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IN Rl<~:
ROBl<:RT M. IIRl<~Y,
SE'I'TLOR OF UFI': INSURANCI~
TRUST
IN THE COUJ{T m' COMMON I'U:AS
011 CUMBERLANU COlJNTY,
PI~NNSYLVANIA
ORPHANS' COURT I>IVISION
NO. 21.97.
fEI.lT.lllli~QlNT SUCCI<.;sSOR .J:.BUSTEES.
1'0 THE HONORABLE, THE .JUDGES OF TilE SAID COURT:
Your Pctitioncr rcspcctfully rcprcscnts:
I. Yom Pctitioncr is Rohcrt M, Frcy, the Grantor of thc lifc insuruncc trust hcrelnufter
mentioned und thc pcrson whosc lifc is insllJ'cd,
2, Your Pctitioncr cstablishcd an irrcvocahlc life inSLlranCl~ trust, thc corpus of which
consists of four policics of lifc inslll'uncc on thc lifc of your Pctitioncr, which il'l'cvocahlc trust IS
datcd Fetmlllry 25, 1961, u copy of which is uttachcd hcrclo and markcd Exhihit "A",
3. Thc tl'llstccs of Said irrcvocahlc lifc insurancc trust mc Richard C. Rccd, a fricnd of
Pctitioncr und nltired urchiteet; und Irwin Alhcrt, Esquirc, u fricnd of Pctitioncr with whom your
Petitioncr hus lost contuct for !Hany ycms,
4, Thc hl'ncficiurics of said il'l'cvocuhlc lifc insllJ'ancc trust arc Pctitioncr's wife, 81va F.
Frey lllld thc two sons of Pctitioncr und 81va r.: Frcy who mc, Rohcrt G, Frcyand Duvid M,
Frey, all of whom me slIijllris and ovcr 25 ycurs of agc.
5, Trustce Richurd C, Rccd dcsircs to rcsign as trustcc, as cvidcnccd hy his joindcr in thc
PI'ayer of this Petition, and rcqucsts your lIonorahlc Court 10 appoint E1va F. Frcy and Rohcrt G.
Frey and David M. Frcy as successor trustccs, ugrccuhlc to pmagraph numhcr tcn of thc copy of
the trust agrccmcnt attuehcd hcrcto und markcd Exhihit "A",
6, Trustcc Irwin Alhcrt, Esquirc was thc suhjcct of mcntal hcalth procccdings hcforc your
Honoruhlc Court filcd to No, 706 Civil Tcrm 1975, and his whcrcahouts arc unknown to both
. your Pctitioner and trustee Riehurd C, Rccd. Ncither trustcc Richmd C. Rccd, nor trustee Irwin
Albert, Esquirc, hus ever performcd uny serviec rcgarding this trust.
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TRUST ACllU~EMEN~' made February ;j,"-: IU61, between I\OHEI\'I' M. ["[\loW, of
Carlisle, cumberland County, p",maylvanla, hereInafter caHed the "OI\ANTOI\", and
1\1CH.ARD C. I\EI~D and mWIN ALm~[n, hoth of Caruale, Cumberlaud County,
ponnBylvanlB, herelna!ter called the "Tlt\1STEES".
1. Truat Property. 1.'he Orantor, tl\ll owner 01 polldea ollnau..ance 011 biB Ufe
expreaBly aot lorth Imd deBIllnateu by polh'Y nombor nnd Inaurer In a Beb",lulo attaebod
hereto, designated "Sebedule A", and incorporated herelll by relerence, doslring to
eetabUah an Inauranee truat during the lHetlme of hla wile, glva I'. Froy. and/or part
of the lifetlmea o! hla children, hereby aaalgna to the 'I'r"otoes all bla rIght, title and
Interoet In and to euch piltieJl of Ineuranco, to bo held by thom in truat, and to receive
the proceeds of aueh pilUWl 01 ineuranee aa and when thcy become due and payable and
are paid, for the purpoBea and on the conditione set forth in this agreement. The
G,'.,ntor ,'eeervee the ,'Ight to add to this trust from time to time addltionsl pouoiea of
Insuranee on his life which, when delivered to the Truateea, shall be held by them In
every respeet subjoct to the terma of this agreement.
2. Rights in poUcy ollnsuraneo. 'I'ht1 'I'ruateoa are hel'eby vested wIth all right,
title, and Intoreat In and to such p:lideo of insurance, and a.'a authori7,ed and empowored
to exerclaa and enjoy, fol' tho purposeS 01 the truot hereIn creatad and aa abaolute owners
01 such pollcloa of Insuranl',e, all the op\1ons. benemS, rights, and privileges under such
policies, Including the right to borroW upon auch policies and to pledge them for a loan or
10ana. The Insurance cornpall~ea"whlch'lta\!"jlaSued such polleieB are hereby authorized
and dlrt1ctad to recognize the Truatees as abSolute owners 01 Buch policIes of insurance
and as fully entitled to all option", rights, privileges, and Interest under such policies,
and any receipts, ro\<,asea, and other In"truments executed by the Trustaee In connecUon
with such polieiea shall be bindIng and conclualve upon the Insurance companies and upon
all persons Interested In tht. truat. ~'he Grantor hereby relinquisheS all rights and power.
in euch pollcioe 01 Insurance which al'e not asaignable and will, at the requeet of tho
'I'rustees, execute all other Inatrument. reasonably requIred to efleetuate this
rel\nqulslunent.
3. Payment of PremiumS. The Trustee. shall be Imder no obligation to pay the
premiums whleh may become duo aud payable undor \I'" proviaions of eueh policies 01
inaurance, or to make certain that sud\ pl'emlums arc paId by the Grantor or others, or
to notify any pel'.ons of the non-payment of such premiums, and they shall be under no
reaponslblllty or llablll\Y 01 any kind In case .ueh premiums are not paid, except that
they shall apply auy dIvIdends reeelvod by them on such policIes to the payment of premlun
thereon. Upon notice at any tlmc dudng the continuance 01 thIs trust that the premlume
due UPOIl such policies al'e In delault, or that premIums i 1 become due wlll not be paid,
either by ,the Ol'antol' or by any other pereon, the Trusteee, WIthIn theIr sole dIscretion,
may apply any cash val\\es attrlbutablt1 to such policIes to the purchase of paid-UP
insurance or 01 extended InSurance, or may borrow npon such policies for the payment of
premiums due thereon, or may accept the cash values of Bueh policies upon their
forfeiture. In the evenl that the 'I'rustees receive the cash value of such policies upon
their lodeiture for non-payment 01 promluma, this trust shall terminate and the amount
recelvqd ehall be lorthwlth paid over, free and clear 01 the conditionS of thl. trust, to
Elva 1". lerey, the wife of the Orantor, If she Is alive, or If she la then dead, to the
Grantor'O ohlldren thon living, In equal shares. 11 1\obert M. Frey, tbe insured under
e\\ch policlee of insurance, become" totally and pt1l'luanen\ly dIsabled, withIn the meaning
of such policies, and hecauS" th"reof, tho payment of premlume, or any of them, ehal\
during the pendency of such dIsabilIty. be waIved, the '['rust"es, upon receIpt of such
knowlodge, shall promptly notify the Insurance companlee which have Issued e1l(l1t polleles,
alld shaH take any and all stepO neeessary to make such waiver 01 premium proviolon
e!leallve.
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EXII1\l1T "A" Consislln(/; of 6 Puges
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4. Collocllon oC Policy Proeoo<l8. Tho TI'U8toes, shall b.. undor no obllliaUon or duly
whMever oxcopt with rospoet to thc oafo-keeplng oC suoh pollet.. oC tnsurance and the
duty to receive such sums as may be patd to thsm In accordance with tho requirements at
this trust, by the companlee is.ulng Aueh polloloe and to hold and dlsburM such proceeds
subject to the terms oC this agreemont. Upon the d..ath oC the Insured under such polloles
the'fruBte\"!fJ shull rnuko ronsormblo t'!ftOl'tR to carry OU~ tho provision" of this agreement,
inclurllng tho malntonnneo or ddonoo oC nny sut!, provided, howovtlr, thoy shall bo undor
no dllty to maintain or entol' Into nny litigation unloss thcir tlxpenses, including counsel
fE"e and costR, havo l.Hlrm advanced or guurnntnod in an amount and in n mannoI' rensonabl
satisfuctory to them. The l'rURterHI may repay any ndvnncoB made by them or reimburse
themBelvea (01' any AHell ffles and COAts out of noy corpUFI or income of this tr~8t.
5. Dispositive ProvlAions. (8) 'rho pl'oceerls of Bueh policies of Ufo insuranoe shall
be lnvested and rein""sted by the TrU........ ...d th.. net Income therefrom oh.ll be pAid
quarterly to Elvll F. Frfty, the Witfl of the Grontor, during her lUetLme. Upon the death
of Elva F. Frey, or IC Bho pl'odeceasos tbe Grantor then upon tl1(1 dcaih of the Grantor, th
Trustoes sholl divide tho trllst property into equal, separate sba,'os So as to provide one
share Cor each child oC the Grantor liVing at the time of his death. Tho share or Portion (;
n share allocated to encil boneficiary shall boostitute and bo administered AS R separate
trust. Separate books and records shall be kept for naeh Buch trust but it shall not be
necessary that physlcal cllvlsion of the assets be mado as to tlach trust. The Income and
corplls of each trllst sholl btl held, administered, and disposed oC as hereinafter provldtld,
(b) The 'rrusteos shall distribute to or COI' the ben.Cit oC the beneficiary of eaeb
separato Rhare so much of the incomo from thr. share of such beneficiary as the TrustcEJjJ,
in thoir Role discretion, shall consider nec~ssary or advisable for the health, support,
edllcation and geneml weUare oC each Blleh benoCiclary until sllch boneCloiary aitalnB the
age or 25 years. All lneomo not so distributed shall be sCCull'1111atcd and added to the
corpufI of each fiflpnrnto truAt.
(c) WheneVllr nny bmlf!f1ciary attains the nl~n of 25 yonrs, or if such age has been
nttatnfld, the TruRtrH~R shnll pay nnd h'nnFlfr!l' to him or her absolutely aU of the income
and corpus of the sharo of such h(mt>f1ciary or Ho much thereof RS shall not have been
RPPlied or di"tributed prior thoreto; bllt If Rny benefteiary shall die boCore attaintng the
age ot 25 yoarR, then Buch unrltRpoBud of property Rhnlt bo paid Bnd transferred to the
iSsue of Ruch honoficinry, if any, In p.qunl shares, and in the ahsence of issue, Buch
undispoAl~d of trUflt propel'ty shall Iw paid and tl'D.I1Rferl'(!d, in equal Ahuros, to uny of
tho Grantor's chUdrnn Hurvtving 8\1ch benefiCiary. Any shares so payablfl to n surviving
child of the Gr.antor undol' the age of 2[) year s shall be pnid nnd tranafCl"red to the
'rruHteoR nnd be held by such 'rruRtoos as an addition to the hereinbefore established
trust fund (or' AHeh SlIl'vivinf{ child.
(d) Whenover pl.ll'El/nnt to the proviflions of this trust all or any part of n distributive
share of n trust RhRll hn payable to n rninor, title to the ahare of a minot' shall pass io
him, but the payment to him oC Buch share or trust fund shall be deCerred until he shall
attnln th. ngo oC 21 years and In the meantime SI1<1h share or trust fund shall be held by
the T.'UBt(!PA or n court nppointnri Guardinn, if thp. Trusteos a1'(, unwilling to aSDume Buch
responslhllity, until sttch minor attains the ngtl or 21 years. The C1duclary holding such
fund shnll epply all or such part oC the inoome and principal as the Clducie:')' In his
uncontrolled discret10n may determine to the support, education, Rnd mainhmance of
such minor. The authority conCerred L,pon such Clduclary by this paragraph shall be
construed as n pownr only and flhnll not operute to suspend the absolute ownnrehip of
such proporty by Btlch minor or t'1 prevent tho absoluto vesting thereof in 8uch minor.
With l'EJapoct to the ntlminlstl'oUoll of Rny sllch property which shall be held by such
fiducinry RA authorized in thls pal'n~,rnph, Buch fiducjary shall have 811 the powers set
foMh lindeI' tho Pl'ovisions of paragraph 7 or this trust to be exerclstld in the mann.r set
rorth in sueh peragraph.
(0) Any Aharo 01' portion of n Ahar~ ()f any h'URt crnntod horeunder thnt is not dispoRed
oC ttoder nny otlier provUllon of Ihls truet agrocnwnt, shall go and be dletributcd to my
helrs-ut-law.
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(f) 'rh~ Oranlor's wlCe Ahnll hnv~ the pow~r, hy Aru,ellle reCel'Anee thllreto In her
valid lnst Will, to dlrlld th~ '[','uAIIl"" to niter th~ COI'~golng dlvl.lon or this trust Cund
amonR tile Grantor's chlldl'f!n ill fHICh mnnner nnd Ln fluch urlf~qual proportions 88 shf'l
shall see Clt.
O. lavas Ion oC Corpus. If nny heneClclary or this trust who Is at the time recelvlnll
Income thel'eCrom would otherwise, In the oplnl"n DC the Trusteee, be subject to hardship
or sufterlnll, the Trustees shnll hnve t111l nuthorlty to pny over and distribute, at any time
nnd Crom time to time, to such bMeClcluy such nmounts oC the principal oC this trust,
Crom which such hm'eCldary shnl1 then he entitled to receive Income, as the Trustees,
In their a01", diacretiol\, shall dHom necefJfJnry tD .pl'ovlde for thft maintenRnce, comfort,
Rupport, Rnd m~dicnl cart'! of Buch benettclnry.
7. In nddltlon to the powers tmnCerred hy lnw
(n) The 'TrusteeR nr" horeby empowerPlo to invest tho procf'Joda of such policiea of
lile lnE:lUrance or any other proceedS in their POBEwseinn in such eecuritiee, investment,
or other property as to them Aeem advisable Rnd proper, irrcapcctive of whether th.,
same arc au,thorl1,ed fol' the invnEltmr-nt of trust funds under the laws of any governing
jurisdiction.
(h) With reopect to any corporntlon, the stocks, bonde, or other securities oC whlcl;l
may form "part of this trust, the Trustecs arc hereby cmpowt'lred: to vote in person or
by proxy on nny AhareA of stock; to consent to the mel'f{cr, consolidation, or reorganlzatio
oC such corporations; to cOMeot to the lcasinll, mortllnglng, or sale oC the property oC
any such corpol'RtiollSjto makp- nny 8urrendt:~r, fIlxchangn, or fluhstitution of Buch stocks,
bonds, or other securities nB an Ineldent to the merger, consolidation, or reorgnnlzatlon
of such corporationsjto pay all assesBment9, subscriptions, and other sums of money
which the Truatees mny d..em wise and expedient Cor the protection nnd mnlntenance oC
the prol>ortlonntc interest of the Trustees in such corporations; to exercisf'I any option
or privilege which may be conferred upon the holders of Buch stocks, bonde, or other.
Becurltles of Buch corporations either COl' the conversion of the same Into other necurlt..
or for the purchase oC additlonnl securities, and to make any and all nec~sBary paymentB
which mny be required in connection therewith; and Ilenerally to have nnd exercise ns to
all such stocks, bonds, nnd other Becurltles DC which this trust may nt any time consist,
the pow...s of an Indlvldunl owner who Is under no truet obllg~tlon.
(c) The Trust..es may hold the trust corpus In one or more consolldated futlds In
which sepnrate shnres shall hnve undivided Interests.
(d) The Trustees may s.ll nt public or private Bale Cor cnsh or upon credit, or
partly Cor cash nnd partly on credit, nnd upon such t..rms and conditions as the Trustees
shaH deem proper, nny pnrt or parts DC the truat estate, nnd no purchaser at any sale
mnile by the TruateOR sholl he bound to Inquire Into the expediency or propriety oC nny
such sale or to see to the nppllcnllon oC the purchase moneys arlslnll thereCrom.
(e) The Trustooe may keep on hand and unlnvest..d such moneys as they mny deem
proper and Cor such period as the TruBtees may Clnd expedient.
(C) 'rhe TruBtees may oompromise, eettl~, or arbitrate any claim or demand In
favor of or AR'ni.nst the trlll"t .stlltf'!.
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(ij) The Trust""S nr. nuthorl..d in the dlachnrg" oC their dutlee, to employ counsel
and to determino nnd to pny SllCh counsel reasonable compensation which shall be charged
hy thll TruRteeR ngnlnot the prlnclpnl or Income oC tbe trust Cund, and the TruBtees shall
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furthor be Mt!tlod to chnr/{e ngaln"t the principal 01' Income .ueh other reasonable
CXpnnHftfl and chal'RnR REI mny be nf'lCOARBry nnd propnr to incur for the proper d18char
of tholr dullo" Bnd ror th. prop.r mBrlng.ment and admlnl.trllt!on 01 the truet ..tnte.
(h) In llIakln/{ any dlvl"lon 01 the tru"' Prop()11y Into .hare. lor the !,urpo." 01 any
dJ"tributlon thereor directed hy the provl"l"n. 01 this agreement, It shall be proper 10l
the Tru"tee" to mak. "ueh division or dlatrlhUtlon, elilwr In ea.h or In kind, or partly
In cilsh and partly In kind, as the Tru.toes ahall deem moat expedient, and In making
any rHvlslon or dla!t'lbutlon In kind tho Truat""a llIay allot any apeclllc a.curity or
property or any undividod intcr~Ht thftrr-in to any onfl or more of such shares, and to
that end may appralae any or all or the property eo to ho allottnd and the Truatee.'
jUdgment aa to Ihe propriety of aueh Bllotment and .s to the rolatlve vBlue lor purpo.e.
of dl.trlbutlon of Uw aeeurltle" or pml'erty "0 allotted .hall be final and eonclualve
upon all per"ona Intero"ted In thla tru"t or In the dlvlolon or dlatrlbutlon thereol.
B, Relat!onshlp Betwoon Truet"". and Benolleiarles, Notwithatandlng any other
provisiun in tiltH h'UAtJ the rrrustef18 shall not cX{~rCiAe any powor in u manner Lneon-
sl"toot with Ihe rl((hl to tho beneficial enJo,ytn,mt of this truat property accorded to the
benel'lciurles under the /{enoral prlnclple" or the law of truste,
0. Principal and Income. (11) In the Cf\R~ of bonds, notos, or other evidence ot
Indohtlldnoas takon or purchased at a premium, tho Trustcoo shall not be required to
Bot aside any part of the in como thoreof RS n Sinking fund to retire or absorb Buch
premium,
(h) All extraordinary .tock dividend" "hall be conaldered principal, but ordinary
stock dlvidenda pair: ro/{ulady by a corporallon In \lou of, or In addition to, regular
cash dividends ohall be oonsldered Income and not prlnclpal, and the Trustees' deter-
mination (is to whether any stock ,livldond 10 ordlnar,y or extraordinary, and the Trustee
determination as to whether any stock dividend shall bo npportlonod or set asld. In wholo
or In part to prlnolpal or Income ahall bc final and conclualvo upon all pel'sons Interestel
In thl. trust. \
(0) All rights to purchase any cn.pitnl stock of cOl'porntiol1a shall be conElidered
principal, and If !he Truatoes soll auch rl/{hts, the proceeda or such sales shall be
principal.
(d) All realized approclatlon in the value 01 "toek, bondA, "ecurlllea, or other
proporty, resuWn/{ from the solo, exchange, or othor di"posltlon thereor, shall be
eonaldored principal.
(Ii) In determining the amounl of net Incolllo lor distribution. the Trustees .hall
make no doductlon from or charge agaln"t tho Incollle on account of the depreciation or
amortb.nUon of any inveatments mnde by the TrusteflB or on account of 109ge8 sustained
from thf1 snlo, nxchnngp, or other disposition thereof.
(f) Excopt aa horoln provider!, tho 'I'rustoes shall have the right and power to
determino how all reoelpto and dlahursementa shall b" oredlted, charged, or apportioned
as between principal and Income,
10, SUoc"s"orTru"tee, Upon tho death, resignation, or dlsquallllcatlon 01 either
Tl"ustee, th. survlvin/{ Tru"tee shall act aa 0010 aurvlvin~.. Trustee alter such death,
reSignation, or dlsqualHleatlon.
11, I Acceptance of Trust. Tho 'fruatccR hereby accept the truAt created by thia
agroemont and agree to curry (Iut the provisions horeof on their part according to the
bost 01 thotr ability, but Ihoy ahall not ho ro"pon"lhlo for Hny mistake In judgment or for
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