Penn State has come to an agreement with the estate of famed coach Joe Paterno who died at the age of 85 in January.
Mr. Paterno was still owed monies from his employment contract at the time of his death. These included a final paycheck of $34,000 and death benefits valued at about $400,000. The university has also agreed to honor a $3 million bonus that was amended into his contract in August of last year. There was some controversy over this due to the contract stipulating that he would receive this bonus only if he retired at the end of the season. However, he was dismissed before he could retire due to the molestation scandal that involved another coach that worked with him.
The heirs of Paterno will receive additional benefits, such as, the use of the Beaver Stadium suite for 25 years, use of parking spaces and certain athletic facilities. His wife will also recieve $1,000 a month for the remainder of her life. Loans and outstanding debts of about $350,000 are also to be forgiven.
The university had asked that the estate sign a full release in return for these payments made under the existing contract, however it was declined. Which means the estate may still sue if they believe that anything is still owed to them.
Please consult with a professional Estate Administration Attorney if you believe that a former employer of the decedent has not paid out wages and other death benefits that were part of an employment contract.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.