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Audits |
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Notice |
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The accountant must
give written notice of the filing of the account and of the place,
time and date of audit by regular, first class mail at least
fifteen (15) days prior to the audit date to every unpaid claimant
who has given written notice of a claim to the accountant and
to every other person known to the accountant to have or claim
an interest in the estate as creditor, beneficiary, heir or next
of kin. See Phila.O.C. Rule 6.3.A. See PEPH,
Green Book 6.8 for a sample form of the notice letter. Notice
must also be given to: |
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The Attorney General
of the Commonwealth of Pennsylvania must receive notice if there
are any charitable beneficiaries (except in the case of a charitable
pecuniary legacy of $25,000 or less which has been or will be
paid in full). The notice, in the special form of Notice of Charitable
Gift, is available from the Clerk of the Orphans’ Court
and in PEPH, Green Book 6.7. The completed form should be sent
to the Deputy Attorney General, whose office is in Philadelphia,
rather than to the Office of the Attorney General in Harrisburg. See Chapter
8. |
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The Department of Revenue
must receive notice and a copy of the account in the case of
a decedent who died in a state-owned institution in the Commonwealth. See Pa.O.C.
Rule 6.7. |
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The United States Veterans
Administration must receive notice and a copy of the account
of the estate of a deceased veteran or of the minor child of
a veteran who was entitled to veteran’s benefits. See Pa.O.C.
Rule 6.8. |
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The audit notice must
state that a copy of the account and a copy of the will or trust
instrument will be sent upon request, unless these documents
are enclosed with the notice, or have been furnished previously.
The notice must: describe the nature of any claim, interest or
objection of the recipient; state whether the claim is admitted
or contested; include an interpretation of any dispute or question
to be presented at the audit; and state that the recipient of
the notice must file written objections and appear at audit in
person or by counsel under penalty that, in the absence of such
appearance, the Court may adopt the accountant’s position. See Phila.O.C.
6.3.A.(5).
Questions may arise as to whether it is sufficient to send notice to a
fiduciary who represents possible parties in interest and not also to the
parties themselves (e.g., notice sent to trustee
of the trust to which decedent’s estate will be distributed, rather
than to the beneficiaries of the trust). In some cases, the Court has continued
the audit until notice has been given to all known parties in interest.
Where a doubt exists, the safest course is to provide notice to the parties
in addition to the fiduciary. |
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Forms |
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The forms used in connection
with an account filing and audit may be obtained free of charge
in the Orphans’ Court Clerk’s office, on the Court’s
website, or in PEPH, Green Book, 6.10.
There are specific forms of petition for adjudication for each type of
account: decedent’s estate, trust, guardian of a minor or incapacitated
person, and agent under a power of attorney. The instructions on each form
should be followed carefully. Several attachments are required with the
petition for adjudication. Certain original documents may not be required
if they have been submitted at the audit of a prior account in the same
matter.
The petition for adjudication ends with a proposed distribution. The petition
must be signed by all accountants and verified by the affidavit of at least
one accountant. When principal will be distributed in kind, an accountant
may include in the petition a request that the Court order the filing of
a schedule of distribution. When the assets are all in cash or will be
distributed to a single distributee, counsel may request that the Court
not require a schedule of distribution. See Chapter
9 if real property is to be distributed. |
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Procedure at Audit |
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If the audit of a matter
is continued, the accountant must give notice of the rescheduled
audit to the parties in interest or others, as the Court may
direct. See Phila.O.C. Rule 6.3.B.
Counsel for the accountant and each attorney representing a party
in interest at the audit must present an appearance slip on a
form supplied by the Court, signed by the attorney actually present
at the audit, with the attorney’s name, attorney identification
number, address and telephone number and identifying the client
by name and by the nature of the party’s interest. For
example, if the attorney represents an unpaid creditor, the attorney’s
appearance slip must list the client’s name, identify the
client as an unpaid creditor and show the dollar amount of the
claim. Counsel for the accountant may note additional items of
receipts and disbursements on the appearance slip, but should
not list major items of disbursement, such as accountant’s
commissions or counsel fees, unless such items were included
in the notice to the parties in interest.
Written objections to an account must be filed with the Clerk of the Orphans’ Court
no later than the date and time of the call of the audit, unless the Court
orders otherwise. See Phila.O.C. Rule 6.10.A. The objectant generally hands
a copy of the objections to the Court and parties in interest (or their
counsel) when the matter is called. In a contested matter, the Court may
fix a date for the audit or continue the matter to a later date.
If the petition includes a question for adjudication by the Court and
there is no contest, on the first call of the list counsel should request
that the matter be placed on the second call. On the second call, counsel
will be given an opportunity to present the question and a proposed solution.
The same procedure is followed when counsel wishes to make a statement
about an item not appearing in the account or in the petition for adjudication
that should be included in the Court’s adjudication.
In an uncontested matter with no questions, on the first call of the
audit list counsel for the accountant usually says “Ready, your
Honor, no questions” and hands up counsel’s appearance slip
and any other documents not previously filed. |
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