Lychis Estate

43 Pa. D. & C.2d 401, 1967 Pa. Dist. & Cnty. Dec. LEXIS 232
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedNovember 17, 1967
Docketno. 2651
StatusPublished

This text of 43 Pa. D. & C.2d 401 (Lychis 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
Lychis Estate, 43 Pa. D. & C.2d 401, 1967 Pa. Dist. & Cnty. Dec. LEXIS 232 (Pa. Super. Ct. 1967).

Opinions

Saylor, J.,

Pour nephews and nieces of decedent named in his will as beneficiaries of a trust for $7,000, established to provide for payment of that amount to them as residents of Lithuania, have filed exceptions to the award of the fund to another legatee as remainderman because the trustees had not been able to effect the transfer of the funds to an “Iron Curtain Country” within the 10-year period fixed by testator.

Testator died December 22, 1952. His will dated August 29, 1951, was probated December 31, 1952. Upon the filing of a first account by the executors, there was an adjudication on October 8, 1953, by which, inter alia, the auditing judge awarded the sum of $7,000, less transfer inheritance tax, to the trustees named “for the uses and purposes set forth in the will”.

Paragraph sixth of the will provides as follows:

“I give and bequeath to my Trustees, hereinafter named, the sum of SEVEN THOUSAND ($7,000.00) DOLLARS in trust to hold, invest and reinvest the same, to collect the income, and after paying all expenses incident to the management of the trust to pay over to my following named relatives the following [403]*403sums out of principal together with any applicable income earned: To the children of my brother, POYILAS LYCHIS, namely, ANELE, VYTANTAS and PETER the sum of TWO THOUSAND ($2,000.-00) DOLLARS each, and to my niece, AMELIA, the daughter of my sister, AGOTA PAGIRENES, the sum of ONE THOUSAND ($1,000.00) dollars. My aforesaid relatives were last known by me to be residing at Petrasunu Kaimas, Kriaunu Valscios, Rokiskio Apskrities, Lithuania. It is my desire and direction that this trust created for my aforesaid relatives shall terminate either entirely or pro tanto as soon as my Trustees can make proper contact with the said relatives and have them execute personal receipts for payments of the principal and income hereinbefore provided for them. And my Trustees in their own discretion shall be the sole judges as to whether and when proper contact has been made with the said beneficiaries and whether adequate and authentic receipts can be delivered by them for said payments without incurring any personal liability for any errors committed by them in paying out or witholding the corpus or income of this Trust. In any event and notwithstanding what has hereinbefore stated, it is my direction and desire further that in the event my Trustees are unable within a period of ten (10) years following my death to establish proper contact and arrange with any of the said beneficiaries to obtain an authentic receipt from him, her or them for payment of the said share of corpus or income as provided, then this Trust as to any such beneficiary or beneficiaries shall terminate at the end of such ten (10) year period and any sums of principal and income remaining unpaid shall revert to my residuary estate”.

The matter to be determined is whether the trustees properly performed the duties imposed upon them by testator and the direction of the court within the [404]*40410-year period, or whether they failed to do so, in which event the fund should be awarded back to them to act as required by testator.

Clearly, testator wanted his named nieces and nephews to receive his bounty, if possible. To accomplish this, he directed his trustees: (a) to “make proper contact with the said relatives” and (b) to secure from them “personal receipts for payments of the principal and income hereinbefore provided for them”.

The record shows that the trustees promptly accomplished the first mission. They confirmed the addresses of the relatives at the locality in Lithuania given in the will and established the fact that they were alive. They did not accomplish the second mission. No attempt was made to procure receipts from the beneficiaries. A review of the history of the trust indicates that the trustees failed to do all that they could and should have done to carry out testator’s purposes.

The first and final account of the executors was filed September 28, 1953, and audited by Bolger, J. In his adjudication of October 8, 1953, he awarded to the trustees $7,000, less tax, in trust for Anele Lychis, Peter Lychis, Vytantas Lychis and Amelia Pagirenes (Cicinskiene) subject to the provisions of the will. The schedule of distribution approved December 17, 1953, provided for the payment to the trustees of $7,000, less transfer inheritance tax of $1,050, or a net amount of $5,950.

In 1958, Philadelphia attorneys served upon trustees’ counsel powers of attorney executed by the four beneficiaries, acknowledged before Lithuanian or Russian officials, and certified by the American Consul as to the signatures but not as to the “authenticity of the persons signing the powers”.

In December 1960, counsel for the trustees wrote to the beneficiaries asking them to confirm whether they [405]*405had local representation. Similar responses were received from all four beneficiaries. While they made no reference to the inquiry about representation, all beneficiaries stated that they were alive and wanted the funds to be sent directly through the mail to them and not through Moscow. These letters are in the record, together with translations from the Lithuanian language.

On September 2, 1964, the attorneys for three of the beneficiaries of the said fund filed a petition praying for a citation directed to the trustees to show cause why they should not make distribution of the trust fund created in the sixth clause of decedent’s will to the named beneficiaries. The petitioners stated that, although more than 11 years had elapsed since the grant of letters and the first complete advertisement thereof, the trustees had made no distribution of the trust fund, although proper contact could at all. times have been made with the beneficiaries, and personal, adequate and authentic receipts could have been secured from the beneficiaries upon payment to them of their shares of the trust.

Upon citation being issued and served, answers to the petition were filed by one of the trustees and by the Commonwealth of Pennsylvania. The trustee admitted that no distribution of the trust fund had been made but denied that the trustees “have failed to make contact with the beneficiaries of the said trust.” On the contrary, the trustees averred that “they have received through their attorney responses from the aforesaid beneficiaries in which each of the said beneficiaries directed the proceeds of the trust fund to be mailed to them directly and not through official channels through the Soviet Government”. It was further averred that as “the beneficiaries are residents of Lithuania, which is a country designated on the restricted list of the United States Government, United [406]*406States Treasury and State Departments, and also under the so-called Iron Curtain Acts of the Commonwealth of Pennsylvania, they have refrained from directly making distribution of the said trust fund to the named beneficiaries”.

In its answer to the petition the Commonwealth demanded proof that the petitioners are the attorneys for the beneficiaries and joined in the petition “to require the trustees to show cause why distribution should not be made under the Iron Curtain Act of July 28, 1953, or, in the alternative, under Section 1314 of the Fiscal Code”: 20 PS §1155, P.L. 674, sec. 1.

The petition and answers were assigned to Judge Bolger, who held a hearing on December.

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Cite This Page — Counsel Stack

Bluebook (online)
43 Pa. D. & C.2d 401, 1967 Pa. Dist. & Cnty. Dec. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lychis-estate-paorphctphilad-1967.