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HomeMy WebLinkAbout07-29-80 IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS OF A. RAYMOND EPPLEY CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. 21-78-482 MEMORANDUM METHOD OF CALCULATING WIDOW'S SHARE UNDER ELECTION TO TAKE AGAINST THE WILL As we understand the new Act, 20 P.S. C.S.A. ~2201 et seq, and the purpose of the Act was to give a widow no more and no less than one-third (1) of the total assets of the deceased spouse. To this end, the Act provides that an election to take against the Will acts as an automatic disc1aimer(2) by the widow of enumerated assets she received outside of the Will, including such assets as proceeds of insurance and annuities. This disclaimer has the effect of increasing the total estate so that, under the new Act, the widow does not receive one-third of the probate estate plus insurance, annuities and the like as heretofore, but now she receives one-third of the total of the value of the probate estate and such assets as she received by operation of law or by contract, not a part of the probate estate. The effect of the new Act is to limit the claim of an electing spouse to only so much of the assets passing by Will, in the probate estate of the decedent, as, when taken together with other assets of the decedent outside the will by the surviving spouse, - 1 - MYERS, MYERS, FLOWER & JOHNSON - ATTORNEYS AT LAW 301 MARK.ET STREET, LEMOYNE, PENNA. - 1 W. HIGH STREET, CARLISLE, PENNA. II ..Ii will equal one-third. II I , I I i of the assets of an estate, but substantially less. The surviving spouse no longer takes one-third For example, here the probate assets are as follows: Real Estate $ 82,500.00 Stocks & Bonds 518.53 Mortgages, Notes & Cash 129,284.68 Miscellaneous 3,442.99 Total $215,746.20 To this is added values of gifts made in 1978, (the year of death) of $8,082.00 less $3,000.00(3) To this is added the following assets subject to the disclaimer: Insurance Proceeds $ 808.54 Annuity 15,000.00 50% entireties Real estate 9,750.00 $25,558.54 Total Estate subject to Election The share of the electing spouse would then be one-third of $246,386.74 or Against this share of the widow should be charged those assets she has received outside of the Will and may retain(4) - 2 - $215,746.20 5,082.00 25,558.54 $246,386.74 $ 82,128.91 25,558.54 I- I ", :,' This then results in an amount of the probate estate which is credited to her which amount is subject, of course, to such Pennsylvania taxes ""-.... n:tJ..~......".a.. as are attributable to this amount. There are no Federal taxes on her share. $ 56,570.37 We believe the foregoing is the proper method of calculating the widow's share, subject to an election to take against the Will. Respectfully submitted, MYERS, MYERS, FLOWER & JOHNSON Attorneys for Surviving Spouse /..~ BJ,__ (1) 20 P.S. C.S.A. S2203(a) "when a married person domiciled in this Commonwealth dies, his surviving spouse has a right to an elective share of one-third of the following property: (1) Property passing from the decedent by Will or intestacy. (2) 20 P.B. C.S.A. S2204(a) Disclaimers - "...an election by a spouse shall be deemed a disclaimer of any beneficial interest of the spouse ..." in ... (4) Proceeds of insurance (5) any annuity contract... (8) ...rea1 property...owned...by the entireties...to the extent it represents earnings or contributions by the decedent." (3) Election against (20 P.S. C.S.A. S2203(a) (6)) "Property in excess of $3,000 conveyed to anyone donee...within one year of death." (4) 20 P.S. C.S.A. S2204(c) "Notwithstanding....the spouse may elect to retain any beneficial interest...and have the va1ue...charged against the elective share." - 3 -