Nearly every Power of Attorney or Will contains a clause enabling the agent, or the executor, to commence or settle or discontinue litigation. This boilerplate clause recently became the focus of litigation in Lycoming County, PA, where the court ruled that "it is what it says."
Prior to his death, John Bower, Sr. brought a lawsuit against a business. After he died his wife and executor discontinued the litigation under the power given to her in the will. The other beneficiaries of the estate brought an action against her and asked the court to remove her as executor for not acting prudently in handling the estate. The judge who heard the case disagreed with the beneficiaries, and stated that the boilerplate in the will gave her that power, and she was free to exercise it, even if they received less money. The case was In re the Estate of John Bower, Sr. 14-1593, Lycoming County, and the decision was rendered last September 23rd.
Cases like this are one reason many law firms, including ours, place a clause in a will stating that if anyone contests the will or the administration of the estate without probable cause, they are automatically disinherited from the will.
Stay well until the next post,
Bob Gasparro, Esq.
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