiduciaries.—Pro, P y devisee has the right to the net sale price or fire pecifio Icy•,., m8 ,; Iestment in the securities in exchange. For the purposes of this paragraph,prope 1` , " co rdte fiduciary or the exercise change of property made by an agent shall deemed to bas,;,., shall a;.so apply to the securities made during the time that the principal is an incapacitated ,,,04rion which is an affiliate of unless shown to the contr p the j),c rang of section 1504 of the is shown that for a peri od of at This oneryeardoes of app!t r,, 1P�hpc Law 99-514, 26 U.S.C. § 1_ sale or exchange the principal Was not an incapacitated ) 912. ° 30,P.L. 508, No. 164,§ 2, eff Within the meaning of section 5501. P"' t P.L.551 No. 135, §§ 11 to 13, imd. s (17) Change in securities.—If the 7 h �3,§'l, imd. effective; 1984, Oct bequest of securities owned b testator intended a speof. tid 1992, April 16, P.L. 108, No. y him at the ti me of the execuue :, 344 +ePHective in 60 days. § 4, imd. of his will, rather than the equivalent value thereof, the legates entitled only to: 3L St. Govt. Comm. (i) as much of those securities as formed a pan of the tee; paragraph(4): This clause is new tors estate at the time of his death; s�23, 914, 21 PS Section 11 ` (ii) any additional or other securities issued by the same ent:, 1011181n P.L..L.to heirs, 2 of a person othi I` t thereon and owned by the testator by reason of a stock divider " it is desirable to have the cla stock split or other action by the entity, mainder falls in,unless the y the ty excluding any acq 1i[d It has also been suggested by the by exercise of purchase options for more than a fractional sham aan a Bar Association Committee o and �bmitted in June 1942,which was (iii) securities of another entity received thereon or in u• 'The present law is by no m, meant by a testator's use of change therefor and owned by the testator as a result of a Court a few ears ago had the merger, consolidation or reorganization of the entity or otber personalty 'heirs' does not s similar change. ' Statutory Construction Act, 1 (18) Nonademption; balance.— 101(56) defines 'issue' as me specifically devised or bequeathed has s the o right too of definition of 'heirs a given) entitled to take in case of inter property which the testator still owned at his death and: 523 (1939)). The inference regard to a disposition of rea (i) any balance of the purchase price or balance of propertyta the Intestate Act of Pennsyly be received in exchange, together with any security interest, Heirs of Each Other' (1935) 5 owing from a purchaser to the testator at his death by reason Of real reason why any different a sale or exchange of the property by the testator; "Recommendation No. 15. (ii) any amount due for the condemnation of the property and word 'heirs', whether appli( unpaid at the testator's death; p p mean those persons includin 292 of an intestacy. 2 U) m 5 13 < 90 o N •.a t•+ �= t9 N ! 1.+ Q CD Q •➢ o iti W 7 @ N �p G lL N ta!ti+'•7 Ta """y )tN7�p a ,:-.t +>