In Re: Estate of Unglo, R. Appeal of: Unglo, G.
891 WDA 2015
| Pa. Super. Ct. | Oct 21, 2016Background
- Decedent Ralph Unglo died in 2009 owning two properties: a rental (Aspen Lodge) and his residence, where daughter Gia was living. Son Ralph II contested administration and a proffered 2006 handwritten will that left everything to Gia.
- Gia initially obtained letters testamentary based on the holographic document; Ralph appealed and obtained emergency relief after alleging mismanagement and waste by Gia. Gia’s letters were revoked after she disobeyed court orders.
- Aligned Partners was appointed successor administrator, sold Aspen Lodge, and later had to obtain court orders to access and repair the residence because Gia refused entry; she continued to occupy the residence until February 28, 2014.
- The Orphans’ Court found the 2006 handwritten will invalid (Decedent lacked testamentary capacity and Gia exerted undue influence), treating the estate as intestate and making Gia and Ralph equal heirs.
- Ralph sought reduction of Gia’s distributive share for her post-death occupancy: one-half the fair rental value plus one-half of taxes and insurance for the period she remained in the house. The court reduced Gia’s share by $61,900, representing one-half rent, taxes, and insurance for 36 months (instead of the requested 48 months).
Issues
| Issue | Plaintiff's Argument (Gia) | Defendant's Argument (Ralph) | Held |
|---|---|---|---|
| Whether an heir occupying decedent’s residence at death must pay rent/taxes/insurance to the estate | Gia: No — Section 3311 forbids collecting rent from an heir occupying with decedent’s consent unless needed for claims; estate was solvent and Decedent consented | Ralph: Yes — Gia was not entitled to occupy rent-free indefinitely; her obstructive conduct delayed administration and caused expenses for the estate | Court: Awarded reduction of Gia’s distributive share for half fair rental value plus half taxes/insurance for 36 months because Gia’s conduct unreasonably prolonged administration and there is doubt about consent |
| Whether the Section 3311 exception (no rent if heir occupied with consent) applies | Gia: She lived there with Decedent’s consent; therefore no rent owed | Ralph: Evidence shows Decedent tried to evict Gia before death; court reasonably questioned consent | Court: Found “some question” about consent and rejected full benefit of the exception |
| Proper duration and amount of rental/tax/insurance charge | Gia: Any charge is improper; estate solvent and she exited soon after being asked | Ralph: Seek one-half rent/taxes/insurance for 48 months (full 4 years) | Court: Applied a 36-month charge (half rent $2,350/mo split, plus proportional taxes and insurance), citing reasonableness and precedent limiting gratuitous occupancy |
| Whether taxing Gia for taxes and insurance results in double payment | Gia: Estate already paid taxes/insurance as maintenance — reducing her distributive share forces her to double-pay | Ralph: Expenses accrued while she occupied the house and benefited her; fair to charge her portion | Court: Upheld charging one-half of taxes and insurance for 36 months as those costs were attributable to delayed sale and her occupancy |
Key Cases Cited
- In re Estate of Unglo, 15 A.3d 541 (Pa. Super. 2010) (affirming removal of heir as administratrix where she endangered estate assets)
- In re Estate of Unglo, 60 A.3d 556 (Pa. Super. 2012) (quashing interlocutory appeals from in limine rulings)
- In re Padezanin, 937 A.2d 475 (Pa. Super. 2007) (vacating rental award where heir occupied with decedent’s consent, soon vacated, and estate was solvent)
- In re Estate of Bouks, 964 A.2d 4 (Pa. Super. 2008) (approving rental award against beneficiary who unlawfully prolonged occupancy and impeded administration)
- In re Estate of Whitley, 50 A.3d 203 (Pa. Super. 2012) (standard of appellate review for Orphans’ Court factual findings and credibility determinations)