MAINE PROBATE LAW REVISION COMMISSION REPORT of the COMMISSION'S STUDY AND RECOMMENDATIONS CONCERNING MAINE PROBATE LAW October 1978 Foreword The following Report to the Legislature of the Maine Probate Law Revision Commission's study and recommendations is intended to supplement the Commission's Report and Summary which was transmitted to the Legislative Council by a letter of transmittal dated September 29, 1978. The legislation which set up the Maine Probate Law Revision Commission, P.&S.L. 1973, ch. 126. directed the Commission to make a comprehensive study of Maine probate law. Such a study of an entire major area of the law seemed to require a more extensive report than is possible in the fifty page summary that was previously transmitted. The more extensive report, therefor, was deemed necessary in order to fulfil the responsibility of explaining more fully to the citizens of Maine, and to the Legis- lature, the nature of the Commission's study and recommendations. It is hoped that this report will serve as a helpful refer- ence for Legislators and interested citizens to the various areas covered by the Commission's work and its proposed Maine Probate Code. CONTENTS Chapter 1.1. Wills Wills and and Intestate Intestate Succession Succession . 11_...a•Oe. ,....... a a 1 A. IntestateIntestate Succession Succession . .. ..•......... • 1 1. The Present Maine System . .. .a • 9.0• • e*0 „ 1 2. The Uniform ProbateProbate CodeCode SystemSystem ofof InheritanceInheritance. 13 3. Representation . ,a .• Op 005011 4ROO 1 0 Ba eea . 17 4. Advancements andand DebtsDebts OwedOwed DecedentsDecedents . ./4 •a e,a a• a- .4 2525 5. Survival Requirement ,. Of.0.0teemee.0 a • . a . • 27 B. Persons WhoWho MayMay BeBe SuccessorsSuccessors aose0.00.0.00 . a..* • • a a • • a 30 1. Illegitimates . ,00.00.00.0„ • • . • a 0 al • 0 30 2. Adopted Children . , . .• .• V. a. 0. 0. 35 3. Persons RelatedRelated ThroughThrough TwoTwo LinesLines . .• .• •. a. •. •. 43 4. Afterborn HeirsHeirs . 4 m m „oe ea 4 • .....R • a 8 a . 45 5. Aliens . , . • . .. 440a. ono.4.0.4 04.6 . •a o w 46 6. Kindred ofof thethe HalfHalf BloodBlood •„to o a .• V e0.0e 0 0a 0o . 0 o 46 7. Effects of Homicide . .R. R.• • •• ...e, . .o 0• . 09 . 47 C. ProtectionProtection of ofthe theFamily Family . • . • .,..........• 00 a 0 o . 50 1. AllowancesAllowances andand ExemptionsExemptions . 09 V.0.00.....4 .4 50•0 , 5050 2.2, TheThe ElectiveElective ShareShare . .4 . epoote.45 0 .4114.4.11....14 ....Re 64 3,3. OmittedOmitted PersonsPersons . ..0 .• .• 060.,00.„0.00.*4 o avo 0 0 7 87 D. Execution of Wills . •. , . .a .a .a .a . .• . 93 E. RevocationRevocation andand Revival ofof WillsWills .0 .• . .• a. . .. 0. 9696 1. DeliberateDeliberate Revocation;Revocation; RevivalRevival . .. e .00 e . 96 2. RevocationRevocation by by Change Change of of Circumstances Circumstances Generally Generally . •. 96 3. EffectEffect ofof SeparationSeparation onon MaritalMarital RightsRights .a .a 0oen 04 •4 , 98 F. SpecialSpecial TestamentaryTestamentary Devices WithinWithin WillsWills .*pea . . .o . 107 1. Incorporation by by Reference Reference , . , . .a .,.....•.a qoa 41 . .• 107107 2. Acts of Independent Significance .. , .a .• .• .• 107 3. Reference toto aa SeparateSeparate WritingWriting • 0 . *a. • 009. 9 9 0 , 108 4. Pour-Over Trusts Trusts . ..... .. .. .• . ..• ••••• . , .• .a 109 G. ConstructionConstruction ofof WillsWills .••.•..„....... • . .... 110 110 1. Extent of Interests Passing . me oa e• •. 110 2. Lapse and Failure of a Devise e. a 4 4a, 0 a • •0 •4 a, ,a• . , 113 3, Ademption and Related Issues . ea. a. .ea . •. 115 44.. Exoneration .. e•ea 6•10 61.1•43 . • 2a . 118 5.5, ExerciseExercise of aa PowerPower . .•••• . • 0 0 aa 0 0 0 . 119 6. Construction ofof GenericGeneric TermsTerms ofof RelationshipRelationship .• . 121 H. AbatementAbatement andand ContributionContribution . .. .. . .. 123 I. AssuringAssuring DeliveryDelivery ofof thethe WillWill .9 ............... • . 126126 J,J. RenunciationRenunciation ofof PropertyProperty Interests Interests . ..... .. .. .• 128128 K. ContractsContracts RelatingRelating toto SuccessionSuccession .. .. .. .a . .. , . .• . 133 L. Simultaneous Death . .a . .a . 135 M,M. RelatedRelated ProvisionsProvisions ofof MaineMaine LawLaw ConcerningConcerning DomesticDomestic RRelationselations . a. a. a .o a. a .a o. • ..a ...•0 a00.4..0•0 o ea•a 4 „, 135 Chapter 2. 2.Probate Probate Administration Administration.•..•........ 145 A. General Provisions . • • ., 147 B. Priority Among Persons Seeking Appointment as Personal Representative . • .• • • .e a.....• . .•• 162 • • C. A Flexible System of Proceedings . ........•• • 90 .• . 164 1. Informal Probate . a 1. Informal Probate . .a .a . .a . .a P• • .a a a 9 a 164164 2. Informal Appointment . ....•......• 9 a neg 0 9 C **ea ': 169 3. ! •a a e 9 aa 6 Formal Testacy Proceedings a aa Proceedings 6 e „ p 3. Formal Testacy a 6 6 a 172 4. Formal Appointment .. .419 . .e9.0•4 . Ott e9000 e a 6 178 5.. •.0 aO ae a e.a 66ae 4eo : 5. Supervised Administration . • • 180TO D. The Personal Representative . a 183 1. Qualification, Acceptance and Jurisdiction . , . 183 2. Termination of Appointment . .9a . .e 9— 00 . 186 3. Successor Personal Representative .a .a .a .• 66• o% 190 4. Special Administrators . O.. 4 4 . o : :9 -1 4 4. Special Administrators 6 6 . 191 . • . 5. The Public Administrator . .C .• . —009 . 1919667 E. Bonding . .• 197 1. ImportanceImportance ofof thethe CodeCode ProvisionsProvisions ea0009 V a • Pi 197 2. The The Code Code and and PresentPresent MaineMaine LawLaw .. .• • . ••e : : 199919; 3. IdentifyingIdentifying andand ResolvingResolving thethe IssuesIssues . .0 6 .. 205 a. Brief History of thethe ProbateProbate BondBond .. .. , 207 b. Modern Function of the Institutional Surety Bond 211 c. Arguments ForFor andand Against Against Routine. Routine Initial Initial 1 Bonding ofof EstateEstate RepresentativesRepresentatives . .0- •. 0. .0 .a . 218 d.d. Evaluation ofof thethe Arguments .. .0.• . .• .0 -0. .0 . 227 4. ConclusionConclusion .. .. .. .. 0 . 6 • 0 . 9 • . 0 . •0. .• . .* .• .0 .0 . .a 239 5. ActionsActions onon the BondBond . , . 240 P. PowersPowers andand DutiesDuties ofof thethe PersonalPersonal RepresentativeRepresentative . 242 1. Duties Generally .. WR •9800• • • •• _ 242 a.a. Time of of AccrualAccrual ofof DutiesDuties andand PowersPowers .. 242 b. PriorityPriority AmongAmong Different Different Letters Letters .. .a .• a 6 a •a 0 244 c.C. StandardStandard of of CareCare . .. .. .. .. ,a 245 d. Authorized Acts Subject to Changes inin Testacy Status . .a .a .a a. ala It@ a. 248 e. InformationInformation to HeirsHeirs andand DeviseesDevisees . 252 f. Appraisal andand InventoryInventory . ..... p (0 . .9 .a . 255 g. Possession of the Estate . , . .9 6. 4. 259 2,2. Powers of the Personal Representative . q• V a a. 261 a, The Duty and Power to Proceed Without Court Order . .. .. .............. •. .. 261261 b. Power to Avoid Transfers .. .. .. . 264 c. Transactions ExpresslyExpressly AuthorizedAuthorized . 0e 0 0 0 . 265 i. Power OverOver RealReal EstateEstate ... ..... .• .• . 267267 ii. Other Express Powers . .Oa . 0•• •9 ae 0▪ .• V *. 280 d. Co-RepresentativesCo-Representatives .. . .. .• .• .9 9. .• .* 298 e. Successor RepresentativesRepresentatives .Mee . 900pa44 a- 6 a Oa p9 V .. 300 f. Surviving Representatives . 0 . • . .0 .9 . 302 3. PaymentPayment ofof CompensationCompensation andand ExpensesExpenses . 302302 4.4. ConflictsConflicts ofof Interest Interest . .. .......• .• • • 306306 5. ProtectionProtection ofof PersonsPersons DealingDealing With the Representative . ..... •. ..........- • p a pa . .307307 6, Improper Exercise of Power . „4, 0 041.6 • 0 „ 9 • a. 312 G. Creditors' Claims . *a. . 0. •. 0 . ea. 0.-0.9.0• . 0• ••O0• . 315 • • 0 1.1. GenerallyGenerally .. ..... .. 315 2, ComparativeComparative AnalysisAnalysis ofof PresentPresent ProvisionsProvisions and the Code . ,• . 317 3. Individual Liability of FiduciariesFiduciaries .. .• . 336 -iv- H. DistributionDistribution .. .. .. .. .. .poPe. 9999990909 9.0..Pt .. 341 1. EstablishingEstablishing Successors'Successors' TitleTitle WithWith No Administration . P99.......og. , ................ 4 .•, t p 341341 22.. AbatementAbatement . .. .............••..,orl....944.9 t9 •. 343 3. Right of Retainer . ,eo. • 9%p oo .. .0 .m ,• 347 4. InterestInterest on on General General Legacies Legacies . 1....o.... ......... •. 348 a. Judicial Discretion and Unproductive Property .• 349 b. The TimeTime PeriodPeriod and and Non-Pecuniary Non-Pecuniary Devises Devises, , .• 351 c. Legal Rate of Interest .. .. .. .or... 9 A 9 9 0. 9* . •. 353 5. PenaltyPenalty ClausesClauses forfor WillWill ContestContest . .4 .• .0 .0 .9 .. .94 . ,0 354 6,6. Distribution in Kind . .., . .„ 9e • e. 355 a. Preference for Distribution in Kind .9 499 g.90 o ,. 355 b. Valuation .. .. .. .. .0 .0 . 000 • ED 90 •9 .• JO. .%. 358 7. EvidenceEvidence ofof Distributee'sDistributee's TitleTitle .. .• .. .• .. .0 .0 .a . 362 8. RecoveryRecovery ofof DistributedDistributed AssetsAssets . 365 9. ProtectionProtection ofof PurchasersPurchasers fromfrom DistributeesDistributees .. .. ,. 379 10. PartitionPartition inin DistributionDistribution •.... 381 11. Successors'Successors' AgreementsAgreements .. .. .etc...op...0 . • • .• . ,1p 388 12. Special Distributees Distributees . .. .. .. ......... .. 392 a. Distributions toto TrusteesTrustees . 4.•. t 392 b. Distribution toto aa PersonPerson UnderUnder DisabilityDisability