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decedent’s estate and respondent agreed to use the $750,000
settlement amount as “the starting point” for determining the value
of decedent’s interest in the malpractice claim against Eckell,
Sparks. The parties further agreed (1) to reduce the $750,000
settlement proceeds by $203,659, representing the legal costs
incurred in prosecuting the malpractice claim, (2) that decedent’s
estate had the “right to argue” that the $750,000 figure should be
further reduced (a) by $247,0002 representing the claim the estate
asserted for the return of attorney’s fees and (b) for an
additional portion of the amount recovered from Eckell, Sparks
“because it is property belonging to the residuary beneficiaries
(the Glovers) and is not property of the estate”, and (3) that the
net value of decedent’s interest in the malpractice claim at the
date of settlement (after all allowable reductions) should be
multiplied by 0.438233 to arrive at its present value as of the
date of decedent’s death.
1(...continued)
residuary beneficiaries and payment to one of the
residuary beneficiaries, the deductibility of such fees
and payments are at issue in this case) to the extent
approved by a final order of the Orphans’ Court.
i. Decedent’s estate should be allowed a deduction, not to
exceed $1 million, for a charitable bequest to the
University of Pennsylvania to the extent paid.
2 The actual amount of attorney’s fees ordered returned
was $247,500.
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