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HomeMy WebLinkAbout06-25-03 .. IN RE: MILDRED J. GERBER : IN THE COURT OF COMMON PLEAS TRUST UNDER AGREEMENT : CUMBERLAND COUNTY dated December 19, 1997 : COMMONWEALTH OF PENNSYLVANIA : ORPHANS' COURT DIVISION : NO. 21-2002-0540 IN RE: FRED E. GERBER TRUST : IN THE COURT OF COMMON PLEAS UNDER AGREEMENT, dated : CUMBERLAND COUNTY July 29, 1994 : COMMONWEALTH OF PENNSYLVANIA : ORPHANS' COURT DIVISION : NO. 21-1998-0195 PRE-HEARING MEMORANDUM AND NOW comes Frederick E. Gerber, II, (Petitioner), the Executor of the Estate of Mildred J. Gerber, deceased, the Trustee of the Revocable Trust of Fred E. Gerber Sr., dated July 29, 1994, now irrevocable by reason of the death of Fred E. Gerber, and formerly the trustee of the Revocable Trust of Mildred J. Gerber dated December 19, 1997 and amended on August 2, 1999 and June 26, 2001, now irrevocable by reason of the death of Mildred J. Gerber, through his Attorneys, Rupp and Meikle and files this Pre Hearing Memorandum: BACKGROUND Frederick E. Gerber, II, (Petitioner), is the Executor of the Estate of Mildred J. Gerber, deceased, the Trustee of the Revocable Trust of Fred E. Gerber Sr., dated July 29, 1994, now irrevocable by reason of the death of Fred E. Gerber, and formerly the trustee of the Revocable Trust of Mildred J. Gerber dated December 19, 1997 and amended on August 2, 1999 and June 26,2001, now irrevocable by reason of the death of Mildred J. Gerber. ------.---- ---......-.....--- PHOt~ NO. : 7172433518 P01 FROM : JMlJerne':j , . "' .., -- --- -- .'-.. J. GERBeR : IN THE tOURT Of COMMON PLEAS REEMENT . CUMBERLAND COUNTY 10,199' ; COMMO~LTH OF PINNSYLVANIA I ORI'HAN5' COURT DIVISION : NO. 21-2002-0540 IN IlE: .RID .. GERIIiR TRUST : IN THE COURT OF COMMON PLEAI UNDER AGRlIMIiNT, dated : CUM..lLAND COUNTY July 29. 1994 ; COMMONWEALTH OF PENNSYLVANIA ~ ORPHANS' COURT DIVISION . NO. 11-1.''''(''., . CONSltJI M. V.rney, I&quire, he...-.y Con...nls 'g the foregoing f. Anornev Jocttuel[n. M. Verney for GuardIan of the led Purpo$u vf PrOHc:utlng Obiectlons. .Q A ~/ -"--<<.- ellne M. V.t't\8Y. Isqufr. Dat.: ~ -(j.p~ _ ____ ___________._.... II .....--- PO.-------- ...._-........._---... ~r. Hi e, 1"' u 6 ft 06/18/03 WED 14:12 FAX 717 231 6676 RHOADS & SINON LLP III 003 FRqM : R~pp & Meikle F8X NO. ': 730 0214 Jun. ,18 2003 01:42PM P2 IN RE: MILDRED J. GERBER : IN THE COURT OF COMMON PLEAS TRUST UNDER AGREEMENT : CUMBERLAND COUNTY' dated December 19, 1997 : COMMONWEALTH OF PENNSYLVANIA f " ,~ ORPHANS' COURT DIVISION : NO. 21-2002-0540 IN RE: FRED E. GERBER TRUST : IN THE COURT OF COMMON PLEAS UNDER AGREEMENT, dated : CUMBERLAND COUNTY July 29, 1994 : COMMONWEALTH OF PENNSYLVANIA : ORPHANS' COURT DIVISION : NO. 21-1998..0195 CONSENT PNC Bank, appointed Guardian of the Estate for Mildred J. Gerber, now deceased, hereby consents to the foregoing Petition to Substitute Attorney Jacqueline M. Verney for Guardian of the Estate for the Special Purpose of Prosecuting Obiections. PNC BANK, By:~ . AuthjJ%ed O~icer ~ Title I~'" ~"d Date: t,ht/oJ I I lJi/l10, "T ., A (( WHEREFORE, your Petitioner requests that this Honorable Court substitute Jacqueline M. Verney, Esquire, as the successor to PNC Bank, Guardian of the Estate of Mildred J. Gerber, to prosecute the Obiections filed by PNC Bank to the Accounts filed by Col. Fred E. Gerber, Trustee., RESPECTFULLY SUBMlnED Date: 5 was accepted by Jacqueline M. Verney. Consent dated June 18, 2003, of Jacqueline M. Verney, marked exhibit "B" attached hereto and incorporated herein by reference. 17. On December 4, 2002, the Court appointed William Duncan, Esquire, as Auditor to hear and make recommendations on the Obiections of PNC Bank, Guardian of the Estate of Mildred J. Gerber, to the Accounts of the Trustee, Col. Fred E. Gerber, for the Fred E. Gerber, Sr., Trust and the Accounts of the Trustee, Col. Fred. E. Gerber, for the Mildred J. Gerber Trust. 18. Marilyn J. Gerber, on behalf of herself as a beneficiary of the two Trusts, filed Obiections to the Accounts set forth below. 19. Marilyn J. Gerber, by filing Obiections to both Accounts, is an adverse party to the Petitioner - Trustee for both Accounts. 20. If Marilyn J. Gerber were substituted for PNC Bank, she is in the position of having a possible conflict of interest between her position as a beneficiary of the Trust and her position as the representative of the Estate of Mildred J. Gerber. 21. Because of Marilyn J. Gerber's possible conflict of interest if she were appointed to succeed PNC Bank to prosecute the Obiections filed by PNC Bank to the Accounts, she should not be appointed as successor to PNC Bank. 4 as the party in interest. 12. If the Petitioner - Executor substitutes himself voluntarily in accordance with Pa. R.C.P. 2352 (a) as the successor of record to PNC Bank, he will be in an adverse position to himself as the Trustee - Accountant, a potential conflict of interest situation. 13. The Petitioner as Trustee - Accountant is in an adverse position to PNC Bank, Guardian of the Estate, but if he proceeded under Pa. R.C.P. 2352 (b) to substitute himself - Trustee - in place of the Guardian of the Person, he would then be in an adverse position to himself as Trustee. 14. The Petitioner requested that PNC Bank continue to serve as Guardian of the Estate of Mildred J. Gerber for the sole and limited purpose of prosecuting the Obiections to the Account of the Petitioner - Trustee, which request was refused by PNC Bank. Copy of PNC Bank consent dated June 18,2003 is marked Exhibit "A" attached hereto and incorporated herein by reference. 15. The next logical choice of a party to be substituted for PNC Bank to prosecute the Obiections to the Accounts, is Jacqueline M. Verney, Esquire, who was the personal attorney of Mildred J. Gerber during her lifetime. 16. The Petitioner requested Jacqueline M. Verney, Esquire, to accept appointment as a party in place of PNe Bank to prosecute the Obiections filed by PNC Bank if appointed by the Court to do so, which 3 Sr., Trust, filed an Amended and Restated First and Partial Account of his administration of the Trust for the period February 28, 1998 to December 31, 2001. 3. On December 30, 2002, Petitioner filed a Second and Partial Account. 4. On July 8, 2002, Petitioner, Trustee of the Mildred J. Gerber Trust, filed a First and Partial Account. 5. On December 19, 2002, Petitioner as Trustee of the Mildred J. Gerber Trust filed an Amended and Restated Account of his administration of the Trust for the period January 1, 1998 to December 31, 2001. 6. By Order of this Court on March 21,2002, PNC Bank was appointed Guardian of the Estate of Mildred J. Gerber. 7. Mildred J. Gerber died on January 14, 2003. 8. The death of Mildred J. Gerber terminated the Guardianship of her Estate. 9. On February 6, 2003, Petitioner was appointed Executor and Letters Testamentary on the Estate of Mildred J. Gerber were granted to him by the Register of Wills of Cumberland County, PA, to No. 2001-0092. 10. The Guardian of the Estate, PNC Bank, filed Obieclions to the Account filed by the Trustee to the Mildred J. Gerber Trust and to the Fred E. Gerber, Sr., Trust set forth above. 11. The Executor of the Estate has the right to be substituted for the Guardian of the Estate with respect to the Obiections to each Account, 2