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Home My WebLink About03-28-07 Michael L. Bangs, Esquire Identification No. 41263 429 S. 18th Street Camp Hill, P A 17011 Attorney for Petitioners Todd F. Truntz, Esquire Identification No. 83302 635 North 12th Street, Suite 400 Lernoyne, P A 17043 Attorney for Respondent INRE: PATRICIA M. KILKENNY F AMIL Y IRREVOCABLE TRUST IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION No. 21-06-553 JOINT PETITION TO APPROVE SETTLEMENT AGREEMENT AND NOW come Respondent, Community Trust Company, (hereinafter referred to as "Respondent") by and through its attorneys, Keefer Wood Allen & Rahal, LLP, and Petitioners, Catherine A. McKinney, Settlor of the Patricia M. Kilkenny Family Trust, (hereinafter referred to as the "Trust") and Patricia M. Kilkenny, (Mrs. McKinney and Mrs. Kilkenny are hereinafter (:~:> n CC> collectively referred to as the "Petitioners") by and through their attorney, MiC~~L. Ba~, Esquire, to seek approval by the Orphans' Court of the Settlement Agreement, dat~~ar~5, -'-c'-.-j OJ 2007, by and between the Respondent and the Petitioners and make the following~-@~ment in '':. ._,-. '...._j --rJ : ..J '\ i -,,- support thereof: _ ~.~ - ::.::..:; C') 1. This Petition is submitted pursuant to Section 7710.1(e) ofthe Pennsylvania Uniform Trust Act (20 Pa.C.S.A. S 7710.1(e)). 2. On November 29,2006, a hearing on the above-captioned matter was held before the Honorable J. Wesley Oler, Jr., Judge of the Orphans' Court of the Court of Common Pleas of Cumberland County, Pennsylvania. 3. On December 27,2006, Judge Oler issued an Opinion and Order of Court directing Respondent to file an Amended First and Final Account; limiting the attorney fees to be paid from the Trust; reducing the Respondent's fees; and, requiring the Respondent to pay the Petitioners' attorney fees. 1 4. On January 24,2007, in compliance with the Order, Respondent, from its separate funds, paid the Petitioners' attorney fees. On that same date, Respondent delivered to Petitioners the corpus of the Trust, which was comprised of two MetLife variable annuities and a residence known and numbered as 603 Fairway Drive Camp Hill, Cumberland County, Pennsylvania. 5. As a result of the above transfer, at the close of business on January 24,2007, the only asset remaining in the Trust was the then-current cash balance of$3,234.39. 6. On January 26,2007, the Respondent expended $130.00 of the Trust's cash balance to file its Amended First and Final Account. 7. Upon their review of the Amended First and Final Account, Petitioners expressed disagreement with the allocation of the Trust cash balance as set forth in the Amended First and Final Account and expressed their intention to file Objections with the Court. 8. Despite their disagreement, Respondent and Petitioners did not wish to engage in further litigation and therefore have resolved this matter by entering into a certain Settlement Agreement, dated March 5, 2007, the original of which is appended hereto as Exhibit "A". 9. The Respondent and the Petitioners believe that the settlement is fair, equitable and complete in that: a. The Petitioners receive $2,400.00 ofthe $3,114.45 net Trust cash balance; and also receive copies of the 2005 and 2006 fiduciary income tax returns for the Trust; the originals of the current real estate tax receipts for 603 Fairway Drive, Camp Hill, Cumberland County, Pennsylvania; and the current homeowner's insurance policy. b. The Respondent retains $714.45 in full and final satisfaction and payment of all of its remaining administrative and termination fees accrued after March 13, 2006, and has received from Petitioners a joint and several release of Respondent, its successors and assigns, and of Respondent, as Trustee of the Patricia M. Kilkenny Family Trust, of 2 and from any and all actions, suits, payments, accounts, reckonings, claims and demands whatsoever, whether in law or in equity for or by reason thereof. 10. Petitioners jointly and severally have agreed to the confirmation by the Orphans' Court, as of March 6,2007, of the Amended First and Final Account as it is presently stated. WHEREFORE, Respondent and Petitioners request that the Court enter an order approving the appended Settlement Agreement. Respectfully submitted, BANGS LAW OFFICE KEEFER WOOD ALLEN & RAHAL, LLP - BY~~_ Todd F. Truntz, Esquire """'- Identification No. 83302 635 North 1ih Street, Suite 400 Lemoyne, P A 17043 Attorney for Respondent BY: Michael L. Bangs, suire Identification No.4 63 429 S. 18th Street Camp Hill, PA 17011 Attorney for Petitioners 3 INRE: PATRICIA M. KILKENNY F AMIL Y IRREVOCABLE TRUST : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : ORPHANS' COURT DIVISION : No.2I-06-553 SETTLEMENT AGREEMENT MADE this..:r#l day of March, 2007, by and between Catherine A. McKinney, Settlor of the Patricia M. Kilkenny Family Trust (hereinafter the "Trust"), and Patricia M. Kilkenny (Mrs. McKinnney and Mrs. Kilkenny are hereinafter collectively referred to as the "Petitioners") and Community Trust Company (hereinafter referred to as "Respondent") intending to be legally bound hereby. Back2round to Settlement Ae:reement I. On November 29, 2006, a hearing on the above-captioned matter was held before the Honorable J. Wesley Oler, Judge of the Orphans' Court of the Court of Common Pleas of Cumberland County, Pennsylvania. At the conclusion of the hearing the Petitioners and the Respondent mutually agreed that the Trust was terminated. 2. On December 27,2006, Judge Oler issued an Opinion and Order of Court directing Respondent to file an Amended First and Final Account correcting overcharges on administrative fees; deleting administrative fees after March 13, 2006, except as to the asset which Petitioners elected to leave in the Trust; charging a termination fee based only on the remaining asset which Petitioners had elected to leave in the Trust; and deleting all attorney's fees arising as a result of Petitioners' petition and objections with the exception of fees for the preparation of the accounts themselves. 3. On January 24, 2007, in compliance with the Order, Respondent, from its separate funds, paid the Petitioners' attorney fees. On that same date, Respondent transferred the trust corpus, comprised of the two annuities and the real estate, to the Petitioners, leaving cash balance of$3,234.39 in the Trust. 4. On January 26,2007, Respondent filed its Amended First and Final Account. The 2007 Court Calendar for Cumberland County indicates that the Amended First and Final Account will be presented to Judge Oler for Confirmation on March 6, 2007. 5. Following their review of the Amended First and Final Account, Petitioners expressed disagreement with the allocation of the Trust cash balance as set forth in the Amended First and Final Account, and indicated that they would be filing Objections with the Court. Settlement Agreement Page 1 6. Notwithstanding their disagreement, Petitioners and Respondent do not wish to engage in further litigation, and have agreed to resolve this matter by their mutual agreement under the terms set forth herein. Terms of Settlement 7. As of the date of this Agreement, the current cash balance of the Trust is $3,114.45, calculated as follows: Cash Balance as of 1/24/2007: $3,234.39 Filing fee for Amended First and Final Account 1/26/2006: ($130.00) $10.06 Dividend Receipt 1/31/2007 Current Cash Balance: $3.114.45 8. Respondent shall pay to Petitioners, from the cash balance in the Trust, the sum of Two Thousand Four Hundred and 001100 dollars ($2,400.00), the receipt whereof is hereby acknowledged, in full and complete satisfaction of any current or further obligation that Respondent may have to Petitioners. 9. Respondent shall provide the following, without cost, to the Petitioners: a. a copy ofthe 2005 fiduciary income tax return for the Trust; b. a copy of the 2006 fiduciary income tax return for the Trust, when the same is filed by Respondent; and c. the original receipt for the 2006 Cumberland County and Township of East Pennsboro real estate tax; the original receipt for the 2006-2007 Pennsboro Area School District; and, the Travelers Homeowners Policy for the term of 12/05/06 to 12/05/07 for the improved real estate known and numbered as 603 Fairway Drive, Camp Hill, Cumberland County, Pennsylvania. 10. Petitioners, for and in consideration of their receipt of the above stated payment, do hereby, jointly and severally, remise, release, quitclaim and forever discharge the Respondent, its successors and assigns, and the Respondent, as Trustee of the Patricia M. Kilkenny Family Trust, of and from all and all actions, suits, payments, accounts, reckonings, claims and demands whatsoever, whether in law or in equity, for or by reason thereof. 11. Respondents shall retain the remaining Trust cash balance of SEVEN HUNDRED FOURTEEN AND 45/100 Dollars ($714.45) as full and final satisfaction and Settlement Agreement Page 2 payment for all of Respondent's remaining administrative and termination fees accrued after March 13,2006. 12. Petitioners do hereby, jointly and severally, agree to the confirmation, on March 6, 2007, of the Amended First and Final Account, as it is presently stated, by the Orphans' Court. 13. Upon execution of this Settlement Agreement and its approval by the Orphans' Court of the Court of Common Pleas of Cumberland County Pennsylvania, the original of this Settlement Agreement shall be filed of record with the Clerk of the Orphans' Court. IN WITNESS WHEREOF we have hereunto set our hands and seals the day and year first above written. WITNESSETH: M7~ r1p ~. (Seal) I~~~ Patricia M. ilkenny 7 (Seal) ATTEST COMMUNITY TRUST COMPANY ~ e t/k- ~ B)t;x5~~r -~eal) Susan A. Russell President and CEO Settlement Agreement Page 3 COMMONWECTH OF p. ENN.SYL VANIA) . . ern MILL ) SS: COUNTY oFllQ1'.' . ) On this, the ~day of March 2007, before me, a Notary Public, the undersigned officer, personally appeared Catherine A. McKinney and Patricia M. Kilkenny, known to me (or satisfactorily proven) to be the persons whose names, are subscribed to the foregoing Settlement Agreement, and acknowledged that they executed the same for the purposes therein contained. WITNESS my hand and Official Seal. NOTAR1AL SEAl WENDY S. CHESf}RO, Notary PullIc lower Allan Twp., Cumbertand C'#_ M'/ Commis"'J.cn ExpIres May 10, 2007 COMMONWEALTH OF PENNSYLVANIA) ) SS: COUNTY OF ~I\l~ lruJ ) On this, the ~day of March 2007, before me, a Notary Public, the undersigned officer, personally appeared Susan A. Russell, who stated that she is President and CEO of Community Trust Company and who is known to me (or satisfactorily proven) to be the person whose name, is subscribed to the foregoing Settlement Agreement and acknowledged that she executed the same for the purposes therein contained. WITNESS my hand and Official Seal. ~eb1f. ~ Nota~lic My Commission Expires: \'U (1J 16 66MM6HW ft:4 - NotariaJ Seal V, Rebecca J. C/aJ1c, Notary Public =T~., Cu~County ISSiOn Expires Dec. 17,2010 Member, PennsylvanIa ASSocIation 01 Notaries Settlement Agreement Page 4