HomeMy WebLinkAbout99-0168
In the Office of the Register of Wills for Cumberland County, Pennsylvania
INRE:
THE ESTATE OF BETTY A. HUGHES,
Deceased
Late of South Middleton Township
No. 1999 - 00168
PRAECIPE FOR ENTRY OF APPEARANCE
Kindly enter my appearance on behalf of the Executrix of the Estate of Betty A. Hughes,
deceased.
Dated: March 28, 2007
Respectfully submitted,
SAIDIS, FLOWER & LINDSAY
By:rL~
Thomas E. Flower, Esq.
Attorney Id. 83993
2109 Market Street
Camp Hill, P A 17011
717-737-3405
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IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYL VANIA
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IN RE: REVOCABLE F AMIL Y
MAINTENANCE TRUST OF
BETTY A. HUGHES
ORPHANS' COURT DIVISION
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NO. 21-1999-168
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PETITION TO TERMINATE SUBTRUST FBO SETH B. HUGHES
TO THE HONORABLE JUDGE OF SAID COURT:
Petitioner, LINDA B. MUSIKA, being the Successor Trustee ofthe Revocable Family
Maintenance Trust of Betty A. Hughes ("Petitioner") respectfully states:
1. The relief sought in this Petition is justified pursuant to 20 Pa. C.S. ~ 7740.1(b),
Modification or termination of noncharitable irrevocable trust by consent.
2. Linda B. Musika is an adult individual residing at 1381 Sumneytown Pike,
Lansdale, PA 19446, and is a sister of Betty A. Hughes.
3. Seth B. Hughes is an adult individual residing at 14 Cardinal Drive, Carlisle, P A
17015, and is a natural child of Betty A. Hughes.
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4. On November 10, 1998, Betty A. Hughes ("Settlor"), of South Middleton
Township, Cumberland County, Pennsylvania, executed the Revocable Family Maintenance
Trust of Betty A. Hughes ("Trust"), a copy of which is attached hereto as Exhibit A and
incorporated herein.
5. On February 10, 1999, Settlor died, causing the Trust to become irrevocable.
6. Within the Trust document, Linda V. Hitchcock, Settlor's friend, was appointed
trustee.
7. On June 6, 2007, Linda V. Hitchcock resigned as trustee, which resignation is
evidenced by the Approval of Account, Release and Indemnification of Trustee, a copy of which
is attached hereto as Exhibit B and incorporated herein.
8. Linda B. Musika is now acting as Successor Trustee (hereinafter "Trustee"), as
indicated by her signed Acceptance, a copy of which is attached hereto as Exhibit C and
incorporated herein.
9. Item VIII of the Trust established a subtrust for the benefit of each of Settlor's
children, Noah B. Hughes, Seth B. Hughes and Katy M. Hughes.
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10. Item VIII B.2.(b) of the Trust requires each subtrust to continue for the benefit of
any named beneficiary who has not attained the age of twenty-nine (29) years.
11. Seth B. Hughes was born on April 6, 1980, and is presently twenty-seven (27)
years of age.
12. Item VIII B.2.(b)(1) gives Seth B. Hughes the right to immediately take
possession of one-half (112) of the balance when he reaches age twenty-seven (27) years.
13. Seth B. Hughes has received one-half (112) of the balance of his trust.
14. Seth B. Hughes received a bachelor of science degree in recreation and park
management from The Pennsylvania State University in 2002.
15. Seth B. Hughes purchased a residential property in 2002.
16. Seth B. Hughes owns and operates the contracting business Hughes Contracting.
17. Seth B. Hughes is the father of two (2) children.
18. The assets held in the Revocable Family Maintenance Trust of Betty A. Hughes,
Subtrust FBO Seth B. Hughes are approximately Thirty-one Thousand Seven Hundred Sixty-five
and 841100 ($31,765.84) Dollars.
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19. Counsel fees and fees for the preparation and filing of the final Fiduciary income
tax return for this subtrust will be collectively approximately $2000.
20. Petitioner believes that the original purpose ofthe Trust was to insure that
Settlor's child was responsible prior to gaining access to the funds held in the Trust.
21. Petitioner believes that the decedent would support the termination of this subtrust
due to the educational accomplishments of Seth B. Hughes and his evidence of assuming the
responsibility of an adult.
22. Petitioner believes that it is prudent and economical to terminate the subtrust,
rather than administer it for two (2) more years, due to the small amount remaining on deposit.
23. Seth B. Hughes consents to the termination of the Revocable Family Maintenance
Trust of Betty A. Hughes, Subtrust FBO Seth B. Hughes. His consent is attached hereto as
Exhibit D and incorporated herein by reference.
24. Petitioner believes it is in the best interest of Seth B. Hughes that the subtrust be
terminated due to the fact that he is twenty-seven (27) years old and has become a responsible
young adult.
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WHEREFORE, Petitioner prays for the Court to issue an Order terminating the
Revocable Family Maintenance Trust of Betty A. Hughes, Subtrust FBO Seth B. Hughes and
authorizing the Trustee to distribute any funds held on account of the Trust directly to Seth B.
Hughes, with the exception of $2000 to be held in reserve for the preparation and filing of the
Fiduciary income tax returns and for counsel fees.
Respectfully submitted,
By:
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i y A nmmer
p. Ct. I.D. No. 49679
Jennifer Denchak Wetzel
Sup. Ct. I.D. No. 200391
3401 North Front Street
P.O. Box 5950
Harrisburg, P A 17110-0950
(717) 232-5000
DATED: 1117/0 1
Attorneys for Petitioners
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VERIFICATION
I, LINDA B. MUSIKA, have read the following document and verify that the facts set
forth herein are true and correct to the best of my knowledge, information and belief. To the
extent that the foregoing document and/or its language are that of counsel, I have relied upon
counsel in making this Verification.
I understand that any false statements made herein are subject to the penalties of 18 Pa.
C.S.A. g4904 relating to unsworn falsification to authorities.
DATED: /1 /ZO / IJ 7
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LINDA B. MUSIKA
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REVOCABLE FAMfL Y MAINTENANCE TRUST
Of
BETTY A. HUGHES
BE IT KNOWN TO ALL MEN COMETH, that I, BETTY A. HUGHES, GRANTOR, otSouth Middleton
Township, Cumberland County of the Commonwealth of Pennsylvania, do hereby create this trust
for the express purpose of providing for my lineal descendents all property deeded in trust upon
creation of this trust or which Is added to its "corpus", as defined hereinbelow, from time to time or
upon or because of my death and. further. providing the procedures for use of both the corpus and
earnings and the distribution of same during the term of this trust.
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L TRUSTEES
A. NAMED
1. I hereby name my friend, LINDA V. HITCHCOCK to be trustee.
2. However, upon the death, withdrawal or inability of her to act as cowtrustee, I name
my sister, LINDA 8. MUSIKA, as contingent trustee.
3. If any of the above named trustees fail for any reason to accept or otherwise
continue to serve as trustee, the remaining trustee shall appoint a corporate trustee to
replace a corporate trustee, or an individual trustee to replace an individual trustee.
B. POWERS, DUTIES and RESPONSIBILITIES
1. Corporate:
The corporate trustee above named or hereafter appointed shall:
a) hold title, in trust, to all property representing the corpus or earnings of
this trust;
b) be a "licensed" fiduciary as established in its state of incorporation;
c) be entitiled to receive and receive a fee for its services which is
reasonable and customary for its location;
d) be responsible for filing all necessary governmental reporting forms,
i.e. IRS reports and returns, "Orphan's Court" accountings, etc.
e) If there is no individual trustee, after consulting with the beneficiaries
of this trust also: .
(1) be responsible for ascertaining and certifying the income needs of the
beneficiaries of this trust;
(2) establish the general investment outlook of the trust's corpus
2. Individual:
The individual trustee above named or hereafter appointed shall:
a) be primarily responsible for ascertaining and certifying the income
needs of the beneficiaries of this trust;
b) establish the general irWestment outlook of the trust's corpus;
c) co-operate with the corporate trustee in filing all necessary forms and
reports;
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
C. Bonds:
1. If there is a corporate Trustee:
Because the corporate trustee is required to be a licensed fiduciary and the individual
trustee shall NOT hold title to any trust property, they shall serve without bond, unless
such bond is specifically. mandated by law.
2. Otherwise, no bond'shall be required, and the trustees shall be held harmless for
any losses incurred on behalf of this trust except for any losses sustained 'as a result 'of
fraud, or gross negligence.
D. Management pro visions-
/, hereby, authorize my TRUSTEE(S) in his/her/their discretion:
1. To retain and/or invest in all fonns of real and personal property, without being
confined to those investments authorized by any statutory list, without being .
required to diversify and regardless of any principle of law limiting delegation of
investment responsibility of TRUSTEE(S); .
2. To compromise claims and to abandon any property which, in my TRUSTEE(S)'
opinion, is of little or no value;
3. To sell at public or private sale, to exchange or to lease for any period of time, any
real or personal property, and to give options for sales or leases;
4. To join in any merger, reorganization, voting-trust plan or other concerted action of
security holders, and to delegate discretionary duties with respect thereto;
5. To partition, subdivide or improve real estate and to enter into agreements
concerning the partition, subdivision, improvement, zoning or management of any
real estate in which my estate has an interest and to impose or extinguish
restrictions on any such real estate;
6. To employ and to rely upon advice given by investment counsel, to delegate
discretionary authority to make changes in investments to investment counsel, and
to pay investment counsel reasonable compensation; in addition to any fees
otherwise payable to my TRUSTEE(S);
7, To employ a custodian, to hold property unregistered or in the name of a nominee
{including the nominee of any institution employed as Gustodian}, and to pay
reasonable compensation to the custodian; in addition to any fees otherwise
payable to my TRUSTEE(S);
8. To borrow, and to pledge property, real or personal, as security for repayment of
any funds borrowed;
d) ifthere is a corporate trustee, selVe without fee, but maybe
reimbursed for his necessary expenses in fulfilling the letter and/or intent
of this trust.
e) If there is no corporate trustee, then the individual trustee(s) shall also:
(1) be entitiled to receive and receive a fee for its services Which is
reasonable and customary for its location;
(2) be responsible for filing all nec.essary governmental reporting forms,
Le. IRS reports and returns, "OrPhan's Court" accountings, etc.
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
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9. To operate any business of which I was the owner on the date of my death, to th~
extent permis~ible under the law, and/or to hire such employees/managers to
continue such business until. it can be sold or otherwise distributed;
10. To make gifts on behalf of myself or my spouse in accordance with the specific
provisions herein, and
11. Except for specific instructions set forth herein, to the contral}', to distribute in cash
or in kind.
E. The TRUSTEE(S) MA Y in their sole discretion make distributions of property on
behalf of a beneficiary to such other persons as the TRUSTEE(S) may deem to be in
the best interests of the beneficiary, but the TRUSTEE(S)(s} cannot be compelled to do
so.
F. The TRUSTEE(S)(s) in distributing the assets of the estate should consider the
nature and use of the asset, and to the extent possible, in their discretion, distribute ,
the asset to the beneficiary who would most benefit from its receipt. As to any
investments that may be in my estate, I would recommend that those investments
r;onsidered Income oriented, such as cash, bonds, etc be distributed to my spouse, or
any trust which would be included in my spouse's estate; and flny investment which
would be considered Growth oriented, such as low dividend stocks, would be,
distribute.d to or on behalf of my descendents.
,.'. II. TERM or DURATION
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A. This trust shall exist from -its inception:
1. until my youngest child reaches the age of TWENTY~NINE (29) YEARS.
2. Unless, however, any of my children shall die before attaining such age with minor
children surviving them, in which case, this trust shall exist until the youngest said
minor child, MY GRAND-CHILD, attains majority.
B. Nothing in this section shall be construed to cause this trust to violate the RULE
AGAINST PERPETUITIES, and if because of the actuaOacts as exist, this trust would
otherwise violate said RULE AGAINST PERPETUITIES, then this trust will terminate on
the last day before this trust would be considered in violation of such RULE AGAiNST
PERPETUITIES.
III. INVESTMENT PHILOSOPHY
It is my desire that the corpus of this trust shall b~ invested to maximize income and growth while
minimizing risk, taxes and the effect of inflation. Therefore, at least seventy (75%) percent of the
corpus shall be invested in such investments as are generally classified as moderate or conservative
and the balance in such investments as would be classified as growth oriented. IN NO CASE ARE
SPECULATIVE INVESTMENTS PERMITTED.
(---,.) IV. INVESTMENTS PERMITTED
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R'EVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
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The corpus shall be invested in any or all of the fOllowing types of investments or assets so that the
portfolio thus created satisfies the the investment philosophy set forth hereinabove:
A. Stocks - either common or preferred if publicly offered;
B. Stocks - either common or preferred if privately owned only if the trust received
such stock by deed-in-trust;
C, Bonds - either corporate or municipal;
D. Federal notes, bills or bonds;
E. Metals;
F. Notes receivable.. either mortgages or secured personal notes;
G. Shares of mutual funds;
H. Shares of limited partnerships, only as a limited partner;
J. Options of stocks, but only if "covered";
J. Time and demand deposits at banks, trusts and savings & loans;
K. Collectibles such as st~mps, coins, etc.;
L. Real estate;
1. Types:
a) Commercial, or
b) Residential, or
c) Undeveloped.
2. Status: whether
a) Income producing, or
b) Non-income producing. Specifically including a homestead for the
rearing of my children, or gra,ndchildren, provided some of the residents
thereof are beneficiaries or contingent beneficiaries of this trust.
M, Life insurance policies and/or their settlement options;
1. Whether on the life of grantor or any beneficiary or contingent beneficiary or any
joint lives of such persons.
2. Regardless of the type of insurance:
a) Term - annual or for a period certain; or
b) Whole life; whether
(1) Standard, or
(2) Universal,; whether
(a) Fixed or
(b) Variable.
3. Whether participating or non-participating.
N. Such other Investments that fulfill the investment philosophy and are readily
marketable.
V. CORPUS
A. TYPES OF PROPERTY
The corpus of this trust shall:
1, be the original property deeded in trust,
2. all additional property received in trust (from whatever source),
3. all retained eamings as defined hereinafter, and
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
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4. any insurance proceeds to which this trust is beneficiary.
B. ACCOUNTING FOR
1. Generally: The corpus of this trust shall be accounted for in equal shares - one for
each of my children, per stirpes,
a) If corpus is distributed to or for the benefit of any of my children, such
distribution shall be deducted from their respective share of the corpus
and future allocations of retained earnings shall be credited in accordance
with the resulting appropriate percentages of shares.
2. The trustees may segregate the shares into different investments. or sub-accounts
as they deem most efficient in fulfilling the terms of this trust, but shall not be required
to do so.
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VI.EARNINGS .
All earnings of this trust shall be divided as follows:
A. Retained:
Retained earnings shall include:
1. a/l capital gains received;
2. all distributions of capital;
3. all stock dividends;
4. amortized premiums paid for bonds, notes, etc.above the maturity value;
5. distributible earnings which are not actually distributed:
6. such other items as would be classified as "capital" items under normal accounting
practices, MINUS
7. those income taxes owed on such retained earn'ings.
B. Distributib/e:
Distributible earnings shaH include:
1. all interest earned and received;
2. all dividends received, except as set forth as retained earnings;
3. the interest portion of any settlement option under a life or annuity contract; MINUS,
4. any expenses and taxes paid in accordance with this document.'
VII. EXPENSES and TAXES
A. All expenses and taxes owed by the trust sha/l be paid first
1. from distributible income, then
2. fram retained earnings,
a) except that the taxes owed, because of retained capital gains shall be
paid from such capital gains as set forth hereinabove,
to the extent possible,
3. then from corpus.
B. If, however, corpus is ever used to pay such expenses or taxes, it shall be
presumed,that the trustees have failed to accomplish the investment philosophy and
(I objectives set forth herein, and any beneficiary or contingent beneficiary can apply to a
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETIY A. HUGHES
court of competent jurisdiction for a change of trustee. The cost of defending such a
suit sha/l NOT be a legitimate expense of the trust,
1. unless the then existing trustee(s) is/are successful in retaining his/her/their
appointment.
2. In which case the expense shall be deducted from the contesting beneficiary's
share of corpus. .
VIII. DISTRIBUTIONS
A. During my /ifetimet
1. PERSONAL WITHDRAWALS
I retain the right during my lifetime to wit/')draw such amounts of corpus or income as I
may desire for any reason whatsoever.
2. EDUCATION OF BpNEFICIARY(IES)
The trustees in their discretion may at any time distribute any income or corpus of ~his
trust to provide for the post-secondary educational needs of my child(ren).
3. GIFTING PROVISIONS
If I become incompetent as defined in current Pennsylvania Law, and if previous to that
time I had undertaken a gifting program to any beneficiary of this trust or any
recognized charity, for any reason whatsoever, the trustees are hereby specifically
enpowered to continue such gifting program through the distribution of such amounts
of income and/or corpus as are appropriate. Such amounts, when combined with my
personal annual gifts, are not to exceed the total annual gift amount then in effect.
4. PAYMENT OF SUCCESSION TAXES .
If because of this trust, or any specific asset of this trust, the succe!?sion taxes owed by
my estate is greater than it would be if such asset(s) were not included in my taxable
estate, the trustees are hereby enpowered and directed to pay to my estate or on its
behalf, the amount of taxes due because of this trust or any specific asset hereof on a
pro-rata basis with all other assets of my taxable estate.
B. After my death, distributions shall be made as follows:.
1. Income:
After my death the trustees in their reasonable discretion shall distribute
the distributible income among and between my children as their needs
and incomes warrant.
a) However, at least fifty (50%) percent of the distributible earnings must
be distributed each year.
b) For the purposes of this paragraph, if any of my children shall die prior
to the termination of this trust, their spouse and minor children, my grand-
children, shall be treated as a single entity and shall be eligible for
distribution as if they were my deceased child. Any such grandchild who
has reached majority shall be eligible for such distributions in their own
right.
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES'
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2. COrpus:
a) Prior to the distribution of corpus set forth in this section, the corpus
shall be invaded only to provide for the needs of the beneficiaries, as
determined by the trustees, but such invasion of corpus shall never
exceed per year the greater of:
(1) FIVE THOUSAND ($ 5,000.00) dollars, OR
(2) FIVE (5 % ) PERCENT of the Corpus, as valued on Ian 1st of each year; OR
(3) EDUCATION OF BENEFICIARY(lES)
The u-ustet:s in their discretion may at any time distribute any income or corpus of this trust to '
provide for the post.secondary educational needs of my child(ren).
b) My children'shall receive: ..1.
(1) Upon my son's, Noah B. Hughes, TWENTY-NINTH (29th) BIRTHDAY:
(a) Noah shall receive 100 % of his then remaining share,
(b) Seth is to receive 50 % of his then remaining share.
(2) Upon my son's, Seth B. Hughes, TWENTY-NINTH (29th) BIRTHDAY:
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(a) Seth is to receive ,106 % of his then remaining share,
(b) Katy is to receive 50 % of her then remaining share.
(3) Upon my daughter's, Katy M. Hughes, TWENTY-NINTH (29th)
BIRTHDAY, she is receive 100 % of her then remaining share.
(4) If my death occurs after any date set forth 'apove, if any child is below
the age lWENTY-NINE (29) YEARS he/she shall have distributed to himl
her the appropriate perce.ntage of their share as if they had received
distributions on each date set forth above'commencing with the youngest
date and proceeding until the last appropriate date.
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(5) If any child of mine shall die before reaching the age of TWENTY-
NINE (29) YEARS or predecease me, then their children shall be entitile'd
to r:eceive, upon reaching majority f a per capita share of the corpus to
which their parent, my child, would have received.
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(6) my death;
Notwithstanding any prior direction set forth in this section, if I am alive
on any of the distribution dates set forth herein, then said distribution
shall NOT occur until thirty days after my death.
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REVOCABLE F AMIL Y MAINTENANCE TRUST of
BErrY A. HUGHES
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c} at termination;
Upon termination of this trust, all undistributed share shall be paid to the
appropriate beneficiary or their heirs.
IX. DEFINITIONS
A. BENEFICIARIES
As used herein the terms "beneficiary" and "contingent beneficiary" shall mean:
1. During my life, I shall be the "beneficiari' and my children are only "contingent
beneficiaries. I'
2. After my death, my children, if living, shall be the "beneficiaries" and my
grandchildren are only "contingent beneficiaries."
3. Otherwise, my grandchildren, after the deaths of their ancestors who are my
descendents, shall be the "beneficiaries."
S. CHILD(REN) "Child" shalf mean my natural child(ren), whether from this marriage or
othetwise, whether currently alive or born hereafterl AND whether named hereinabove
or not.
C. uSPOUSE" shaJl mean that person who is my spouse at the time in question or my
surviving spouse jf we were married on the date of my death, and who has not become
the spouse of another either through a marriage ceremony or by ltCommon Law. 11
tlSpouseJl shall not include any person who was my spouse, but the marriage was
disolved through divorce or annulment, or was otherwise void or voidable. For
purposes of this document, my spousels death shall be considered to have occurred
upon such date as either the actual death, or upon becoming disqualified under the
preceeding sentence.
X. REVOCABLE and AMENDABLE
This trust is revocable and may be amended by me from time to time in such manner as I determine,
except that I shall inform the trustee of all such amendments..
XI. SPENDTHRIFT
A. This is a "spendthrift" trust, as defined in common usage, and cannot be invaded,
except as set forth herein.
B. NO ASSIGNMENT of interest shall be binding on the trustees and all payments,
whether from income or corpus1 made in accordance with this document shall fulfill
the responsibilities and duties of the trustees.
[THIS SPACE INTENTIONALLY LEFT BLANK]
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. REVOCABLE FAMILY MAINTENANCE TRUST of
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BETTY A. HUGHES
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XII. SUMMARY
In summary.
A. I shall have a life interest In thIs trust as to income and corpus.
.S. My children shall have a contingent income interest after my death as follows:
1. Upon my son, Noah B. Hughes' TWENTY-NINTH. (29111) BIRTHDAY:
a) Noah shall receive 100 % of his then remaining share,
b} Seth is to receive 50 % of his then remaining share.
2. Upon my son, Seth B. Hughes' TWENTY-NINTH (291h) BIRTHDAY:
a) Seth is to receive 100 % of his then remaining share,
b) Katy;s to receive 50 % of her then remaining share.
3. Upon my daughter, Katy M. Hughes' TWENTY-NINTH (291h) BIRTHDAY, she is
receive 100 % other ttl~ri remaining share.
Prior to such dates, my children to the extent that they are beneficiaries of this trust
are entitled to the income of the trust in such proportions as determined by my trustee.
C. My grandchildren have a contingent per stirpes per capita income interest after the
deaths of my child, who is their parent, and of myself.
D. Upon termination of the trust all remaining undistributed shares shall be distributed
appropriately.
: ""~i INTENDING that all property now deeded in trust or which will be deeded in trust from time to time
. ...> shall be held in accordance with the terms and conditons set forth herein. consisting of 10 printed
pages, each of which I.have initialled, I hereby affix my sign and hand this 10th day of November,
1998. /L-:cC ..fi(.......
;-BETTY A. HU . HES
TRUSTEE ACCEPTANCE
I, the trustee of this trust, having read the provisions hereof, do hereby acknowledge my
acceptance as trustee.
COMMONWEALTH OF PENNSYLVANIA
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LINDA V. HITCHCOCK
DAUPHN COUNTY
ss
The above having appeared before me and being known, or satisfactorily proving their identity to me, did the
date set forth above acknowledge tP.-eir intent to be legally bound by the terms ofWs document.
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My Commission expires:
SEAL
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EXHIBIT B
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IN RE: THE FAMrL Y MAINTENANCE TRUST OF BETTY A. HUGHES
AfPROV AL 9F ACCOUNT, ,RELEASE AND INDEMNIFICATION OF TRUSTEE
WHEREAS, the undersigned is one of three beneficlaries of the Family
Maintenance Trust of Betty A. Hughes; and
WHEREAS, the eldest trust beneficiary having this month attained the age of 29
years, Item VIII.B.2.b)( 1) of the trust instrument provides for current distribution of
100% of the remaining share of Noah B. Hughes and distribution of 50% of the
remaining share of Seth B. Hughes; and
WHEREAS, Linda V. Hitchcock, th,e' trustee appointed by the Settlor by Item I.A. of
the trust instrument, now intends to resign in favor of Linda B. Musika, named by
Settlor as contingent trustee; and
WHEREAS, the undersigned beneficiary desires that the resigning trustee be
discharged of her duties and desires that distribution be made according to the
trustee's sixth and final accounting, as attached hereto; and
WHEREAS, the resigning trustee is willing to make such distribution, and to
formally transfer administration of the Trust to the contingent trustee, upon
receipt of a proper release and indemnification, which it is the purpose of this
document to provide: '
NOW THEREFORE, we, Noah B. Hughes, Seth B. Hughes and Katy M. Hughes.
being all of the beneficiaries of the Family Maintenance Trust of Betty A. Hughes,
individually and with respect to our heirs, personal repre$entativ~s, successors
and assigns, do hereby:
1. AcknOWledge that we have read this Agreement and represent that the
facts set forth above are true and correct to the best of our knowledge,
information and belief. and We further aCknowledge that we are familiar with
the terms of the trust;
2. Waive Qur rights to require the filing of a formal account of the resigning
trustee's administration of this trust with the Orphans' Court of Cumberland
County, Pennsylvania;
3. Declare that we have examined the account and statement of proposed
distributions, which is attached hereto and incorporated herein, and that we
accept and approve it with the same force and effect as if it had been filed,
audited and confirmed by Decree of the said Orphans' Court;
/
;/
/
4. Absolutely and irrevocably release and discharge the resigning trustee,
her personal representatives, heirs, successors and assigns, from any and all
actions, liabilities,. claims and demands, in connection with her administration of
the tr!)st and distribution of trust assets, as shown in the attached accounting
and in five prior accountings previously proviqed to us annually since the
inception of this trust; and
5. With respect to any distributions of fncome or principal, which we have
received or will receive upon execution of this Agreement. agree to indemnify
and hold harmless the resigning trustee, her personal representatives, hei'rs,
successors and assigns, from any liability, loss or expen~e arising fro'm any cause
whatever, which may be incurred by the resigning trustee as a result of the
administration of this' trust or distribution in accordance with the attached
account and statement of proposed distributions; and
6. Understand that this Agreement may be separately signed by the various
beneficiaries, in counterpart originals, 01/ of which together shall be deemed to
constitute one original.
IN WITNESS WHEREOF, we agree to be bound hereby and have signed this
Agreement this iJL day of May, 2007.
~d~6L-
Noah H. HU9Z:ry
s~s. beneficiory -.
;dC:li~I'~.J 7f( ~~A(U~~ .
Unda V. Hitchcock, trustee
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CQMMONWEAL TH O.F PE'NNSYLVANIA'
: '55
, '
COUNTY OF CUMBERLAND ,: : . '
On ~his, the Ie~ay of ~' , 2007, before me, the undersigned
officer personally appeared L1~A-VHrrCHCOCK, known to me (or satisfactorily proven) to
, be the person whose name Is subscribed to the within, instrument, and acknowredged that she
, exequted the'same for the purposes therein contained. ' ' ,
, " 'In Witness Whereof, I have hereunto set n:1Y hand al'1d offici~1 seal.
'(SEAL) , '
COMMONWEALTH OF PENNSYLVANIA"
COUNTY 'OF CUMBERLAND
On this. the ~U day of I)1at.1 , 2007, before me, the undersigned
officer personally appeared NOAH B. HUGHES. known to me (or satisfactorily proven) to be
the person whose name is subscribed, to the within instrument, and acknowledged that he
executed the same for the purposes therein contained. ' .
: ss
, ..OWI:'It.ITH OF PENNSYLVANIA
coMMO",.~ At. ,
, 'NOTAAtAL, SE: Pubtlc
OARC:~tr":;,la':::~~d co=
=rgQ~rniSS\On ~l(ri,es Nov. 24, ,
In Witness Whereof, I have hereunto set my'
(SEAL)
pVh{/G
,.
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COMMONWEALTH OF PENNSYLVAN,IA
COUNTY OF CUMBERLAND
: ss
_ _ On this. the alP day of' ,tnCL4 , . 2007, before me. the undersigned
officer perso!lally apps?lred SETH B. HUGHE~. knowl"! to me (or satisfactorily proven) to be
,the person whose 'name 'is subscribed to the within instrument, and acknowledged that he
executed the ~ame for the ,purposes ther~in cO!1tain~d.
In Witness Whereof, I haye h~re,unto set m
COMMO~lH OF PEMNS'tLVAN
, 'NOTARIAL sEAlt, Public
DARCIE A.. NEIL. ,NO~~d CQunty
80ro of Carhs~8J Cumb,' Nov 24 2009
My commission ~xp res . I
.' (SEAL)
, IG
COMMONWEALTH OF PENNSYLVANIA
: 55
COUNTY OF CUMBERLAND
On this. the~{, day of fJI/tJu...-I ,2007, before me, the undersigned
officer personally appeared KATY M. HUGHES. kn()wn to me (or satisfactorily proven) to be
the person whose name is subscribed to the within' Instrument, and ack'nowledged that she
executed the same for the purposes tl:lerein contained.
.In Witness Wher~o( I have hereunto set my
COMMONWEALTH OF PENNSYLVANIA
NOTARiAl SEAL
DARCIE A NEIL, Notary Public
Boro of caril'te.t.~IUmbeNovrland24Co~~
My Commission ~ res . · -'
(SEAL)
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EXHIBIT C
. .....
RECEIPT AND ACCEPTANCE BY' LINDA B. MUSIKA , " , ' ", ,
' "OF DUTIES OF SUCCESSOR TRUST~E OF THE FAMILY MAINTENANCE TRUST OF". ':."
BETTY A. HUGHES ' ", . .",
.:" I,:.":: "
. . ',;' ; t... .~., ~~
I, Linda B'. Musika, hereby accept the duties of SUCCessor trustee, ,:, .
,. ;'"
, pursuant to the terms of the Family ,Maintenance Trust of Betty A. Hughes,
acknowledging the resignation of Linda V. Hitchcock as original tr\-,stee.
In witness' ~hereot I have signed' niy' name below, on this r21iLY!i-
day OfCJ.10 2007.
~L-- ,,/!. ~~,
Linda B. Mus'ika,
Successor Trustee
."." .
EXHIBIT D
CONSENT OF BENEFICIARY
I, SETH B. HUGHES, hereby certify that I am age 18 or older, that I am aware ofthe
Petition to Terminate the Trust and that I give my consent, without reservation to the termination
of the trust.
fliil/O?
Date
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SHr~
IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYL VANIA
IN RE: REVOCABLE F AMIL Y
MAINTENANCE TRUST OF
BETTY A. HUGHES
ORPHANS' COURT DIVISION
NO. 21-1999-168
ORDER
AND NOW, this
day of
,2007, it is ORDERED that the
Revocable Family Maintenance Trust of Betty A. Hughes, Subtrust FBO Katy M. Hughes is
hereby terminated. The Trustee, Linda B. Musika, is directed to pay all final expenses of
administration and to distribute the remaining funds directly to Katy M. Hughes within thirty
(30) days of the date of this Order. Trustee may reserve $2000 for the preparation and filing of
the Fiduciary income tax returns and for counsel fees.
BY THE COURT:
J.
48140lvl
IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYL VANIA
n
.::..:. '0
IN RE: REVOCABLE FAMILY
MAINTENANCE TRUST OF
BETTY A. HUGHES
ORPHANS' COURT DIVISION
NO. 21-1999-168
PETITION TO TERMINATE SUBTRUST FBO KA TY M. HUGHES
TO THE HONORABLE JUDGE OF SAID COURT:
Petitioner, LINDA B. MUSIKA, being the Successor Trustee of the Revocable Family
Maintenance Trust of Betty A. Hughes ("Petitioner") respectfully states:
1. The relief sought in this Petition is justified pursuant to 20 Pa. C.S. S 7740.1 (b),
Modification or termination of noncharitable irrevocable trust by consent.
2. Linda B. Musika is an adult individual residing at 1381 Sumneytown Pike,
Lansdale, P A 19446, and is a sister of Betty A. Hughes.
3. Katy M. Hughes is an adult individual with a permanent address of 595 Mountain
Road, Boiling Springs, P A 17007 and a school address of 5000 Maidstone Drive, Apt. 8, Boiling
Springs, SC 29316, and is a natural child of Betty A. Hughes.
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4. On November 10, 1998, Betty A. Hughes ("Settlor"), of South Middleton
Township, Cumberland County, Pennsylvania, executed the Revocable Family Maintenance
Trust of Betty A. Hughes ("Trust"), a copy of which is attached hereto as Exhibit A and
incorporated herein.
5. On February 10, 1999, Settlor died, causing the Trust to become irrevocable.
6. Within the Trust document, Linda V. Hitchcock, Settlor's friend, was appointed
trustee.
7. On June 6, 2007, Linda V. Hitchcock resigned as trustee, which resignation is
evidenced by the Approval of Account, Release and Indemnification of Trustee, a copy of which
is attached hereto as Exhibit B and incorporated herein.
8. Linda B. Musika is now acting as Successor Trustee (hereinafter "Trustee"), as
indicated by her signed Acceptance, a copy of which is attached hereto as Exhibit C and
incorporated herein.
9. Item VIII of the Trust established a subtrust for the benefit of each of Settlor's
children, Noah B. Hughes, Seth B. Hughes and Katy M. Hughes.
2
10. Item VIII B.2.(b) of the Trust requires each subtrust to continue for the benefit of
any named beneficiary who has not attained the age of twenty-nine (29) years.
11. Item VIII B.2.(b )(2) gives Katy M. Hughes the right to immediately take
possession of one-half (112) ofthe balance when she reaches age twenty-seven (27) years.
12. Katy M. Hughes was born on November, 23, 1984 and is presently twenty-two
(22) years of age.
13. Katy M. Hughes received a bachelor of science degree in biology, with a minor in
chemistry, from the University of Pittsburgh at Johnstown in 2007.
14. Katy M. Hughes is presently enrolled in a 3 lh year doctoral program at Sherman
College of Straight Chiropractic in Spartanburg, Sc.
15. The assets held in the Revocable Family Maintenance Trust of Betty A. Hughes,
Subtrust FBO Katy M. Hughes are approximately Forty-seven Thousand Nine Hundred Forty-six
and 40/100 ($47,946.40) Dollars.
16. Counsel fees and fees for the preparation and filing of the final Fiduciary income
tax return for this subtrust will be collectively approximately $2000.
3
17. Item VIII B.2.(a) provides trustee the right to distribute corpus of the subtrust for
the post-secondary educational needs of the beneficiary.
18. Petitioner believes that the original purpose of the Trust was to insure that
Settlor's child was responsible prior to gaining access to the funds held in the Trust.
19. Petitioner believes that the decedent would support the termination of this subtrust
due to the educational accomplishments and pursuits of Katy M. Hughes and her evidence of
assuming the responsibility of an adult.
20. Petitioner believes that decedent would support the termination of this subtrust so
that the funds could be used for Katy M. Hughes's educational pursuits.
21. Further, Petitioner believes that it is prudent to terminate the subtrust due to the
small amount remaining on deposit.
22. Katy M. Hughes consents to the termination of the Revocable Family
Maintenance Trust of Betty A. Hughes, Subtrust FBO Katy M. Hughes. Her consent is attached
hereto as Exhibit D and incorporated herein by reference.
4
23. Petitioner believes it is in the best interest of Katy M. Hughes that the subtrust be
terminated due to the fact that she is twenty-two (22) years old and has become a responsible
young adult.
24. The termination and distribution is consistent with the Trustee's ability to exercise
discretion to distribute principal for the post-secondary educational needs of the named
beneficiary. See Item VIII B.2.(a).
WHEREFORE, Petitioner prays for the Court to issue an Order terminating the
Revocable Family Maintenance Trust of Betty A. Hughes, Subtrust FBO Katy M. Hughes and
authorizing the Trustee to distribute any funds held on account of the Trust directly to Katy M.
Hughes, with the exception of $2000 to be held in reserve for the preparation and filing of the
Fiduciary income tax returns and for counsel fees.
Respectfully submitted,
By:
cky immer
up. Ct. J.D. No. 49679
Jennifer Denchak Wetzel
Sup. Ct. J.D. No. 200391
3401 North Front Street
P.O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000
DATED: If? /07
Attorneys for Petitioners
5
VERIFICATION
I, LINDA B. MUSIKA, have read the following document and verify that the facts set
forth herein are true and correct to the best of my knowledge, information and belief. To the
extent that the foregoing document and/or its language are that of counsel, I have relied upon
counsel in making this Verification.
I understand that any false statements made herein are subject to the penalties of 18 Pa.
C.S.A. ~4904 relating to unsworn falsification to authorities.
DA TED: /1 /z.a / () 7
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LINDA B. MUSlKA
EXHIBIT A
'\ .
-.._-...ft."......_..ron-~,..........~
REVOCABLE FAMfL Y MAINTENANCE TRUST
Of
BETTY A. HUGHES
BE IT KNOWN TO ALL MEN COMETH, that I, BETTY A. HUGHES, GRANTOR, otSouth Middleton
Township, Cumberland County of the Commonwealth of Pennsylvania, do hereby create this trust
for the express purpose of providing for my lineal descendents all property deeded in trust upon
creation of this trust or which is added to its "corpus", as defined hereinbelow, from time to time or
upon or because of my death and, further, providing the procedures for use of both the corpus and
earnings and the distribution of same during the term of this trust.
L TRUSTEES
A. NAMED
1. I hereby name my friend, LINDA V. HITCHCOCK to be trustee.
2. However, upon the death, withdrawal or inability of her to act as cowtrustee, I name
my sister, LINDA 8. MUSIKA, as contingent trustee.
3. If any of the above named trustees fail for any reason to accept or otherwise
continue to serve as trustee, the remaining trustee shall appoint a corporate trustee to
replace a corporate trustee, or an individual trustee to replace an individual trustee.
B. POWERS, DUTIES and RESPONSIBILITIES
1. Corporate:
The corporate trustee above named or hereafter appointed shall:
a) hold title, in trust, to all property representing the corpus or earnings of
this trust;
b) be a "licensed" fiduciary as established in its state of incorporation;
c) be entitiled to receive and receive a fee for its services which is
reasonable and customary for its location;
d) be responsible for filing all necessary governmental reporting forms,
i.e. IRS reports and returns, "Orphan's Court" accountings, etc.
e) Ifthere is no individual trustee, after consulting with the beneficiaries
of this trust also: .
(1) be responsible for ascertaining and certifying the income needs of the
beneficiaries of this trust;
(2) establish the general investment outlook of the trust's corpus
2. Individual:
The individual trustee above named or hereafter appointed shall:
a) be primarily responsible for ascertaining and certifying the income
needs of the beneficiaries of this trust;
b) establish the general investment outlook of the trust's corpus;
c) co-operate with the corporate trustee in filing all necessary forms and
reports;
. )
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
C. Bonds:
1. If there is a corporate Trustee:
Because the corporate trustee is required to be a licensed fiduciary and the individual
trustee shall NOT hold title to any trust property, they shall serve without bond, unless
such bond is specifically.mandated by law.
2. Otherwise, no bond'shall be required, and the trustees shall be held harmless for
any losses incurred on behalf of this trust except for any losses sustained 'as a result of
fraud, or gross negligence.
D. Management provisions-
/, hereby, authorize my TRUSTEE(S) in his/her/their discretion:
1. To retain and/or invest in all forms of real and personal property, without being
confined to those investments authorized by any statutory list, without being .
required to diversify and regardless of any principle of law limiting delegation of
investment responsibility of TRUSTEE(S); .
2. To compromise claims and to abandon any property which, in my TRUSTEE(S)'
opinion, is of little or no value;
3. To sell at public or private sale, to exchange or to lease for any period of time, any
real or personal property, and to give options for sales or leases;
4. To join in any merger, reorganization, voting-trust plan or other concerted action of
security holders, and to delegate discretionary duties with respect thereto;
5. To partition, subdivide or improve real estate and to enter into agreements
concerning the partition, subdivision, improvement, zoning or management of any
real estate in which my estate has an interest and to impose or extinguish
restrictions on any such real estate;
6. To employ and to rely upon advice given by investment counsel, to delegate
discretionary authority to make changes in investments to investment counsel, and
to pay investment counsel reasonable compensation; in addition to any fees
otherwise payable to my TRUSTEE(S);
7. To employ a custodian, to hold property unregistered or in the name of a nominee
{including the nominee of any institution employed as custodian}, and to pay
reasonable compensation to the custodian: in addition to any fees otherwise
payable to my TRUSTEE(S);
8. To borrow, and to pledge property, real or personal, as security for repayment of
any funds borrowed;
d) ifthere is a corporate trustee, selVe without fee, but maybe
reimbursed for his necessary expenses in fulfilling the letter and/or intent
of this trust.
e) If there is no corporate trustee, then the individual trustee(s) shall also:
(1) be entitiled to receive and receive a fee for its services Which is
reasonable and customary for its location;
(2) be responsible for filing all riec.essary governmental reporting forms.
Le. IRS reports and returns, "OrPhan's Court" accountings, etc.
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
. ....~-"
9. To operate any business of which I was the owner on the date of my death, to th~
extent permis~ible under the law, and/or to hire such employees/managers to
continue such business until. it can be sold or otherwise distributed;
10. To make gifts on behalf of myself or my spouse in accordance with the specific
provisions herein, and
11. Except for specific instructions set forth herein, to the contrary, to distribute in cash
or in kind.
E. The TRUSTEE(S) MA Y in their sole discretion make distributions of prQperty on
behalf of a beneficiary to such other persons as the TRUSTEE(S) may deem to be in
the best interests of the beneficiary, but the TRUSTEE(S)(s) cannot be compelled to do
so.
F. The TRUSTEE(S)(s) in distributing the assets of the estate should consider the
nature and use of the asset, a(ld to the extent possible, in their discretion, distribute .
the asset to the beneficiary who would most benefit from its receipt. As to any
investments that may be in my estate, / would recommend that those investments
t;:onsidered Income oriented, such as cash, bonds, ete be distributed to my spouse, or
any trust which would be included in my spousels estate; and fJny investment which
would be considered Growth oriented, such as low dividend stocks, would be.
distribute.d to or on behalf of my descendents.
."'. II. TERM or DURATION
i .
...-."
A. This trust shall exist from its inception:
1. until my youngest child reaches the age of TWENTY-NINE (29) YEARS.
2. Unless, however, any of my children shall die before attaining such age with minor
children surviving them, in which case, this trust shall exist until the youngest said
minor child, MY GRAND-CHILD, attains majority.
B. Nothing in this section shall be construed to cause this trust to violate the RULE
AGAINST PERPETUITIES, and if because of the actuaffacts as exist, this trust would
otherwise violate said RULE AGAINST PERPETUITIES, then this trust will terminate on
the last day before this trust would be considered in violation of such RULE AGAiNST
PERPETUITIES.
III. INVESTMENT PHILOSOPHY
It is my desire that the corpus of this trust shall be invested to maximize income and growth while
minimizing risk, taxes and the effect of inflation. Therefore, at least seventy (75%) percent of the
corpus shall be invested in such investments as are generally classified as moderate or conservative
and the balance in such investments as would be classified as growth oriented. IN NO CASE ARE
SPECULATIVE INVESTMENTS PERMITTED.
(--..) IV. INVeSTMENTS PERMITTED
Page 3 of9
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETIY A. HUGHES
The corpus shall be invested in any or all of the following types of investments or assets so that the
portfolio thus created satisfies the the investment philosophy set forth hereinabove:
A. Stocks - either common or preferred if publicly offered;
B. Stocks - either common or preferred if privately owned only if the trust received
such stock by deedwin-trusti
C. Bonds. either corporate or municipalj
D. Federal notes, bills or bonds;
E. Metals;
F. Notes receivable.. either mortgages or secured personal notes;
G. Shares of mutual funds;
H. Shares of limited parlnerships, only as a Jimited partner;
I. Options of stocks, but only if "covered";
J. Time and demand deposits at banks, trusts and savings & loans;
K. Collectibles such as st~mps, coins, etc.;
L Real estate;
1. Types:
a) Commercial, or
b) Residential, or
c) Undeveloped.
2. Status: whether
a) Income producing. or
b) Non-income producing. Specifically Including a homestead for the
rearing of my children, or gra.ndchildren, provided some of the residents
thereof are beneficiaries or contingent beneficiaries of this trust.
M. Life insurance policies and/or their settlement options;
1. Whether on the life of grantor or any beneficiary or contingent beneficiary or any
joint lives of such persons.
2. Regardless of the type of insurance:
a) Term - annual or for a period certain; or
b) Whole life; whether
(1) Standard. or
(2) Universal,; whether
(a) Fixed or
(b) Variable.
3. Whether participating or non-participating.
N. Such other investments that fulfill the investment philosophy and are readily
marketable.
V. CORPUS
A. TYPES OF PROPERTY
The corpus of this trust shall:
1. be the original property deeded in trust.
2. all additional property received in trust (from whatever source),
3. all retained earnings as defined hereinafter, and
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REVOCABLE FAMilY MAINTENANCE TRUST of
BErrY A. HUGHES
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4. any insurance proceeds to which this trust is beneficiary.
B. ACCOUNTING FOR
1. Generally: The corpus of this trust shall be accounted for in equal shares - one for
each of my children, per stirpes,
a) If corpus is distributed to or for the benefit of any of my children, such
distribution shall be deducted from their respective'share of the corpus
and future allocations of retained earnings shall be credited in accordance
with the resulting appropriate percentages of shares.
2. The trustees may segregate the shares into different investments, or sub-accounts
as they deem most efficient in fulfilling the terms of this trust, but shall not be required
to do so.
,.,.
VI. EARNINGS .
All earnings of this trust shall be divided as follows:
A. Retained:
Retained earnings sha/l include:
1. all capital gains received;
2. all distributions of capital;
3. all stock dividends;
4. amortized premiums paid for bonds, notes, ete.above the maturity value;
5. distributible earnings which are not actually distributed;
6. such other items as would be classified as "capital" items under normal accounting
practices, MINUS
7. those income taxes owed on such retained earn'ings.
B. Distributib/e:
Distributible earnings shall include:
1. all interest earned and received;
2. all dividends received, except as set forth as retained earnings;
3. the interest portion of any settlement option under a life or annuity contract; MINUS,
4. any expenses and taxes paid in accordance with this document:
VII. EXPENSES and TAXES
A. All expenses and taxes owed by the trust sha/J be paid first
1. from distributible income, then
2. from retained earnings,
a) except that the taxes owed, because of retained capital gains shall be
paid from such capital gains as set forth hereinabove,
to the extent possible,
3. then from corpus.
B. If, however, corpus is ever used to pay such expenses or taxes, it shall be
presumed,that the trustees have failed to accomplish the investment philosophy and
(I objectives set forth herein, and any beneficiary or contingent beneficiary can apply to a
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETlY A. HUGHES
court of competent jurisdiction for a change of trustee. The cost of defending such a
suit shall NOT be a legitimate expense of the trust,
1. unless the then existing trustee(s) is/are successful in retaining his/her/their
appointment. .
2. In which case the expense shall be deducted from the contesting beneficiary's
share of corpus. .
VIII. DISTRIBUTIONS
A. During my Jifetimet
1. PERSONAL WITHDRAWALS
I retain the right during my lifetime to withdraw such amounts of corpus or income as I
may desire for any reason whatsoever.
2. EDUCATION OF Bf;NEFICIARY(IES)
The trustees in their discretion may at any time distribute any income or corpus of ~his
trust to provide for the post-secondary educational needs of my child(ren).
3. GIFTING PROVISIONS
If I become incompetent as defined in current Pennsylvania Law, and if previous to that
time I had undertaken a gifting program to any beneficiary of this trust or any
recognized charity, for any reason whatsoever, the trustees are hereby specifically
enpowered to continue such gifting program through the distribution of such amounts
of income and/or corpus as are appropriate. Such amounts, when combined with my
personal annual gjfts, are not to exceed the total annual gift amount then in effect.
4. PAYMENT OF SUCCESSION TAXES .
If because of this trust, or any specific asset of this trust, the succe!;ision taxes owed by
my estate is greater than it would be if such asset(s) were not included in my taxable
estate, the trustees are hereby enpowered and directed to pay to my estate or on its
behalf, the amount of taxes due because of this trust or any specific asset hereof on a
pro-rata basis with all other assets of my taxable estate.
B. After my death, distributions shall be made as follows: .
1. Income:
After my death the trustees in their reasonable discretion shall distribute
the distributible income among and between my children as their needs
and incomes warrant.
a) However, at least fifty (50%) percent of the distributible earnings must
be distributed each year.
b) For the purposes of this paragraph, if any of my children shall die prior
to the termination of this trust, their spouse and minor children, my grand-
children, shall be treated as a single entity and shall be eligible for
distribution as if they were my deceased child. Any such grandchild who
has reached majority shall be eligible for such distributions in their own
right.
Page 6of9
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES"
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2. Corpus:
a) Prior to the distribution of corpus set forth in this section, the corpus
shall be invaded only to provide for the needs of the beneficiaries, as
determined by the trustees, but such invasion of corpus shall never
exceed per year the greater of:
(1) FIVE THOUSAND ($ 5,000.00) dollars, OR
(2) FIVE (5 %) PERCENT of the Corpus, as valued on Ian 1st of each year; OR
(3) EDVeA TION OF BENEFIClARY(lES)
The UUStct:S in their discretion may lit any time distribute any income or corpus of this trust to "
provide for the post.secondary educational needs of my child(ren).
b) My children" shall receive: ..1.
(1) Upon my son's, Noah B. Hughes, TWENTY-NINTH (291h) BIRTHDAY:
(a) Noah shall receive 100 % of his then remaining share,
(b) Seth is to receive 50 % of his then remaining share.
(2) Upon my son's, Seth B. Hughes, TWENTY-NINTH (29th) BIRTHDAY:
(a) Seth is to receive .100 % of his then remaining share,
(b) Katy is to receive 50 % of her then remaining share.
(3) Upon my daughter's. Katy M. Hughes, TWENTY-NINTH (29th)
BIRTHDAY, she is receive 100 % of her then remaining share.
(4) If my death occurs after any date set forth 'apove, if any child is below
the age lWENTY-NINE (29) YEARS he/she shall have distributed to him!
her the appropriate percentage of their share as if they had received
distributions on each date set forth above'commencing with the youngest
date and proceeding until the last appropriate date.
,
(5) If any child of mine shall die before reaching the age of TWENTY-
NINE (29) YEARS or predecease me, then their children shall be entitile"d
to r:eceive, upon reaching majority, a per C$pita share of the corpus to
which their parent, my child. would have received.
" -)
-~.
(6) my death;
Notwithstanding any prior direction set forth in this section. if I am alive
on any of the distribution dates set forth herein, then said distribution
shall NOT occur until thirty days after my death.
Pag~ 7 of9
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REVOCABLE FAMILY MAINTENANCE TRUST of
BETTY A. HUGHES
c) at termination;
Upon termination of this trust, all undistributed share shall be paid to the
appropriate beneficiary or their heirs.
IX. DEFINITIONS
A. BENEFICIARIES
As used herein the terms "beneficiary" and '.contingent beneficiary" shall mean:
1. During my life, I shall be the "beneficiaryl' and my children are only "contingent
beneficiaries,"
2. After my death, my children. if living, shall be the "beneficiaries" and my
grandchildren are only "contingent beneficiaries."
3. Otherwise, my grandchildren, after the deaths of their ancestors who are my
descendents, shall be the "beneficiaries. II
B. CHILD(REN) "Child" shalf mean my natural child(ren)~ whether from this marriage or
othetwise, whether currently alive or born hereafter, AND whether named hereinabove
or not.
C. IISPOUSE" shaJl mean that person who is my spouse at the time in question or my
surviving spouse if we were married on the date of my death, and who has not become
the spouse of another either through a marriage ceremony or by IICommon Law. f1
uSpouse" shaJ/ not include any person who was my spouse, but the marriage was
disolved through divorce or annulment, or was otherwise void or voidable. For
purposes of this document, my spouse's death shall be considered to have occurred
upon such date as either the actual death, or upon becoming disqualified under the
preceeding sentence.
X. REVOCABLE and AMENDABLE
This trust Is revocable and may be amended by me from time to time in such manner as I determine,
except that I shall inform the trustee of all such amendments..
XI. SPENDTHRIFT
A. This is a "spendthrift.. trust, as defined in common usage, and cannot be invaded,
except as set forth herein.
B. NO ASS/GNMENT of interest shall be binding on the trustees and all payments,
whether from income or corpus, made in accordance with this document shall fu/fill
the responsibili(ies and duties of the trustees.
[THIS SPACE INTENTIONALLY LEFT BLANK]
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Page 8 of9
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REVOCABLE FAMILY MAINTENANCE TRUST of
,. .. .
BETTY A. HUGHES
..-..~
XII. SUMMARY
In summary.
A. J shall have a life interest In this trust as to income and corpus.
.B. My children shall have a contingent income interest after my death as follows:
1. Upon my son, Noah B. Hughes' TWENTY-NINTH (291ll) BIRTHDAY:
a) Noah shaJl receive 100 % of his then remaining sharet
b) Seth is to receive 50 % of his then remaining share.
2. Upon my son, Seth B. Hughes' TWENTY-NINTH (29th) BIRTHDAY:
a) Seth is to receive 100 % of his then remaining share,
b) Katy is to receive 50 % of her then remaining share. .
3. Upon my daughter, Katy M. Hughes' 1WENTY~NINTH (29th) BIRTHDAY, she is
receive 100 % other ttu~ri remaining share.
Prior to such dates, my children to the extent that they are beneficiaries of this trust
are entitled to the income of the trust in such proportions as determined by my trustee.
C. My grandchildren have a contingent per stirpes per capita income interest after the
deaths of my child 1 who is their parent, and of myself.
D. Upon termination of the trust a/l remaining undistributed shares shall be distributed
appropriately.
: '--~IINTENDING that all property now deeded in trust or which will be deeded in trust from time to time
. -.---' shall be held in accordance with the terms and conditons set forth herein, consisting of 10 printed
pag.es, each of which I.have initialled, I hereby affix my sign and hand this 10th day of November,
1998. ~C' ~(
t. -4-
BE A. HU HE'S
TRUSTEE ACCEPTANCE
I, the trustee of this trustt having read the provisions hereof, do hereby acknowledge my
acceptance as trustee.
COMMONWEALTH OF PENNSYLVANIA
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LINDA V. HITCHCOCK
DAUPHN COUNTY
ss
The above having appeared before me and being known, or satisfactorily proving their identity to me, did the
date set forth above aclrnowledge tP.-eir intent to be legally bound by the terms of this document.
My Commission expires:
. '. . NOlariZlI Sl:~r
Samuel S. !.i!1der.bl!~~. "!f;::'~~ p )/':::0
Susqueharma r.-:!:'-.. U.:l ':::,:. !":."~:l
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''--'NOTARY PUBLIC ~.i
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SEAL
Page 9 of9
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IN RE: THE FAMILY MAINTENANCE TRUST OF BETIV A. HUGHES
APPROVAL 9F ACCOUNT, ,RELEASE AND INDEMNIFICATION OF TRUSTEE
WHEREAS, the undersigned is one of three beneficlaries of the Family
Maintenance Trust of Betty A. Hughes; and
WHEREAS, the eldest trust beneficiary having this month attained the age of 29
years, Item VIII.B.2.b){ 1) of the trust instrument provides for current distribution of
100% of the remaining share of Noah B. Hughes and distribution of 50% of the
remaining share of Seth B. Hughes; and
WHEREAS, Linda V. Hitchcock, th.e'trustee appointed by the Settlor by Item I.A. of
the trust instrument, now intends to resign in favor of Linda B. Musika, named by
Settlor as contingent trustee; and
WHEREAS, the undersigned peneficiary desires that the resigning trustee be
discharged of her duties and desires that distribution be made according to the
trustee's sixth and final accounting, as attached hereto; and
WHEREAS, the resigning trustee is willing to make such distribution, and to
formally transfer administration of the Trust to the contingent trustee, upon
receipt of a proper release and indemnification, which it is the purpose of this
document to provide: '
NOW THEREFORE, we, Noah B. Hughes, Seth B. Hughes and Katy M. Hughes,
being all of the beneficiaries of the Family Maintenance Trust of Betty A. Hughes,
individually and with respect to our heirs, personal representativ~s, successors
and assigns, do hereby:
1 . AcknOWledge that we have read this Agreement and represent that the
facts set forth above are true and correct to the best of our knowledge,
information and belief. and we further acknowledge that we are familiar with
the terms of the trust;
2. Waive Qur rights to require the filing of a formal account of the resigning
trustee's administration of this trust with the Orphans' Court of Cumberland
County, Pennsylvania;
3. Declare that we have examined the account and statement of proposed
distributions, which is attached hereto and incorporated herein, and that we
accept and approve it with the same force and effect as if it had been filed,
audited and confirmed by Decree of the said Orphans' Court;
,/
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/ 4. Absolutely and irrevocably release and discharge the resigning trustee.
I her personal representatives, heirs, successors and assigns, from any and all
, actions, liabilities" claims and demands, in connection with her administration of
the tr\Jst and distribution of trust assets, as shown in the attached accounting
and in five prior accountings previously proviqed to us annually since the
inception of this trust; and
5. With respect to any distributions of fncome or principal, which we have
received or will receive upon execution of this Agreement. agree to indemnify
and hold harmless the resigning trustee, her personal representatives, hei'rs,
successors and assigns, from any liability, loss or expen~e arising fro'm any cause
whatever, which may be incurred by the resigning trustee as a result of the
administration of this' trust or distribution in accordance with the attached
account and statement of proposed distributions; and
6. Understand that this Agreement may be separately signed by the various
beneficiaries, in counterpart originals, all of which together shall be deemed to
constitute one original.
IN WITNESS WHEREOF, we agree to be bound hereby and have signed this
Agreement this ..sJL day of May, 2007. '
_ ~d~/;L-
Noah B. HU9Lry
s~s. beneficiary -
t&.6!ip// -zj( ~~A~''; .
Linda V. Hitchcock, trustee
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CQMMONWE~L TH O,F PENNSYLVANIA
: 'ss
, '
COUNT:n:~~:~:~:f ~ .: ,2007, ~efore me, the undersigned
officer personally appeared L1N#~V. HITCHCOCK, known to me (or satisfactorily proven) to
, be the person whose name is subscribed to the within instrument, and acknowl'edged that she
, exe~uted the'same for the purposes therein contained, . ' .
In Witness Whereof, I have hereunto set my hand al1d officipl seal.
, '(SEAL)' '
COMMONWEALTH OF PENNSYLVANIA
: ss
COUNTY OF CUMBERLAND
On this, the~uday of I}1p...4 ,2007, before me, the undersigned
officer personally appeared NOAH B. HUGHES, known to me (or satisfactorily proven) to be
the person whose name is subscribed, to the within instrument, and acknowledged that he
executed the same for the purposes therein contained, ' .
H OF PEMNSYLYMIA
COMMO '
, 'N01Nt1Al SE:"'- P bile
DARCIE ~'" HE"-,' NO:~d tount'l
Boro of Carlisi., c~ Nov 24 2009
My commiss\on ~X(ll'es . I .
-
In Witness Whereof, I have hereunto set my:
d a'nd official seal.
(SEAL)
,
Icer ~Y'Lf pvh{tG
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COMMONWEALTH OF PENNSYLVANIA
COUNTY OF CUMBERLAND
: 5S
. . . On this, the J& day of' . 1Yla..-y . .. '. . , 2007. before me, the undersigned
officer personally appe~red SeTH B. HUGHES, known to me (or satisfactorily proven) to be
. the person whose name .is subscribed to the' within instrument, and acknowledged that he
executed the same for the.purposes therein contained. .
'. .' I .
In Witness Whereof, I haye h~re.unto set m
cOMMQ~lH OF PENNSYLVAN
. .. NOTARlAl SEA~. Public
DARCIE A.. NEIL. .NO~~d county
80ro of Car"~18.1..~~ Nov. 24. 2009
My commission ~lIt"re5
.' (SEAL)
, 16
COMMONWEALTH OF PENNSYLVANIA
: 55
COUNTY OF CUMBERLAND
On this. the ~ (" day of fYl.Ou...1 , 2007, before me, the undersigned
officer personally appeared KATY M. H'UGHES. kn()wn to me (or satisfactorily proven) to be
the person whose name is subscribed to the within. instrument, and acknowledged that she
executed the same for the purposes t~erejn contained.
.In Witness Wher~of; J have hereunto set my
COMMONWEALTH OF P NNSVLVANIA
NOTARiAl SEAL
DARCtE A NEIL. Notary Public
Boro of caril.'e.l..~llnlbeNovrland2..co:~
My Commission ~".s . -.. -.
(SEAL)
PUbic G
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EXHIBIT C
'.':
RECEIPT AND ACCEPTANCE BY'L1NDA B. MUSIKA
",.OP DUTIES OF SUCCESSOR TRUST~E OF THE fAMILY MAINTENANCE TRUST OF."
BETTY A. HUGHES
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I. Linda B', Musika, hereby accept the duties of Successor trustee, ,:, ,
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, pursuant to the terms of the Family ,Maintenance Trust of Betty A. Hughes,
acknowledging the resignation of Linda V, Hitchcock as original tr\,Jstee,
In witness' ~hereot I have signed" my' name below, on this GiiLY!1-
day Of(j"o- 2007.
~~,/!.~~ '
Linda B. Mus'ika,
Successor Trustee
-
EXHIBIT D
CONSENT OF BENEFICIARY
I, KATY M. HUGHES, hereby certify that I am age 18 or older, that I am aware of the
Petition to Terminate the Trust and that I give my consent, without reservation to the termination
of the trust.
JP)/3)01
I ,
Date
~#v--
M. HUGHE
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DECt8~
IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYL VANIA
IN RE: REVOCABLE F AMIL Y
MAINTENANCE TRUST OF
BETTY A. HUGHES
ORPHANS' COURT DIVISION
NO. 21-1999-168
ORDER
AND NOW, this ~ day of _D t' c
,2007, it is ORDERED that the
Revocable Family Maintenance Trust of Betty A. Hughes, Subtrust FBO Seth B. Hughes is
hereby terminated. The Trustee, Linda B. Musika, is directed to pay all final expenses of
administration and to distribute the remaining funds directly to Seth B. Hughes within thirty (30)
days of the date of this Order. Trustee may reserve $2000 for the preparation and filing of the
Fiduciary income tax returns and for counsel fees.
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In Re: REVOCABLE F AMIL Y MAINTENANCE
TRUST OF BETTY A HUGHES
ORPHANS' COURT DIVISION
COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY
PENNSYLVANIA
NO. 21-99-168
CERTIFICATE OF SERVICE OF ORDER
ORDER DATE: 12-19-07
JUDGE'S INITIALS: JWO
TIME STAMP DATE: 12-20-07
IN RE: ORDER
""""""""""""""""""""""""""""~"~'"l"~"~"~'"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~""""""""
SERVICE TO:
SETH B HUGHES. JENNIFER DENCHAK WETZEL ESO. MARY JO BAUM ESO.
LINDA B MUSIKA
METHOD OF MAILING:
ENVELOPES PROVIDED BY:
!'8J USPS
DRRR
D HAND DELIVERED
D OTHER_
!'8J PETITIONER
D JUDGE
D CLERK OF ORPHANS COURT
MAILED: 12-21-07
SERVICE TO:
""""""""""""""""""""""""""""~"~'"l"~"~"~'"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~"~'"l"~'"~"~"~
METHOD OF MAILING:
ENVELOPES PROVIDED BY:
D USPS
DRRR
D HAND DELIVERED
D OTHER_
D PETITIONER
D JUDGE
D CLERK OF ORPHANS COURT
MAILED:
. flwt
of Orphans' Court
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DEC18~
IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYL VANIA
IN RE: REVOCABLE F AMIL Y
MAINTENANCE TRUST OF
BETTY A. HUGHES
ORPHANS' COURT DIVISION
NO. 21-1999-168
ORDER
AND NOW, this
\ , t-l
day of
U~-r ,2007, it is ORDERED that the
.
Revocable Family Maintenance Trust of Betty A. Hughes, Subtrust FBO Katy M. Hughes is
hereby terminated. The Trustee, Linda B. Musika, is directed to pay all final expenses of
administration and to distribute the remaining funds directly to Katy M. Hughes within thirty
(30) days of the date of this Order. Trustee may reserve $2000 for the preparation and filing of
the Fiduciary income tax returns and for counsel fees.
BY THE COURT:
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ORPHANS' COURT DIVISION
COURT OF COMMON PLEAS OF
In Re: REVOCABLE F AMIL Y MAINTENANCE
TRUST OF BETTY A HUGHES
CUMBERLAND COUNTY
PENNSYLVANIA
NO. 21-99-168
CERTIFICATE OF SERVICE OF ORDER
ORDER DATE: 12-19-07
JUDGE'S INITIALS: JWO
TIME STAMP DATE: 12-20-07
IN RE: ORDER
"""""""""""""""""""""""""""""""""""""""""""""""""""",..,'""""""""
SERVICE TO:
KA TY HUGHES. JENNIFER DENCHAK WETZEL ESO. MARY JO BAUM ESO.
LINDA B MUSIKA
METHOD OF MAILING:
ENVELOPES PROVIDED BY:
[gI USPS
DRRR
o HAND DELIVERED
o OTHER_
[gI PETITIONER
o JUDGE
o CLERK OF ORPHANS COURT
MAILED: 12-21-07
""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
SERVICE TO:
METHOD OF MAILING:
ENVELOPES PROVIDED BY:
o USPS
DRRR
o HAND DELIVERED
o OTHER_
o PETITIONER
o JUDGE
o CLERK OF ORPHANS COURT
MAILED: