In Bizzare Case Before PA Supreme Court, Beneficiaries Sue the Register of Wills

Consider the case of Andre Leonti, a man who died Fayette County PA without a will. The hospital refused to release his body to his lifelong  friend, Cheryl Keefer, until she produced evidence of her authority to administer his estate. She had no luck with the Fayette County Register of Wills, who would not appoint her administrator because she could not establish that she was next of kin. So she next petitioned to the Orphans Court to be appointed administrator of the estate so she could arrange a funeral and burial for her friend, and use money from his estate to pay for the service. Although Cheryl held a power of attorney for Mr. Leonti, that expired upon his death. The court ordered the Register of Wills to appoint her administrator of the Andre’s estate and ordered the hospital to release the body to her for burial. Andre’s estate was worth about $ 242,000.  Normally the Register of Wills would require Ms. Keefer to post a bond before administering the estate, but the court order did not mention any bond requirements.

 As often happens, a distant cousin of the decedent living in Texas became aware of his possible inheritance, so he sought to have Cheryl Keefer removed as administrator and the estate, and he appointed in her place. Ms. Keefer not only refused to turn over the assets, but she also disappeared. Undaunted by this setback, the distant cousin sued the Register of Wills for failing to obtain the bond. 

Normally a government employee is exempt from suit under the doctrine of “governmental immunity,” and the Register of Wills of Fayette County thought so, too. The Pennsylvania Supreme Court held otherwise and stated that the Register of Wills of Fayette County might be liable because of a special Pennsylvania statute governing when the Register of Wills must require a bond, and they sent the case back down to the lower court for more fact finding. 

If you are appointed to administer an estate, do you need to obtain a bond? Would you qualify for a bond? Most wills contain a boilerplate provision stating the executor (also known as the “personal representative”) need not file a bond.  It is there because of  a Pennsylvania Law, similar to the laws of other states,which direct the Register of Wills to obtain a bond from a personal representative, unless waived in the will. The law, contained in Title 20 Pa. C.S.A. Section 3171 to 3175,  is too complicated to discuss in detail, but in most cases, an out of state personal representative must obtain a bond before they can administer an estate. Since they will control the checkbook, and have access to all of the funds of the estate, the bond is intended to secure faithful performance of their duties.  A bond can usually be obtained from an insurance company and most attorneys who do estate work, such as our firm, have access to companies who issue bonds. 

The case brings up a more fundamental question for anyone who drafts a will. Should you require that the representative obtain a bond? It is not impossible to purchase a bond, and it may protect your heirs. It would be pointless if the person you appoint as your personal representative is also your sole beneficiary, but it would make sense if your personal representative is a personal friend, yet not an heir of your estate. 

Without a will, there is no choice in the decision at all, and the laws stated above control. Was Cheryl Keefer a close friend of the decedent who was shortchanged because the decedent did not leave a will? She was appointed his agent under his power of attorney, and she seemed to be the only person interested in arranging decedent’s funeral, since his relatives only stepped forward when they found there was money to be claimed. Or, was she a neighbor who saw an opportunity to convince the decedent to appoint her agent under his power of attorney, and later pocket the decedent’s money by opening up an estate in his name and getting appointed administrator? We do not know enough to decide either wasy, but the case illustrates the importance of having a will.  

Have you ever had experience with getting a bond? If so, comment below.

Stay will until the next post.

Bob Gasparro

Pennsylvania Case May Provide Refund of Medical Record Overcharges Paid Prior to 2012

Most consumers do not realize that if they want copies of their medical records from their physician, or from a hospital, they must pay. This usually becomes an issue when a senior is switching from their former physician to a gerontologist , but it may also become an issue if they change physicians or even dentists because they obtained new medical insurance.

It also frequently becomes an issue if an agent under an advance medical directive or power of attorney wants to obtain a second opinion about medical care, and needs the medical records to do that. 

There is a Pennsylvania law that places a ceiling on what health care providers or health care facilities can charge you for those medical records, and the amount is annually adjusted by the Pennsylvania Department of Health to account for inflation. As of this writing the costs may not exceed $1.44 per page for the first 20 pages. Then $1.06 for pages 21-60, and 35 cents per page for any remaining pages. The cost for microfilm copies is $2.12 per page. There may be a higher charge to copy x-rays. Postage and shipping charges can be added to that amount. In some cases a “search and retrieval” fee of $21.33 may also be added. 

There are some exceptions to the rule, of interest to consumers. If you are using the records to support a claim for Social Security or any other Federal or State financial needs based program, including Medicaid, the total fee may not exceed $27.02. 

Prior to 2012, it was typical for a health care provider or facility to charge that maximum amount for the records, and providing medical records became a separate profit center in addition to providing medical care. However, in 2012 a provision was added to the law (42 Pa. C.S.  §§6152 and 6155 ) stating a provider could only charge the actual costs of producing the records, and could not automatically charge the maximum permitted under the law. 

But what about those people who were over-charged before the change in the law in 2012? A class action case is currently making it’s way through the Pennsylvania courts (Wayne M. Chiurazzi Law v. MRO,) to try to obtain a refund for consumers. Since the case involves so much money, the journey through the courts is going very slow. Just last June 24^th the Pennsylvania Supreme Court decided a motion on behalf of the consumers and stated the case could go forward. It still must be decided if the case can go forward as a class action case, or whether individuals who were over charged have to bring separate claims. And finally the case will go to trial. 

I will keep readers posted as the case makes it’s way through the courts. If the case is permitted to proceed as a class action case, it is likely people who overpaid will be notified by the court about their rights to a refund.

 Stay well until the next post.

Bob Gasparro