In Re: Estate of Harold E. Rood
121 A.3d 1104
Pa. Super. Ct.2015Background
- Decedent Harold Rood died testate in 2013, married nearly 27 years to Hope Rood (Wife); his will left nothing to Wife and divided the estate between his two children, David Rood (Executor/beneficiary) and Jane Lantz (beneficiary).
- Decedent held two Vanguard investment accounts registered as payable-on-death naming David Rood and Lantz as beneficiaries; these registrations were revocable by Decedent during his life.
- Wife timely filed for her statutory elective (one-third) share under 20 Pa.C.S. § 2203; no premarital/postnuptial agreement was asserted to bar her claim.
- The Orphans’ Court held the Vanguard accounts were subject to Wife’s elective share, reasoning they were in effect Totten (tentative) trusts or revocable conveyances under § 2203(a)(3).
- Appellants (the Estate, Rood, Lantz) appealed, arguing payable-on-death registrations are non-testamentary under § 6409(a) and thus not subject to spousal election.
- The Superior Court affirmed, but rejected the need to treat the accounts as Totten trusts; it held the beneficiary-designated, revocable accounts are “conveyances” with testamentary operation under § 2203(a)(3) and therefore reachable by the elective share.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether payable-on-death investment accounts naming non‑spouse beneficiaries are subject to the surviving spouse's elective share under 20 Pa.C.S. § 2203(a)(3) | Appellants: The accounts are nonprobate "transfer on death" registrations and § 6409(a) makes them "not testamentary," so they are not "conveyances" subject to election. | Wife: The designations created an interest intended to operate at death while remaining revocable during life, fitting § 2203(a)(3)'s protection against disinheriting a spouse. | Court: Affirmed that such revocable payable-on-death accounts are "conveyances" with testamentary operation and fall within § 2203(a)(3); therefore subject to the elective share. |
Key Cases Cited
- In re Inter, 664 A.2d 142 (Pa. Super. 1995) (discusses tentative/Totten trusts and spousal election doctrine)
- In re Estate of Hart, 801 A.2d 599 (Pa. Super. 2002) (held property subject to election includes assets decedent could revoke or dispose of during life)
- Estate of William Kotz, 406 A.2d 524 (Pa. 1979) (construed joint tenancies as "conveyances" for elective-share purposes and explained protective legislative purpose)
- In re McFetridge's Estate, 372 A.2d 823 (Pa. 1977) (recognized that expectancies from revocable nominee or trust-like registrations are not vested before death)