HomeMy WebLinkAbout02-07-08
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ORIGINAL
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
ORPHANS' COURT DIVISION
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CLEE K. MORRISON
TESTAMENTARY TRUST
CREATED UNDER THE WILL
OF CLEE K. MORRISON
Deceased
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No.: 00246 of 2007
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PETITION FOR REFORMATION OF
CHARITABLE REMAINDER TRUST
Your Petitioner, Wachovia Bank, N.A. formerly known as First Union National
Bank, in its capacity as the duly appointed Executor under the Will of Clee K. Morrison
(the "Estate") and as sole Trustee of the Clee K. Morrison Trust Created Under the Will
of Clee K. Morrison (the "Morrison Trust"), and through its attorneys, Hartman Underhill
& Brubaker LLP, respectfully requests the Court to order the reformation of the Morrison
Trust so as to qualify the same as a "charitable remainder trust" under Section 644 of the
Internal Revenue Code of 1986 ("Internal Revenue Code") for purposes of Federal
Income Tax law and Pennsylvania Inheritance Tax law, and in support of such request
represents as follows:
1 Clee K. Morrison (the "Decedent"), died testate on February 20,2007, a
resident of Cumberland County, Pennsylvania, leaving a Will dated August 10, 1998.
2. Decedent's Last Will and Testament was duly admitted to Probate by the
Register of Wills, Cumberland County, Pennsylvania on March 14,2007, and docketed to
number 00246. A copy of Decedent's Will ("Will") is attached hereto as Exhibit A.
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3. Item II of the Will provides for the residue of the estate to pass to Petitioner
as the named trustee of a testamentary trust (the Morrison Trust) under the following
terms and conditions:
I give, devise and bequeath all the rest, residue and remainder of my estate,
of whatsoever kind and wheresoever situate at the time of my death to First
Union National Bank, in trust, under the following terms and conditions:
(a) My trustee shall pay to or apply for the benefit of my niece,
Bonnie Haskell Smyers, eighty (80%) percent of the income of my trust. Payment
shall be made in such installments as are agreed upon by the beneficiary and the
trustee but not less than quarterly.
(b) My trustee shall pay to or apply for the benefit of my nephew,
Thomas N Haskell, twenty (20%) percent of the income of my trust. Payment shall
be made in such installments as are agreed upon by the beneficiary and the trustee
but not less than quarterly.
(c) Upon the death of either of my beneficiaries, his or her share
shall remain in trust perpetually and the income therefrom shall be distributed in
the sole discretion of my trustee to charitable institutions which are working to
meet the needs of underprivileged persons residing in Cumberland County,
Pennsylvania.
4. Under Section 91 I I (c)(1) of the Pennsylvania Inheritance and Estate Tax
Act, transfers of property to or for the use of any corporation, unincorporated association
or society organized and operated exclusively for the use of charitable purposes and
where no part of the net earnings of which inures to the benefit of any private stockholder
or individual and no substantial part of the activities of which is carrying on propaganda
or otherwise attempting to influence legislation, are not subject to Pennsylvania
Inheritance Tax. 72 Pa.C.S.A. 99111(c)(1).
5. The Will does not provide any parameters or limitations upon the trustee as
to what criteria it must use in selecting "charitable institutions." Therefore, it is possible
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that the trustee could select organizations that would not qualify under Section 9111 (c)( I )
of the Pennsylvania Inheritance and Estate Tax Act.
6. Additionally, as drafted, the trust created under the Will does not qualify as
a "qualified charitable remainder trust" within the meaning of IRS Revenue Procedure
2005-56 and Section 664(d)(2) and (d)(3) of the Internal Revenue Code. Insofar as the
trust fails to qualify as a qualified charitable remainder trust, unless the Morrison Trust is
reformed the trustee will have to pay federal capital gains tax on all future recognized
capital gains at the current rate of 15% which is scheduled to increase to 20% in 20 II.
6. At the time of Decedent's death, the gross probate estate was
approximately $1,162,414.06. The estimated fees, funeral expenses, debts and
administrative expenses of the estate are $82,235.68, resulting in a net taxable estate of
$1,080,178.38.
7. The taxable estate is further reduced under Article II of the Will by a five
percent (5%) share of the residue of the estate (totaling approximately $54,008.92) which
the Will directs be paid to Grace United Methodist Church. Therefore, the total amount
distributable to the Morrison Trust, before taxes, is $1,026,169.46 ($1,162,414.06 -
$82,235.68 - $54,008.92 = $1,026,169.46).
8. As the Morrison Trust is currently written, and absent the reformation
herein requested, the Pennsylvania Inheritance Tax payable by the Estate will be
approximately $153,925.42 (15% of$I,026,169.46).
9. Attached as Exhibit B is a form of amendment, reformation and restatement
of I tern II of the Will which Petitioner believes, and therefore avers, that if adopted will
cause the Morrison Trust to qualify as a qualified charitable remainder trust resulting in
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significantly less Pennsylvania Inheritance Tax as well as no federal capital gains tax on
future capital gains.
10. This qualified charitable remainder trust is a form of trust recognized under
Section 644 of the Internal Revenue Code and commonly referred to as a "net income
with make-up charitable remainder unitrust" or "NIMCRUT". Each year, a NIMCRUT
pays to named individual beneficiaries for a fixed term or for the life of the named
individual beneficiaries (the "unitrust period") net income of the trust up to a maximum
fixed percentage of the value of the assets of the trust as determined each year. Any
income in excess of that fixed percentage is paid out in subsequent years when the trust's
income is less than the fixed percentage (this is the "make-up" feature). At the end of the
unitrust period, the remainder is paid to one or more qualifying charitable organizations
under the Internal Revenue Code. (In the present case, a reasonable fixed percentage rate
for the Morrison Trust would be 5.6%, which is the rate cited as a fair market return
under Section 7520 of the Internal Revenue Code rate for February 2007, the month of
Decedent's death.)
11. Every remainder beneficiary of a NIMCRUT must be an organization
described in Sections 170(b)(1)(A), 170(c), 2055(a), and 2522(a) of the Internal Revenue
Code at the time when said distribution is made from the Trust. The attached NIMCRUT
provides for distribution to such a charity or charities in Item II, Paragraphs (a)3. and
(b)3. as follows:
Item II, Paragraph (a)3.
Distribution to Charity. At the termination of the unitrust period, the
Trustee shall distribute all of the then principal and income of Bonnie's Trust,
other than any unitrust amount due Bonnie H. Smyer under the terms of Bonnie's
Trust, to the Clee K. Morrison Foundation ("Foundation") as defined in
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paragraph (c). oJthis Item II ifsaid Foundation is an organization described in
Sections 170(c), 2055(a) and 2522(a) oJthe Code, but ifit is not so described, I
direct the Trustee to make such amendments to the terms and conditions oj the said
Foundation in order Jor it to be so described, but ifit cannot be so qualified, then I
direct the Trustee to distribute the remaining balance in the sole discretion oj my
Trustee to charitable organizations described in Sections 170(c), 2055(a) and
2522(a) oJthe Code and in such proportions as it shall determine appropriate as
are so described Jor the purpose oj meeting the needs oj underprivileged persons
residing in Cumberland County, Pennsylvania in a manner constituting a
"charitable" purpose within the meaning oj Section 501 (c) (3) oj the Code.
Item II, Paragraph (b) 3.
Distribution to Charity. At the termination oj the unitrust period, the
Trustee shall distribute all oj the then principal and income oj the trust, other than
any unitrust amount due Thomas N Haskell under the terms oJ Thomas , Trust, to
the Clee K. Morrison Foundation ("Foundation") as defined in paragraph (c). oj
this Item II if said Foundation is an organization described in Sections 170(c),
2055(a) and 2522(a) oJthe Code, but ifit is not so described, I direct the Trustee
to make such amendments to the terms and conditions oJthe said Foundation in
order Jor it to be so described, but if it cannot be so qualified, then I direct the
Trustee to distribute the remaining balance in the sole discretion oj my Trustee to
charitable organizations described in Sections 170(c), 2055(a) and 2522(a) oJthe
Code and in such proportions as it shall determine appropriate as are so
described Jor the purpose oj meeting the needs oj underprivileged persons residing
in Cumberland County, Pennsylvania in a manner constituting a "charitable"
purpose within the meaning oj Section 501 (c) (3) oj the Code.
12. Exhibit B contains restrictions and requirements which will ensure that the
above-described private foundation will operate exclusively for the purposes described
under the Decedent's Will and will benefit only those charities described under the Will.
13. If Item II of the Will is reformed and amended to the language recited in
Exhibit B to this Petition, the trusts described therein will each qualify as a qualified
charitable remainder trust. The actuarial value of the charitable remainder interest is
$443,584.32, resulting in Inheritance Tax savings of $66,537.65 by said reformation
(15% of $443,584.32). Additionally, said reformation will result in significantly greater
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appreciation of the Trust by reason of not having to pay federal capital gains tax on future
realized capital gains. Actuarial calculations of these savings is attached hereto as
Exhibit C.
14. Petitioner believes and therefore avers that if Decedent was alive at this
time and aware of the potential tax savings which are anticipated to result from the relief
requested and the other facts recited in this Petition, she would endorse and approve of
the granting of such relief.
15. Section 7740.6 of the Pennsylvania Uniform Trust Act entitled
"Modification to achieve settlor's tax objectives", states as follows:
The court may modify a trust instrument in a manner that is
not contrary to the settlor's probable intention in order to
achieve the settlor's tax objectives. The court may provide
that the modification have retroactive effect.
20 Pa.C.S.A. ~7740.6 (emphasis added). Relying upon Section 7740.6, Petitioner avers
that the Court has the authority to permit the requested reformation as it is not contrary to
the Decedent's intentions and is in furtherance of Decedent's tax objectives.
16. Both income beneficiaries of the Morrison Trust have consented to the
reformation of the Morrison Trust in accordance with Exhibit B of this Petition as
evidenced by their Consents to this Petition attached hereto as Exhibit D.
17. In accordance with the requirements of Rule 5.5 of the Orphan's Court,
notice of this Petition and these proceedings has been given to the Attorney General of
the Commonwealth of Pennsylvania. The Office of Attorney General has consented to
this Petition as reflected by its No Objection letter attached hereto as Exhibit E.
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WHEREFORE, your Petitioner, Wachovia Bank, N.A., hereby requests the Court
to order the reformation of the Morrison Trust as set forth in Exhibit B of this Petition and
according to the attached proposed Order, effective as of the date of Decedent's death,
February 20, 2007.
HARTMAN UNDERHILL & BRUBAKER LLP
DATED:
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By:
oss, qUIre
Attorney tQ. #257 7
Attorneys for ovia Bank, N .A., as
Executor of the Estate of Clee K.
Morrison and Trustee of the Morrison Trust
221 East Chestnut Street
Lancaster, P A 17602
(717) 299-7254
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VERlFICA nON
I hereby verify that I am the Charitable Advisor for Wachovia Bank, N.A., referred
to in the attached foregoing Petition, that as such, I am authorized to make this
verification on behalf of Wachovia Bank, N.A. and that the information set forth in the
foregoing Petition is true and correct to the best of my knowledge, information and belief.
I understand that any false statements contained herein are subject to the penalties of 18
Pa.C.S. ~4904, relating to unsworn falsification to authorities.
WACHOVIA BANK, N.A., EXECUTOR OF
THE EST A TE OF CLEE K. MORRISON AND
TRUSTEE OF THE CLEE K. MORRISON
TRUST
Date: lk~/() y
By: fJ_2/1/vJf 1(. t!JtJeJ-r
Derrick R. DeWalt, Charitable Advisor,
Wachovia Bank, N.A.
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EXHIBIT A
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LAST WILL !NIl TESTAKEHT
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CLEE X. MORRISON
I, CLEE It. MORRISON, of Upper Allen Township, Cwnberland
County, pennsylvania, being of sound mind, memory and understand-
ing, do make and publish this, my Last Will and Testament, hereby
revoking all former Wills by me at any time heretofore made.
ITEM I.
I direct that all inheritance and estate taxes
becoming due by reason of my death, whether such taxes may be
payable by my estate or by any recipient of any property shall be
paid by my Executor out of the property passing under ITEM II of
this will, as an expense and cost of administration of my estate.
My Executor shall have no duty or obligation to obtain
reimbursement of any such tax so paid, even though on proceeds of
insurance or other property not passing under this Will. In the
absolute discretion of my Executor, such taxes may be paid
immediately, or the Executor may postpone the payment of taxes on
future or remainder interests until the time possession thereof
accrues to the beneficiaries.
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Clee K. Morrison
Page 1 of 5 pages
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:ITEM :II:.
I give, devise and bequeath all of my tangible
personal property I may own at the time or my death to my niece,
Bonnie Haskell Smyers, and my nephew, Thomas N. Haskell, in kind,
in equal shares. Any items not so selected shall be sold by my
Executor and added to the residue of my estate.
I give, devise and bequeath a sum equal to five
(5%) percent of my estate to Grace United Methodist Church of State
street, Harrisburg, Pennsylvania.
I give, devise and bequeath all the rest,
residue and remainder of my estate, of whatsoever kind and
wheresoever situate at the time of my death to First Union National
Bank, in trust, under the following terms and conditions:
(a) My trustee shall pay to or apply for the benefit of my
niece, Bonnie Haskell Smyers, eighty (80%) percent of the income
of my trust. Payment shall be made in such installments as are
agreed upon by the beneficiary and the trustee but not less than
quarterly.
(b) My trustee shall pay to or apply for the benefit of my
nephew, Thomas N. Haskell, twenty (20%) percent of the income of
my trust. Payment shall be made in such installments as are agreed
upon by the beneficiary and the trustee but not less than
quarterly.
(c) Upon the death of either of my beneficiaries, his or her
share shall remain in trust perpetually and the income therefrom
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elee K. Morrison
Page 2 of 5 pages
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shall be distributed in the sole discretion of my trustee to
charitable institutions which are working to meet the needs of
underprivileged
persons
residing
in
Cumberland
County,
Pennsylvania.
ITEM III.
My Trustee shall possess the following powers:
A. To vary or retain investments as shall be deemed desirable
by my Trustee, and to invest in such stocks, bonds, notes, real
estate mortgages, securities or in such other property, real or
personal, as my Trustee shall deem wise, without being restricted
to so-called "legal investment", including the power to invest
principal or income in its own or an affiliate's common trust fund
and invest in mutual funds, including but not limited to money
market mutual funds, to which the Trustee/Executor or any of its
affiliates may provide management investment, advisory, custodial
or other services for compensation, without notifying any
beneficiary hereunder prior to such investment and without reducing
fees or commissions payable hereunder to such Trustee, and without
being limited by any statute or rule of law regarding investments
by fiduciaries.
B. To sell, either at public or private sale, and upon such
terms and conditions as my Trustee may deem advantageous to the
trust, any or all real or personal estate or interests therein
owned by the trust severally or in conjunction with other persons
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Clee K. Morrison
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and to consummate said sale or sales by sufficient deeds or other
instruments to the purchaser or purchasers conveying a fee simple
title, free and clear of all trust and without obligation to the
purcbaser or purchasers to see to the application of the purchase
money or to make inquiry into the validity of said sale or sales;
also to make, execute, acknowledge and deliver any and all deeds,
assignments, options or other writing which may be necessary or
desirable in carrying out any of the powers conferred upon my
Trustee in this paragraph or elsewhere in this instrument.
c. To mortgage real estate and to make leases of real estate
extending beyond the terms of the trust hereunder.
D. To borrow money from any party, including the Trustee, to
pay indebtedness of the trust and taxes and to assign and pledge
assets of the trust therefor.
E. To pay all costs, taxes, e>epenses and charges in
connection with the administration of the trust, including a
reasonable compensation to agents.
F. In the discretion of my Trustee, to unite with others of
similar property in carrying out any plans for the reorganization
of any corporation or company whose securities form a part of the
trust.
G. To vote any shares of sto<;;k which form a part of the
trust.
H. To assign and hold in trust an undivided portion of any
assets.
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Clee K. Morrison
Page 4 of 5 pages
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I. To do all other acts in its judgment deemed necessary or
desirable for the proper and advantageous management, investment
and distribution of the trust.
J.
As
compensation
for
its
services
hereunder,
Trustee/Executor may retain from time to time trust principal,
income or partly from each, those fees which are specified in its
published or otherwise generally applicable fee schedule in effect
at the time its services are rendered. Grantor understands that
this schedule might be changed from time to time.
ITEM "IV.
I nominate, constitute and appoint First Union
National Bank as sole Executor of this, my Last Will and Testament.
It is my desire that my Executor shall serve without bond.
IN WITNESS waEaEOF, I have set my hand and seal to this, my
Last will and Testament, typewritten on this and four (4) other
pages, this loth day of August, 1998.
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Clee K. Morrison
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COMMONWEALTH OF PENNSYLVANIA
SS.
COUNTY OF DAUPHIN
I, CLEE X. MORRISON, testatrix whose name is signed to the
attached or foregoing instrument, having been duly qualified
according to law, do hereby acknowledge that I signed and executed
the instrument as my Last will and Testament; that I signed it
willingly; and that I signed it as my free and voluntary act for
th8 purposes therein contained.
Sworn or affirmed to and acknowledged before me, by CLEE X.
HORRISON, the testatrix, this 10th day of August, 1998.
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Clee K. Morrison
COMMONWEALTH OF PEHNSVLVANIA
COUNTY OF DAUPHIN
We, James H. Turner and Pamela C. Nothstein, the Witnesses,
respectively, whose names are signed to the attached or foregoing
instrument, being duly qualified according to law, do depose and
say that we were present and saw the testatrix sign and execute the
instrument as her Last Will and Testament; that OLI! x. MORRISON
signed willingly and that she executed it as her free and voluntary
act for the purposes therein expressed; that each of us in the
hearing and sight of the testatrix was at that time eighteen or
more years of age, of sound mind and under no constraint or undue
influence.
Sworn or affirmed to and subscribe<!-to--before me by James H.
Turner and Pamela C. Nothstein, t itn s s, this 10th day of
August, 1998.
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EXHIBIT B
EXHIBIT B
The trust established under the terms of Clee K. Morrison Will dated August 10,
1998 (the "Will"), is hereby amended and reformed as of February 20,2007, as follows:
I. ITEM II is deleted in its entirety and replaced with the following:
ITEM II. I give, devise and bequeath all of my tangible personal property I
may own at the time of my death to my niece, Bonnie H. Smyers, and my nephew,
Thomas N. Haskell, in kind, in equal shares. Any items not so selected shall be sold by
my Executor and added to the residue of my estate.
I give, devise and bequeath five percent (5%) of the rest, residue and remainder of
my estate to Grace United Methodist Church of State Street, Harrisburg, Pennsylvania.
I give, devise and bequeath the balance of the rest, residue and remainder of my
estate (after the gift under the immediately preceding sentence is made) to Wachovia
Bank, N.A, in trust, under the following terms and conditions:
(a) Bonnie H. Smyers Trust ("Bonnie's Trust"). Eighty percent (80%)
of the then remaining principal and any undistributed income of Bonnie's Trust shall be
paid to my trustee, Wachovia Bank, N .A. or its successor, in trust to hold, manage, invest
and reinvest the same in accordance with the following terms and conditions, which trust
is intended to constitute and qualify as a charitable remainder unitrust trust within the
meaning of IRS Revenue Procedure 2005-56 and Section 664(d)(2) and (d)(3) of the
Internal Revenue Code of 1986, as amended (hereinafter referred to as "the Code"). All
provisions of Bonnie'sTrust established under this ITEM II shall be interpreted and, if
necessary, limited in their application, so as to preserve and maintain such qualification.
Bonnie's Trust shall be known as the Clee K. Morrison NIMCRUT flb/o Bonnie H.
Smyers. Wachovia Bank, N.A. or its successor shall serve as the initial Trustee.
I. Irrevocability. Bonnie's Trust is irrevocable, and the Trustee
cannot alter, amend, revoke, or terminate it in any way. The Trustee shall, however, have
the power, acting alone, to amend Bonnie's Trust from time to time in any manner
required for the sole purpose of ensuring that Bonnie's Trust qualifies and continues to
qualify as a charitable remainder unitrust within the meaning of Sections 664( d)(2) and
664( d)(3) of the Code.
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2. Unitrust Amount.
A. Net Income Unitrust Amount. In each taxable year of
Bonnie's Trust during the lifetime of Bonnie H. Smysers (the "unitrust period"), the
Trustee shall pay to Bonnie H. Smyers, a unitrust amount equal to the lesser of:
(i) a fixed percentage amount equal to 5.6% of the net fair
market value of the assets of Bonnie's Trust valued as of the
valuation date ("the fixed percentage amount described in the article
entitled Unitrust Amount"); or
(ii) Bonnie's Trust income for the taxable year as defined
in Section 643(b) of the Code and the applicable Regulations.
B. Make-Up Distribution. The unitrust amount for a
taxable year shall also include any amount of trust income for the year that is in excess of
5.6% for the year, but only to the extent that the aggregate of the amounts paid to Bonnie
H. Smyers in prior years was less than the aggregate of the amounts determined for all
prior years under paragraph A(i) above and paragraph F of the article entitled "Mandatory
Unitrust Provisions".
C. Valuation Date. The valuation date is the first day of
each taxable year of Bonnie's Trust.
D. Unitrust Period Defined. The first day of the unitrust
period shall be the date of death, February 20,2007, and the last day of the unitrust period
shall be the date of Bonnie H. Smyer's death.
3. Distribution to Charity. At the termination of the unitrust
period, the Trustee shall distribute all of the then principal and income of Bonnie's Trust,
other than any unitrust amount due Bonnie H. Smyer under the terms of Bonnie's Trust,
to the Clee K. Morrison Foundation ("Foundation") as defined in paragraph (c). of this
Item II if said Foundation is an organization described in Sections 170(c), 2055(a) and
2522(a) of the Code, but if it is not so described, I direct the Trustee to make such
amendments to the terms and conditions of the said Foundation in order for it to be so
described, but if it cannot be so qualified, then I direct the Trustee to distribute the
remaining balance in the sole discretion of my Trustee to charitable organizations
described in Sections 170(c), 2055(a) and 2522(a) of the Code and in such proportions as
it shall determine appropriate as are so described for the purpose of meeting the needs of
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underprivileged persons residing in Cumberland County, Pennsylvania in a manner
constituting a "charitable" purpose within the meaning of Section 501(c)(3) of the Code.
4. The Trustee. Wachovia Bank, N.A. is the Trustee of Bonnie's
Trust. Any trustee under Bonnie's Trust may, by written instrument signed and
acknowledged, resign its office. In the event a vacancy in the office of Trustee arises, the
court having jurisdiction of the trust in question shall appoint a substitute Trustee or
Trustees.
5. Mandatory Unitrust Provisions
A. Overriding Tax Purpose. Bonnie's Trust is established
as and shall operate exclusively as a charitable remainder unitrust, within the meaning of
Sections 664(d)(2) and 664(d)(3) of the Code and IRS Revenue Procedure 2005-56, and
all provisions of Item II, Paragraph (a) shall be construed in a manner consistent with this
purpose. The Trustee shall not exercise any discretion under this Item II, Paragraph (a) in
a manner inconsistent with this purpose.
B. Quarterly Payment of the Unitrust Amount. The
unitrust amount shall be paid in equal quarterly installments at the end of each calendar
quarter from income.
C. Excess Income. Any income of Bonnie's Trust for a
taxable year in excess of the unitrust amount shall be added to principal.
D. Misvaluation. If, for any year, the net fair market
value of Bonnie's Trust assets is incorrectly determined (then within a reasonable period
after the correct value is finally determined, the Trustee shall pay to Bonnie H. Smyers (in
the case of an undervaluation) or receive from Bonnie H. Smyers (in the case of an
overvaluation) an amount equal to the difference between the unitrust amount(s) properly
payable and the unitrust amount(s) actually paid.
E. Proration ofUnitrust Amount. For a short taxable year
and for the taxable year during which the unitrust period ends, the trustee shall prorate on
a daily basis the fixed percentage amount described in the article entitled "Unitrust
Amount" above. In such a year, this prorated fixed percentage amount shall be used in
place of the fixed percentage amount described in the article entitled "Unitrust Amount",
to determine the unitrust amount payable for that year.
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F. Deferral of the Unitrust Payment Allocable to
Testamentary Transfer. All property passing to Bonnie's Trust by reason of the death of
Clee K. Morrison (the "testamentary transfer") shall be considered to be a single
contribution that is made on the date of her death, February 20,2007.
Notwithstanding the provisions of the article entitled
"Unitrust Amount" and the other provisions of Item II, the obligation to pay the unitrust
amount with respect to the testamentary transfer shall commence with February 20,2007.
Nevertheless, payment of the unitrust amount with respect to the testamentary transfer
may be deferred from February 20,2007 until the end of the taxable year in which the
funding of the testamentary transfer is completed.
Within a reasonable time after the end of the taxable year in
which the testamentary transfer is completed, the Trustee must pay to Bonnie H. Smyers
(in the case of an underpayment) or receive from Bonnie H. Smyers (in the case of an
overpayment) the difference between any unitrust amounts allocable to the testamentary
transfer that were actually paid, plus interest, and the unitrust amounts allocable to the
testamentary transfer that were payable, plus interest. The interest shall be computed for
any period at the rate of interest, compounded annually, that Regulations under Section
664 of the Code prescribe for this computation.
6. Unmarketable Assets. Whenever the value of a trust asset
must be determined, the Trustee shall determine the value of any assets that are not cash,
cash equivalents, or other assets that can be readily sold or exchanged for cash or cash
equivalents ("unmarketable assets"), by either:
A. Obtaining a current "qualified appraisal" from a
"qualified appraiser," as defined in Sections 1.170A-13(c)(3) and 1. 1 70A-13(c)(5) of the
Income Tax Regulations, respectively, or
B. Ensuring the valuation of these unmarketable assets is
performed exclusively by an "independent trustee" within the meaning of Section 1.664-
1 (a)(7)(iii) of the Income Tax Regulations.
7. Prohibited Transactions. The trustee shall not engage in any
act of self-dealing, as defined in Section 4941 (d) of the Code, as modified by Section
4947(a)(2)(A) of the Code, and shall not make any taxable expenditures within the
meaning of Section 4945(d) of the Code, as modified by Section 4947(a)(2)(A) of the
Code.
{00491230.6}
4
8. Taxable Year. The Trust's taxable year shall be the calendar
year.
9. Investment of Trust Assets. Nothing in Item II shall be
construed to restrict the trustee from investing the trust assets in a manner that could
result in the annual realization of a reasonable amount of income or gain from the sale or
disposition of trust assets.
10. Bonnie H. Smyers. References to Bonnie H. Smyers in this
Trust instrument shall be deemed to include the estate of Bonnie H. Smyers with regard to
all provisions in this Trust instrument that describe amounts payable to and/or due from
Bonnie H. Smyers. The prior sentence shall not apply to the determination of the last day
of the unitrust period.
11. Miscellaneous.
Tax-Related Terms. All tax-related terms shall have the same
meaning that they have in the Code. References to the "Regulations" or to "Income Tax
Regulations" are to the regulations promulgated by the U.S. Internal Revenue Service, as
amended or modified from time to time.
12. Additional Contributions. No additional contributions shall
be made to Bonnie's Trust after the initial contribution. The initial contribution, however,
shall be deemed to consist of all property passing to Bonnie's Trust by reason of my
death.
13. Governing Law. The operation of Bonnie's Trust shall be
governed by the laws of the Commonwealth of Pennsylvania. However, the Trustee is
prohibited from exercising any power or discretion granted under said laws that would be
inconsistent with the qualification of the Trust as a charitable remainder unitrust under
Section 664(d)(2) and (d)(3) of the Code and the corresponding Regulations.
(b) Thomas N. Haskell Trust (Thomas' Trust). Twenty percent (20%) of
the then remaining principal and any undistributed income of Thomas' Trust shall be paid
to my trustee, Wachovia Bank, N .A. or its successor, in trust to hold, manage, invest and
reinvest the same in accordance with the following terms and conditions, which trust is
intended to constitute and qualify as a charitable remainder unitrust trust within the
meaning of IRS Revenue Procedure 2005-56 and Section 664(d)(2) and (d)(3) of the
{00491230.6}
5
Code). All provisions of Thomas' Trust established under this ITEM II shall be
interpreted and, if necessary, limited in their application, so as to preserve and maintain
such qualification. Thomas' Trust shall be known as the Clee K. Morrison NIMCRUT
flblo Thomas N. Haskell. Wachovia Bank, N.A. or its successor shall serve as the initial
Trustee.
1. Irrevocability. Thomas' Trust is irrevocable, and the Trustee
cannot alter, amend, revoke, or terminate it in any way. The Trustee shall, however, have
the power, acting alone, to amend Thomas' Trust from time to time in any manner
required for the sole purpose of ensuring that Thomas' Trust qualifies and continues to
qualify as a charitable remainder unitrust within the meaning of Sections 664( d)(2) and
664( d)(3) of the Code.
2. Unitrust Amount.
A. Net Income Unitrust Amount. In each taxable year of
Thomas' Trust during the lifetime of Thomas N. Haskell (the "unitrust period"), the
Trustee shall pay to Thomas N. Haskell, a unitrust amount equal to the lesser of:
(i) a fixed percentage amount equal to 5.6% of the net fair
market value of the assets of Thomas' Trust valued as of the
valuation date ("the fixed percentage amount described in the article
entitled Unitrust Amount"); or
(ii) Thomas' Trust income for the taxable year as defined
in Section 643(b) of the Code and the applicable Regulations.
B. Make-Up Distribution. The unitrust amount for a
taxable year shall also include any amount of trust income for the year that is in excess of
5.6% for the year, but only to the extent that the aggregate of the amounts paid to Thomas
N. Haskell in prior years was less than the aggregate of the amounts determined for all
prior years under paragraph A(i) above and paragraph F of the article entitled "Mandatory
Unitrust Provisions".
c. Valuation Date. The valuation date is the first day of
each taxable year of Thomas' Trust.
{00491230.6}
6
.
D. Unitrust Period Defined. The first day of the unitrust
period shall be the date of death, February 20,2007, and the last day of the unitrust period
shall be the date of Thomas N. Haskell's death.
3. Distribution to Charity. At the termination of the unitrust
period, the Trustee shall distribute all of the then principal and income of Thomas' Trust
other than any unitrust amount due Thomas N. Haskell under the terms of Thomas' Trust,
to the Clee K. Morrison Foundation ("Foundation"), as defined in paragraph (c). of this
Item II if said Foundation is an organization described in Sections 170(c), 2055(a) and
2522(a) of the Code, but if it is not so described, I direct the Trustee to make such
amendments to the terms and conditions of the said Foundation in order for it to be so
described, but if it cannot be so qualified, then I direct the Trustee to distribute the
remaining balance in the sole discretion of my Trustee to charitable organizations
described in Sections 170(c), 2055(a) and 2522(a) of the Code, and in such proportions as
it shall determine appropriate as are so described for the purpose of meeting the needs of
underprivileged persons residing in Cumberland County, Pennsylvania in a manner
constituting a "charitable" purpose within the meaning of Section 50 I (c )(3) of the Code.
4. The Trustee. Wachovia Bank, N.A. is the Trustee of this
Trust. Any trustee under Thomas' Trust may, by written instrument signed and
acknowledged, resign its office. In the event a vacancy in the office of Trustee arises, the
court having jurisdiction of the trust in question shall appoint a substitute Trustee or
Trustees.
5. Mandatory Unitrust Provisions
A. Overriding Tax Purpose. Thomas' Trust is established
as and shall operates as charitable remainder unitrust, within the meaning of Sections
664(d)(2) and 664(d)(3) of the Code and IRS Revenue Procedure 2005-56, and all
provisions of Item II, Paragraph (a) shall be construed in a manner consistent with this
purpose. The Trustee shall not exercise any discretion under this instrument in a manner
inconsistent with this purpose.
B. Quarterly Payment of the Unitrust Amount. The
unitrust amount shall be paid in equal quarterly installments at the end of each calendar
quarter from income.
C. Excess Income. Any income of Thomas' Trust for a
taxable year in excess of the unitrust amount shall be added to principal.
{00491230.6}
7
-
D. Misvaluation. If, for any year, the net fair market
value of Thomas' Trust assets is incorrectly determined (then within a reasonable period
after the correct value is finally determined, the Trustee shall pay to Thomas N. Haskell
(in the case of an undervaluation) or receive from Thomas N. Haskell (in the case of an
overvaluation) an amount equal to the difference between the unitrust amount(s) properly
payable and the unitrust amount(s) actually paid.
E. Proration ofUnitrust Amount. For a short taxable year
and for the taxable year during which the unitrust period ends, the trustee shall prorate on
a daily basis the fixed percentage amount described in the article entitled "Unitrust
Amount" above. In such a year, this prorated fixed percentage amount shall be used in
place of the fixed percentage amount described in the article entitled "Unitrust Amount",
to determine the unitrust amount payable for that year.
F. Deferral of the Unitrust Payment Allocable to
Testamentary Transfer. All property passing to Thomas' Trust by reason of the death of
Clee K. Morrison (the "testamentary transfer") shall be considered to be a single
contribution that is made on the date of her death, February 20,2007.
Notwithstanding the provisions of the article entitled
"Unitrust Amount" and the other provisions of Item II, the obligation to pay the unitrust
amount with respect to the testamentary transfer shall commence with February 20,2007.
Nevertheless, payment of the unitrust amount with respect to the testamentary transfer
may be deferred from February 20,2007 until the end of the taxable year in which the
funding of the testamentary transfer is completed.
Within a reasonable time after the end of the taxable year in
which the testamentary transfer is completed, the Trustee must pay to Thomas N. Haskell
(in the case of an underpayment) or receive from Thomas N. Haskell (in the case of an
overpayment) the difference between any unitrust amounts allocable to the testamentary
transfer that were actually paid, plus interest, and the unitrust amounts allocable to the
testamentary transfer that were payable, plus interest. The interest shall be computed for
any period at the rate of interest, compounded annually, that the Regulations under
Section 664 of the Code prescribe for this computation.
6. Unmarketable Assets. Whenever the value of a Trust asset
must be determined, the Trustee shall determine the value of any assets that are not cash,
{00491230.6 }
8
"'f1
cash equivalents, or other assets that can be readily sold or exchanged for cash or cash
equivalents ("unmarketable assets"), by either:
A. Obtaining a current "qualified appraisal" from a
"qualified appraiser," as defined in Sections 1.170A-13(c)(3) and l.I70A-13(c)(5) of the
Income Tax Regulations, respectively, or
B. Ensuring the valuation of these unmarketable assets is
performed exclusively by an "independent trustee" within the meaning of Section 1.664-
1 (a)(7)(iii) of the Income Tax Regulations.
7. Prohibited Transactions. The Trustee shall not engage in any
act of self-dealing, as defined in Section 4941 (d) of the Code, as modified by Section
4947(a)(2)(A) of the Code, and shall not make any taxable expenditures within the
meaning of Section 4945(d) of the Code, as modified by Section 4947(a)(2)(A) of the
Code.
8. Taxable Year. The Trust's taxable year shall be the calendar
year.
9. Investment of Trust Assets. Nothing in Item II shall be
construed to restrict the trustee from investing the trust assets in a manner that could
result in the annual realization of a reasonable amount of income or gain from the sale or
disposition of trust assets.
10. Thomas N. Haskell. References to Thomas N. Haskell in this
Trust instrument shall be deemed to include the estate of Thomas N. Haskell with regard
to all provisions in this Trust instrument that describe amounts payable to and/or due from
Thomas N. Haskell. The prior sentence shall not apply to the determination of the last
day of the unitrust period.
11. Miscellaneous.
Tax-Related Terms. All tax-related terms shall have the same
meaning that they have in the Code. References to the "Regulations" or to "Income Tax
Regulations" are to the regulations promulgated by the U.S. Internal Revenue Service, as
amended or modified from time to time.
12. Additional Contributions. No additional contributions shall
{00491230.6}
9
..
be made to Thomas' Trust after the initial contribution. The initial contribution, however,
shall be deemed to consist of all property passing to Thomas' Trust by reason of my
death.
13. Governing Law. The operation of Thomas' Trust shall be
governed by the laws of the Commonwealth of Pennsylvania. However, the Trustee is
prohibited from exercising any power or discretion granted under said laws that would be
inconsistent with the qualification of the Trust as a charitable remainder unitrust under
Section 664(d)(2) and (d)(3) of the Code and the corresponding Regulations.
(c) The Clee K. Morrison Foundation (the "Foundation"). For purposes
of this Item II, the Foundation shall be a trust which shall be deemed to exist as of the
termination of the unitrust period under Bonnie's Trust or Thomas' Trust, whichever
occurs first, and shall be defined by and subject to the following terms, conditions,
limitations and restrictions:
1. The Foundation is formed and shall be operated exclusively
for the purpose of meeting the needs of underprivileged persons in Cumberland County,
Pennsylvania so long as such purposes fall within the meaning of charitable purposes as
those terms are defined in Section 501 (c )(3) of the Code including, but not limited to the
making of gifts, grants and contributions to other organizations for the purpose of
meeting the needs of underprivileged persons in Cumberland County, Pennsylvania; such
gifts, grants and contributions to be to such organizations and in such proportions as the
Trustee shall deem appropriate. The Foundation shall have the power to do all acts and
engage in all transactions, and shall have and may exercise all the powers and privileges,
which are permitted under the Pennsylvania Nonprofit Corporation Law of 1988.
2. Not less than annually, the Trustee shall distribute the net
income of the Foundation.
3. No part of the net earnings of the Foundation shall inure to
the benefit of, or be distributable to its trustees, officers or other private persons, except
that the Foundation shall be authorized and empowered to pay reasonable compensation
for services rendered and to make payments and distributions in furtherance of the
purposes set forth in Section 1 of this paragraph (c). No substantial part of the activities
of the Foundation shall be the carrying on of propaganda, or otherwise attempting to
influence legislation, and the Foundation shall not participate in, or intervene in
(including the publishing or distribution of statements) any political campaign on behalf
{00491230.6}
10
~
of any candidate for public office. Notwithstanding any other provision of this paragraph
(c), the Foundation shall not carry on any other activities not permitted to be carried on
(a) by a Foundation exempt from federal income tax under Section 50 1 (c)(3) of the Code
or (b) by an organization, contributions to which are deductible under Section l70( c )(2)
of the Code .
4. Upon the dissolution of the Foundation, the Trustee shall,
after paying or making provisions for the payment of all of the liabilities of the
Foundation, dispose of all of the assets of the Foundation to such organization or
organizations as shall be organized and operated exclusively for charitable, educational,
or scientific purposes as shall at the time qualify as an exempt organization or
organizations under Section 50l(c)(3) of the Code. Any such assets not so disposed of
shall be disposed of by the Court of Common Pleas (or its equivalent) of the county in
which the principal office of the Foundation is then located, exclusively for such purposes
to such organization or organizations, as said Court shall determine, that are organized
and operated exclusively for such purposes.
5. The following restrictions shall apply to the Foundation:
A. The Foundation shall distribute its income for each tax
year at such time and in such manner as not to become subject to the tax on undistributed
income imposed by Section 4942 of the Code.
B. The Foundation shall not engage in any act of self-
dealing as defined in Section 4941 (d) of the Code.
C. The Foundation shall not retain any excess business
holdings as defined in Section 4943(c) of the Code.
D. The Foundation shall not make any investments in
such manner as to subject it to tax under Section 4944 of the Code.
E. The Foundation shall not make any taxable
expenditures as defined in Section 4945( d) of the Code.
6. Notwithstanding any other provision herein, the Foundation
or its trustees, shall neither receive or accept any property to be held, administered, and
disposed of pursuant to the provisions of the Foundation, nor make payments or
distributions of any property from the Foundation, nor engage in or carry on any activity
{00491230.6}
11
..,.
whatsoever;
(A) which is not permitted to be received, accepted, paid,
distributed, engage in, or carried on (a) by an organization exempt from
federal income tax under section 501(c)(3) of the Code, or (b) by an
organization as described in, and contributions to which are deductible
under, section 170(c), section 2055(a), or section 2522(a) of the Code; or
(B) which gives rise or might give rise to the trust being
liable for excise taxes under Chapter 42, or involuntary termination of the
trust's private foundation status and/or termination taxes under section 507
of the Code; or
(C) which otherwise jeopardizes or might jeopardize the
federal income tax exemption of the Foundation pursuant to section
50 I (c )(3) of said Code.
7. Amendments. The Foundation may be amended at any time
or times by written instrument or instruments signed and sealed by the Trustee, provided
that no amendment shall authorize the Trustee to conduct the affairs of this Trust in any
manner or for any purpose contrary to the provisions of section 50 I (c )(3) of the Code.
All instruments amending this Trust shall be noted upon or kept attached to the executed
original of this Trust held by the Trustee.
8. Governing Law The operation of the Foundation shall be
governed by the laws of the Commonwealth of Pennsylvania. However, the Trustee is
prohibited from exercising any power or discretion granted under said laws that would be
inconsistent with the qualification of the Foundation under section 501(c)(3) of the Code.
9. Resignation! Appointment. Any trustee under this Trust may,
by written instrument, signed and acknowledged, resign its office. In the event a vacancy
in the office of Trustee arises under this Will, the court having jurisdiction of the trust in
question shall appoint a substitute Trustee or Trustees.
{00491230.6}
12
EXHIBIT C
.
Account No. 1501896129
Estate of: Clee K. Morrison
File No. 21-07-0246
Calculation of Residue
Schedule B
Schedule E
Gross Probate Estate
1,150,935.15
11,478.91
1,162,414.06
Less: Schedule H
Schedule I
69,242.42
12,993.26
82,235.68
Net Estate
1,080,178.38
Less: Bequest to Charity of 5% of Net Estate
54,008.92
Residue before Taxes
1,026,169.46
80% of Residue before Taxes =
820,935.57
20% of Residue before Taxes =
205,233.89
Residue before Taxes
Less: Life Interest of Bonnie Smyers
Life Interest of Thomas Haskell
Life Interest Portion of NIMCRUTS
Charitable Remainder Interest in NIMCRUTS
1 ,026,169.46
454,913.24
127,671.90
582,585.14
443,584.32
Page 1
FIRST UNION NATIONAL BANK
Prepared for:
Clee Morrison TIW - B.S.
November 6, 2007
Deduction Calculations
Actuarial Calculations
5.6% Makeup Unitrust
ASSUMPTIONS:
[1 ] Beneficiary Age
Date of Gift
[2] Principal Donated
Cost Basis of Property
[3] Payout Rate
[4] Payment Schedule
[2/13/1941] 66
2/20/2007
$820,935.57
$820,935.57
5.6%
quarterly
3 months to 1 st payment
[5]
Discount Rate under IRC Section 7520(a) for 12/2006
5.8%
CALCULATIONS:
[6]
Adjustment factor for schedule on [4], rate on [5]
(Table F in IRS Publication 1458 (1999))
Adjusted unitrust payout rate ([3] x [6])
(Reg. 1.664-4(e)(3))
0.965496
[7]
5.4068%
[8]
Remainder factor for values on [1] and [7]
(Table U(1) in IRS Publication 1458 (1999))
0.44586
[9]
CHARITABLE DEDUCTION ([2] x [8])
$366,022.33
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional
advice. Your actual benefits may vary depending on the timing of the gift.
FIRST UNION NATIONAL BANK
Prepared for:
Clee Morrison TIW - B.S.
November 6, 2007
Deduction Calculations
Non-Charitable Interest Actuarials
5.6% Makeup Unitrust
ASSUMPTIONS:
[1 ] Beneficiary Age
Date of Gift
[2] Principal Donated
Cost Basis of Property
[3] Payout Rate
[4] Payment Schedule
[2/13/1941] 66
2/20/2007
$820,935.57
$820,935.57
5.6%
quarterly
3 months to 1 st payment
[5]
Discount Rate under IRC Section 7520(a) for 12/2006
5.8%
CALCULATIONS:
[6] Adjustment factor for schedule on [4], rate on [5]
(Table F in IRS Publication 1458 (1999)) 0.965496
[7] Adjusted unitrust payout rate ([3] x [6])
(Reg. 1.664-4(e)(3)) 5.4068%
[8] Remainder factor for values on [1] and [7]
(Table U(1) in IRS Publication 1458 (1999)) 0.44586
[9] Value of Remainder Interest ([2] x [8]) $366,022.33
[10] Value of Life Interest ([2] - [9]) $454,913.24
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional
advice. Your actual benefits may vary depending on the timing of the gift.
~
FIRST UNION NATIONAL BANK
Prepared for:
Clee Morrison T/W - T.H.
November 6, 2007
Deduction Calculations
Actuarial Calculations
5.6% Makeup Unitrust
ASSUMPTIONS:
[1 ] Beneficiary Age
Date of Gift
[2] Principal Donated
Cost Basis of Property
[3] Payout Rate
[4] Payment Schedule
[1/26/1946] 61
2/20/2007
$205,233.89
$205,233.89
5.6%
quarterly
3 months to 1 st payment
[5]
Discount Rate under IRC Section 7520(a) for 12/2006
5.8%
CALCULATIONS:
[6]
Adjustment factor for schedule on [4], rate on [5]
(Table F in IRS Publication 1458 (1999))
0.965496
[7]
Adjusted unitrust payout rate ([3] x [6])
(Reg. 1.664-4(e)(3))
5.4068%
[8]
Remainder factor for values on [1] and [7]
(Table U(1) in IRS Publication 1458 (1999))
0.37792
[9]
CHARITABLE DEDUCTION ([2] x [8])
$77,561.99
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional
advice. Your actual benefits may vary depending on the timing of the gift.
FIRST UNION NATIONAL BANK
Prepared for:
Clee Morrison T/W - T.H.
November 6, 2007
Deduction Calculations
Non-Charitable Interest Actuarials
5.6% Makeup Unitrust
ASSUMPTIONS:
[1 ] Beneficiary Age
Date of Gift
[2] Principal Donated
Cost Basis of Property
[3] Payout Rate
[4] Payment Schedule
[1/26/1946] 61
2/20/2007
$205,233.89
$205,233.89
5.6%
quarterly
3 months to 1 st payment
[5]
Discount Rate under IRC Section 7520(a) for 12/2006
5.8%
CALCULATIONS:
[6] Adjustment factor for schedule on [4], rate on [5]
(Table F in IRS Publication 1458 (1999)) 0.965496
[7] Adjusted unitrust payout rate ([3] x [6])
(Reg. 1.664-4(e)(3)) 5.4068%
[8] Remainder factor for values on [1] and [7]
(Table U(1) in IRS Publication 1458 (1999)) 0.37792
[9] Value of Remainder Interest ([2] x [8]) $77,561.99
[10] Value of Life Interest ([2] - [9]) $127,671.90
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional
advice. Your actual benefits may vary depending on the timing of the gift.
EXHIBIT D
1 ~.
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA ORPHANS' COURT DIVISION
INRE:
CLEE K. MORRISON
TESTAMENTARY TRUST
CREATED UNDER THE WILL
OF CLEE K. MORRISON
Deceased
No.: 002460f2007
CONSENT OF TRUST BENEFICIARIES WITH RESPECT TO
PETITION FOR REFORMATION OF CHARITABLE REMAINDER TRUST
Each of the undersigned, being a beneficiary of the trust established under the Will
of Clee K. Morrison dated August 10, 1998 , (the "Morrison Trust"), hereby represents as
follows:
1. The undersigned has read and understands the contents of the attached or
foregoing Petition for Reformation of Charitable Remainder Trust ("Petition").
2. The undersigned has had the opportunity to discuss the Petition with the
undersigned's legal counsel and understands the Petition's content and the Petition's
anticipated effect if the requested relief is granted.
3. The undersigned agrees with the averments of the Petition and consents to
the request for changes to the Morrison Trust set forth in the Petition.
4. This Consent is executed in counterparts which, together, will constitute a
single document and be attached to the Petition.
[Signature pages attached]
00486204.1
..
.'
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA ORPHANS' COURT DIVISION
INRE:
CLEE K. MORRISON
TESTAMENTARY TRUST
CREATED UNDER THE WILL
OF CLEE K. MORRISON
Deceased
No.: 00246 of 2007
CONSENT OF TRUST BENEFICIARIES WITH RESPECT TO
PETITION FOR REFORMATION OF CHARITABLE REMAINDER TRUST
Each of the undersigned, being a beneficiary of the trust established under the Will
ofClee K. Morrison dated August 10, 1998, (the "Morrison Trust"), hereby represents as
follows:
1. The undersigned has read and understands the contents of the attached or
foregoing Petition for Reformation of Charitable Remainder Trust ("Petition").
2. The undersigned has had the opportunity to discuss the Petition with the
undersigned's legal counsel and understands the Petition's content and the Petition's
anticipated effect if the requested relief is granted.
3. The undersigned agrees with the averments of the Petition and consents to
the request for changes to the Morrison Trust set forth in the Petition.
4. This Consent is executed in counterparts which, together, will constitute a
single document and be attached to the Petition.
[Signature pages attached]
00486204.1
-
--
EXHIBIT E
. ...... ..,
.. 0::,," ~
JA:.
t ~~-
COMMONWEALTH OF PENNSYLVANIA
OFFICE OF ATTORNEY GENERAL
TOM CORBETT
ATTORNEY GENERAL
January 24, 2008
Charitable Trusts and
Organizations Section
14th Floor, Strawberry Square
Harrisburg, PAl 7120
(717) 783-2853
(717) 787-1190 (Fax No.)
jcoles@attorneygeneral.gov
Via First Class Mail & Facsimile (717) 299-3160
Jeffrey C. Goss
HARTMAN UNDERHILL & BRUBAKER LLP
Attorneys At Law
221 East Chestnut Street
Lancaster, P A 17602-2782
RE: CLEE K. MORRISON TRUST/No.: 00246 of 2007
Dear Mr. Goss:
This will acknowledge receipt of your letter dated January 18,2008, enclosing the
Petition for Reformation of Charitable Remainder Trust in the above captioned matter. I have
reviewed the Petition and have no objection. Please send me a copy of the Petition when filed
and the Court's Order when available, so I may complete my file.
Please be advised that the above review was conducted pursuant to the parens patriae
role of the office and has no bearing on any matter unrelated to that function. Thank you for
your time and attention to this matter.
Very truly yours,
1\
JBC/lss