Legal Question in Wills and Trusts in Pennsylvania

Who are you and why exactly do you care?

I am troubled by what you post as you have a logical impossibility. First, we have documents called wills. That is the document where instructions are given. So, first question, did aunt have a will? Who did she name as executor? Who was her beneficiary?

If there is no will then friend has no business interfering. Also, depending on what aunt owned and how it was titled, if friend was a beneficiary, it could only be on named designated assets like a bank account. In that case, aunt cannot leave instructions to friend. They are invalid. Friend would get to keep the money and spend as he/she pleased. If friend wants to make a gift to aunt's family ,that is very generous of friend but friend is going to have tax issues. Friend can gift up to $13,000 in any one year to any one person. Example - aunt had $65,000 in bank payable on death to friend. Aunt has 5 nephews/nieces, Friend can give $13,000 to each of the nephews/nieces.

However, friend needs to see a CPA because the donor pays gift taxes.

Second question - why is there any oversight by family at all? Either there is a will or there is not. If there is a will and friend is named executor, then friend is in charge. Friend needs no oversight from family. If there is no will, then its not friend's problem. Anyone can seek to be appointed as administrator of aunt's estate and preference is usually for family. However, assuming friend is administrator, then friend's task is to find out what aunt owned in aunt's name, find out what she owed, pay any valid claims and then distribute the net estate of aunt to aunt's family. Administrator/executor pays the inheritance taxes (which vary depending on relationship between aunt and relative) from the estate.

Again, if aunt had no probate assets but made friend the beneficiary, then family gets nothing. Friend can do what he/she wants but friend has to realize that if he/she chooses to gift money to anyone then there is going to be a tax consequence to him or her. If there is a will and friend is executor, then friend only does what the will says and pays out the net estate to the beneficiaries.

If there is a will naming friend as executor, I suggest that friend seek out a probate attorney who practices in the county where aunt lived at the time of her death and get advice. If there is no will and friend is a beneficiary of bank or other non-probate assets, that friend get a probate attorney and get advice as to whether friend has to honor any instructions contained in any document other than a will. Thirdly, if friend is named beneficiary, I strongly suggest that he/she seek advice from a CPA who is experienced with estate and gift matters to evaluate the tax consequences associated with any gifts.