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HomeMy WebLinkAbout04-13-07 (2) IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION IN RE: ESTATE OF SENECA C. ALLEN, Deceased o No. 2006-0152 FAMILY SETTLEMENT AGREEMENT AGREEMENT executed thiSd-~ay of March, 2007, by and between DARAN J. ALLEN, Individually and as, Execubix of the Estate of SENECA C. ALLEN, Deceased, and KIMBERLY A. ALLEN, Individually and as, Executrix of the Estate of SENECA C. ALLEN, Deceased, WITNESSETH: WHEREAS, Senec A. Allen died intestate on February 6, 2006; WHEREAS, on February 16, 2006, the Register of Wills of Cumberland County granted letters of administration to Oaran J. Allen and Kimberly A. Allen; WHEREAS, the Administrators have proceeded with the administration of said estate and have prepared an informal accounting of their administration; WHEREAS, the Administrators have ... prepared and filed an original Inheritance Tax Return as evidenced by the Return attached hereto as Exhibit "A". ,-" = C:;:. -J .,~ ::~o 7;'1 w :I,-:))' U1 C-:J ~ NOW THEREFORE, the parties intending to be legally bound hereby, mutually agree as follows: 1. The parties hereto, and each of them, agree and acknowledge that they have fully and carefully examined the informal accounting prepared by Daran J. and Kimberly A. Allen as co-administrators of the Estate of Seneca C. Allen, Deceased, and find it to be true and correct and acceptable to the parties hereto and each of them, and further that each of them has received a copy of this Agreement and informal accounting. 2. The parties hereto do hereby release, remise and forever discharge the Estate of and from all manner and acts, suits, claims, accounts, accountings, debts, dues and demand whatsoever which they or any of them or their legal representative or assigns may at any time hereafter have, against the Administrators of said estate or the assets thereof, from, for, touching or concerning any of the assets and property of the said estate and/or any claim or interest thereto or therein and the administration, management, collection, sale or distribution of any of said assets and for on account of any money, interest, income assets or proceeds of the same, from the time of said decedent's death to and including the date of this Agreement and the distribution authorized herein. 3. This instrument is a full and final Family Settlement Agreement by and between the parties hereto, both fiduciary and individual, all of the same having been arrived at, included and executed after a full and cornplete disclosure of the assets of said estate and the right of the parties therein and thereto and all the parties hereto, and each of them agrees to abide by the terms hereof. 4. The parties hereto, and each of them agree, that they will at all tirnes in the future and whenever necessary appropriate or conveniently make, execute and deliver to said Administrators and/or to the other party or persons, any and all instruments, documents, conveyances, deeds, releases or other instruments of any kind necessary or convenient to carry out the intention of this agreement and/or to permit, assist and enable the Executrix to fulfill her duties with references to the said estate and all the assets thereof. 5. This Agreement constitutes the entire understanding arnong the parties hereto and each of them acknowledges that no representations or statement of any kind, written or oral have been made to them by any of them prior hereto except as provided for in this agreement, by the Administrators or by any other person or party upon her behalf. 6. This Agreement shall inure to the benefit of and shall be binding upon, the parties hereto, and each of them, their heirs, executors, administrators, successors and assigns. 7. The signatories to this Family Settlement Agreernent agree to refund to the estate prorata any amount which may be necessary in the Mure to discharge c:lny liabilities of the estate which may hereafter arise. 8. This Family Settlement Agreement is signed and executed by the Administrators and the other beneficiaries as withessed by the individual signatures attached to the body of this Agreement. 9. This Agreement shall be governed by laws of the Commonwealth of Pennsylvania. IN WITNESS WHEREOF, the parties hereto have hereunto set their r,espective hands and seals. Date 1('" 'Ib 7 57 .~ If Daran J. Allen, Individually and as Co- Administrator of the Estate of Seneca C. Allen Date ] /"l") EXHIBIT A . ..'- ...-,. -. .. -~ .~. -~- - \ --I 15056051058 REV.1500 EX (06-05) PA DepaJtment of Revenue '* Btnau of IncIIvIduaI Taxes PO BOX 280601 HanIsIug, PA 17128-0601 ENTER DECEDENT INFORMATlON BELOW ~a~Sec:urlty Number [)~te of.[).~~_ . OFFICIAL USE ONLY County Code Year INHERITANCE TAX RETURN RESIDENT DECEDENT 21 File Nunber 06 .0152 Date of Birth ".. ,... ~ .. -- : 206-78-8613 0210612006 0510512000 Decedenfs Last Name Suffix Decedenfs First Name . Seneca ... ,C .. . . Allen (If Applicable) Enter Surviving Spouse'. Infonnatlon Below ~~lJlIt):sLast Name Suffix S~~~'~.F~':I~me._ MI 5.J:lC?lJae's S~I ~curity t.lum~! THIS RETURN MUST BE RLED IN DUPUCATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW ~a> 1. Original Return C;I 2. Supplemental Return C) 3. Remainder Retum (date of death prior to 12-13-82) 5. Federal Estate Tax Retum Required c=;. 4. Umltad Estate C':) 48. Future Interest Compromise (dete of c::> death after 12-12-82) c::> 7. Decedent Maintained a LMng Trust (Attach Copy of Trust) c::;) 10. Spousal Poverty Credit (date of death C) 11. Election to tax under See. 9113(A) betwe.l12-31-91 and 1-1-95) (Attach SOO. 0) CORRESPONDENT - THIS SECllON MUST BE COMPL!TED. ALL CORRESPONDENCE AND CONFlDENlW. TAX INFORiIA.11ON SHOULD BE DIRECTED TO: Name .... ...____._d~_._._..__.q_...u ._..._...._ _... .... gaytl!!"':r:~~~~~_~':!.~~!.__._.__.__ _L 8. Total Number of Safe Deposit Boxes ~ 6. Decedent DIed Testate (Attach Copy of Will) ce.> 9. LItIgation Proc:eeda ReceIwd . James G. Nealon, III (717) 232-9900 ; F.!nTl . t.l8.I1l_e (If '.'P~C?a.I>I~) . . .. . Nealon, Gover & Perry First line of address I REGISTER OF WILLS USE ONLY , j I I I ; 2411 North Front Street -_.... ~~or F.'~t9..mce Harrisburg State PA ZIP Code r ~ I I L____~ DATE FLED 1_., _,'," Second line of address ".'- .-. 17110 Correspondenfs e-maIl address:jnealon@ngplawfinn.com Under penalties of peIjuIy, I decI8re \hat I h8ve examined this retum, including accompanying schedules and statements, and to the best of my knawIedge and belief, It Is true, COmICl and axnpIeIe. DeclaratIon of P!Pf'8l' other then the P8l'801'l8ll'Sp1'a8ntatlve Is based on aU information of which prepIII8r hell any knowledge. ~OF"'-~-'~U1. I~ 3{~'767 SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE DATE ADDRESS PLEASE USE ORIGINAL FORM ONLY Side 1 L 15056051058 15056051058 --.J .-J 15056052059 REV.1500 EX Decedent', Name: RECAPITULATION Seneca Allen Decedent's SocIal Security Number ! 206-78-8613 1. Real estate (Schedule A). ............... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Stocks and Bonds (Schedule B) .. . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ..... 3. 4. Mortgages & Notes Receivable (Schedule D) . . .. .. . .. . . . . .. . . . .. . . . . . . . . . 4. 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) . . . . . . . . 5. 6. Jointly Owned Property (Schedule F) c::> Separate Billing Requested . . . . . . . 6. 7. Inter-VIvos Transfers & Miscellaneous Non-Probate Property (Schedule G) c::> Separate Billing Requested.. . . . . . . 7. 8. Total Gross Assets (total Lines 1-7). . . .. . . . . . . .. .. .. . . . .. . . .. . . . . . . . . .. 8. 9. Funeral Expenses & Administrative Costs (Schedule H). . . . . . . . . . . . . . . . . . . . . 9. 10. Debts of Decedent, Mortgage Liabilities, & Uens (Schedule I). .. . . . . . . .. .. . . . 10. 11. Total Deductions (total Lines 9 & 10). . .. . . . . .. ... . .. . . .. .. .. . ,. . ... . . .. 11. 12. Net Value of Estate (Line 8 minus Line 11) . . .. . .. .. . . . . . . . . .. .. . . .. . .. .. 12. 13. Charitable and Governmental BequestsJSec 9113 Trusts for which an election to tax has not been made (Schedule J) .. . . . . . . . . . . . . . . . . . . . . . . 13. 14. Net Value Subject to Tax (Une 12 minus Une 13) .. . . ... .. .. .. . . . . .. . . . . . 14. TAX COMPUTATION - SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the-spousal tax rate, or transfers under Sec. 9116 ! (a)(1.2) X .0_ 15. 16. Amount of Une 14 taxable at lineal rate X.O _ 16. 17. Amount of Une 14 taxable at sibling rate X .12 17. 18. Amount of Line 14 taxable at collateral rate X .15 i 18. 19. TAX DUE. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. ~ --- -. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT ~ N'd --ril-x rkll..- -- ~ 0.. f/-o..c c::> L 15056052059 Side 2 15056052059 ...J . REV-1500 EX Page 3 Decedent's Complete Address: F1....Number. . . ""--.-'1'-.-.......,.... .. ....., , 21 :1 06 '0152 J , ~ , - ....~...~~ ~,,<~w"""......, "............. ..... . . o. S NAME DECEDENT'S SOCIAL SECURITY NUMBER Seneca C Allen 206-78-8613 STREET ADDRESS CITY I STATE I ZIP Tax Payments and Credits: 1. Tax Due (Page 2 Une 19) 2. CrediIsIPayments A. Spousal Poverty Credit B.PriorPayments C. Discount (1) 0.00 Total Credits ( A + B + C ) (2) 3. InterestlPenalty if applicable D. Interest E. Penalty TotallnterestlPenalty ( D + E ) (3) 4. If Une 2 is greater than Una 1 + Una 3, enter the difference. This is the OVERPAYMENT. Fill In oval on Page 2, Una 20 to request a refund. (4) B. Enter the total of Una 5 + SA. This is the BALANCE DUE. (5) (SA) (5B) 0.00 5. If Una 1 + Una 3 is greater than Une 2, enter the difference. This is the TAX DUE. A. Enter the interest on the tax due. 0.00 Make Check Payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X. IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred;.......................................................................................... 0 [il b. retain the right to designate who shall use the property transferred or its income; ............................................ 0 [il c. retain a reversionary interest; or.......................................................................................................................... 0 iii d. receive the promise for life of either payments, benefits or care? ...................................................................... 0 iii 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .............................................................................................................. 0 iii 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? .............. 0 iii 4. Did decedent own an Individual Retirement Accoun~ annuity, or other non-probate property which contains a beneficiary designation? ........................................................................................................................ 0 iii IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent [72 P.S. !9116 (a) (1.1) (i)). For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (0) percent [72 P.S. !9116 (a) (1.1) Qi)). The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are stin applicable even if the surviving spoUse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural paren~ an adoptive parent or a stepparent of the child is zero (0) percent [72 P.S. ~9116(a)(1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedenfs lineal beneficiaries is four and one-half (4.5) percent, except as noted in 72 P.S. !9116(1.2) [72 P.S. ~9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the decedenfs siblings is twelve (12) percent [72 P.S. !9116(a)(1.3)]. A sibling is defined, under Section 9102, as an indMdual who has at least one parent in common with the deceden~ whether by blood or adoption. REV-1508 EX+ (6-98) . COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY ESTATE OF Seneca C. Allen FILE NUMBER 21-06-0152 Include the proceeds of Iftlgation and the date the proceeds were received by the estate. All property jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM VAlUE AT DATE NUMBER DESCRIPTION OF DEATH l -. f". w....._ ..... ,.".... -.-....-,...-.......,........".,.. ...,.. .'.' ..., . ,..... ..-.........,. -..... , .' ---...... ... ........,..,.-.., ......-... ......_...M~...._'._""" L l' ~p~~ of litigation against Janet A.~~&S Transportation a~ N~~n~~ I~ L- .--1 ~r:nder seal to protect priv~Of parties. see attache~~~~:: amo~~t ~o~ S~bject to tax. see --I ;' I ! (attached letter of Holly McClintock of Department of Revenue) I I ! ' ~..._.--4_b.4A.,'~ ~L MJ - - ......--.-- *>>l'_!rW ~ W-~~>~__~16NltlU!_lIIl ... f ;; i II I ! ! '==: I' i 1 i i ! ; 1'''''''---''' - --- ~ '1l1t___!3l:_.asm;:c;~~i#Wir~~llll.!lI!l'lmll!~ '-00; 10, j 4 i i I I . .. I , I i I I I I i , I ; i i I ~ , I I I n.._~ I I I 1 I I I I I I iL ! i; ,,- ;'" 1 : I r- f i ! i ; I I I I ~ll I.'. 1 ; ~~ .,~ ~_,ti 1 ""~~-.zI:IPEi~ti:ilIJN!!:l!it...r.-r-........ !il!lllQlk....>>t:~,~""'" ~ 1 ! I I i I .A -1 I .~~-r-,~ .1" . I II ............... I I J i _. :$:;_ II I i , I ~ . ~_ U~ J>... I i I I ~ l~ l~ ~ l 1 , i I _~-.::;.___~~'W'~~_~.-!: I l .......J .~~<r..-,'!IIi..~t....<.;A.lI<o'.~ TOTAL (Also enter on line 5, Recapitulation) $ L___,~~~<~ (If more space Is needed, insert additional sheets of the same size) WEB ADDRESS www.state.Da.US BUREAU OF INDMDUAI. TAXES INHERITANCE TAX DIVISION PO Box 280601 tiARRIsBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE June 29, 2006 James G. Nealon, III, Esq. Nealon Gover & Perry 2411 N. FrontSt. Harrisburg, PA 17110 Re: Estate of Seneca Allen File Number: 2106-0152 Date of Death: 2/6/06 Court Number: CCP Cumberland Co. No. 06-3038 Dear Mr. Nealon: The Department of Revenue received a petition concerning the approval of Settlement Claim to be filed on behalf of the above-referenced Estate in regard to. a wrongful death and survival action. It was forwarded to this Bureau for the Commonwealth's approval of the allocation of the proceeds paid to settle the actions. Pursuant to the petition, the 5-year-old-decedent died as a result of a pedestrian/motor vehicle acciderit. The heirs to the decedent's estate are her parents. Therefore, any proceeds paid to settle the survival action would pass to the decedent's parents and would be subject to a zero percent inheritance tax rate. 72 P.S. ~9116(a)(1.2). Accordingly, regardless of the allocation of the subject proceeds, there would be no inheritance tax consequences. Please be advised that based upon these facts and for inheritance tax purposes only, this Department bas no objection to the proposed allocation of the proceeds of this action, 80% to the wrongful death claim and 20% to the survival claim. Proceeds 'of a survival action are an asset included in the decedent's estate and, although subject to the imposition of a zero percent inheritance tax rate in this instance, they must be reported on decedent's Pennsylvania inheritance tax return. 42 Pa. C.S.A. ~8302; 72 P .S. ~~91 06, 9107. Costs and fees must be deducted in the same percentages as the proceeds are allocated. In re Estate of Merrvman, 669 A,2d 1059 (Pa. Cmwlth. 1995). I trust that this letter i~ a sufficient representation of the Department's position on this matter. .As the Department has no objections to the Petition, an attorney from the-Department of Revenue will not be attending the hearing regarding it. Please contact me if you or the Court has any questions or requires anything additional from this Bureau. Finally, the approval of this .allocation is limited to this estate and does not reflect the position that the Department-may take in any other proposed distribution of proceeds of a wrongful death/survival action. ~ce"jIY, ... ~1.M~cL Holly A, McClintock Trust Valuation Specialist PHONE: 717-787-1794 · FAX: 717-783-3467 · EMAlL: hmcclintoc@state.Da.us .. ~. DARAN J. ALLEN and KIMBERLY A. ALLEN, Individually and as Co-Administrators of the ESTATE OF SENECA C. ALLEN, Deceased, Plaintiff . IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ~ NO..06-3038. v. : CIVIL AC.TION - LAW JANET ADAMS and B & 5 TRANSPORTATION, INC., Defendant : JURY TRIAL DEMANDED ORDER OF COURT AND NOW, this . I 7 """ day of ~ ' 2006, upon consideration of the 'Petition to Seal Settlement heretofore filed this Honorable Court /' directs the Prothonotary to place the settlement in this case under seal in order to protect the privacy of the financial affairs of the Petitio.ners. J. '. REV-1513 EX+ (9-00) .- COMMOftlNEALTH OF pEtMY\.VANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES ESTATE OF Seneca C. Allen FILE NUMBER 21-Q6-0152 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEMNG PROPERTY Do Not Uat TI'Ultee(I) OF ESTATE I TAXABLE DISTRIBUTIONS [Inc:Iude ou1rIghl spousal distributions, and transfers under See. 9116 (a) (1.2)] ENTER DOUARAMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET D NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE Daran J. Allen, father 1/2 Kimberly A. Allen 112 B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ (If more space is needed, Insert additional sheeIs of the same size)