Grier Estate

31 Pa. D. & C.2d 66
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedJuly 23, 1963
DocketNo. 2; no. 636 of 1959
StatusPublished

This text of 31 Pa. D. & C.2d 66 (Grier Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grier Estate, 31 Pa. D. & C.2d 66 (Pa. Super. Ct. 1963).

Opinion

Klein, P. J.,

Jay R., also known as Jay Rich, Grier, a respected member of the Philadelphia bar, died on June 13, 1958, unmarried and without issue, leaving a will, which was admitted to probate on June 18, 1958.

All of the facts and circumstances in connection with the administration, audit and distribution of Mr. Grier’s estate appear fully in the adjudication of Shoyer, J., dated October 21, 1959, on the executor’s first account and in the opinions of this court en banc on exceptions, [20 D. & C. 2d 751] and of the Supreme Court on appeal [403 Pa. 517 (1961)].

The fund presently accounted for was awarded back to the present accountant by schedule of distribution approved by Shoyer, J., October 6, 1961, “subject to payment of Federal Estate tax and Inheritance tax; subject to payment of Principal Personalty commissions and fees; and subject to further accounting.” (Emphasis supplied)

Credit is taken in the account for “A. W. Norman, Executor’s commissions of 5% on first $100,000 of principal assets and 3% on balance, said assets total-ling $656,998.55, which equals $21,709.95.” Credit is also taken for $27,500 counsel fee to Peck, Young and Vansant. Payments on account thereof in the sums of $7,000 against the former, and $5,000 against the latter, were credited in the first account and are reflected in the second account which is before us for audit.

[68]*68Objection was made to these charges by counsel for the various charitable remaindermen. Although the objectants were not in agreement as to the amounts which should be allowed, they indicated that they thought the total of commissions and counsel fees allowed should be somewhere between $32,000 and $35,000.

Jay R. Grier, the decedent,, was an unusual man and, in the opinion of the auditing judge, the administration of his estate was uncommonly difficult and complex. When he died on June 3, 1958, he was in his eighty-eighth year. He had never married. He had been a lawyer since 1891 and specialized in probate matters.

More than five years have passed since testator’s death and the administration of his estate has not yet been completed. This delay is due primarily to the ambiguous will personally prepared and typed by testator.

Decedent’s next of kin contended that he had failed to dispose of the residue of his estate and that an intestacy resulted. The remaindermen contended that he had made a complete disposition of his entire estate. Shoyer, J., the auditing judge, agreed with the remaindermen. Exceptions were filed and the auditing judge was reversed by his colleagues. On appeal, the Supreme Court [403 Pa. 517 (1961)] reversed this court, two justices dissenting. This is recited only to indicate the troublesome nature of the question created by testator’s poor draftsmanship of his own will.

Litigation over the construction of the will not only prolonged the administration, but created many tax problems. The impact of Federal estate taxes would have been entirely different if the residue went to individuals, rather than to exempt charities.

Moreover, in addition to the problems created by testator’s badly drawn will, the administration was made exceedingly difficult by the confusing manner in [69]*69which decedent handled his business, both personal and professional. He did not employ a secretary and no one knew anything about his affairs. His files and records were in a mess. Consequently, the executor and his counsel were obliged to examine a dozen stacks of files to find the will. All of decedent’s assets were either in his home or in the office and in a state of utter confusion. Loose currency totalling $3,500 and coins in the amount of $173 were scattered in different places throughout the office. Every file and folder had to be carefully examined and studied in order to bring order out of the confused state, not only of decedent’s affairs, but also those of his clients. Mr. Norman testified, at page 20:

“A. Well, I would say I went through every file and looked through every folder. I wouldn’t say I looked at every paper, but I examined every file and every folder to see whether it was of some importance. It might be unfinished business. He had some unfinished cases and we had to set aside and dispose of them as best we could in our best judgment. He had income tax files for himself and clients. He had what you might call current papers regarding the administration of estates, court cases in which he was the representative, and that took several weeks. In addition to that on top of his library book cases he had papers stacked from the bookcases to the ceiling, and on his iron safe he had papers almost to the ceiling, and I had to go through them to make sure we were not disposing of anything of value to the estate.”

In view of the litigation which prevented the executor from promptly ascertaining to whom the residue was payable, his administration was protracted and took on some of the characteristics of an administration by a trustee. Section 506 of the Fiduciaries Act of 1949, as amended by the Act of November 10, 1959, P. L. 1463, provides:

[70]*70“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 obligations of the United States or the United States Treasury, of the Commonwealth, or of any political subdivision of the Commonwealth.”

The executor took full advantage of this section and purchased short term United States Government securities. As a result of his prudent management, the value of the estate was enhanced substantially, while awaiting the outcome of the litigation.

With this background, let us examine the credits taken by the executor and his counsel.

We will first discuss the executor’s compensation. Mr. Norman, the executor, is 86 years of age and retired but still reasonably active and alert. He is a certified public accountant, as well as a lawyer admitted to practice in our courts. Since he is a certified public accountant, his right to employ other accountants to assist him in the administration of the estate has been questioned. The objectants have also charged that considerable of the work which Mr. Norman was obliged to do, as personal representative, was performed by his attorney. There appears to be some justification to both of these contentions.

Mr. Norman has taken credit for five percent on the first $100,000 in the estate and three percent on the remainder, in the total amount of $21,709.95. This he is not permitted to do. Graduated commissions, diminishing in higher brackets, are forbidden in this State: Williamson Estate, 368 Pa. 343 (1951).

After carefully studying the entire record in this case, the auditing judge has reached the conclusion [71]*71that a total allowance of $18,500 would be fair and reasonable under all of the circumstances. The accountant will accordingly be surcharged with the difference of $3,209.95.

We will now direct our attention to the credit for counsel fees to Peck, Young and Van Sant in the sum of $27,500.

The residue of this substantial estate was left to' a great many charities. Counsel for a number of them appeared at the audit to enter objections to the fees paid to counsel.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Grier Estate
170 A.2d 545 (Supreme Court of Pennsylvania, 1961)
Williamson Estate
82 A.2d 49 (Supreme Court of Pennsylvania, 1951)
Pfeiffer v. Dyer
145 A. 284 (Supreme Court of Pennsylvania, 1929)
Huffman Estate (No. 3)
36 A.2d 640 (Supreme Court of Pennsylvania, 1944)
Robbins v. Weinstein
17 A.2d 629 (Superior Court of Pennsylvania, 1940)
Hanley v. Waxman
80 Pa. Super. 274 (Superior Court of Pennsylvania, 1922)
Succession of Levitan
79 So. 829 (Supreme Court of Louisiana, 1918)
Young Bros. v. Succession of Von Schoeler
91 So. 551 (Supreme Court of Louisiana, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
31 Pa. D. & C.2d 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grier-estate-paorphctphilad-1963.