In Re: Miller, H.F.
312 MDA 2017
| Pa. Super. Ct. | Nov 6, 2017Background
- Parents (Howard and Marguerite Miller) conveyed the 135-acre family homestead in 2008 to themselves and four children (Geoff, Chet, Renee, Karen) as joint tenants with right of survivorship.
- Mother died 2011; Father executed multiple POAs (2009, 2011) naming children as co-agents; 2011 POA allowed agents to act “jointly or individually” and contained gifting and commingling provisions.
- In Feb 2012 Geoff, as Father’s agent, moved $100,000 of Father’s funds into a new M&T Bank “Farm Account” titled in Father, Geoff, and Chet as joint tenants with right of survivorship to support the farming operation.
- Father died in Aug 2014; portions of the Farm Account were later transferred into the estate account; sisters disputed that the Farm Account should pass by survivorship to Geoff and Chet.
- Orphans’ Court found the Farm Account was invalidly created under the 2011 POA (gift and commingling issues) and ordered the Farm Account included in Father’s estate; Superior Court reversed.
Issues
| Issue | Plaintiff's Argument (Brothers) | Defendant's Argument (Sisters) | Held |
|---|---|---|---|
| Applicability of MPAA/Novosielski to determine survivorship | MPAA presumes survivorship for valid joint accounts; court should apply MPAA first to set burden of proof | MPAA inapplicable if account was never validly created under the POA | Superior Court: MPAA/Novosielski apply only to legitimately created joint accounts; ORPHANS’ CT properly examined POA first, but ultimately MPAA governs once account is validly created |
| Authority under 2011 POA to open Farm Account | 2011 POA gave broad powers (act jointly or individually, paragraph 27 broad grant) so Geoff could open account in Father’s name and title it as joint with co-agents | POA limits gifting (requires unanimous consent) and authorizes accounts only “in my name,” so opening joint-account titling with agents exceeded authority | Superior Court: POA granted broad discretionary authority; opening Farm Account was within agent’s authority; Orphans’ Court erred in narrowly construing POA |
| Whether initial $100,000 was an inter vivos gift or improper commingling | Deposit was Father’s funds; creation of joint account was akin to testamentary device under MPAA and was intended to support farm — survivorship presumption applies | If a gift, POA required unanimous consent; if not a gift, commingling waiver in POA limited and did not authorize this transfer | Superior Court: record supports that funds were Father’s and used for farming; court erred in finding unauthorized gift/commingling; survivorship stands absent clear and convincing proof otherwise |
| Ownership / Remedy — include account in estate or pass by survivorship | Brothers: Farm Account belongs to Geoff and Chet by statutory survivorship | Sisters: Account should be included in estate because creation invalid under POA | Superior Court: Reversed Orphans’ Court; brothers own Farm Account by survivorship under MPAA; sisters failed to prove contrary intent |
Key Cases Cited
- In re Novosielski Estate, 992 A.2d 89 (Pa. 2010) (MPAA presumption of survivorship for legitimately created joint accounts unless clear and convincing evidence shows contrary intent)
- Estate of Cella, 12 A.3d 374 (Pa. Super. 2010) (joint-account survivorship characterized as a testamentary device tied to depositor’s funds)
- Estate of Reifsneider, 610 A.2d 958 (Pa. 1992) (powers of attorney strictly construed but broad discretionary authority will bind principal when conferred)
- In re Estate of Moskowitz, 115 A.3d 372 (Pa. Super. 2015) (elements required for a valid inter vivos gift: donative intent, delivery, and acceptance)