HomeMy WebLinkAbout96-00859
;/ /1~;/ /,,/./
.
,-
'8ClpOU elf'1IlIM PlPftP\IJ IBM auewlllUIS PI" '0 Adoll 'If
'uIl! jD JWUU JO
JIO" 'AIwpueueq '....IO..1Jtnn "11 ur ItlU81UI UII W/OIO JO
U^O" III IUIIIftlOOII elf' III UMClUlf UOI.llId 1GIl1O AlDAO 01 pun
JUIIWllpptldultAMAeCIIllMl1I ueoq lit! 'UOtmqIJII,O pocorlOJd
10 WIIUI4lIllIIS PI" III IlIOp08fqo UGPIJM "111 01 Aup IIUI DIll I"
pUI UO'JIIIWJIUOQ.IOf aM>>:) elIJ OJ PGluelllJd eq 11IM lIWOS Oljl
UOllNl -,d PUlllWfl 'eJ1Ip elIJ '0 pul 'UOllOqlJlSIO pocodOJd 10
IUOWellQS IJlfljO DuUU 11I41 JO 90llOU UUIlIJM IDI11AJIIJOO Aqomq I
, .
"
,"
I.~ .
, ,
c:
" :1
'.)0
I"..
..".c
DD_
~.c
':uu>oo
st;-G)
".
-c.,c
o ~= f
;:a..
"OD
~a.GC/)
~ .c
; I: ,. ~
-_C:"-V
"-0
~; '-.l
" "~
CD"
eU- .
e ~ .
. )0. IV .. C
" ,-
'i.."
, _ 0
:I U__
-uo'^
o D ~A
.. ..
"e-
,.... __:I
..
r1?
I ~
~ ti q
. OJ m
III ~ 0
OJ .... 10 ..;::
~ .. ~ : ..
~ '"'~ 0 " <(
a.. II: 0 D-
o "" .. .
~ ~ ~ ci ~
oJ ~ II: . ~
Ul 0 IL. CD
Z Ul
...J II ii:
'" - a:
l:l <(
:ll J:
..:
....
"iC:2C!~
IU~II~
ii~sf . \-~
elli). .
~~~iil ~.
II!I &~ "f
dIJIi'~~,
!~~ls~~ ~)
fisS!ll
A"~8~~~~
e'O.!gem..
t>>""'-"ii,c"S
z;co.c-o.,c
_co...ou..
:J.1-1t-f5'1
.
.
c~
,
FIRST AND PARTIAL ACCOUNT
OF
James H. Stewart, Jr.
TRUSTEE OF
CHARITABLE REMAINDER TRUST OF NOVEMBER 19,1994
Presented to tranfer Trust
to PNC BANK, TRUSTEE
It is important the account be carefully examined.
Requests for additional information or questions or objections
can be discussed with:
James H. Stewart, Jr.
105 North Front Street
Harrisburg, Pennsylvania
or mailed to
P. O. Box 867
Harrisburg, PA 17108
(717) 232 8696
RECEIPT OF PRINCIPAL
Settlor Alexandra I. Huck assigned her interest
in Saxon Company a partnershipto Trustee on November 19, 1994
for liquidation. Trustee charges himself with the net value
of the proceeds negotiated with the other parners for liquidation
of the interest in undivided real estate payable January 6,
1995 as follows:
Gross proceeds $263,364.00
Attorneys fee for negotiation 15,000.00
Net Proceeds 248,364.00
Paid: 1/6/95
3/1/95
$213,364.00
50,000.00
Principal Received Net
$ 248,364.00
Gains on Sales
Gain or Loss
5/19/95 300 sh. Weyerhauser Co
Cos t 4/7/95
5/19/95 200 Caterpi11er
Cost 4/7/95
$12,600.53
12,064,35
11,745.44
11,304.07
$ 536.18
441. 28
1/5/96 400 sh. Ford Holding Co pfd.
Cost 4/7/95 Redeemed
10,000.00
10,264.07
(264. 01~)
2/14/96 200 sh. Caterpi11er Inc.
Cost 9/21/95
13,231. 21
12,079.16
1,152.05
2/14/96 300 Caterpi11er Inc.
Cost 10/12/95
19,846.81
16,233.73
3,613.04
2/15/96 500 sh. May tag Corp.
Cost 6/27/95
10,324.79
8,021.59
2,303.20
7/12/96 200 sh. Atlantic Richfield
Cost 6/27/95
24,120.03
22,779.16
1,440.87
9,222.55
.
Principal Received (Cont'd)
Gross Capital Gains
Less Capital Losses
Net Capital Gains Realized
( Net Capital Gains in 1996 to date $B,245.09)
$9,486.62
264.07
$9,222.55
Total Principal Receipts
Principal Disbursements:
Trustees Fee paid 12/12/95 James Stewart $1,500.00
PRINCIPAL BALANCE AT COST 10/1/96 $256,086.55
Cost Market 10/1/96
257,586.55
Securities on hand for transfer:
5,000 sh. RCM $48,853.35 $49,375.00
300 sh. CoreStates Bank 11,382.08 13,:!37.50
200 sh. Motorola 10,854.16 10,175.00
600 sh. Te1Mex 19,201.19 19,350.00
500 sh. Harris Savings 8,526.97 7,875.00
450 sh. Travelers Group 17.555.68 22,443.75
200 sh. Dupont 16,129.16 17,925.00
200 sh. Texas Instrument 9,952.48 10,800.00
200 sh. P.P.& G. 9,144.64 10,725.00
400 sh. AHP 15,216.85 15,450.00
Securities at Cost $166,816.56 $177,356.25
Securities at Market 10/1/1996 $177,356.25
Cash 89,269.99
PRINCIPAL FOR TRANSFER $256,086.55
1996 Dividends (cont'd):
Atlantic Richfield 3/14 to 6/14
Travelers Group 8/2~
Harris Savings 8/13
Texas Instrument 7/21
P.P.& G. Ind. 9/12
AMP
DuPont
Prior page
Dividends to date including 10/1
1996 Income to date
Dis tributions 1996 $ 2, 942.54
3,080.31
3,030.52
$ 9,053.37
Income on hand 10/1/1996
PROPOSED DISTRIBUTION
0.00
Transfer of Securities in kind carried at
$166,816.56
87,769.99
1,500.00
$ 256,086.55
Transfer of cash
Payment of accountant fee
Total distribution at cost:
Distribution to be made upon audit of Account and
upon approval of the transfer by Order of Court, to
PNC Bank as subsitute Trustee.
CHARITABLE REMAINDER TRUST
IN TilE COURT OF COMMON PLEAS
Under Agreement of November 19,: OF CUMBERLAND COUNTY, PA
1994. Alexandria I. Huck
ORPHAN'S COURT DIVISION
No. ;11 - en -'Yo ,r;q
Life Beneficiary
AND NOW
ORDER OF COURT
thi.1 t{ -off~,"f.96
upon Motion of James
H. Stewart, Jr. Attorney for Petitioner and Trustee of the
Charitable Remainder Trust under agreement dated November 19,
1994 and in consideration of the within Petition PNC Bank is
.
hereby approved as substitute Trustee under the said Agreement
and the Modification of the provision for Beneficiaries set forth
in the Petition is hereby approved.
BY TilE COURT:
ILd6J{~/
.J.
,.,
"
"
such amount being the unitrust amount.
2. If the trust net income for any taxable year
exceeds the amount determined under (b) above, payment
to Settlor shall also include such excess income but
only to the extent that such excess income is less than
the aggregate amount by which payment to Settlor in
prior years was less than five (5%) percent of the
aggregate net fair market value of trust assets for
such years. Any net income of the trust in excess of
such sum shall be added to principal.
3. The Unitrust shall be paid to Settlor for the
life of Settlor. Payment shall be made during the
taxable year or within a reasonable time after the
close of the taxable year and shall be made solely in
cash.
5. In determining the Unitrust amount, the
Trus tee shall prora te the same, on a daily basis in
accordance with the applicable provision of tt.li. In-
ternal Revenue Code and the regulations thereunder for
a short taxable year and for the taxable year of the
Settlor's death.
4. Whenever the Unitrust is required to be
valued for purposes of determining an amount to be paid
to the Settlor, it shall be valued at its net fair
market value on the valuation date, in such manner as
the Trustee in its discretion shall determine, provided
however, that no valuation shall be made in such manner
as would disqualify this unitrust as a charitable
remainder uni trust. In computing the net fair market
value of the Unitrust assets, there shall be taken into
account all assets and liabilities without regard to
whether particular items are taken into account in
determining any amounts payable by the terms of this
Unitrust.
6. Upon the death of the Settlor, all dis-
tributions by the Trustee of this Trust shall be made
to organizations described in Code Sections 170(c),
2055 (a) and 2522 (a) of the Internal Revenue Code of
1986, in such amounts and to such charities as may be
determined in the sole discretion of Trusteel and the
Trustee shall be entitled, should it so determine, to
make distribution of all or part of the corpus to such
organizations from time to time thereafter.
-2-
7. If nny additional contributions are made to
the Trust after the initial contribution in trust, the
Unitrust amount for the fiscal year in which the assets
are added to the Trust shall be five (5%) percent of
the sum of: (1) the net fair market value of the trust
assets (excluding the assets so added and any income
from or apprecintion on, such assets); nnd (2) that
proportion of the value of the assets so added that was
excluded under (1) which the number of days in the
period which begins with the date of contribution and
ends with the earlier of the last day of the fiscal
year of the Settlor's death bears to the number of days
in the period which begins on the first day of such
fiscal year and ends with the earlier of the last day
in such fiscal year or the Settlor's death. In the
case where there is no valuation date after the time of
contributions, the assets so added shall be valued at
the time of contribution.
8. Additional contributions may be made to this
Unitrust from time to time in cash or in kind or partly
in each, by any person, provided, however, the Trustee
may in its sole discretion refuse to accept any such
contribution. For purposes of the taxable year of the
Unitrust in which any additional contribution is made
to the Unitrust:
(a) Where no valuation date occurs after the
time of the contribution and during the taxable
year in which the contribution is made, the addi-
tional property shall be valued at the time of
contribution; and
(b) The amount which shall be paid to the
Settlor shall be computed by multiplying five~(5%)
percent of the sum of: (A) the net fair m'1irket
value of the Unitrust assets (excluding the value
of the addi tional property and any earned income
from and any appreciation on such property after
its contribution); and (B) that proportion of the
value of the additional property (that was excluded
under subdivision (A) of this subparagraph), which
the number of day (including the day of transfer)
remaining in the taxable year of the Unitrust bears
to the total number of days in that taxable year of
the Unitrust; provided, however, that in the case
of an additional contribution made to the Unitrust
during a short taxable year, or duing a year in
which a payment shall be deferred, or during the
-3-
..'
last taxable year of the Unitrust, the
payable to the Settlor shall be computed
regard to all applicable provisions
Unitrust.
amounts
with due
of this
9. The Trustee is prohibited from engaging in
any act of self-dealing, as defined in Section 494l(d)
of the Internal Revenue COde, from retaining any excess
business hOldings, as defined in Section 4943(c), from
making any investments in such manner as to subject the
Unitrust to tax under Section 4944, and from making any
taxable expenditures as defined in Section 4945 (d) .
After the death of the Settlor and until such time as
the Uni trust fund is distributed, the Trustee shall
distribute the net income from the Unitrust and, to the
extent necessary, such portion of the principal at such
time and in such manner as not subject the Unitrust to
tax under Section 4942 of the Internal Revenue Code.
The purpose of the foregoing sentence is to comply with
the provisions of Section 508 (e), to the extent such
provisions are applicable to this Unitrust.
10. The Uni trust shall not be subject to any
power to invade, alter, amend, or revoke.
(a)
Unitrust
unitrust
Internal
It is the Settlor I s intention that this
shall qualify as a charitable remainder
under the applicable provisions of the
Revenue Code and regulations.
(b) Notwithstanding any other provisions of
this trust, the Trustee is prohibited from exercis-
ing any power or discretion in such manner as to
cause this Unitrust to fail to qualify as a char-
i table remainder uni trust as defined in Seq!:.ion
664(d) (2) of the Internal Revenue COde, includ!ng,
but not limited to, any power or discretion which
may in any way restrict the Trustee from investing
the Unitrust assets in a manner which could result
in the annual realization of a reasonable amount of
income or gain from the sale or disposi tion of
Unitrust assets.
ARTICLE II
Trustee Powers.
In addition to the powers, authorities,
discretions and immunities given to the Trustee by law, the
-4-
.---
Trustee and each successor Trustee is authorized, in its absolute
discretion, to:
1. Sell, without order of any Court, either at
public or private sale and for such sums it shall deem
meet; to exchange or otherwise dispose of, the whole or
any portion or portions of the real or personal proper-
ty, which shall be held at any time by Trustee, upon
such terms and conditions as Trustee may deem advis-
able.
2. Borrow money, at any time or times, and upon
such terms and conditions as the Trustee may deem
advisable or proper, for the purpose of meeting any and
all charges against the trust or for any other purpose
of administration, or for the preservation, improve-
ment, or enhancement in value, and, in connection with
any such borrowing, the Trustee may pledge,
hypothecate, create security interests in, or mortgage
the whole or any portion or portions of the real or
personal property which shall at any time be held by
the Trustee if it, in its sole and absolute discretion,
deems it advisable so to do.
3. Set up, maintain and carry with any broker or
securities dealer one or more accounts, including
margin accounts, for the trust, and to purchase and
carry securities on margin for or on account of the
Trust Principal, and, in connection therewith, the
Trustee may enter into such margin agreements as may be
required by such broker or dealer.
4. Invest, and reinvest the Trust Principal in
any form of investment which the Trustee, in it~ sole
and absolute discretion, shall determine, w~hout
restriction to inveotments of the nature and kind
prescribed by law for the investment of trust funds,
and the Trustee shall not be liable or responsible to
any person or persons interested in the Trust for any
depreciation in or loss of principal or income occa-
sioned by any such investment or retention.
5. Vote, in person or by proxy, upon all stock
or other securities held by him; participate in any
plan of reorganization, consolidation, merger, com-
bination, recapitalization, liquidation, or similar
plan; consent to such plan and any such action thereun-
der or any contract, lease, mortgage, purchase, or
-5-
.--'
other action by any corporation; deposit any property
with any protective, reorganization, or similar commit-
tee and delegate discretionary powers and share in the
payment of its expenses and compensation; and accept
and retain securities or other property under any such
plan, whether or not such securities or other property
shall be of the nature and kind prescribed by law for
the investment of trust funds.
6. Determine, in any case where doubt exists
under the facts or applicable law, whether any charges,
expenses or disbursements incurred or paid by it shall
be charged against principal or income, and the extent
or proportion of any such charge, expense, or disburse-
ment which is to be charged against principal or
income, and the jUdgment of the Trustee shall be final.
7. All capi tal gains realized on the sale or
exchange of assets by Trustee shall be retained as part
of the corpus of the Trust and allocated to principal.
8. Treat, in its discretion, any extraordinary
dividends payable in any stock or other securities, and
also any liquidating dividends, as principal and not as
income, or partly as income and partly as principal,
but ordinarily dividends paid in any stock or other
securities regularly by a corporation in lieu of, or in
addition to, regular cash dividends, and all dividends
accumulated on any preferred stock by the Trustee
shall, if declared, be considered income and not
principal, provided, however, that in any case where
doubt exists under the facts or applicable law, the
determination of the Trustee as to whether any dividend
shall be apportioned or allocated in whole or in part
to principal or income, and its apportionrnen~ or
allocation, shall be final.
9. Settle, adjust, compromise, or arbitrate any
and all claims in favor of or against the trust or any
disputes or controversies in which the Trust may be
interested, or abandon any such claim, and the cause of
action on which it is based if the Trustee, in its sole
and absolute discretion, deems it advisable so to do.
10. Retain, hire and employment agents, attor-
neys, custodians, accountants, investment counsel and
such other persons as the Trustee may deem advisable in
connection with the administration of the Trust, fix
and pay the compensation of such persons and delegate
-6-
to such persons such powers and authorities as the
Trustee mny deem advisable.
ARTICLE III
ADMINISTRATION
1. My Trustee shall be compensated for the reasonable
value of his services from time to time. I hereby charge the
interest transferred to Trustee hereunder with the initial
payment of Pifteen Thousand ($15,000.00) Dollars from the sale of
the partnership interest, and for creation of this Trust. Ser-
vices for administering the Trust shall be paid at a rate not
less than one-half (I) of one (1%) percent per annum of the net
fair market value of the assets of the Trust determined on each
valuation date, payable quarterly, in addition to any expenses
therefor incurred by Trustee.
2. My Trustee shall have the power to appoint a successor
Trustee in writing, and should he fail to do so, or should any
successor Trustee fail to appoint a successor in writing, while I
remain living, then I shall be entitled to appoint a successor;
and should I not be alive, then a successor shall be appointed by
the President Judge of the Court of Common Pleas of Cumberland
County, Pennsylvania.
3. My Trustees and their successors shall not be required
to file bond, though Court appointed; and unless otherwise
required to do so, they shall not be required to file formal
accountings with the Court. Accounts may be required to be made
public after my death to maintain tax free status for the Trust
as a Charitable Trust or Foundation;
4. I retain the power to dismiss any Trustee. and to
appoint a successor.
5. No Trustee shall be answerable for loss in investments
made in good faith. No Trustee shall be liable for the acts or
omissions of any other Trustee or of any accountant, agent,
counselor custodian selected with reasonable care.
6. This Trust is irrevocable. The Trustee, however, shall
have the power, acting alone, to amend the Trust in any manner
required for the sole purpose of ensuring that the Trust qual-
ifies and continues to qualify as a charitable remainder unitrust
within the meaning of Section 664 (d) (2) of the Code, or as a
charitable Trust after my death.
-7-
CONSENT
And now this ali-fh day of NOl/eWlber 1996, PNC Bank
hereby consents to be named as, and to act as Trustee of the
Charitable Remainder Trust of November 19, 1994, upon approval
of the Account filed therein.
,/
PNC nk, Substitute Trustee
by its Trust Officer
Exhibit B
"
.
.
,
~. .,. '"
.'
.
.
,.'
.
;
..7"
" .'
,
.
(. '. ?
" ,
.f "
p. .
" ~
)0
...
.
'l\ ,
,I t
.. .,
. -'
. .
, .' .
'}'"
.~' .'
~. .
J
\'
~'j.'
.
.'
"
"
__t
_.~
--
1':' ,
,
.-
-:=:~.__.:-:-~~
r
AIIl~ J MrIl..khllhn, ["IIIIU.
AIlIlIlIl1 It) Nil MIll/U
.\1.lIIlr) A .\IIIIIII,r"IU1Il'
Alh1lllt) III NII_ H7K!
Rhu...h &: Silk'll 1.1.1'
Out StlUlh M.al ~cl StjWII.'
I', () U." 11-1(,
1I.aIll\hUI"I'A 17IUM.II.th
171711.1.l.n.ll
Alhlllk')l fllll'cUlilllk'l
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST UJA or
NOVEMBER 19.1994
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
NO. YEAR OF 2000
PETITION FOR TRUST AMENDMENT
TO THE HONORABLE. THE PRESIDENT JUDGE AND JUDGES or SAID COURT:
NOW COMES. Alcxandra I. Huck. sclllor and incomc hcncliciary of Thc Alcxandra I.
Huck charitablc Rcmaindcr Unitrust UJA of Novcmhcr 19. 1994. hy and through hcr allorncys.
Rhoads & Sinon LLP, and filcs thc within Pctition for Trust Amcndmcnt and in support thcrcof
rcspcctfully rcprcscnts and avcrs thc following:
I. Thc Pctitioncr. Alcxandru I. Huck (the "Petitioner"). is an adult individual rcsiding at
251 South Lcwisbcrry Road. Mcclmnicsburg. Pennsylvania and is thc sclllor and incomc
bcncliciury ofThc Alcxandra I. Huck Chariwhlc Rcmaindcr Unitrust UJA of Novembcr 19. 1994
(thc "Trust").
2. This Honoruhle Court hus jurisdiction ovcr the Trust pursuunt to the provisions of 20
Pa. C.S.A. ~711(3).
3. ARTICLE 11I(7) of the Trust statcs thai the situs of the Trust is Pcnnsylvllllia.
Whcrc a trust instrumcnt docs not providc a county lilr the situs of a trust. 20 Pa. c.s. ~724(h)
provides tlmt. in thc cusc of a rcsident sell lor. till: situs may bc in the county where the trustee is
llbl"".1
locatcd. which is Cumhcrland County in this casc, A II'lIC and clll'rccl copy of thc Trnsl is auachcd
hcrclo and incorporalcd hcrcinlls Exhihit "A",
4. On Nowmhcr llJ. IlJl)4. Sclllor cxcculcd a tl'llsl agrccmcnt with .Iamcs II. Stcwart.
.II'. ("Stcwart"). ns trustee. cstablishing thc Trust.
5. On Ikcember 9. 19%. this Courl issucd an Ordcr granting SeUllll"s Pelition Illr
Substitutc Trustcc. in which this Court approvcd thc rcmovalof Jmnes II. Slcwarl. .II'. as Trustcc
and the appointmcnt of PNC Bank (thc "Trustcc") in his plllcc. A truc and corrccl copy of thc
Petition for Substitutc Trustec and thc Ordcr of Court arc auachcd hcrcto and incorporatcd hcrcin as
Exhibit "13".
6. Thc Trust was dralicd as a net incomc only charitable rcmaindcr unitrust with a
makc up provision (a "NIMCRUT") within thc prccisc and particular stllndards of Scction
664(d)(2) and (3) of thc Intcrnal Rcvenuc Codc of 1986. as llmcndcd (thc "Codc") and thc
Rcgulations thercundcr.
7. Thc Trust providcs. intcr alill. for thc annual paymcnts of thc "Unitrust Amount" to
thc scttlor, Alcxandra I. ('luck. during hcr Iifctimc. Thc "Unitrust Amount" is dctincd to bc an
amount cqualto thc Icsscr of a) thc actual Trust incomc (or thc taxablc ycar or b) fiw pcrccnt (5%)
of thc nct fair markct valuc of thc Trust asscts valucd as of Ihc lirst day of Dcccmber of cach
taxablc ycar of thc Trust. To the cxtcnt thc llnnual Trust incomc is Icss than 5% of thc net fair
markct value of the Trust asscts vlllucd as of thc lirst day of Dcccmber of thc taxable ycar, thc
rcsulting dcficitmay bc paid back inllny ycar in which thc annual incomc cxcccds thc 5% paymcnt
amount. Upon thc dcalh of Pc tit ion cr. the rcmaining asscts ofthc Trust arc to be distribulcd in such
amounts and to such chari tics as may bc detcrmincd in the solc discrction ofTrustcc.
- 2 -
K, In Ih.: I'.:tililln lill' SlIhslitUI~ Tl'IIsI~~. SI~lIarl nam~d Ih~ lillllllling dmrili.:s as
h~n~lkiari.:s Ilf.:qual shar.:s ofth.: r.:nmillll~r oflh~ Trust Iklcnd.:rs ofWildlilc. P.:opl.: IiII' Ih.:
Elhical Tr.:atm.:nlllf Animals. I hllnan.: Sod':ly Ill' Ih~ (ir~al.:r Ilarrbhurg Ar.:a. Wind Ridg.: ElIlIin.:
Rdllg.:. Th.: Salvalion Army. and Am.:ri~an L.:prosy ivlissillns (th.: "Chariti.:s"),
9, ARTICLE 111(6) Ilfth.: Trusl stal.:s Ihal il is g.:n.:rally irr,:vllcahl~,
] 0, Th.: P':lition.:r contrihlll.:d to th.: Trust an undil'id.:d int.:r.:st in a partn.:rship in
Maryland. holding inlcr.:sls in a substantial parcd of land (thc "Partncrship htlcr.:st"), lkcallsc th.:
asscts of thc Trusl would not gcncralc suflicicnt incom.: 10 pay thc full 5'% pCI' ycar until tlw
Partncrship Intcrcst could bc sold. thc Trust was structurcd as a NIMCRlJT. which Iimilcd thc
paymcnt ofthc lJnilrusl Amount cxdusivcly out of Trust in.:omc,
11. In January 1995.thc Trustcc sold thc PaMn.:rship Inlcrcst hdd inthc Trust.
12. In ord.:r to g.:n.:ratc suflidclll incom.: to pay Ihc lJnitrust Amount. thc Truslcc has
invested the procceds of the salc of th.: PaMncrship Intcrcst in a mix of Iixcd incomc and growth
asscts,
] 3. A statemcnt ofthc asscts of Ihc Trust as of July 19. 1999 is allachcd as Exhibit "C".
14. Dcclining intcrcst ralcs havc rcsultcd in a 10llcr rcturn of incomc from thc Trust
asscts. which rcduccs payouts to l'.:lilioncr, Morcovcr. cl'cn ifthc Trustcc would invcst cxdusil'dy
in Iixed incomc asscts. thc invcstmcnts still would likely not producc suflicicnl incomc 10 pay Ihc
Unitrust Amount and. additionally. would providc lilll.: opportunil)' lilr capital apprcciation,
15. Thc dclicit in pa)'mcnls in incomc to thc P.:titioncr as of Dcc.:mbcr 31. 19<JK. is
$12.303.
16. Rccognizing thc limilations of NIMCRl ITs. thc Inlcrnal Rcvcnuc Scrl'icc rdcascd
Iinal rcgulations. which bccamc clkcli\'c Dcccmhcr 10. 199K. pcrmilling cxisting Nl1vlCRUTs. Iikc
- 3 -
thc Trusl. to hc changcd ("nippcd") 10 a slraiglll charitahlc rcmaindcr nnitrn~1 ("('Rill"), Scc
Trcasury Rcgulation * 1,664-3.
17. Thc Final Rcgulalions rcquirc that judicialrclill'lnalion procccdings 10 convcrt 10 a
standard unitrust bc commcnccd on or hclhrc Junc ll. 1999. Thc Intcl'l1al Rcvcnuc Scrvicc cxlcndcd
thc dcadlinc for initiating such procccdings unlil Junc 30. :WOO. NOlicc 99-31.
18. Pctitioncr. Trustcc and thc Charitics arc Ihc parlics in intcrcst. Thc parlics in intcrcst
dcsirc to amcnd thc Trust to convcrt it from a NIMCRUT to a straight CRUT as dcfincd in Scction
664(d)(2) ofthc Codc.
19. A straight CRUT providcs lor thc distrihution of a spccificd pcrccntagc ofthc annual
fair markct valuc ofthc CRUT rCl!ardlcss of actual Trust incomc.
20. A straight CRUT would pcrmit thc Trustcc to pay thc Unitrust Amount Irom cithcr
thc incomc or thc principal of thc Trust. thus gmnting thc Trustcc thc ncxibility to invcstthc Trust
asscts to achicvc thc bcst total rctul'l1.
21. As thc Trustcc invcsts to achicvc thc hcst ovcrall rcturn, thc principal of thc Trust
should incrcasc, bcncfiting both thc Charitics. as rccipicnts of thc rcmaindcr intcrcst and Pctitioncr.
as bcncficiary of thc unitrust payout pcrccntagc. bccausc thc valuc of thc 5% Unitrust Amount
(calculatcd annually bascd uponthc fair markct valuc of thc Trust asscts) likcwisc incrcascs. Thus.
all partics in intcrcst. would bcnctit Irom convcrting In a straight CRUT.
22. In ordcr for Ihc Trust. which currcntly qualitics as a NIMCRUT. to convcrt to a
straight CRUT. thc govcrning inslrumcnt of Ihc Trust must hc amcndcd to providc that thc changc
in mcthod of paymcnt will occur on a spcciticd triggcr dalc or cvcnt. Scc Trcasury Rcgulation
* 1.664-3(a)( 1)(1)(3).
-4 -
23. Thc partics in illlercst dcsirc thalthc Trust cOllvcrl from n NIMCIWT to a straight
('RUT. cffectivc March 31. :WllO.
24. To cflcctuatc this changc. Ihc Pctitioncr sccks allllrdcr of Court amcllding
thc Trust to rcvokc thc existing Articlcs I( I) and 1(2) and add ncll' Arlklcs I( I) :111l1 1(2) to rcad
in lilllas 1'0 II Oil'S:
(I) Until March 31. 200ll. Trustcc shall pay tOOl' for thc usc of Sculor in
installmcnts convcnicnt to SClllor. hut not Icss Ircqucntly than lmnually. an amount
cqualto thc lcsscr of:
(a) thc trust nct incomc for thc taxablc ycar (as dclincd in Scction
643(b) of thc Intcrnal Rcvcnuc Codc of lIJ86 and thc rcgulations thcrcundcr)
cxcluding all capital gains distributions lInd sums propcrly allocatcd by Trustcc to
corpus; and
(b) Iivc (5%) pcrccnt of thc nct filiI' markct valuc of thc trust asscts
dctcrmincd U1l1lually on thc first day of Dcccmbcr (thc valuation dalc cach ycar),
If thc trust nct incomc for any taxablc ycar cxcccds thc amount
dctcrmincd undcr (b) abovc. paymcnt to Sclllor shall also includc such cxccss incomc
but only to thc cxtcnt that such cxccss incomc is lcss than thc aggrcgatc amount by
which paymcnt to Scttlor in prior ycars lI'as lcss than fivc (5%) pcrccnt of thc
aggrcgatc nct fair markct value of trust asscts for such ycars. Any nct incomc of thc
trust in cxccss of such sum shall bc addcd to principal.
(2) On Murch 31. 2ll0ll. 11 :SlJ p,m.. thcrc shall bc a changc in thc payout
mcthod fromthc incomc cxccption mcthod sct Ibrth undcr Paragraph \( I )(a) abovc to
a Scction 664(d)(2) payout mcthod. Any cxisting dclicit as dcfincd in Rcg. Scc.
1.664-3(a)( I )(i)(b)(2) shall bc forfeitcd, Pursuanl tolhc forcgoing. on and ancr April
1, 2000, thc paymcnt of thc unitrust amount shall bc as folloll's:
In cach taxable ycar of thc trust. thc Trustcc shall pay to Sculor during hcr
lifctimc, a unitrust amount cqualto Iivc pcrccnt (5%) of thc nctlilir markct valuc of
thc asscts of thc trust valucd as of thc Iirst day of Dcccmbcr of cach taxablc ycar of
thc trust (such datc shall bc rcfcrrcd to as thc "valuation dmc").
Thc unitrust amount shall bc paid in installmcnts convcnicntto thc Sculor but
not Icss frcqucntly than annually from incomc and to thc cxtcnt that incomc is not
suflicicnt. from principal. Any incomc of thc Trust lilr a taxablc ycar in cxccss of thc
unitrust amount shall bc addcd 10 principal. I I' for any ycar thc nct fair markct valuc
.5.
of thc Trust asscts is incolTcctly dctcrmincd. Ihcn within a rcasllnable pcrilld allcl' thc
valuc is Iinally dctcl'mincd IiII' ledcral Ills plll'pllSCS. thc Tl'ustcc shall pay to thc
Scllllll' (inthc casc llfanundcl'valualionl Ill' I'cceivc from thc Sclllnr (inthc casc of an
ovcrvuluulionl au amount cljual to thc dirtel'cncc bctwccn thc unill'llst amounl
propcrly payablc and thc unilrusl amllunt actuully paid,
25. Thc partics in intcrcsI havc conscnlcd to thc amcndmcnt of thc Trust as indicatcd by
thc Conscnts allachcd hcrcto as Eshibil "J)" and incorporalcd by rclercncc hcrein.
26. Upon rcvicw of this Pctition. thc Officc of thc Allorncy Gcncral of thc
Commonwcalth of Pcnnsylvania issucd a no objcction Icllcr dalcd Ikccmbcr 27. 1999 to thc
convcrsion of thc Trust. which is attachcd hcrcto as Eshibit "E" and incorporatcd by rclercncc
hcrcin.
27. Amcndmcnt of an irrcvocablc trust is pcrmittcd whcn thc scttlor and all of thc
bcncliciarics conscnt to thc amcndmcnt. Trust Estatc of Gcorl.tC W. Raiziss and Anna M. Raiziss. I
I'hila. 362 (1978); Rcstatcmcnt. Sccond. ofTrusls. * 338: Scollon Trusts. * 338.
WHEREFORE. thc I'ctitioncr rcspcctfully rCljucsts thatthc Court approvc thc amcndmcntto
the Trust as sct forth in Paragraph 24 above.
RIIOADS & SINON LLI'
By:
eJ1; d1ekdlt."e
AI' J. Mcndclsohn. Esquirc
1D No. 81084
Stanlcy A, Smith. Esquirc
1D No. 33782
Rhoads & Sinon LLI'
Onc South Markct Squarc
1'.0, Bos 1146
Harrisburg. I' A 17108-1146
Allorncys fi,r Truslcc
Datcd: ,)arluIUl..J ~. :woo
I
-6-
'"-
v
A G R E E HEN T
This Agreement made this 19th day of November, 1994/ By and
Between Alexandra I. Huck, Settlor,
AND
James H. Stewart/ Jr., Trustee,
WITNESSETH THAT:
Settlor has assigned, transferred and setover unto Trustee a
twenty-eight (28\) percent interest in the partnership known as
Saxon Company/ a partnership with offices in Church Hill, MD, by
Assignment attached hereto as Exhibit A, in trust never-the-less
for the uses and purposes and on the terms and conditions herein
set forth:
ARTICLE I
Trustee shall manage and invest the assets in the Trust and
shall have the following duties with respect to the disposition
of income and principal of the trust fund:
1. Trustee shall pay to or for the use of
Settlor in installments convenient to Settlor, but not
less frequently than annually, an amount equal ,~the
lesser of:
(a) the truat net income for the taxable year
(as defined in Section 643(b) of the Internal
Revenue C<lde of 1986 and the regulations thereun-
der) excluding all capital gains distributions and
sums properly allocated by Trustee to corpus: and
(b) five (5\) percent of the net fair market
value of the trust assets determined annually on
the first day of December (the valuation date each
year) .
-'
such amount being the Unitrust amount.
2. If the trust net income for any taxable year
exceeds the amount determined under (bl above, payment
to Settlor shall also include such excess income but
only to the extent that such excess income is less than
the aggregate amount by which payment to Settlor in
prior years was less than five (5%) percent of the
aggregate net fair market value' of trust assets for
such years. Any net income of the trust in excess of
such sum shall be added to principal.
3. The Unitrust shall be paid to Settlor for the
life of Settlor. Payment shall be made during the
taxable year or within a reasonable time after the
close of the taxable year and shall be made solely in
cash.
4. Whenever the unitrust is required to be
valued for purposes of determining an amount to be paid
to the Settlor, it shall be valued at its net fair
market value on the valuation date, in such manner as
the Trustee in its discretion shall determine, provided
however, that no valuation shall be made in such manner
as would disqualify this Unitrust as a charitable
remainder unitrust. In computing the net fair market
value of the Unitrust assets, there shall be taken into
account all assets and liabilities without regard to
whether particular items are taken into account in
determining any amounts payable by the terms of this
Unitrust.
5. In determining the Unit~ust amount, the
Trustee shall prorate the same, on a daily basis in
accordance with the applicable provision of t~ In-
ternal Revenue Code and the regulations thereunder for
a short taxable year and for the taxable year of the
Settlor's death.
6. Upon the death of the Settlor, all dis-
tributions'by the Trustee of this Trust shall be made
to organizations described in Code Sections 170 (cl ,
2055 (al and 2522 (a) of the Internal Revenue Code of
1986, in such amounts and to such charities as may be
determined in the sole discretion of Trustee: and .the
Trustee shall be entitled, should it so determine, to
make distribution of all or part of the corpus to such
organizations from time to time thereafter.
-2-
-'
7. If any additional contributions are made to
the Trust after the initial contribution in trust, the
Unitrust amount for the fiscal year in which the assets
are added to the Trust shall be five 15\) percent of
the sum of: (1) the net fair market value of the trust
assets lexcluding the assets so added and any income
from or appreciation on, such assets); and 121 that
proportion of the value of the assets so added that was
excluded under III which the .number of days in the
period which begins with the date of contribution and
ends with the earlier of the last day of the fiscal
year of the Settlor's death bears to the number of days
in the period which begins on the first day of such
fiscal year and ends with the earlier of the last day
in such fiscal year or the Settlor's death. In the
case where there is no valuation date after the time of
contributions, the assets so added shall be valued at
the time of contribution.
8. Additional contributions may be made to this
Unitrust from time to time in cash or in kind or partly
in each, by any person, provided, however, the Trustee
may in its sole discretion refuse to accept any such
contribution. For purposes of the taxable year of the
Unitrust in which any additional contribution is made
to the Unitrust:
(a) Where no valuation date occurs after the
time of the contribution and during the taxable
year in which the contribution is made, the addi-
tional property shall be valued at the time of
contribution; and
(b) The ...mount which shall be paid to the
Settlor shall be computed by multiplying five~(5\)
percent of the sum of: (A) the net fair m'lr'rket
value of the Unitrust assets (excluding the value
of the additional property and any earned income.
from and' any appreciation on such property after
its contribution); and (B) that proportion of the
value Qf the additional property (that was excluded
under subdivision (A) of this subparagraph), which
the number of day (including the day of transfer)
remaining in the taxable year of the Unitrust bears
to the total number of days in that taxable year of
the Unitrust; provided, however, that in the case
of an additional contribution made to the Unitrust
during a short taxable year, or duing a year in
which a payment shall be deferred, or during the
-3-
~
last taxable year of the Unitrust, the
payable to the Settlor shall be computed
regard to all applicable provisions
Unitrust.
amounts
with due
of this
9. The Trustee is prohibited from engaging in
any act of self-dealing, as defined in Section 494l(d)
of the Internal Revenue Code, from retaining any excess
business holdings, as d~fined in Section 494J(c), from
making any investments in such manner as to subject the
Unitrust to tax under Section 4944, and from making any
taxable expenditures as defined in Section 4945(d).
After the death of the Settlor and until such time as
the Unitrust fund is distributed, the Trustee shall
distribute the net income from the Unitrust and, to the
extent necessary, such portion of the principal at such
time and in such manner as not subject the Unitrust to
tax under Section 4942 of the Internal Revenue Code.
The purpose of the foregoing sentence is to comply with
the provisions of Section SOB (e), to the extent such
provisions are applicable to this Unitrust.
10. The Uni trust shall not be subject to any
power to invade, alter, amend, or revoke.
(a)
unitrust
unitrust
Internal
It is the Settlor's intention that this
shall qualify as a charitable remainder
under the applicable provisions of the
Revenue Code and regulations.
(b) Notwithstanding any other provisions of
this trust, the Trustee is prohibited from exercis-
ing any power or discretion in such manner as to
cause this Unitrust to fail to qualify as a char-
itable remainder unitrust as defined in se~ion
664(d) (2) of the Internal Revenue Code, including,
but not limited to, any power or discretion which
may in any way restrict the Trustee from investing
the Unitrust assets in a manner which could result
in the annual realization of a reasonable amount of
income ',or gain from the sale or disposition of
Unitrust assets.
ARTICLE II
Trustee Powers.
In addition to the powers, authorities,
discretions and immunities given to the Trustee by law, the
-4-
--
Trustee and each successor Trustee is authorized, in its absolute
discretion, to:
1. Sell, without order of any Court, either at
public or private sale and for such sums it shall deem
meet: to exchange or otherwise dispose of, the whole or
any portion or portions of the real or personal proper-
ty, which shall be held at any time by Trustee, upon
such terms and conditions as Trustee may deem advis-
able.
2. Borrow money, at any time or times, and upon
such terms and conditions as the Trustee may deem
advisable or proper, for the purpose of meeting any and
all charges against the trust or for any other purpose
of administration, or for the preservation, improve-
ment, or enhancement in value, and, in connection with
any such borrowing, the Trustee may pledge,
hypothecate, create security interests in, or mortgage
the whole or any portion or portions of the real or
personal property which shall at any time be held by
the Trustee if it, in its sole and absolute discretion,
deems it advisable so to do.
3. Set up, maintain and carry with any broker or
securities dealer one or more accounts, including
margin accounts, for the trust, and to purchase and
carry securities on margin for or on. account of the
Trust Principal, and, in connection therewith, the
Trustee may enter into such margin agreements as may be
required by such broker or dealer.
4. Invest, and reinvest the Trust Principal in
any form of investment which the Trustee, in it~ sole
and absolute discretion, shall determine, w~hout
restriction to investments of the nature and kind
prescribed bylaw for the investment of trust funds,
and the Trustee shall not be liable or responsible to
any person or persons interested in the Trust for any
depreciation in or loss of principal or income occa-
sioned by any such investment or retention.
5. Vote, in person or by proxy, upon all stock
or other securities held by him; participate in any
plan of reorganization, consolidation, merger, com-
bination, recapitalization, liquidation, or similar
plan; consent to such plan and any such action thereun-
der or any contract, lease, mortgage, purchase, or
-5-
-'
other action by any corporation: deposit any property
with any protective, reorganization, or similar commit-
tee and deLegate discretionary powers and share in the
payment of its expenses and compensation: and accept
and retain securities or other property under any such
plan, whether or not such securities or other property
shall be of the nature and kind prescribed by law for
the investment of trust funds.
6. Determine, in allY case where doubt exists
under the facts or applicable law, whether any charges,
expenses or disbursements incurred or paid by it shall
be charged against principal or income, and the extent
or propor~ion of any such charge, expense, or disburse-
ment which is to be charged against principal or
income, and the judgment of the Trustee shall be final.
7. All capital gains realized on the sale or
exchange of assets by Trustee shall be retained as part
of the corpus of the Trust and allocated to principal.
S. Treat, in its' discretion, any extraordinary
dividends payable in any stock or other securities, and
also any liquidating dividends, as principal and not as
income, or partly as income and partly as principal,
but ordinarily dividends paid in any stock or other
securities regularly by a corporation in lieu of, or in
addition to, regular cash dividends, and all dividends
accumulated on any preferred stock by the Trustee
shall, if declared, be considered income and not
principal, provided, however, that in any case where
doubt exists under the facts or applicable law, the
detennination of the Trustee as to whether any dividend
shall be apportioned or allocated in whole or in part
to principal or income, and its apportionmen" or
allocation, shall be final.
9. Settle, adjust, compromise, or arbitrate any
and all claims in favor of or against the trust or any
disputes or controversies in which the Trust may be
interestedj. or abandon any such claim, and the cause of
action on which it is based if the Trustee, in its sole
and absolute discretion, deems it advisable so to do.
10. Retain, hire and employment agents, attor-
neys, custodians, accountants, investment counsel and
such other persons as the Trustee may deem advisable in
connection with the administration of the Trust, fix
and pay the compensation of such persons and delegate
-6-
... ""' ..-_...
--'
to such persons such powers and authorities as the
Trustee may deem advisable.
ARTICLE III
ADMINISTRATION
1. My Trustee shall be compensated for the reasonable
value of his services from time to time. I hereby charge the
interest transferred to Trustee hereunder with the initial
payment of Fifteen Thousand ($15,000.00) Dollars from the sale of
the partnership interest, and for creation of this Trust. Ser-
vices for administering the Trust shall be paid at a rate not
less than one-half (i) of one (1%) percent per annum of the net
fair market value of the assets of the Trust determined on each
valuation date, payable quarterly, in addition to any expenses
therefor incurred by Trustee.
2. My Trustee shall have the power to appoint a successor
Trustee in writing, and should he fail to do so, or should any
successor Trustee fail to appoint a successor in writing, while I
remain living, then I shall be entitled to appoint a successor:
and should I not be alive, then a successor shall be appointed by
the President Judge of the Court of Common Pleas of Cumberland
County, Pennsylvania.
J. My Trustees and their successors shall not be required
to file bond, though Court appointed: and unless otherwise
required to do so, they shall not be required to file formal
accountings with the Court. Accounts may be required to be made
public after my death to maintain tax free status for the Trust
as a Charit~ble Trust or Foundation;
4 . I retain the power to dismiss any Trustee. and to
appoint a successor.
5. No Trustee shall be answerable for loss in investments
made in good faith. No Trustee shall be liable for the acts or
omissions of any other Trustee or of any accountant, agent,
counselor custodian selected with reasonable care.
6. This Trust is irrevocable. The Trustee, however, shall
have the power, acting alone, to amend the Trust in any manner
required for the sole purpose of ensuring that the Trust' qual-
ifies and continues to qualify as a charitable remainder unitrust
within the meaning of Section 664 (d) (2) of the COde, or as a
charitable Trust after my death.
-7-
01......__
CHARITABLE REMAINDER TRUST
.
.
IN THE COURT OF COMMON PLEAS
Under Agreement of November 19,:
1994. Alexandra I. Huck
OF CUMBERLAND COUNTY, PA
ORPHAN"S COURT DIVISION
Life Beneficiary
.
.
No.
PETITION FOR SUBSTITUTE TRUSTEE
AND NOW COmes Alexandria I. Huck by her Attorney James H.
Stewart, Jr., Esquire, who respectfully represents:
1. Your Petitioner, Alexandria I. Huck, is an individual,
sui juris, residing at 251 South Lewisberry Road, MechanicSburg,
Pennsylvania, and she is the Settlor of a Trust under Agreement
of November 19, 1994, a copy of which is annexed hereto as
Exhibit A.
2. The Trustee named
in said Trust is James H. Stewart,
who resides at 104 Bishop Roa~,
Jr., Esquire, her Attorney,
Mechanicsburg, Cumberland County, Pennsylvania, for whose ser-
vices a SUbstitu~e is requested hereunder.
3. By the Trust Agreement an undivided interest in a
partnership in MarYland hOlding interests in a substantial parcel
of land was cOnveyed to the Trustee to negotiate a sale back to
the other partners, and to hold the proceeds for Settlor for
life, with the remainder going to charities thereunder.
--,..~.. ..
\
4. Settlor agreed that a fee of $15,000.00 was reasonable
for the negotiation of the sale, and that the proceeds received
of $234,364 payable January 1995 and $50,000 payable March 1,
were fair and reasonable under all circumstances.
5. It has been mutually agreed that PNC Bank, which has
consented to do so, as appears in Exhibit B, become Substitute
Trustee at their Camp Hill Office.
6. The Agreement in Paragraph 6, Article I, provides a
power in the individual Trustee to designate charitable
beneficiaries for the Trust, and in view of the substitution it
appears appropriate that the power be now exercised to make such
designations, before transferring the Trust to a corporate
Trustee.
7. Paragraph 6. Article I of the Trust is hereby modified
by the Trustee, by exercise of the power therein granted to
designate as beneficiaries the following:
DEFENDERS OF WILDLIFE
PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS ~
HUMANE SOCIETY OF THE GREATER HARRISBURG AREA
WIND RIDGE EQUINE REFUGE
THE SALVATION ARMY
AMERICAN LEPROSY MISSIONS
".
in equal shares: or should the Trustee so determine,
to beneficiaries eligible under Paragraph 6, or the foregoing
beneficiaries, in unequal shares, and/or to other or additional
beneficiaries, as it may , in its sole discretion then determine
as best meeting the intentions of Settlor hereunder.
WHEREFORE, Petitioner respectfully requests Your Honorable
Court to approve the substitution of PNC Bank as Trustee of
the Trust, and of the proposed modification of the Trust
hereinabove set forth.
J es H. Stewart, Jr.,
~05 North Front Stree
........... Box 867
Harrisburg, PA 17108
17l7) 232-8696
Attorney for Petitioner
And she will ever pray:
.~
"
"
g
6
..
r.
~
:r
C'
;:;
c
Amy I, Mcn,ld\41llll, r"IIlU(
Alhllll(') III Nu, R1Il1U
SI,Ullr) A. Smlth,I:tIIIlU(
A.lh11lk'y1I1NIIH1M!
RhtlJlh,\ SUltllll.l.I'
Ork' '1111111 M~lh1 SIIUJIt'
1'.0,1111\ IHh
Ibrrj\hlllt.I'Al1lllll.IW,
171711ll.17ll
AlIIlIIK')'\ rtlll'rliliunC'1
IN RE:
THE ALEXANDRA 1. HUCK
CHARITABLE REMAINDER
UNITRUST UIA OF
NOVEMBER 19. 1994
IN TilE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPIIANS' COURT DIVISION
NO. YEAR OF 1999
CONSENT
THIS CONSENT is hcrcby givcn by Alcxandra I. l'luck.
On Novcmbcr 19. 1994, Alcxandra I. l'luck cstablishcd Thc Alcxandra I. Huck Charitablc
Rcmaindcr Unitrust UtA ofNovcmbcr J 9, 1994 (thc "Trust"), with Alcxandra I. Iluck as incomc
rccipicnt and such charitics as dctcrmincd in thc solc discrction of thc Trustcc of thc Trust as
rcmaindcr bcncficiarics. Thc Trust duration is for thc lifctimc of Alcxandra I. "luck. with thc
rcmaindcr passing to such charitics as dcsignatcd by thc Trustcc. Thc trustec of thc Trust is PNC
Bank. N.A. (thc "Trustcc").
Prior to PNC Bank acting as trustec. James H. Stcwart. Jr. scrvcd as trustcc of the Trust.
Stcwart namcd Defcndcrs of Wildlifc. Pcoplc for thc Elhical Trcatmcnt of Animals. Humanc
Socicty of Grcatcr Ilurrisburg Arca. Wind Ridgc Equinc Rcfugc. Thc Sulvation Army. and
Amcricun Lcprosy Missions us rcmaindcr bcncficiarics of thc Trust (thc "Charitics"). Howcvcr.
pursuunt to thc tcrms of thc Trust. Trustcc hus powcr to removc thc Clmritics as rcmainder
bcncficiurics und rcplacc thcm with ultcrnatc bcncficiarics.
IN WITNESS WHEREOF. Alcxmlllra I. Huck hcrcby acknowledges receipt or the
Pctition For Trust Amcndmcnt of thc ubovc-referenced Trust and its alluehmcnls and hcrcby
conscnts to thc mncndmcnt of thc Trust from u Scction 664(d)(3) or thc Internal Revcnuc Codc
nct incomc plus makcup unitrust, to u Scction 664(d)(2) of thc Codc slraight c1mritablc
rcmaindcr unitrust, in the munncr and us of thc dutc sct forth in suid Petition. Alcxundra I. Huck
hcreby acknowlcdgcs that. if thc Trust is so umcndcd by this Court, any dcficicncics in prior
years' distributions, i.c., whcrc lrust incomc was Icss than thc unitrust payout pcrccntagc. will bc
forfcited.
WITNESS:
~ /) /..
Tf~iv k 'rWY~l4;~
Datc: \ \ I (\ ~ ) '-\''\
, (
" \........ \ \. ....',
\~ 9..h ,)..~,~') ,~.
Alcxandra I. lIuck
.llll'-Iq
AlII~ J Mtldd\llllll. r~UIJt
AIIUIlIC) III Nil KIlIK.a
Sl~lllt) A. Slllllh.I:\4IUIU'
Allilll1l.1 In Nu. J.17"1
Ithu.lJI &: Smnll l.ll)
Ollt Slllllh M.uLtl ~w'r
r. o. UIl' 1146
Ibui,hufl.I)A 1710"-11046
f717)lH.j1.l1
Atllllnt) I Ill' Iltlllllll~1
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST UJA OF
NOVEMBER 19,1994
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
NO. YEAR OF 1999
CONSENT
THIS CONSENT is hcrcby givcn by PNC Bank.
On Novcmbcr 19. 1994. Alcxandra I. !luck cstablishcd Thc Alcxandra I. Huck Charitablc
Rcmaindcr Unitrust UJA of Novcmbcr 19.1994 (thc "Trusl"). with Alcxandra I. J'luck as incomc
recipicnt and such chari tics as dctcrmincd in the solc discrction of thc Trustcc of thc Trust as
rcmaindcr bencficiarics. Thc Trust duration is for thc Iifclimc of Alcxandra I. J'luck, with thc
remainder passing to such chari tics as dcsignated by thc Trustcc. Thc trustcc of thc Trust is PNC
Bank, N.A. (thc "Trustce").
Prior to PNC Bank acting as trustee. Jamcs 1-1. Stcwart. Jr. served as trustcc of thc Trust.
Stcwart named Defcndcrs of Wildlifc, Pcoplc for the Ethical Trcatmcnt of Animals, Humane
Socicty of Grcatcr Harrisburg Arca, Wind Ridgc Equinc Rcfugc, Thc Salvation Army, and
American Lcprosy Missions as rcmainder bcncficiarics of thc Trust (thc "Chari tics"). Howcvcr.
pursuant to thc tcrms of thc Trust. Trustcc has powcr to rcmovc thc Chari tics as rcmaindcr
beneficiaries and rcplace thcm with altcrnatc bcncficiarics.
IN WITNESS WHEREOF, PNC Bank hcrcby acknowledgcs rcccipt of thc Pctition For
Trust Amcndment of thc abovc-rcfercnccd Trust and its attachmcnts and hcrcby consents to thc
amendmcnt of the Trust from a Scction 664(d)(3) of thc Intcrnal Rcvcnuc Codc nct income plus
makcup unitrust, to a Scction 664(d)(2) of the Codc straight charitablc rcmaindcr unitrust, in thc
manner and as of the datc sct forth in said Pctition.
A TrEST:
/'1, /i1
( .l.:" 7, '. ,~
(As~t' ccrctary J L (1-<.-
PNC BANK. N.A.
By: ;;{~c(( f U~V
( - /! ,) ,
Titlc: \\ Flu I(\/} l J h'(' II! L~liJ7 ^ I r
Datc
j1.-r)r" ."'-, / (, q 9
, .
1 1IJ5H I
Alii)' J. McnJtI\I,hll.I:~\Il1t
AIlII""'" II) Nil Mlu~
51,11I11')' A. SlIlllh.l:wlUllc
Anulllt')' II) Nil. .1J1M2
Rh",,,JI.\ Silllllll.l.l'
One 5uulh t.bl\.tt S11u.l""
11.0111111146
Il.aJllihtlfl.IIA 171118.114(1
11I71Zll,l7.11
Atlulllr)'lrUf l'clllltlnCf
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST UI A OF
NOVEMBER 19, 1994
IN TilE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPIIANS' COURT DIVISION
NO, YEAR OF 1999
CONSENT
THIS CONSENT is hcrcby givcn by Amcrican Lcprosy Missions.
On Novcmbcr 19, 1994, Alcxandra I. Huck cstablishcd Thc Alcxandra I. lluck Charitablc
Rcmaindcr Unitrust UI A of Novcmbcr 19, 1994 (thc "Trust"). with Alcxandra I. Huck as incomc
rccipicnt and such chari tics liS dctcrmincd in thc solc discrctiun of thc Trustcc of thc Trust as
remaindcr bcneficiaries. Thc Trust durution is for thc Iifctimc of Alcxandru I. Huck. with thc
rcmaindcr passing to such charities as dcsignatcd by thc Trustce. Thc trustcc of the Trust is PNC
Bank, N.A. (thc "Trustcc").
Prior to PNC Bank acting as trustcc, Jamcs 1-1. Stcwart, Jr. scrvcd as truslcc of the Trust.
Stcwart named Dcfcndcrs of Wildlifc, Pcoplc for thc Ethical Trcatmcnt of Animals. Humanc
Socicty of Grcatcr Harrisburg Arca, Wind Ridgc Equinc Rcfugc, Thc Salvation Army, and
Amcrican Lcprosy Missions as rcmaindcr bcneficiarics of thc Trust (thc "Chari tics"). Howcvcr.
pursuant to thc tcrms of thc Trust, Trustcc has powcr to rcmovc thc Charitics as rcmaindcr
bcncficiarics and rcplacc thcm with altcrnatc bcncficiarics.
IN WITNESS WHEREOF, Amcrican Lcprosy Missions hcrcby acknowlcdgcs rcccipt of
thc Pctition For Trust Amcndmcnt of thc above-rcfcrcnccd Trust and its attachmcnts and hcrcby
conscnts to thc amcndmcnt of thc Trust from a Scction 664(d)(3) of thc Inlcrnal Rcvcnuc Cudc
nct incomc plus makcup unitrust. to a Scction 664(d}(2) of thc Codc struight c1mritablc
rcmaindcr unitrust, in thc manncr IInd as of thc dalc sct forth in said I'ctition.
A'ITEST:
(1; JiJ-I1 ( 1lt:ttrA~{
AMERICAN LEPROSY MISSIONS
\', Al j )
By: ',J.'t-",..IL- f"IP'L , l,
Namc; . --) ;U.(F.... (2) L 1/::" ~b
Titlc: 7JiJ2Fr Tu'? rY? f",-<.l~ ~'F
Datc: I')~ li'i
111NdM 1
Amy J, Mtlll.lelwltlll. bquilr
A1I111lq' In No IUlIM
Sunlt)' A. Smllll, bqulIc
Allnnq' 10 Nil. ))1IU
Rhn..lI. A Silllln ..L11
Ont Soulh M,,~rt Squm
1'.0.1111,11"6
U.."i\llUf..I'A l7UlK.II.."
11l7,lll.51l1
All11UQ' for l\1illu'K't
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST U/A OF
NOVEMBER 19, 1994
IN TIm COURT OF COMMON PLEAS
CUMBERLAND COUNTY. PENNSYLVANIA
ORPHANS' COURT DIVISION
NO. YEAR OF 1999
CONSENT
nns CONSENT is hereby given by Wind Ridge Fann Equine Sanctuary, Inc..
On November 19. 1994. Alexandra I. Huck established The Alexandra I. Huck Charitable
Remainder Unitrust utA of November 19, 1994 (the "Trust"). with Alexandra I. Huck as income
recipient and such charities as detennined in the sole discretion of the Trustee of the Trust as
remainder beneficiaries. The Trust duration is for the lifetime of Alexandra I. Huck. with the
remainder passing to such charities as designated by the Trustee. The trustec of thc Trust is PNC
Bank. N.A. (the "Trustcc").
Prior to PNC Bank acting as trustec. James H. Stewart. Jr. served as trustec of the Trust.
Stewart named Defcndcrs of Wildlife. People for the Ethical Treatment of Animals. Humane
Society of Grcater Harrisburg Area. Wind Ridge Equine Refuge. The Salvation Anny. and
American Leprosy Missions as remainder bencliciaries of the Trust (the "Charities"). However.
pursuant to the tenns of the Trust. Trustce has power to removc thc Charitics as remaindcr
beneficiaries and replace them with alternate beneficiaries.
IN WITNESS WHEREOF, Wind Ridge Farm Equine Sanctuary. Inc. hcreby
acknowledgcs receipt of the Petition For Trust Amendment of the abovc-referenccd Trust and its
attachments and hercby consents to the amendment of the Trust from a Scction 664(d)(3) of the
Internal Revenuc Code net income plus makeup unitrust, to a Section 664(d)(2) of the Code
straight charitable rcmaindcr unitrust, in the manner and as of the date set forth in said Petition.
A TIEST:
WIND RIDGE FARM EQUINE
SANCTUARY. INC.
~~/
By: ~. 4-
Name~ . Hl2y t.. 7:fARNk'T
Title: '7?;>,,;clM-r-
Pr117(lfo ,; fI ) [ Hd~
Date: /0 -- 7' tf. 79
I
310M8.!
Alii) J ~hnld"~\lI. 1:"1111'1:
AlllllIM') III Nil 1111I"-4
SI.lnl") " Smllll. t"lllIIt
AlhlllK")' InNu ]11112
Hhll..1I1& SUIllllI.I.11
Our SlIlllh ~bl~tt SIIIl.Il('
1'1) 11111 II""
1I.1111,11I,1I..I'A 11IIIIH'4',
(1171 2.".~1I1
AlllllnC',lltlll'r1l11l1lltf
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST UtA OF
NOVEMBER 19, 1994
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY. PENNSYLVANIA
ORPHANS' COURT DIVISION
NO. YEAR OF 1999
CONSENT
THIS CONSENT is hereby given by thc Iltllnane Society of Greater Jlarrisburg Arca.
Inc.
On November 19. 1994. Alexandra I. Huck establishcd Thc Alexandra I. Huck Charitablc
Remainder Unitrust UtA of Novembcr 19. 1994 (thc "Trust"), with Alcxandra l. Iluek us incomc
recipient und such charitics us detcrmincd in the solc discretion of thc Trustcc of the Trust as
remaindcr beneliciaries. The Trust duration is for the lifetimc of Alcxandra 1. Huck. with thc
remainder pussing to such charities as designated hy thc Trustee. Thc trustce of the Trust is PNC
Bunk. N.A. (the "Trustee").
Prior to PNC Bunk acting as trustee, James II. Stcwurt. Jr. scrvcd as trustce of the Trust.
Stewul1 named Defenders of Wildlilc. Pcoplc for thc Ethical Treutment of Animuls, Humanc
Socicty of Grcater Harrisburg Areu. Wind Ridge Equinc Refuge. The Salvution Army. and
American Leprosy Missions as remuinder heneficiarics of the Trust (the "Charities"). However,
pursuant to the terms of the Trust. Trustec has powcr to removc thc Churities us remaindcr
beneliciuries und repluce them with alternate bcneliciaries.
IN WITNESS WHEREOF. Humune Society of the Greater Harrisburg Area. Ine. hereby
acknowledges receipt of the Petition For Trust Amendment of the ubove-relcrcnced Trust und its
alluehments und hereby consents to the umendment of the Trust fl'Om a Section 664(d)(3) of thc
Internal Revenue Code net income plus n1l1kcup unitrust. to a Section 664(d)(2) of the Code
straight charituhle rcmuinder unitrust, in the manner and as of the dute set forth in said Petition.
ArrEST:
HUMANE SOCIETY OF GREATER
HARRISBURG AREA. INC.
r!
(:;'
?;;. -, .
By: t.'
N ... ,," \
amc: ; ./ '+. J,. '/e/- J]. 1/"1/)
Tille: 17.\.:rl'~()f,;.<:,'1'::
.
()' ,;~ <--~, ~k~h j
Date: 1I\-"\'1'l
COMMONWEALTH OF PENNSYLVANIA
OFFICE OF ATTORNEY GENERAL
December 27,1999
MIKE FISHER
ATTORNEY GENERAL
Charitable Trusts and
Organizations Section
14th Fir., Strawberry Sq.
Harrisburg, PA 17120
Telephone: (717) 783-2853
Facsimile: (717) 787-1190
Amy J. Mendelsohn, Esquire
Rhoads & Sinon, LLP
One South Market Square
P.O. Box 1146
Harrisburg, PA 17108-1146
Re: Estate of Alexandra I. Huck
Dear Ms. Mendelsohn:
This will acknowledge receipt of your notice pursuant to Supreme Court Orphans'
Court Rule 5.5 regarding the above-captioned matter.
I have reviewed the Petition for Trust Amendment and have no objection to the
relief requested. Please forward a copy of any order entered by the Court so that I can
complete my file.
Please be advised that this review was conducted pursuant to the parens patriae
function of this office, has no bearing on any matter unrelated to that role, and does not
limit this office's ability to review the future performance of the fund and seek a surcharge
when appropriate.
Sincerely,
[I' ,--IJ.~ rfl. 14. <.' -~
Heather J. Vance-Rittrnan
Deputy Attorney General
. . " ~.
i
"
,
';t'
~ , '.
I
.,' ,
, " ~....~ I
.
.' f
,
.
r .\ )
, \
.....r
\1\" ,I ,
f' .
, ).
-.
" ,
'1\ . r .
,I \
. f i\.
i....
.. ,
.' .
. " "
~. "30
.
'.
"
,
'j J
t'.
'.
\, -, ~(
. l'
-,
.f
..-_1
r~'--'~
r.. _ " ..,.:..,..
r I:
l'l
-r=~~-~--:".:w-.
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST utA OF
NOVEMBER 19, 1994
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
NO. 859 YEAR OF 1996
AMENDED ORDER
~
AND NOW, this D-:-- day of
, 2000, upon presentation and
consideration of the foregoing Motion to Amend Or
e prayer thereof is granted; and
IT IS SO ORDERED AND DECREED that the Order of January 6, 2000, is superseded by
this Amended Order which shall be retroactive to the date of the Order of January 6, 2000, and
The Alexandra I. Huck Charitable Remainder Unitrust utA of November 19, 1994, is amended to
revoke the existing Articles 1(1) and 1(2) and replace them with new Articles 1(1) and 1(2), which
shall read in full as follows:
(1) Until December 31, 2000, Trustee shall pay to or for the use of Settlor
in installments convenient to Settlor, but not less frequently than annually, an amount
equal to the lesser of:
(a) the trust net income for the taxable year (as defined in Section
643(b) of the Internal Revenue Code of 1986 and the regulations thereunder)
excluding all capital gains distributions and sums properly allocated by Trustee to
corpus; and
(b) five (5%) percent of the net fair market value of the trust assets
detennined annually on the first day of December (the valuation date each year).
If the trust net income for any taxable year exceeds the amount
detennined under (b) above, payment to Settlor shall also include such excess income
but only to the extent that such excess income is less than the aggregate amount by
which payment to Settlor in prior years was less than live (5%) percent of the
aggregate net fair market value of trust assets for such years. Any net income of the
trust in excess of such sum shall be added to principal.
,-
a
r:'7!
t:::
C\
~
='
~
:) ,)
!,. ~
a:''::
~
;J
T~
.... ~
- ....
!'.J{;
d~'
..,
4. The Inlernul Rcvenue Servicc requircs thut thc conversion hccomc
cffectivc ut the beginning of the Trust's tuxlIhlc YCllr. JlInulIry 1,2001. See Treusury Rcgulution
~1.664-3. According 10 the Internal Revenuc Service, the elTective dutc of the Trust's
conversion to a straight unitrust muy be chunged by amending the Junuary 6, 2000 Ordcr to
reflect an effective date of January 1, 2001. The Amended Order should supcrsede to the dlltc of,
and be retroactive to thc datc, of the Order of January 6, 2000.
5. The Officc of the Attorney General has verbally stated that it has no
objection to this Motion.
WHEREFORE, Petitioner respectfully requests that this Honorablc Court cntcr an
Arnended Order changing the effective date of the conversion to January I, 2001, which shall
supersede, and be retroactive to the date of, the Junuary 6, 2000 Order.
RHOADS & SINON LLP
By{~etL(f.t hoR'
StanIFY". Smith, Esquire
Attorney ID No. 33782
Amy J. Mendelsohn, Esquire
Attorney ID No. 81084
Rhoads & Sinon LLP
One South Market Square
P.O. Box 1146
Hurrisburg, P A 171 08-1146
Attorneys for Petitioner
Date: ~lne 30 ,2000
-2-
",.,. .. .' . '
IN RE:
THE ALEXANDRA I. HUCK
CHARITABLE REMAINDER
UNITRUST utA OF
NOVEMBER 19, 1994
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
NO, ~ YEAR OF jijj() ,qq"
.
.
~ DECREE
AND NOW, "" !d:... '"" of ~
~O~ , upon presentation and
consideration of the foregoing Petition and upon motion of Rhoads & Sinon LLP, attorneys for
Petitioner, the prayer thereof is granted; and
IT IS SO ORDERED AND DECREED that The Alexandra I. Huck Charitable Remainder
Unitrust UtA of November 19,1994 be amended as follows:
Existing Articles I( I) and 1(2) are revoked and new Articles I( I) and 1(2) are
added to read in full as follows:
(I) Until March 3 I. 2000, Trustee shall pay to or for the use of Settlor in
installments convenient to Settlor, but not less frequently than annually, an amount
equal to the lesser of:
(a) the trust net income for the taxable year (as defined in Section
643(b) of the Internal Revenue Code of 1986 and the regulations thereunder)
excluding all capital gains distributions and sums properly allocated by Trustee to
corpus; and
(b) five (5%) percent of the net fair rnarket value of the trust assets
detennined annually on the fU'St day of December (the valuation date each year).
If the trust net income for any taxable year exceeds the amount
detennined under (b) above, payment to Settlor shall also include such excess income
but only to the extent that such excess income is less than the aggregate amount by
which payment to Settlor in prior years was less than five (5%) percent of the
aggregate net fair market value of trust assets for such years. Any net income of the
trust in excess of such sum shall be added to principal.
:, '. I ......
tN..",.
"It." ; ,,' "
. ,. ..a: I' .
II t .
....:-.
l_
(2) On March 31, 2000, 11 :59 p.m" thcre shall be a changc in the payout
mcthod from thc ineomc exccption method set forth undcr Paragraph I( I) above 10 a
Section 664(d)(2) payout method. Any existing deficit as defined in Reg. Sec. 1.664-
3(a)( I )(i)(b)(2) shall be forfcited. Pursuant 10 the foregoing, on and after April I,
2000, the payment ofthc uni\rust amount shall be as follows:
In each taxable year of the trust, the Trustee shaH pay to Settlor during her
lifetime, a unitrust amount equal to five percent (5%) of thctnet fair rnarket value of
the assets of the trust valued as of the first day of December of each taxable year of
the trust (such date shall be referred to as the "valuation date").
The uni\rust amount shall be paid in installments convenient to the Settlor but
not less frequently than annually from income and to the extent that income is not
sufficient, from principal. Any income of the Trust for a taxable year in excess of the
unitrust amount shall be added to principal. If for any year the net fair market value
of the Trust assets is incorrectly determined, then within a reasonable period after the
value is finally determined for federal tax purposes, the Trustee shall pay to the
Settlor (in the case of an undervaluation) or receive from the Settlor (in the case of an
overvaluation> an amount equal to the difference between the uni\rust amount
properly payable and the unib'Ust amount actually paid.
J.
,... -
." . f
!: r'
i' c"
c...
~.
:.
I
.~
...
.
'.
i. ~ "
0'1
A TRUE COpy FROM RECORD
In Testimony wherof, I hereunto sel my hand
and the seal 01 said Court at Carlisle, PA
dayo,! 2000
Clerk 0 the Orphans curt ~.
Cumberland County
~