Guardian Must Maintain Ward's Estate Plan

Guardian Must Maintain Ward's Estate Plan

A guardian of the estate may not change his ward's estate plan by re-titling funds formerly held in a joint account. In Re: Falucco (Super. Ct. Pa., No. 2105 WDA 2000, Jan. 4, 2002).

In 1997, Annette Fallucco placed two accounts containing certificates of deposit (CDs) totaling $139,314 in joint tenancy with her son, James. Five days later, Mrs. Fallucco executed her will, which provided specific bequests to her son and daughter, with the residuary estate to be distributed in equal shares to her grandchildren and one great-grandchild. On December 19, 1998, James withdrew the funds in the CDs and placed them in three individual accounts titled in his name only, although he did not withdraw any principal or interest from the CDs or accounts.

In 1999, Mrs. Fallucco was declared incapacitated and Thomas Dempsey was appointed guardian of her estate. After his appointment, Mr. Dempsey requested that James return to the estate the funds previously held in the joint accounts, which James did. Mr. Dempsey then placed the funds in an account titled in his own name for the benefit of Mrs. Fallucco, and did not include James as a joint tenant. Mrs. Fallucco died on June 23, 1999. Mr. Dempsey's final account of the estate included the funds previously held in the joint accounts. James filed objections to the inclusion of these assets, and on August 25, 2000, the Orphans' Court directed the executor of the estate to release the funds, plus interest, to James. Mr. Dempsey and the residuary legatees appealed.

The Superior Court of Pennsylvania affirms, concluding that Pennsylvania law forbids a guardian of the estate from changing the estate plan of the incapacitated person, except upon petition to a court. The court finds that Mrs. Fallucco intended to make a testamentary disposition of all her assets through her will and the jointly held accounts. Therefore, the court rules that the jointly held assets should not pass through her will as part of the residuary estate. Once James had returned the funds to the estate, the court holds that Mr. Dempsey should have restored the status quo and re-titled the joint accounts in the names of Mrs. Fallucco and her son.


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