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HomeMy WebLinkAbout10-29-07 \1"') C'-.l ~-) U- l>-- 0-l\'p-3j3 Family Settlement Agreement This Agreement entered into this cR~ 114 day of c:?Ch-Ju..<- 2007, by and between Judith A. Brough, Virginia Lengel and Jeffrey B. Allen, in their capacities as stated: Judith A. Brough, Executrix under the Last Will and Testament dated February 02, 2004, of Julia O. Allen, (hereinafter referred to as "Executrix ") \-.- ~-:- Judith A. Brough, Virginia Lengel and Jeffrey B. Allen, Successor Trustees of the Julia O. Allen Revocable Living Trust, (hereinafter referred to as "Successor Trustees.") Judith A. Brough, Virginia Lengel and Jeffrey B. Allen, Legatees under the Last Will and Testament (hereinafter referred to as "Legatees,") and Judith A. Brough, Virginia Lengel and Jeffrey B. Allen, Beneficiaries under the Julia o. Allen Revocable Living Trust, (hereinafter referred to as "Beneficiaries"). .... /~ </ :J._ 6~- cS BACKGROUND a. Julia O. Allen ("Decedent") died on March 14, 2006, a resident of Cumberland County, Pennsylvania, leaving a will dated February 02, 2004. b. Decedent's Last Will and Testament was admitted to probate by the Register of Wills of Cumberland County on April 17, 2006, and letters testamentary were issued to Judith A. Brough as Executrix. c. In her Last Will and Testament, Decedent named the Julia O. Allen Revocable Living Trust, as the sole beneficiary of her estate, to the extent that the assets were not already held therein at the time of her death. d. The Executrix advertised the grant of letters Testamentary, filed an Inventory and Appraisement of Decedent's property, prepared and filed a Pennsylvania Inheritance Tax Returns, and paid the appropriate taxes thereon. Said documents attached as Exhibits hereto. e. The Executrix has paid all the specific bequests and all the taxes, debts and expenses of the estate known to them, and they have no knowledge of any unpaid claims, absolute or contingent, which may be asserted against or in favor of the estate or trust, nor do they have any reason to believe there are any such claims. f. The Executrix has completed the administration of the estate and trust, has prepared her account thereof ("account") and is prepared to distributed the net assets of the estate to the Trust, for final distribution to the residual beneficiaries thereof. g. All estate receipts, disbursements, and distributions are reflected in the Pennsylvania Inheritance tax returns annexed hereto. h. Judith A. Brough, Executrix and Trustee of the Trust along with Virginia Lengel and Jeffrey B. Allen also Trustees of the Trust desire that this Family Agreement make unnecessary the filing a formal accounting in the Orphans' Court Division of the Court of Common Pleas of Cumberland County. 1. Judith A. Brough, Virginia Lengel and Jeffrey B. Allen have been given the opportunity to review the books and records of the estate and trust, and based upon such opportunity or examination, they have determined that they have sufficient information to make an informed decision to waive the right to a formal accounting. AGREEMENT In consideration of the willingness of the Executrix to distribute and terminate the estate, as well as the Trustees to distribute the Trust, in accordance with the terms of the Last Will and Testament and the Revocable Living Trust, without the protection afforded them by a formal adjudication of the account, the Trustees, Legatees, and Beneficiaries, do hereby, individually and in each oftheir capacities: 1. Acknowledge that I/we have read this Agreement and represent that the facts set forth above are true and correct to the best of my/our knowledge, information and belief. I/We further acknowledge that I/we are familiar with the provisions of the Last Will and Testament and Revocable Living Trust of decedent; 2. Waive the filing of a formal account of the administration of this estate, with respect to the income and principal thereof, in any court which has jurisdiction, in particular, the Orphans' Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania; 3. Declare that I/we have examined the Accounting and Distribution Statement, which IS attached hereto and incorporated herein, and find it to be true and correct in all particulars; understand that the distribution is still subject to the payment of certain administration expenses, including final counsel fees to Beauchat & Beauchat, LLC, and accounting fees and final allocation of interest; accept and approve it with the same force and effect as if it had been prepared and duly filed with, audited, adjudicated and confirmed absolutely by such court which has jurisdiction over this estate, and, as if the balance of principal and income had been awarded by said court in accordance with this Agreement and the account and statement; 4. Warrant that I/we know of no outstanding and unsatisfied claims against the estate and approve the distribution of the balance of principal and income shown on the attached account and statement as set forth above; 5. Absolutely and irrevocably release and discharge the Executrix and Trustees, all agents, their personal representatives, heirs, successors and assigns, from any and all actions, liabilities, claims and demands, including specifically but not limited to liability arising in connection with any mistake of fact or law, or negligent or careless act or omission, in connection with the administration and distribution of assets shown in the statement; 6. Agree to refund to the Executrix or Trustees such part or all of the distributive share which has been or is being distributed to the Trust and by the Trust, which may at any time be determined to have been an erroneous distribution to the Trust regardless of the cause of such error, even if attributable to negligence; 7. Agree that any period of limitation of actions for the collection for any erroneous distribution to the Trust or by the Trust shall commence only at such time as the Executrix or Trustees have obtained actual knowledge of such erroneous distribution and that in no event shall the obligation to collect any erroneous distribution start earlier than the actual discovery thereof by the Executrix or Trustees. 8. With respect to any distributions of income or principal, which I/we have received on behalf of the Trust, or will receive upon execution of this agreement, agree to indemnify and hold harmless the Executrix and Trustees, all agents their personal representatives, heirs, successors and assigns, from any liability, loss or expense (including but not limited to costs and counsel fees), arising from any cause whatsoever, which may be incurred by the Executrix and/or Trustees as a result of the administration of this estate or distribution in accordance with this agreement including, but not limited to, any liability for any federal estate tax, Pennsylvania inheritance tax or any other death taxes and federal and state income taxes, together with any interest and costs incidental thereto, relating in any way to the estate and also including, but not limited to, any assets received or payments or distributions made by reason of any negligence or mistake of fact or law; 9. Understand that this Agreement may be signed in counterpart originals, all of which together shall be deemed to constitute one original; and 10. Agree that this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania. IN WITNESS WHEREOF, I/we agree to be bound hereby and have signed this agreement this ,;;",)~_o{ day of Oc-k~ 2007. Witness~ ~ Witnes~~~ Witness~ ~_ ~ ~ ~ary/Legatee Witness0 A-. ?f2u. y-e- 1<~4~ Virgini engel, Trus Witness: ~h ~ !~ge~/Legatee Witness:pJ~~ ;;~~ ~ /If e B n, rustee Witness~/k~ e EXHIBIT "A" . . . PROPOSED SCHEDULE OF DISTRIBUTION Estate of: Julia O. Allen Date of Death: March 14, 2006 Address Distribution Amount 30602 Hunt Club Drive $ 205,050.43 San Juan Capistrano, CA 92675 28 Holly Estate Drive $ 205,050.44 Gardners, PA 17324 2655 Blair Road $ 205,050.44 Russell Springs, KY 42642 Total Distribution Amount ------ $ 615,151.31 Receipts of Estate First Federal of Buck County Merrill Lynch PNC Investments Vanguard Pennsylvania Inheritance Tax Retum Ovel'l>ayment Sub-Total Expenses of Estate A. Previously distributed and listed on the Inheritance Tax Return and Probate Fees 1. Funeral Expenses a. Auer - Obitiuaries --------------------------------- $ b. Auer Funeral Home ------------------------------------------ $ c. Codori Memorials ------------------------------------ $ d. Middletown Friends Meeting - Memorial Service Hall Rental $ e. Middletown Friends Meeting - Burial Plot --------------- $ 2. Accountanfs Fees a. Michael Rider - Smith & Company --------------------------- $ 3. Attorney Fees a. Beauchat & Beauchat, LLC. ---------------------------------------- $ 4. Other Administrative Costs a. Continuing Care Rx - prescriptions ___________m_________ $ 5. Pennsyvlania Inheritance Taxes - Prior Payments Sub-Total B. Remaining costs to be distributed 1. Preparation of inheritance tax return/additional attorney fees * .Please note estimated as $10,000.00 on Inheritance tax return 2. Preparation of additional tax returns via Smith & Company Sub-Total Total Expenses ------------------------------------------------------------ $ Gross Estate -----------------------. $66.2,798.61 Estate Expenses ------------------ $ 47,647.30 Net Estate ------------------------------------------------------------------ Distribution Name Jeffrey B. Allen Judith A. Brough Virginia A. Lengel $109,156.47 $400,632.13 $109.013.02 $38,513.53 $5,483.46 $662,798.61 301.36 1,348.00 347.00 150.00 600.00 685.87 6,595.63 219.44 $33,000.00 $ 43,247.30 $ 3,400.00 $ 1,000.00 $ 4,400.00 47,647.30 $615,151.31