The URL can be used to link to this page

Home My WebLink About02-0018January 4, 2002 Register of Wills Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 FRANCES D. NICOLAI SOCIAL SECURITY NO Dear Sir or Madam: Enclosed for filing with your office is a completed Form REV-1500, together with the following attachments for the above decedent: 1. FilingFee ($10.00) 2. Copy of the William Nicolai & Frances D. Nicolai Living Trust; 3. Deed; and 4. Date of Death Valuation Letters Also enclosed is an additional copy of the completed form REV-1500 (page 1) anda death certificate for Frances D. Nicolai. Mrs. Nicolai was a resident of New Cumberland, Cumberland County, Pennsylvania, at the time of her death. Due to the existence of the enclosed Trust Agreement her estate did not require probate. Please time/date stamp the enclosed photocopy of REV-1500 (page 1) as received and return it to me (along with the enclosed death certificate if it is not required for your records) in the envelope provided. If there are any questions or further requirements regarding this return, please do not hesitate to contact me. Sincerely, Enclosures Susan E. Lederer, Esquire 4811 Jonestown Road · Suite 226 · Harrisburg, PA 17109 · Phone 717.652.7323 www. ledererlaw, com · Fax 717.652.7340 · info@ledererlaw, com EV.lSO0 EX + COMMONWEALTH Of _PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 W I-- Z o U.I D: 0 0 z REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT Z X I- DECEDENTS NAME (LAST, FIRST, AND MIDDLE INITIAL Nicolai~ Frances D. DATE OF DEAT, H (MM-DD-Year) I 04/27/2001 I 12/30/1926 (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) . Nicolai~ William r~l. Original Return El4. Limited Estate FI6. Decedent Died Testate (~ach ~opyofwi,) E] 9'. Litigation Proceeds Received DATE OF BIRTH (MM-DD-Year) [~2. Supplemental Return E~4a. Future Interest Compromise (date of death after 12-12-82) [-~'1 7. Decedent Maintained a Living Trust (Attach copy of Trust) F~ 101 Spousal Poverty Credit (date of death between 12-31.91 and 1-~.95) OFFICIAL USE ONLY SOCIAL SECURITY NUMBER 3 I 3-2 0-7 5 6 3 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS SOCIAL SECURITY NUMBER [~3. Remainder Return (daleoldea~priorto12-13.82) r-'] 5. Federal Estate Tax Return Required 1__ 8. Total Number of Safe Deposit Boxes E~] 11. Election to tax under Sec. 9113(A) (Attach Sch O) ~H S;SEC:TION:~MUST.~BE COM~EETED: AEE~CORRESPONDENCE~{AND~CONFIDEN~I~i~AX~INFORMA~ON~SHOUED!BEi:DiREC~ED~.TO~ :~,i:i.~ .~: NAME SUSAN E. LEDERER FIRM NAME (If Applicable) LAW OFFICES OF SUSAN E. LEDERER TELEPHONENUMBER 717-652-7323 COMPLETE MAILING ADDRESS ..... ' 4811 JONESTOWN ROAD SUITE 226 HARRISBURG PA 17109 1. Real Estate (Schedule A) (1) 0.00 2. Stocks and Bonds (Schedule B) . (2) ' ~'~ ~.~.00 ( 3. Closely Held Corporat!on, Partnership or Sole-Proprietorship (3) . 4. Mortgages & Notes Receivable (Schedule D) (4) 5. Cash, Bank Deposits & Miscellaneous Personal Property (5) E;306.00 (Schedule E) ,~ ,'"~ ~..,' 6. Jointly Owned Property (Schedule F) (6i ; !.~.00 r--] Separate Billing Requested 7. inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) 182~796.36 (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) (8) 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 5~ 1 04.78 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 36.51 11. Total Deductions (total Lines 9 & 10) (11) 12. Net Value of Estate(Line 8 minus Line 11) (12) 13. Charitable and Govemmental Bequests/Sec 9113 Trusts for which an election to tax has not been (13) made (Schedule J) OFFICIAL USE ONLY 183~102:36 5~141.29 177~961.07 174~998.84 14. Net Value Subject to Tax (Line 12 minus Line 13) (14) 2~962.23 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) 16. Amount of Line 14 taxable at lineal rate 17. Amount of Line 14 taxable at sibling rate 18. Amount of Line 14 taxable at collateral rate 19. Tax Due 2~962.23 x X X .12 (17) X .15 (18) 0.00 (18) 0.00 ~ (16) (19) 0.00 20. FILE NUMBER / - COUNTY CODE YEAR NUMBER Decedent's Complete Address: STREET ADDRESS 334 Bailey Street CITY New Cumberland ISTATE PA zip 17070 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount Interest/Penalty if applicable D. Interest E. Penalty (1) Total Credits ( A + B + C ) (2) Total Interest/Penalty ( D + E ) 0.00 (3) 4.If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 torequest a. refund (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 0.00 A. Enter the interest on the tax due. (5A) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (SD) 0.00 Make Check Payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use.or income of the property transferred; ............... ' ............................................................ ' [] [~:'.:i b. retain the dght to designate who shall use the property.transferred or its income; ........................................ [] [] ~ c. retain a reversionary interest; or ........ '. ............................................................................................. [] [] d. receive the promise for life of either payments, benefits or care? ............................................................. [] [] 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .............................................................................. i ................ [] [] ' 3. Did decedent own an "in trust for" or payable upon death bank account or secudty at his or her death? ................. [] [] 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ....................................................................................................... [] [] IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND F LE T AS PART OF THE RETURN. Under penalties ct perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration ct preparer other than the personal representative is based on all iniermalion el which preparer has any knowledge. SIGNATURE OF PEP~ON RESPONSIBLE F RO...~.~ING RETURN , ADDRESS William Nicolai 334 Bailey Street, New Cumberland~ SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE ADDRESS '"4811 JONESTOWN ROAD, SUITE 226 HARRISBURG, DA~'E / PA 17070 DATE PA 171O9 For dates of death on or after July 1,1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% F2 P.S. §9116 (a) (1.1) (i)]. For dates of death on or after January 1,1995, the tax rate imposed on the net value of transfers io or for the use of the surviving spouse is 0% [72 P.S. {}9116 (a) (1.1) (ii)]. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1,2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is 0% [72 P.S. §9116(a)(1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5%, except as noted in 72 P.S. §9116(1.2) [72 P.S. §9116(a)(1 The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. §9116(a)(1.3)]. A sibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. REV-1508EX+(1-97)~. ~ · ~ COMMONWEALTH OF PENNSYLVANI.A INHERITANCE TAX RETURN · RESIDENT DECEDENT ·. SCHEDULE E, CASH,'BANK DEPOSI'I:S, PERSONAL PROPERTY ESTATE OF FILE NUMBER Nicolai. Frances D. " Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned With the right of survivorship must be disclosed on Schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1. Parthmore Funeral Home Refund 306.00 TOTAL (Also enter on line 5, Recapitulation) $ 306.00 .(If more space is needed, insert additional sheets of the same size) REVq510EX+{I-97)i. = l- ~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT .SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF FILE NUMBER .Nicolai, Frances D. This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is res. DESCRIPTION OF PROPERTY % OF 'ITEM INCLUDE THE NAME OF THE TRANSFEREE. THEIR RELATIONSHIP TO DECEDENT AND THE DATE OF TRANSFER, DATE OF DEATH DECD'S EXCLUSION TAXABLE VALUE NUMBER ATTACH A COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST (IF APPLICABLE) 1. Real Estate located at 334 Bailey Street, titled to the William 113,610.00 50. 56,805.0¢ Nicolai & Frances D. Nicolai Living Trust, (113,610 assessed value x 1.00 common level ratio) 2. First Union IRA Acct #: 257410050265044, titled to Frances 2,962.23 100. 2,962.2~ D. Nicolai, William Nicolai, beneficiary (accrued interest: $9.92) 3. First Union Checking Acct # 1000501520813, titled to the 268.19 50. 134.1(: William Nicolai & Frances D. Nicolai Living Trust (accrued interest: $0.05) 4. PNC Bank Checking Acct #: 5140232244, titled to the 859.89 50. 429.95 William Nicolai & Frances D. Nicolai Living Trust (accrued interest: $0.61) 5. PNC Bank CD Acct # 31500189874, titled to the William 21,203.26 50. 10,601.63 Nicolai & Frances D. Nicolai Living Trust (accrued interest: $39.43) 6. PNC Bank Money Market Acct #: 5130160523, tiffed.to 26,349.75 50. 13,174.88 the William Nicolai & Frances D. Nicolai Living Trust (accrued interest: $115.65) 7. 1000 shares American United Global, Inc., held in Janney 160.00 50. 80.00 Montgomery Scott Acct # HB07 6230-4523, titled to the William Nicolai & Frances D. Nicolai Living Trust (0.16/sh) 8. 166 sharesCanadian Piper Air Corp, held in Janney · 0.83 50. 0.42 Montgomery Scott Acct # HB07 6230-4523, titled to the · William Nicolai & Frances D. Nicolai Living TR (0.005/sh) 9. 400 Corporate Office PPTYS Preferred, held in Janney 9,950.00 50. 4,975.00 Montgomery Scott Acct # HB07 6230-4523, titled to the William Nicolai & Frances D. Nicolai Living TR (24.875/sh) 10. 1500 Credit Suisse High Yield Bond, held in Janney .. 9,022.50 50. 4,511.25 Montgomery Scott Acct # HB07 6230-4523, titled to the ' William Nicolai & Frances D. Nicolai Living TR (6.015/sh) 11. 1000 Sun Capital Trust II 8.875%, held in Janney 9,550.00 50. 4,775.00 Montgomery Scott Acct # HB07 6230-4523, titled to the 'William Nicolai & Frances D. Nicolai Living TR (9.55/sh) ~ 12. 500 shares PLM Equipment Growth Fund VI, held in Janney 4,502.00 50. 2,251.00 Montgomery Scott Acct # HB07 6230-4523, titled to the William Nicolai & Frances D. Nicolai Living TR (9.004 NAV) 13. 500 shares PLM Equipment Growth & Income Fund VIII, held 5,392.00 50. 2,696.00 in Janney Montgomery Scott Acct #: HB07 6230-4523, titled to William Nicolai & Frances D. Nicolai LT (10.784 NAV) 14. 1 000 shares Nuveen Peroni Summer 2000, held in Janney 5,318.20 50. 2,659.10 Montgomery Scott Acct # HB07 6230-4523, titled to the William Nicolai & Frances D: Nicolai Living TR (5.3182 NAV) 15. 10,000 shares Butler PA Authority 8.00% 2/01/21 9,800.00 50. 4,900.00 Cusip #123591AR0, held in Janney Montgomery Scott Acct # HB07 6230-4523, titled to William Nicolai & Frances 'D. Nicolai Living Trust TOTAL (Also enter on line 7, Recapitulation) $ 182,796.36 (If more space is needed, insert additional sheets of the same size) , _, Continuation of REV-1500 Inheritance Tax Return Resident Decedent Nicolai, 'Frances D. Paqe 1 Schedule G - Inter-Vivos Transfers & Misc. Non-Probate Property DESCRIPTION OF PROPERTY % OF ITEM INCLUDE THE NAME OF THE TRANSFEREE. THEIR RELATIONSHIP TO DECEDENT AND THE DATE OF TRANSFER. DATE OF DEATH DECD'S EXCLUSION TAXABLE VALUE NUMBER ATTACH A COPY OF THE DEED FOR REN. ESTATE. . VALUE OF ASSET INTEREST I~ APPUCASLE) 16. 14,000 shares Chevy Chase Bank 7.25% 05/17/02, Cusip # 10,000.00 50. 5,000.0(; 166784HS7, held in Janney Montgomery Scott Acct # HBO7 6230-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 17. 15,000 shares Ford Motor Credit 5.75% 02/23/04, Cusip # 14,906.25 50. 7,453.13 345397SH7, held in Janney Montgomery Scott Acct # HBO7 6230-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 18. 15,000 shares Gettysburg PA 4.20% 06/01/01, Cusip # 15,018.75 50. 7,509.38 374305AW0, held in Janney Montgomery Scott Acct # HBO7 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 19. 10,000 shares Household Bank 7.35% 05/24/02, held in 10,000.00 50. 5,000.00 Janney Montgomery Scott Acct # HBO7 4530-4523, titled to William Nicolai & Frances D. Nicolai LT 20. 10,000 shares Montgomery County PA 5.50% 07/01/04, 9,700.00 50. 4,850.00 Cusip # 613603MY2, held in Janney Montgomery Scott ,Acct #: HB07 4530-4523, titled to William Nicolai & Frances 'D. Nicolai Living Trust 21. 10,000 shares Montgomery County PA Higher Ed 5.10% 9,900.00 50. 4,950.00 09/01/01, Cusip # 613603LR8, held in Janney Montgomery Scott Acct # HB07 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 22. 10,000 shares Niagara Mohawk 9.25% 10/01/01, Cusip # 10,162.50 50. 5,081.25 653522BV3, held in Janney Montgomery Scott Acct. # HB07 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 23. '15,000 shares Northampton PA 4.65% 12/15/02, Cusip # 14,775.00 50. 7,387.50 66359KR3, held in Janney Montgomery Scott Acct # HB07 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust SUBTOTAL SCHEDULE G 47,231.2~, .,~ _ ,- *Continuation of REV-1500 Inheritance Tax Return Resident Decedent Nicolai, Frances D. Pa,qe 2 Schedule G - Inter-Vivos Transfers & Misc. Non-Probate Property DESCRIPTION OF PROPERTY % OF ITEM INCLUDE THE NAME OF THE TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND THE DATE OF TRAN$ffER. DATE OF DEATH DECD'S EXCLUSION TAXABLE VALU[ NUMBER ATTACH A COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST (IF APPUCABLE) 24. 10,000 shares Philadelphia PA Hospital Rev 6.60% 07/01/10 9,850.00 50. 4,925.0( Cusip # 717903PU6, held in Janney Montgomery Scott Acct # HBO7 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 25. 15,000 shares Westmoreland PA 4.90% 11/15/02, Cusip # 17,790.00 50. 8,895.0( 961008NJ4, held in Janney Montgomery Scott Acct # HBO7 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust 26. Janney Montgomery Scott Money Market Balance, held in 21,579.08 50. '10,789.5z Acct # HBO7 4530-4523, titled to William Nicolai & Frances D. Nicolai Living Trust SUBTOTAL SCHEDULE G 24,609.5,1 GRAND TOTAL SCHEDULE G $ 182,796.38 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER Nicolai, Frances D. Debts of decedent must be reported on Schedule I, ITEM NUMBER DESCRIPTION AMOUNT 1. 2. 3. 4. 5. 6. 7. FUNERAL EXPENSES: St. Theresa Parish (Service) Parthemore Funeral Home Death Certificates (Parthemore) Amanda Hasemeier (Food/Funeral Meal) ADMINISTRATIVE COSTS: Personal Representative's Commissions Name of Personal Representative (s) S~cial Secudty Number(s) / EIN Number of Personal Representative(s) Street Address City State Year(s) Commission Paid: Attorney Fees Law Office of Susan E. Lederer Family ExempUon:.(If decedent's address is not the same as claimant's, attach explanation). Claimant Zip Street Address City State Zip Relationship of Claimant to Decedent Probate Fees Cumberland County Register of Wills (Pennsylvania Inheritance Tax Return Filing Fee) Accountant's Fees Tax Return Preparer's Fees Reimbursments: Gasoline Postage 150.00 3,636.24 37.00 200.00 950.00 10.00 97.64 23.90 TOTAL (Also enter on line 9, Recapitulation) I $ 5,104.78 (If more space is needed, insert additional sheets of the same size) REV-1512 EX +{1-g7)1 -. ~~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES~ & LIENS ESTATE OF Nicolai. Frances D. FILE NUMBER Include unreimbursed medical expenses. ITEM NUMBER DESCRIPTION AMOUNT 1. Medication Expense 36.51 TOTAL (Also enter on line 10, Recapitulation) $ 36.51 (If more space is needed, insert additional sheets of the same size) REV-1513 EX + (p.nm COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFIcIARiES ESTATE OF Nicolai. F 'ances D, NUMBER I. 1, FILE NUMBER RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NAME AND ADDRESS OF PERSON/S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] William Nicolai 334 Bailey Street New Cumberland, PA 17070 Spouse 2,962.23 ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE Family Trust (credit shelter trust) under Article Nine of the William Nicolai & Frances D. Nicolai Living Trust dated April 25, 1995 B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 174,998.84 TOTAL OF PART ~ - ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ 174,998.84 (If more space is needed, insert additional sheets of the same size) The WILLIAM NICOLAI AND FRANCES D. NICOLAI LIVING TRUST prepared for WILLIAM 1NICOLAI and FRANCES D. NICOLAI JAMES, SMITH & DURKIN · l Attorneys-at-Law 134 Sipe Avenue Hummelstown, Pennsylvania 17036 (717) 533-3280 FAX (717) 533-2795 © James, Smith & Durkin All Rights Reserved WILLIAM NICOLAI AND FRANCES D. NICOLAI LIVING TRUST Table of Contents Article One Article Two Article Three Article Four Article Five Article Six Article Seven Article Eight Article Nine Article Ten Article Eleven Article Twelve Article Thirteen Article Fourteen Article Fifteen Trust Creatiofi .................................... 1-1 The Trust Estate .............................. ' ..... 2-1 Appointment of Trustees .............................. 3-1 Trustors' Lifetime Rights ............................. 4-1 Administration at Death of First Trustor .................. 5-1 Specific Distributions of Trust prOperty ................... 6-1 Division into Survivor's Trust and Family Trust .............. 7-1 The Survivor's Trust ................................ 8-1 The Family Trust .................................. 9-1 Common Pot Trust ................................. 10-1 Division and Distribution of Trust Property ...... ' .......... 11-1 Distribution If No Designated Beneficiaries ................ 12-1 Trustee Administration ............................. 13-1 Trustee Investment Powers ........ ................... 14-1 General Provisions ................................. 15-1 WILLIAM NICOLAI AND FRANCES D. NICOLAI LIVING TRUST Article One Trust Creation Section 1. Parties to Our Trust This trust agreement dated" AD[~ 2 5 ]995 is made between WILLIAM NICOLAI, the husband Trustor, also known as WILLIAM NICOLAI, and FRANCES D. NICOLAI, the wife Trustor, also known as FRANCES D. NICOLAI, and the following initial Trustees: WILLIAM NICOLAI FRANCES D. NICOLAI Section 2. Name of Our Trust This trust may be referred to as the: WILLIAM NICOLAI AND FRANCES D. NICOLAI LIVING TRUST, dated .APR 2 5 ]995 The formal name of our trust and the designation to be used for the transfer of title to the name of our trust is: WILLIAM NICOLAI and FRANCES D. NICOLAI, Trustees, or their successors in trust, under the WILLIAM NICOLAI AND FRANCES D. NICOLAI LIVING TRUST dated AD]~ 2 5 19c,)5 and any amendments thereto ' Section 3. Revocable Living Trust Our Trust is a revocable living trust. Section 4. Trustors as Trustees Notwithstanding any other provisions in this trust agreement, when we are serving as Trustees under this trust, either of us may conduct business and act on behalf of our trust without the consent of any other Trustee. Section 5. Our Family The name(s) and birth date(s) of our children are: Birth date AMANDA HASEMEIER KATHRYN NICOLAI WILLIAM ALAN NICOLAI ANNETTE NICOLAI November 13, 1951 August 20, 1953 April 8, 1955 April 8, 1955 All references to our children in this instrument are to these children and any children subsequently born to or adopted by us. Ar'ticle Two The Trust Estate Section 1. Initial Transfer of Property We hereby assign, devise, transfer and deliver to our Trustee all property set forth on Schedule "A", attached hereto, and made part of this trust agreement. Our Trustee acknowledges receipt without consideration of all assets listed on the attached Schedule. Assets titled in the name of our trust but not listed on Schedule "A" shall be considered a part of our trust estate to the same'extent as if they had been set forth on the attached Schedule. Section 2. Additional Transfers to Trust We or any other person or entity may transfer or devise to our Trustee additional assets, real or personal, and may name our Trustee as the beneficiary of life insurance policies, annuities, retirehient plans or similar contracts; such assets, policies and proceeds, upon delivery thereof to our Trustee, shall be a p,art of the trust estate, subject to all the terms of this trust agreement. Section 3. Character of Trust Assets All property transferred into our trust shall be characterized as follows: ae Joint Marital Estate Property Ail of our jointly held property, if any, transferred to our trust~ and the proceeds of all such property, shall remain our jointly held property, subject to the provisions of this agreement. Separate Property Ail of the separate propertyi if any, of either of us transferred to our trust, and the proceeds of all such property, specifically designated as the separate property of either of us at the time of transfer to our Trustee, shall remain the separate property of the contributing Trustor. 2-1 Community Property All community property or quasi-community property, if any, transferred to our trust, and the proceeds of all such property, specifically designated as community property or quasi-community property at the time of transfer to our Trustee, shall remain our community property or quasi-community property, subject to the provisions of this agreement. Article Three Appointment of Trustees Section 1. Definition of Trustee All references in this agreement to "Trustee" shall be deemed a reference to the person or entity who is then serving as Trustee and shall include alternate or successor Trustees or Co-Trustees, unless the context requires otherwise. Section 2. Resignation of a Trustee Any Trustee may resign at any time without court approval by giving written notice to each of us or to our personal representative. If either of us is not living, written notice shall be given to the successor Trustee, or if there is no successor, to the beneficiaries then entitled to receive income or principal distributions under this agreement, to their personal representatives, or to the persons having the care or custody of minor beneficiaries. Section 3. Removal of a Trustee Any Trustee may be removed under this agreement as follows: a. While We are Both Alive and Competent While we are both alive and legally competent and if we both agree, we shall have the right to remove any Trustee appointed under this agreement at any time with no requirement that the removed Trustee receive any reason for'such termination. be While One of Us is Alive or Competent After the death of one of us or when both of us are alive but only one of us is legally competent, any Trustee appointed under this agreement may be removed by the competent Trustor at any time with no requirement that the removed Trustee receive any reason for such termination. Removal by Others After the death or legal incompetency of both of us, any Trustee may be removed by a majority vote of the beneficiaries then entitled to receive income or principal distributions under this agreement or their personal representatives. These bene'ficiaries or their personal representatives shall not be required to give any reason for such Trustee's termination. de Notice to Removed Trustee Written notice of removal under this agreement shall be effective immediately when signed by the person or persons authorized to make the removal and delivered to the Trustee personally or deposit by United States certified mail, return receipt requested. The written notice removing a Trustee shall designate a successor Trustee. ee Transfer of Trust Property The Trustee so removed shall promptly transfer and deliver to the successor Trustee all property of the trust under its possession and control. Section 4. Designated Successor Trustees Whenever a Trustee is removed, dies, resigns, becomes legally incapacitated, or is otherwise unable or unwilling to serve, that Trustee shall be replaced as follows: ao The Death or Disability of a Trustee While We are Serving as Trustees We may serve as the only Trustees or we may name any number of TrUstees to serve with us. If any of these other Trustees subsequently die, resign, become legally incapacitated or are otherwise unable or unwilling to serve as a Trustee, we may or may not fill the vacancy, as we both agree. b. Disability Trustees of WILLIAM NICOLAI Upon the disability of WILLIAM NICOLAI, 'if he is then serving as an initial Trustee, he shall be replaced by the following Disability Trustee(s): FRANCES D. NICOLAI If, for any reason, the Disability Trustee(s) named above are unable or unwilling to serve, the following successor Disability Trustee(s) shall serve until the successor Disability Trustee(s) on the list have been exhausted. Unless otherwise 3-2' specified, if Co-Disability Trustees are serving, the next following named successor Disability Trustee shall serve only after all of the Co-Disability Trustees cease to act as Trustees. (t) AMANDA HASEMEIER (2) WILLIAM ALAN NICOLAI Disability Trustees of FRANCES D. NICOLAI Upon the disability of FRANCES D. NICOLAI, if she is then serving as an initial Trustee, she shall be replaced by the following Disability Trustee(s): WILLIAM NICOLAI If, for any reason, the Disability Trustee(s) named above are unable or unwilling to serve, the following successor Disability Trustee(s) shall serVe until the successor Disability Trustee(s) on the list have been exhausted. Unless otherwise specified, if Co-Disability Trustees are serving, the next following named successor Disability Trustee shall serve only after all of the Co-Disability Trustees cease to act as Trustees. (1) AMANDA HASEMEIER (2) WILLIAM ALAN NICOLAI de Death Trustees of WILLIAM NICOLAI Upon the death of WILLIAM NICOLAI, if he is then serving as an initial Trustee, he shall be replaced by the following Death Trustee(s): FRANCES D. NICOLAI . If, for any reason, the Death Trustee(s) named above are unat~le or unwilling to serve, the following successor Death Trustee(s) shall serve until the successor Death Trustee(s) on the list have been exhausted. Unless otherwise specified, if Co-Death Trustees are serving, the next following named successor Death Trustee shall serve only after all of the Co-Death Trustees cease to act as Trustees. (1) AMANDA HASEMEIER (2) WILLIAM ALAN NICOLAI .! 3-3 Death Trustees of FRANCES D. NICOLAI Upon the death of FRANCES D. NICOLAi, if she is then serving as an initial Trustee, she 'shall be replaced by the following Death Trustee(s): WILLIAM NICOLAI If, for any reason, the Death Trustee(s) named above are unable or unwilling to serve, the following successor Death Trustee(s) shall serve until the successor Death Trustee(s) on the list have been exhausted. Unless otherwise specified, if Co-Death Trustees are serving, the next following named successor Death Trustee shall serve only after all of the Co-Death Trustees cease to act as Trustees. (I) AMANDA HASEMEIER (2) WILLIAM ALAN NICOLAI Section 5. No Designated Successor Trustees If at any time there is no Trustee acting under this agreement and there is no person or institution designated and qualified as a successor Trustee, a majority of the beneficiaries then eligible to receive distributions of income or principal under this agreement or their personal representatives shall appoint a successor Trustee. If any trust existing under this agreement lacks a Trustee and no successor is appointed pursuant to this Section, the vacancy shall be filled by a court of competent jurisdiction. Section 6. Responsibility of SuccessOr Trustees A successor Trustee shall have the Same rights, powers, duties, discretions and immunities as if it had been named as initial Trustee under this agreement. No successor Trustee shall be personally liable for any act or failure to act of any predecessor Trustee or shall have any duty to examine the records of any earlier Trustee. A successor Trustee may accept the account rendered and the property delivered by or on behalf of a predecessor Trustee as a full and complete discharge of the duties of the predecessor Trustee without incurring any responsibility or liability for so doing. Article Four Trustors' Lifetime Rights Section 1. Income and Principal ao Right to Trust Income and Principal Our Trustee shall pay to or apply for our benefit during our joint lifetimes all or such part of the income and principal of the trust estate as we may direct. We may not, however, direct our Trustee to make gifts from trust property to third parties. If our Trustee inadvertently makes a distribution we intended as a gift directly from the trust to a third party, that distribution shall be construed as a distribution to us first, then a gift to the third party from us. Unless directed in writing to the contrary by either of us: Our Trustee shall be authorized to accept and execute instructions received from either Trustor regarding distributions of the income or principal of the trust estate to or for the benefit of either or both of us. ° Our Trustee shall be authorized to make distributions of the income or principal of the trust estate in the sole name of a Trustor as instructed by either of us. Trustee Liability Upon any distribution of the income or principal of the trust estate authorized or directed by a Trustor, our Trustee shall incur no liability to the other Trustor in respect of such distribution, shall be under no obligation to seek the approval or verification of the concurrence of the other Trustor to such distribution and shall have no responsibility for the application of any distribution made in the name of a Trustor. .! e. Tracing of Income Not Required Unless otherwise provided or specified by either or both of us during our joint lives any distributions of income to either of us shall be conclusively presumed to be derived in respect of the joint marital estate property of the Trustors and our 4-1 Trustee shall be under no obligation to allocate, trace or otherwise identify the actual source of such income. Section 2. Trustors' Rights During Disability ae Definition of Disability A Trustor shall be considered disabled in the event a court of competent jurisdiction determines that a Trustor is legally incompetent or in the event that a Trustor is not adjudicated incompetent but by reason of illness or mental disability a Trustor has been certified by two licensed physicians to be unable to properly handle his or her own affairs. be Income and Principal Distributions Our Trustee during the period of a Trustor's disability shali pay to or apply for that Trustor's benefit as much of the principal and net income'of that Trustor's separate property estate and his or her interest in the joint marital estate property and community property, if any, as our Trustee in its sole discretion shall deem necessary or advisable. PaYment of Obligations Our Trustee during the period of a Trustor's disability shall, from time to time, pay that Trustor's valid obligations, medical expenses and provide for his or her comfortable maintenance and welfare, taking into consideration his or her other income or resources. de Income and Principal Distributions for Non-disal?led TruStor During the lifetime of either or both of us, should either or both of us become disabled, then our Trustee shall pay to or apply for the non-disabled Trustor's benefit as much of the principal and net income of the disabled Trustor's separate property estate and his or her interest in the joint marital property estate and community property, if any, as our Trustee in its sole discretion shall deem necessary or advisable, from time to time, for the non-disabled Trustor's health, maintenance, support and education, taking into consideration his or her other income or resources. '~ em Trustee Guidelines In making distributions under this Section, our Trustee shall give primary consideration to the needs of the disabled Trustor and secondary consideration to the needs of the non-disabled Trust0r. f. Tax Planning During our joint lives should either or both of us become disabled, our Trustee may exercise the following 'powers as attorney in fact on our behalf, either alone or in ~onjunction with any other attorney in fact under a durable power of attorney for a disabled Trustor, but the primary concern of our Trustee shall be for our welfare and secondarily for the welfare of the our lineal descendants for tax planning: Our Trustee may make additional distributions to our lineal descendants, equally by class, for the purpose of continuing any gift program initiated by us which our Trustee reasonably determines will achieve beneficial results for estate and/or income tax planning purposes. Our Trustee may initiate a gift program on our behalf which our Trustee reasonably determines will achieve beneficial results for estate and/or income tax planning purposes by making distributions to our lineal descendants, equally by. class, so long as such distributions are made in the form which qualify for and are limited to the annual exclusion for federal gift tax purposes. o During any disability of a Trustor our Trustee shall be under no obligation to initiate, recommend or consider any tax planning objective or program for us and any exercise of its discretion in this regard, when conducted in good .faith, shall not subject it to liability to any person affected thereby. Section 3. Right to Amend or Revoke Our.~Trust We shall have the right to amend, terminate or revoke our trust as follows: i ae Power to Revoke and Amend While Both of Us Are Living During our joint lifetimes this trust and any trust created by this agreement may be amended, revoked or terminated, in whole or in part, by either of us acting alone as to any specially designated property of .that Trustor and as to that Trustor's interest in any of our joint marital estate property. However, any modification of the rights and interests of either of us in community property during our marriage may be made only with the joinder or consent of both of us. Power to Revoke and Amend After Death of First Trustor After the death of the first of us to die, the surviving Trustor may at any time amend, revoke or terminate, in whole or in part, the Survivor's Trust in which the surviving Trustor has a general power of appointment. All other trusts shall become irrevocable and shall not be subject to amendment after the death of the first Trustor. Method to Revoke or Amend Any amendment, revocation or termination of this trust or any trust created by this agreement shall be made by written instrument signed by both of us or by the Trustor making the revocation, amendment or termination, and delivered to our Trustee. If the instrument making the revocation, amendment, or termination is signed by only one Trustor and the other Trustor is living at that time, a copy of the instrument making the amendment, revocation, or termination shall also be delivered to the other Trustor. An exercise of the power of amendment substantially affecting the duties, rights and liabilities of our Trustee shall be effective only if agreed to by our Trustee in writing. Delivery of Property After Revocation After any revocation or termination with respect to our joint marital estate property our Trustee shall promptly deliver the joint marital estate property to the Trustor or Trustors to the extent of their interest in the joint marital estate property. After any revocation or termination with respect to specifically designated property our Trustee shall promptly deliver the designated property to the Trustor or Trustors who originally contributed that property to the trust and such property so returned shall be conclusively c~eemed to resume the same character it had immediately before transfer to our trust. Trustee's Retention of Assets UPon Revocation In the event of any revocation of all or part of our trust, our Trustee shall be entitled to retain sufficient assets to reasonably, secure the payment of liabilities our Trustee has lawfully incurred in administering the trust and any fees that have been earned by our Trustee, until such time as those liabilities have been discharged and fees paid, unless we indemnify our Trustee against loss or expense. Section 4. Exercise of Trustors' Rights and Powers by Others Any right or power that either of us could exercise personally under the terms of this agreement, except the power to amend, revoke or terminate any trust created by this agreement, may be exercised for and on behalf of that Trustor by any attorney in fact who, at the time of the exercise, is duly appointed and acting for that Trustor under a valid and enforceable durable power of attorney executed by that Trustor or, if there is no such attorney in fact, by a duly appointed and acting conservator of that Trustor after petition to a court of competent jurisdiction. The power to amend, revoke or terminate any trUst created by this agreement is personal to us and may not be exercised by any other person or entity. Section 5. Rights Concerning Standby. Property It is contemplated that certain assets may be added to the trust estate from time to time with the possession and control thereof retained by or redelivered to us. If we execute and deliver to our Trustee an instrument effectively transferring such assets to our Trustee together with any further documentation necessary to effect the record transfer thereof, in the event of a Trustor's death or incapacity the assets shall be deemed to be assets of the trust estate and held by us as the nominee of our Trustee. During the period such assets are in our possession they shall be subject to the following terms and conditions: ao We may receive directly and devote to our own use and benefit any dividends, interest, income or distributions from or upon such assets and neither we nor our Trustee shall have any duty of accounting to the other or to any other person with regard thereto. Any sale, exchange or other transfer of such assets by us shall constitute a withdrawal of such assets from the trust estate and our Trustee shall have no further interest therein or duties With regard thereto. Though not a condition precedent to any such withdrawal, we agree to notify our Trustee of all such withdrawals. We shall be responsible for the reporting of the income from such assets to the appropriate taxing authorities and our Trustee shall have no responsibility for including such income on any fiduciary returns prepared by it or for the preparation of any other income tax return with respect thereto unless we duly notify our Trustee of such income items and a full and adequate accounting thereof is made and presented to our Trustee. do We shall protect and indemnify our Trustee against all losses, liabilities and expenses which may result directly or indirectly from our use, possession, management or Control of such assets. Upon the death or incapacity of either of us, our Trustee shall be entitled to the possession thereof and thereafter shall have all the rights, powers and duties with respect ,to such assets which are otherwise granted to our Trustee herein. It is understood that our Trustee shall be responsible only for the assets which actually come into its possession and control. However, it is. also understood that our Trustee shall use any reasonable and prudent means to secure possession of any trust assets of which it has knowledge. Our Trustee shall have no. duty, accountability or responsibility to us or to any other person with respect to any assets of .which it has no knowledg~ or of which it is unable to obtain possession and control. 4-6 / Section 6. Trustorfrrustee Bank Accounts It is contemplated that we may establish a joint bank account or accounts with our Trustee and create powers of attorney in respect thereof in other persons. Deposits from time to time made by us or other authorized persons into such an account shall constitute transfers to the trust estate and withdrawals therefrom, which may be made without the co-signature of our Trustee, shall constitute withdrawals from the trust estate. However, our capacity and other authorized persons with respect to any such account shall be that of nominee of our Trustee, not co-owner. At any given time the trust estate shall include the then balance of any such account. Section 7. Life Insurance Premiums and Retirement Plans During our lifetime we shall have all powers over life insurance policies and retirement benefits owned by or made payable to our trust, including the following: ae Payment of Premiums We shall be responsible for the payment of premiums and other charges on each policy of insurance owned by or made payable to our trust. Our Trustee shall have no duty to make any payment or be responsible to determine whether such payments have been made. be Custody of Policies Our Trustee shall not be responsible for the custody or safekeeping of any life insurance policy before its actual delivery to our Trustee nor after its withdrawal by its owner. Cw Change Beneficiaries We shall have the right to change the beneficiary andto receive any dividends or other earnings of such policies or plans without accountability therefor to our Trustee or any beneficiary in this agreement. d. Assignment We may assign any policy or plan benefits to any l~nder to the extent allowed by law, including our Trustee, as security for .any loan to us or any other person. 4-7 Surrendered Policies If any life insurance policy is surrendered or if the beneficiary of any policy is changed, this trust agreement shall be revoked .with respect to such policy. However, no revocation of the trust with respect to any policy, whether pursuant to the provisions of the preceding sentence or otherwise, shall be effective unless the surrender or change in beneficiary of the policy is accepted by the insurance company. Section 8. Undistributed Net Income / Any net income not distributed under the provisions of this Article shall be added to the trust principal. 4-8 Article Five Administration at Death of First Trustor Section 1. Trustee's Discretion to Pay Debts and Taxes After the death of the first' of us to die, our Trustee, in its sole discretion, may pay all or any part of the deceased Trustor's following expenses, debts, claims and taxes becoming due or payable by reason of the death of the first of us: a. Final medical expenses and all funeral costs; b. Legally enforceable claims against the deceased or the estate; c. Reasonable expenses of administration of this trust and the deceased's probate estate, if any; d. Any allowances mandated by a court of competent jurisdiction to those dependent upon the deceased Trustor; e. Any estate, inheritance, succession, death or similar taxes payable by reason of the death of the first of us; and Any penalties or interest on any of the above claims, debts or taxes owed by the deceased or the estate. Section 2. Payment by Our Trustee or Personal Representative Our Trustee in its sole discretion may make distributions authorized under this Article either directly to the person or entities to whom payment is owed or to the personal representative of the deceased Trustor's probate estate. Written statements by the deceased's personal representative that such sums are due and payable by the estate shall be sufficient evidence of their amount and propriety for the protection of our Trustee. Our Trustee shall be under no duty to see to the application of any such payments made to the deceased's personal representative. Section 3. Tax Elections With regard to the payment of any income tax, gift tax, estate tax, inheritance tax or any other tax required because of the death of the first of us, our Trustee shall have the right to make any 5-1 available elections allowed under the law. Our Trustee is authorized to sign and file any tax return required because of the death of the first of us. Section 4. Payment of Death Taxes, Claims and Expenses a. Payment out of Trust Property All death taxes, claims and expenses payable under the provisions of this Article shall be paid by our Trustee out of the trust estate, except as specifically provided for elsewhere in this agreement. b. ExceptiOn for Property passing Outside of Trust Notwithstanding any other provision in our trust, all death taxes, claims and expenses incurred by reason of assets passing outside of our trust or probate estate shall be assessed against those persons receiving such property. c. Payment from Deceased Trustor's Share Notwithstanding any other provision in our trust, all death 'taxes, claims and ' expenses payable under the provisions of this Article shall not be paid from the Survivor's Trust as defined in Article Eight or from any property passing to the surviving Trustor that qualifies for the federal estate tax marital deduction. Article Six Specific Distributions of Trust Property Section 1. No Specific Distributions Our Trustee shall make no specific distributions of trust property to any beneficiaries under-this trust agreement upon our death. All distributions of trust property shall be made in the Articles that follow. Article Seven Division into Survivor's Trust and Family Trust Section 1. Division of the Trust Estate Upon the death of the first TrustOr to die, our Trustee shall allocate and distribute the remaining trust estate, including any property that becomes distributable or payable to our Trustee at the ~teceased Trustor's death, into two separate shares to be identified as the Survivor's Share and the Family Share. am Surviving Trustor's Property Transferred to the Survivor's Share The Survivor's Share shall consist of: The surviving Trustor's 0ne-half (1/2) of all assets representing the joint marital property of the Trustors held by our Trustee. All assets theretofore declared to be or specifically designated upon transfer to our Trustee to be the separate property of the surviving Trustor as held by our Trustee. o One-half (1/2) of all assets theretofore declared to be or t specifically designated upon transfer to our Trustee by the. Trustors to be the community property of the Trustors. Deceased Trustor's Property Transferred to the Survivor's Share The Survivor's Share shall also consist of assets having a value equal to the unlimited federal estate tax marital deduction allowable to the deceased Trustor's estate, subject to the following: The Survivoio's Share shall be reduced by the net value for federal estate tax purposes of all Other property that passes or/has passed to the. surviving Trustor under this trust agreement, the deceased Trustor's probate estate or otherwise that qualifies for the federal estate tax marital deduction. o o o The Survivor's Share shall be reduced by all federal estate tax deductions actually allowed other than the marital deduction;. The Survivor's Share shall be reduced by the amount, if any, needed to increase the deceased Trustor's taxable estate for federal estate tax purposes to the largest amount that after allowing for the unified credit against federal estate tax, will( result in the smallest, if any, . federal estate tax being imposed on the deceased Trustor's estate; The Survivor's Share shall be reduced by .the credit for state death taxes available to the estate of the deceased Trustor, to the extent that the use of that credit does not result in or increase any death tax payable to any state; and The Survivor's Share shall be reduced by any other allowable credits available to the estate of the deceased Trustor, except the credit for tax on prior transfers from a "transferor", as defined in Internal Revenue Code Section 2013, who dies within two years after the date of death of the deceased Trustor, but only to the extent that those credits do not disqualify this gift from receiving the marital deduction. Notwithstanding any other provision in this Section, the Survivor's Share shall never have assets with a value less than the maximum amount of the unified credit against the federal estate tax as of the date, of the deceased Trustor's death, unless the value .of the surviving Trustor's trust property, less all liabilities; and the deceased Trustor's estate gross estate less all allowable deductions except the federal estate tax marital deduction, is less than the maximum value of the unified credit against the federal estate tax, in which case the entire amount of the deceased Trustor's trust property shall be allocated to the Survivor's Sitare. For purposes of calculations under this subsection, the Survivor's Share 7-2 shall be reduced by the value of other property passing to it under this trust agreement, the deceased Trustor's probate estate, or otherwise that qualifies for the federal estate tax marital deduction. C; Survivor's Share to be Administered as Survivor's Trust The Survivor's Share shall be held, administered and distributed according to the provisions of the Survivor's Trust as set forth in Article Eight of this trust agreement. do Property Transferred to the Family Share The Family Share shall consist of all assets not distributed to the Survivor's Share. Family Share to be Administered as Family Trust The Family Share shall be held, administered and distributed according to the provisions of the Family Trust as set forth in Article Nine of this trust agreement. Section 2. Allocation and Valuation of Assets In allocating assets between the Survivor's Share and the Family Share, our Trustee shall allocate the trust assets that qualify for the marital deduction between the Survivor's Share and the Family Share in cash or in kind, or partly in each, on a pro rata or non pro rata basis, and in undivided interests or not; subject, however, to the following: Qualification for Marital Deduction Only assets that qualify for the marital deduction shall be allocated to the Survivor's Share. be Valuations of Allocations in Kind Assets allocated in kind shall be deemed to satisfy the marital deduction amount on the basis of their values as finally determined for federal estate tax purposes; provided, however, that our Trustee shall act impartially, consistent with equitable principles, requiring impartiality among beneficiaries, in allocating assets in satisfaction of the marital deduction share, so that any distribution of assets in satisfaction of the marital deduction share shall be made of assets, including cash, fairly representative of appreciation or depreciation in the value of all property thus available for distribution. e. Income The Survivor's Share shall be entitled to a pro rata share of the income earned on deceased Trustor's residuary probate and trust assets from the date of deceased Trustor's death, including a share of income earned on assets used to discharge liabilities. de Foreign Death Tax Credit Our Trustee shall not allocate assets that qualify for the foreign death tax credit to the Survivor's Share unless all other assets or interests available for allocation have been so allocated. Insurance on the Life of the Surviving Trustor Our Trustee shall not allocate any Policy of insurance on the life of the surviving Trustor to the Survivor's Share that is the separate property of the deceased Trustor. Insurance on the Lives of Others Any incidents of ownership to a policy of insurance on the life of a person other than the deceased Trustor shall be allocated to the Family Share. g. Lack of Property to Fully Fund the Survivor's Share If there is insufficient property qualifying for the federal estate tax marital deduction to fully fund the Survivor's Share, the funding to the Survivor's Share · shall be reduced accordingly. Article 3. Intention that SurvivOr's Share Qualify for Marital Deduction We intend that the Survivor's Share qualify for the federal estate tax marital deduction and this agreement shall be construed accordingly. All other provisions of this trust agreement shall be subordinate to that intent. If the granting of any right, power, privilege, authority, or immunity to our Trustee or another person and the imposition of any duty upon our Trustee or another person by any provision of this trust agreement, would disqualify any share or interest of a beneficiary hereunder from qualifying for the federal estate tax marital deduction ' provided by Section 2056 of the Code, such provision shall be ineffective if and to the extent that the same, if effective, w~>uld so disqualify such share or interest. The provisions of this Section shall also apply to the deceased Trustor's probate estate, personal representative and all beneficiaries, devisees and legatees. Notwithstanding any other provision in this trust agreement to the contrary, the surviving Trustor at any time shall.have the right to direct our Trustee, in writing, to convert, within a reasonable time, any unproductive trust property to income producing property. Section 4. Disclaimer of Property Any property or portion of property that is disclaimed by the surviving Trustor shall be held, administered, or distributed according to the following terms: a. Property Disclaimed The surviving Trustor may disclaim any property held or distributed to or for the benefit of the surviving Trustor under this trust agreement. b. Time to Disclaim The surviving Trustor may disclaim within the time limits and under the conditions permitted by the laws regulating disclaimers. c. Delivery of Disclaimer to Our Trustee A disclaimer by the surviving Tmstor may be exercised by the delivery to our Trustee of an irrevocable and unconditional refusal:to accept any or all property interests passing to the surviving Trustor or the Survivor's Share. d. Disclaimer of Survivor's Share If the surviving Trustor exercises a disclaimer with respect to any or all property set aside as the Survivor's Share, such disclaimed interest shall be added to the Family Share. e. Disclaimer of Family Share If the surviving Trustor exercises a disclaimer with respect to any or all property set aside as the Family Share, such disclaimed interest shall be distributed under the relevant terms of this agreement as though the surviving Trustor had predeceased the deceased. Trustor. Article Eight Survivor's Trust Section 1. Rights of Surviving Trustor in the Survivor's Trust Our Trustee shall hold, administer and distribute the assets of the Survivor's Trust as follows: Payment of Income Our Trustee shall pay to or apply for the benefit of the surviving Trustor, so long as the surviving Trustor lives, the entire net income of the Survivor's Trust in monthly or other convenient installments agreed upon by the surviving Trustor and our Trustee, but not less often than annually. Discretionary Payment of Principal At any time or times during the trust term, our Trustee shall pay to or apply for the benefit of the surviving Trustor so much of the principal of the Survivor's Trust as our Trustee deems proper for the surviving Trustor's comfort, welfare and happiness. In exercising discretion, our Trustee shall give the consideration that our Trustee deems proper to all other income and resources then readily available to the surviving Trustor for use for these purposes that are then known to our Trustee. Right of Surviving Trustor to Withdraw Principal Our Trustee shall pay to the surviving Trustor as much of the trust principal of the Survivor's Trust as the surviving Trustor may from time to time demand in a signed writing delivered to our Trustee. General Power of Appointment Upon the death of the surviving Trustor, our Trustee shall distribute all of the trust property, including the trust principal and accrued and undistributed income, to any person or entity, person or persons, and upon any trust, terms and conditions, or to or in favor of the estate of the surviving Tru~tor, as the surviving Trustor may direct by his or her last will or living trust agreement. No exercise of this general power of appointment shall be .effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general power of 8-1 appointment. Our Trustee may rely upon any instrument admitted to probate as the last will of the surviving Trustor in carrying out the terms of the power 6f appointment and shall not be liable for any good-faith act in reliance upon that will, even if for any reason it is later determined to be invalid with respect to its purported exercise of this power of appointment. Section 2. Trustee's Discretion to Pay Debts and Taxes The Survivor's Trust shall terminate upon the death of the surviving Trustor. Our Trustee, shall hold, and admin!~ster the unappointed balance or remainder of the Survivor's Trust as follows: Surviving Trustor's Debts and Taxes Our Trustee in its sole discretion may pay all or any part of the surviving Trustor's following expenses, debts, claims and taxes becoming due or payable by reason of the surviving Trustor's death: 1. Final medical expenses and all funeral costs; 2. Legally enforceable claims against the surviving Trustor or the surviving Trustor's estate; 3. Reasonable expenses of administration of this trust and the surviving Trustor's probate estate, if any; Any allowances mandated by a court of competent jurisdiction to those dependent upon the surviving Trustor; o Any estate, inheritance, succession, death or ~imilar taxes payable by reason of the death of the. surviving Trustor; and Section 3. 6. Any penalties or interest on any of the above claims, debts or taxes owed by the surviving Trustor or the surviving Trustor's estate. .! Payment by Our Trustee or Personal Representative Our Trustee in its sole discretion may make distributions authorized under this Article either directly to the person or entities to whom' payment is owed or to the personal representative of the surviving Trustor's probate estate. Written statements by the surviving Trustor's personal representative that such sums are due and payable by the estate shall be sufficient evidence of their amount and propriety for the protection of our Trustee. Our Trustee shall be under no duty to see~ to the application of any such payments made to the surviving Trustor's >ersonal representative. Section 4. Tax Elections With regard to the payment of any income tax, girl tax, estate tax, inheritance tax or any other tax required because of the death of the surviving Trustor, our Trustee shall have the right to make any available elections allowed under the law. Our Trustee is authorized to sign and file any tax return required because of the death of the surviving Trustor. Section 5. Administration of Survivor's Trust Remainder After payment of debts, expenses and taxes, our Trustee shall hold and administer the unappointed balance or remainder of the Survivor's Trust as provided in the Articles that follow. Article Nine Family Trust Section 1. Rights of Surviving Trustor in the. Family Trust Our Trustee shall hold, administer and distribute the assets of the Family Trust as follows: ae Payment of Income Our Trustee shall pay to or apply for the benefit of the surviving Trustor, so long as the surviving Trustor lives, the entire net income of the Family Trust in monthly or other convenient installments agreed upon by the surviving Trustor and our Trustee, but not less often than annually. Discretionary Payment of Principal At any time or times during the trust term, our Trustee shall pay to or apply for the benefit of the surviving Trustor so much of the principal of the Family Trust as our Trustee in its discretion deems proper for the surviving Trustor's health, maintenance, support and education. Guidelines for Trustees Discretion No amount paid or applied need thereafter be repaid to our Trustee or restored to our trust. In exercising discretion, our Trustee shall give the consideration that our Trustee deems proper to all other income and resources that are known to our Trustee and that are readily available to the surviving Trustor for use for these purposes. All decisions of our Trustee regarding payments under this subsection, if any, are within our Trustee's discretion and shall be final and incontestable by anyone. Our Trustee shall accumulate and add to principal any net income not distributed. de Limitation on Discretionary Payment of Principal by Trustee We recommend, but it is not mandatory,-that our Trustee shall first exhaust the. principal from the Survivor's Trust before makin~g discretionary payments of principal to the surviving Trustor from the Family Trust. Surviving Trustor's Right to Withdraw Principal The surviving Trustor shall have the power to withdraw from the Family Trust principal each calendar year those amount~ that shall not exceed the greater of five thousand dollars ($5,000) or five (5) percent of the'assets, valued as of the end of the preceding calendar year. The surviv!ng Trustor shall exercise this power by a written instrUment signed by him or her and delivered to our Trustee. This power is noncumulative and to the extent it is not exercised by the end of January of each calendar year, it shall lapse. This power shall exist each year until the death of the surviving Trustor. Section 2. Termination of the Family Trust On the death of the surviving Trustor, the Family Trust shall terminate. All undistributed trust assets, including any accrued and undistributed net income, shall be held, administered and distributed in the Articles that follow. Article Ten Common Pot Trust After the death of the surviving Trustor, our Trustee shall not create a Common Pot Trust. All trust property that has not been distributed under prior Articles of this trust agreement shall be held, administered, divided, and distributed according to the ~rovisions of the Articles that follow. 10-1 Article Eleven Division and Distribution of Trust Property Section 1. Division of Trust Property Into Shares Our Trustee shall divide all trust property not previously distributed into separate shares of equal market value as follows: a. One Share for Each Living Child Our Trustee shall create one share for each of our then living children. b. One Share for Each Deceased Child Our Trustee shall create one share for each of our deceased children who has then- living descendants. Section 2. Distribution of Trust Shares for Our Living Children The trust share of each our children who survive us shall be held, administered and distributed as follows: ne Distribution of Net Income and Principal Our Trustee shall promptly distribute, free of the trust, all accumulated net income and principal of the trust share to each of our living children who survive us. b. Distribution Upon Death,of a Child Who Survives Us If any child who survives us dies before the complete distribution of his or her trust share that child's trust share shall terminate and our Trustee shall distribute the balance of the trust property to such child's then-living descendants per stirpes. If such deceased child has no then-living descendants our Trustee shall distribute the balance of the trust property equally to the othe¥ beneficiaries named in this Article per stirpes. 11-1 Section 3. Distribution of Trust Share for Descendant of Deceased Child Our Trustee shall promptly distribute, free of the trust, all accumulated net income and principal of the trust share set aside for each of our deceased children to their descendants per stirpes. Section 4. Distributions to Underage or Disabled Beneficiaries Notwithstanding any other provision in this trust agreement, if any person otherwise entitled to receive a distribution of trust property is under 25 years of age or is mentally disabled or legally incompetent as defined in Article Fifteen, our Trustee shall retain and administer that person's trust property for his or her benefit as follOws: a. Our Trustee's Discretion Our Trustee may pay to or apply for the benefit of such beneficiary so much of the net income and principal of the trust as our Trustee in its discretion deems proper considering all other sources of income and resources available to such beneficiary and known to our Trustee. b. Payments Made to Beneficiary or Personal Representative Our Trustee is authorized to make payments under this Section either directly to the beneficiary, to the beneficiary's personal representative or to any other person our Trustee may deem proper to be used for the benefit of the beneficiary. Trustee's Decisions are Final All decisions by our Trustee as to those it makes payment to, the purposes for which these payments are made and the amounts to be paid out of' the trust are within our Trustee's sole and absolute discretion. ' de Undistributed Net Income Ali undistributed net income shall be accumulated and added to the principal of the trust. ...... 11-2 ee · Termination and Distribution Our Trustee shall distribute the trust property to a beneficiary under this Section when such beneficiary reaches age 25, or when he or she is no longer disabled as determined by a court of competent jurisdiction, or upon certification by two licensed physicians that such beneficiary is able to properly care for his or her property and person, or at a later date if other trust provisions in this Article direct. Death of Disabled or Underage Beneficiary Upon the death of a beneficiary under this Section, our Trustee shall distribute all of such beneficiary's remaining trust share, including the trust principal and accrued and undistributed income, to any person or entity and upon any trust, terms and conditions, or to or in favor of the estate of such deceased beneficiary, as he or she may direct by his or her last will or living trust agreement. No exercise of this general power of appointment shall' be effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general power of appointment. 11-3 Article Twelve Distribution if No Designated Beneficiaries NONE 12-1 Article Thirteen Trustee Administration Section 1. Required Vote for Co-Trustees Trustors Serving as Co-Trustees If both of us are serving as Trustees at the same time under this agreement, either one of us may make decisions and bind the trust in the exercise of all powers and discretions granted to us under this agreement without the consent of any other Trustee. be Unanimous Vote for Two Trustees If only two Trustees are serving other than the two of us, they shall act unanimously in' the exercise of all poWers and discretions granted to them under this agreement. Majority Vote for More Than Two Trustees At any time that there are more than two Trustees serving under this agreement, they shall act by majority vote and any exercise of a power or discretion by a majority of the Trustees shall have the same effect as 'an exercise by all of them. Court Order Resolves Disputes If the Trustees, other than the two of us, are not able to reach agreement on any decision as set forth in this Section, they shall petition a court of competent jurisdiction for instructions and shall take no action on the disputed matter until a court order deciding the issue has been rendered. Section 2. Power to Delegate Notwithstanding any other provision of this agreement, any one or more of the Co-Trustees serving under this agreement may from time to time .delegate to another Co-Trustee or Co-Trustees routine acts of trust administration. 13-1 Section 3. No Bond Required No Trustee under this agreement shall be required to post any bond for the faithful performance of its responsibilities. Section 4. Trustee Compensation Our Trustee shall be entitled to reasonable compensation for services rendered payable without the need for a court order. In calculating the amount of compensation customary charges for similar services in the same geographic area for the same time period shall be used as guidelines. Our Trustee shall also be entitled to reimbursement for reasonable costs and expenses incurred during the exercise of its duties under this agreement. Section 5. Change in Corporate Trustee Any corporate successor to the trust business of any corporate Trustee named under this agreement or acting hereunder shall succeed to the capacity of its predecessor without re- conveyance or transfer of trust property. Section 6. Power to Divide or Combine Trusts Our Trustee shall have the power to divide a single trust into separate shares, each to be administered in accordance with the terms and conditions of the single trust from which they were created when our Trustee in its discretion determines that divisiori is desirable or advisable in view of tax considerations, including considerations related to the income tax, the gift tax, the estate tax or the generation-skipping transfer tax or. other objective~ of the trusts and their beneficiaries. Our Trustee shall not be required to make a physical segregation or division of the various trust shares created under this trust agreement except as segregation or division may be required by reason of the termination and distribution of any of the trusts, but my Trustee shall keep separate accounts and records for different undivided interests. Our Trustee in its discretion shall have the further power tq combine two or more trusts having substantially the same terms into a single trust for purposes of administration when tax or other factors indicate that such combination would be desirable or advisable. 13-2 In deciding whether to combine trusts our Trustee should consider the generation-skipping "inclusion ratio" of the trusts to be combined. Trusts having the same inclusion ratios may be combined. Trusts having different inclusion ratios should generally not be combined unless their inclusion ratios are maintained unchanged through substantially separate and independent shares of different beneficiaries within the meaning of I.R.C. Section 2654(b), and the applicable regulations thereunder. Section 7. Termination of Small Trust Our Trustee shall have the power in its discretion to terminate any trust created under this trust agreement after the death of both Trustors whenever it becomes so small in relation to the costs of administration as to make continuing administration uneconomical. Upon termination, our Trustee shall distribute the principal and any accrued or undistributed net income to the income beneficiaries in proportion to their shares of the income. If no fixed amount of income is payable to specific beneficiaries, our Trustee shall distribute the principal and any accrued or undistributed net income in equal shares to those beneficiaries who would then be entitled to income payments from the trust. 'Section 8. Limit on Trustee's Discretion Notwithstanding any language purporting to confer absolute, sole or unrestricted discretion on our Trustee in exercising any discretionary power with respect to this trust, our Trustee shall at all times act in accordance with fiduciary principles and shall not act in bad faith or in disregard of the purposes of our trust. Section 9. Written Notice to Trustee Until our Trustee receives written notice of any death or other event which triggers the right to payments from any trust created under this agreement, it shall incur no' liability for distributions made in good faith to persons whose interests may have been affected by such event. Section 10. Duty to Account Our Trustee shall render accounts to the income beneficiaries under this trust agreement at least annually at the termination of a trust created hereunder and upon a change in the Trustees in the manner required by law. 13-3 Section 11. No Court Supervision No trust created under this agreement shall require the active supervision of any state or federal court. 13-4 Article Fourteen Trustee Investment Powers Section 1. Trustee's Powers To carry out the purposes of the' trusts created under this agreement and subject to any limitations stated elsewhere in this instrument, our Trustee shall have all of the following powers in addition to all of the powers now or hereafter conferred On Trustees by law: Retention of Property Our Trustee shall have the power to retain any property received into the trust at its inception 'or later added to the trust without regard to whether the trust investments are diversified as long as our Tiustee considers that retention is in the best interests of the trust or in furtherance of our goals in creating the trust. b. Additions Our Trustee shall have the power to receive additions to the assets of the various trusts created under this agreement from any source. Business Participation Our Trustee shall have the power to terminate, to continue or to participate in the- operation of any business enterprise including a corporation, a sole proprietorship or a general or limited partnership and to effect any form of incorporation, dissolution, liquidation, reorganization, including but not limited to recapitalization and reallocation of classes of shares or other change in the for/n of the business enterprise or to lend money or make a capital contribution to any such business enterprise. Permissible Investments Our Trustee shall have the power to invest and reinvest the assets of the trust as our Trustee may determine to be in the best interests of the trust without limitation by any law applicable to investments by fiduciaries! The permitted investments and reinvestments may include securities such as common or preferred stock, mortgages, notes, subordinated debentures .and warrants of any corporation and any common trust fund administered by a corporate fiduciary or other property real or personal including savings accounts and deposits and interests in mutual or money market funds or investment trusts, annuities and insurance whether or not such 14-1 investments are unsecured or of a wasting nature. Dealing with Property Our Trustee shall have the power to acquire, grant or dispose of property including puts, calls and options (including options on stock owned by the estaie), for cash or on credit, including maintaining margin accounts with brokers at public or private sale upon such terms and conditions as the fiduciary may deem advisable and to manage, develop, improve, exchange, partition, change the character of, abandon property or any interest therein or otherwise deal with property. Borrowing Authority Our Trustee shall have the power to borrow funds from any person including our Trustee, guarantee indebtedness or indemnify others in the name of the trust and to secure any such obligation by mortgage, pledge, security interest or other encumbrance and to renew, extend or modify any such obligation for a term within or extending beyond the administration of the term of the trust. No lender shall be bound to see to or be liable for the application of the proceeds of any obligation and our Trustee shall not be personally liable for any obligation. Leasing Authority Our Trustee shall have the power to make, renew or amend for any purpose a lease as lessor or lessee for a term within or beyond the term of the trust with or without option to purchase. he Natural Resources Our Trustee shall have the power to enter into any arrangement or agreement, including a lease, pooling or unitization agreement for exploration, development, operation, conservation and removal of minerals or other natural resources. i. Voting Rights Our Trustee shall have the power to vote a security in person or by general or limited proxy, to participate in or consent to any voting trust, reorganization, dissolution, liquidation or other action affecting .any securities and to deposit securities with and transfer title to a protective or ~ther committee. j. Title to Assets Our Trustee shall have the power to hold securities and other property in negotiable form or in the name of a nominee (including "street name" of a broker) 14-2 or by deposit to a clearing corporation with or without disclosure of the Trustee relationship, but our Trustee shall be responsible for the acts of any nominee or clearing corporation in connection with the property. k. Insurance Our Trustee shall have the power to insure the assets of the trust against any risk and our Trustee against liability with respect to third persons. Settlement of Disputes Our Trustee shall have the power to pay or contest any debt or claim and to compromise, release and adjust any debt or claim and to submit any matter to arbitration. ' me Payment of Expenses Our Trustee shall have the power to pay any taxes, assessments, reasonable compensation of our Trustee and other expenses incurred in the collection, management, care, protection and conservation of the trust property. ne Principal and Income Our Trustee shall have the power to allocate items of income or expenditure to either income or principal and to create reserves out of the income, all as provided by law and to the extent not so provided to allocate or create reserves as our Trustee in its discretion deems appropriate and our Trustee's decision made in good faith with respect thereto shall be binding and conclusive on all persons. o. Division of Trust Our Trustee shall have the power to make any distribution or payment in kind or in cash or partly in kind and partly in cash and to cause any share to be composed of cash, property or undivided interests in property different in kind from any other share, either pro rata or non pro rata, without regard to differences in the tax basis of such property and without the requirement of making any adjustment of the shares by reason of any action taken pursuant hereto. Any division, allocation, apportionment or valuation of the property to distribute the assets to or among any of the trusts or beneficiaries shall be made by our Trustee and the good faith determination of our Trustee shall be binding and conclusive on all parties. P. Litigation 14-3 Our Trustee shall have the power to prosecute or defend actions, suits, claims or proceedings for the protection or benefit of the trust and our Trustee in the performance of our Trustee's duties. Employment of Agents Our Trustee shall have the power to employ agents, including attorneys, accountants, investment advisors, custodians, appraisers or others, to advise or assist our Trustee and to delegate to them fiduciary powers and to indemnify them against liability for positions taken in good faith and with reasonable basis. re Corporate Fiduciary If any stock of a corporate Trustee or of any affiliate or successor of a corporate Trustee shall be included in the assets of the trust, the Trustee shall have full authority in the Trustee's sole discretion and 'notwithstanding any regulation or rule of law to the contrary to retain the stock and any increases resulting from stock dividends and stock splits and from the exercise of purchase rights and the purchase of fractional shares needed to round out fractional share holdings that may arise concerning the stock. The Trustee shall vote the stock either directly or by proxy, except to the extent the Trustee is prohibited by law from voting the stock, in accordance with the written instructions of a majority of the living beneficiaries then entitled to current distributions of income or their personal representatives. In the event there are no eligible beneficiaries to give instructions, the Trustee is authorized to vote the stock in the best interests of the beneficiaries, in view of the purposes for which the trust was created. Investment Transactions With regard to record keeping for investment transactions, our Trustee need not provide copies of confirmations or similar notifications each' time a trade or investment transaction occurs, but investment transactions shall be set forth in our Trustee's periodic accounting. Repairs and Improvements Our Trustee shall have the power to make ordinary or extraordinary repairs or alterations in buildings or other structures, to demolish any improvements, to raze existing or erect new party walls or buildings. .~ Ue Business Personnel Our Trustee shall have the power to elect or employ directors, officers, employees, partners or agents of any business and to compensate such persons, whether or not 14-4 any such person is a Trustee, director, officer, partner or agent of a Trustee or a beneficiary of the trust. Ve Farm or Ranch Property With respect to farm or ranch property, our Trustee shall have the power to participate in and operate any farming (including tree farming) or ranch operation personally or with hired labor, tenants or sharecroppers to lease any farm for cash or a share of crops under a lease which permits or precludes the material participation of our Trustee to fertilize and improve the soil, to employ conservation practices and to participate in government programs and to perform any other acts deemed necessary or desirable to operate the property. In making a decision whether to materially participate in farming or ranch operations, our Trustee shall consider whether an election should be made or has been made under IRC § 2032A to qualify for special farm-use valuation. Ancillary Trustees If, for any reason, our Trustee deems it advantageous to act through an ancillary Trustee, our Trustee may designate an ancillary personal representative or Trustee qualified to serve in.the jurisdiction where such ancillary Trustee is to act and may delegate to such ancillary Trustee such of the powers granted under this agreement as our Trustee deems advisable without being chargeable with loss if any arising out of such designation or delegation. Our Trustee may specify whether any corporate Trustee or any person or persons acting in an ancillary capacity hereunder shall serve with or without bond. ~Except as may be otherwise specifically provided, no ancillary Trustee need comply with the provisions of any Uniform Trustee's Accounting Act, the Uniform Trust Act or similar acts in force in any state where the fiduciary may be acting. x. Retention of Closely Held Interest Our Trustee shall have the power to retain any real estate interests, closely held securities or affiliated companies or business interests, and to sell or dispose of such interests only after careful consideration and after determining that sale or disposition is in the existing circumstances in the best interests of the trust or its beneficiaries. y. Exercise of Authority '~ Except as. otherwise provided in this agreement, our Trustee shall have the power to do all acts that might legally be done by an individual in absolute ownership and control of property. 14-5 . ge Powers of an Interested Trustee Any Trustee who has an interest as a beneficiary in this trust agreement or any trust created by it shall be an interested Trustee. In all instances where an interested Trustee distributes or participates in the distribution of trust income or principal to or for the benefit of such Trustee which is limited by any standard other than the standards of education, health, maintenance and support, then the distribution shall be limited by the ascertainable standards of education, health, maintenance and support. No individual Trustee shall, exercise or participate in the exercise of such discretionary power regarding distributions to any person or persons such Trustee is legally obligated to support as to that support obligation. 14-6 Article Fifteen General Provisions Section 1. Spendthrift Protection Neither the principal nor the income of any trust created or contained under this agreement shall be liable for the debts of a beneficiary nor shall the same be subject to seizure by any creditor of any beneficiary under any lien or proceeding at law or equity. Except to the extent otherwise expressly provided in this agreement, no beneficiary shall have the authority or power to sell, assign, transfer, encumber or in any manner to dispose of a beneficial interest whether income or principal. The limitations herein shall not restrict the exercise of any power of appointment or the right to disclaim by any beneficiary. Section 2. The Rule Against Perpetuities Unless sooner terminated or vested in accordance with other provisions of this agreement, all interests not otherwise vested including but not 'limited to all trusts and powers of appointment created hereunder shall terminate twenty-one (21) years after the death of the last survivor of the group composed of us and our lineal descendants living on the date of the death of the first of us to die. At that time, distribution of all principal and all accrued, accumulated and undistributed income shall be made to the persons then entitled to distributions of income and in the manner and proportions herein stated irrespective of their then attained ages. Section 3. Incompetency and Disability For all purposes under this agreement, a person shall be deemed, disabled, incompetent or legally incapacitated if and so'long as a guardian or conservator of his or her person or estate duly appointed by a court of competent jurisdiction continues to serve, or upon certification by two licensed physicians that such person is unable properly to care for his or her person or property. Section 4.~ Income and Principal Payments All payments of income or principal shall be made in such'bf the following ways as our Trustee determines appropriate: 15-I ao Co eo go To each respective beneficiary in person upon his or her personal receipt; Deposited in any bank to the credit of such beneficiary in any account carried in his or her name or jointly with another or others; To the parent or legal representative of the beneficiary; To a Custodian under a Uniform Transfers to Minors Act selected by our Trustee for such period of time under applicable law as our Trustee determines appropriate; To some near relative,' friend or institution' having primary responsibility for the care and custody of the beneficiary; By our Trustee using such payment directly for the benefit of such beneficiary; or To our Trustee of any revocable trust of which the beneficiary is the Trustor. Section 5. Education For all purposes under this agreement, the term "education" shall be given broad interpretation and may include but not be limited to: a. High School Education at public or private elementary or high schools, including boarding schOols. , b. College · Undergraduate and graduate study in any and all fields whatsoever, whether of a professional character in colleges or other institutions of higher learning. c. Specialized Training .. , Specialized formal or informal training in music, the stage, the handicrafts, the arts, or vocational or trade schools whether by private instruction or otherwise. '15-2' d, Other Educational Activities. Any other activity including foreign or domestic travel which shall tend to develop fully the talents and .potentialities of each beneficiary regardless of age. Section 6. No-Contest Clause If any person or entity, other than one of us singularly or in conjunction with any other person or entity directly or indirectly contests in any court the validity of this agreement, including any amendments thereto, then the right of that person or entity to take any interest in the trust property shall cease and that person or entity shall be deemed to have predeceased both of us. Section 7. Disclaimer by Beneficiary No beneficiary shall be entitled to accelerate any distribution to the beneficiary or to terminate his or her trust interest and thereafter receive outright distribution by use of a disclaimer. Section 8. Simultaneous Death For purposes of this agreement; if we die under circumstances in which the order of our deaths cannot be established the Trustor with the smaller'taxable estate shall be deemed to have survived the Trustor with the larger taxable estate. If both of our taxable estates are equal, the husband Trustor shall be deemed to be the survivor. If any beneficiary under this agreement and either or both Trustors die under circumstances in which the order, of deaths cannot be established, the Trustors or Trustor shall be deemed to have survived the beneficiary and this agreement shall be construed accordingly. Section 9. Children and Issue For purposes of this agreement, "children" means the lawful blood descendants in the first degree of the parent designated and "issue" and "descendants" mean the lawful blood descendants in any degree of the ancestor designated provided, however, that. if a person has been adopted, that person shall be considered a child of such adopting parent Sd such adopted child and his or her issue shall be considered as issue of the adopting, parent or parents 'and of anyone who is by blood or adoption an ancestor of the adopting parent or either of the adopting parents. The terms "child," "children," "issue," "descendant" and "descendants" or those terms preceded by the terms "living" or "then living" shall include the lawful blood descendant in the first degree of the parent designated even though such descendant is born after the death of such parent. 15-3 Section 10. Definition of Death Taxes The term "death taxes," as used in this agreement, shall mean all inheritance, estate, succession and other similar taxes that are payable by any person on account of that person's interest in the estate of the decedent or by reason of the decedent's death, including penalties and interest but excluding the following: ao Any addition to the federal estate tax for any "excess retirement accumulation under Internal Revenue Code Section 4980A. bo Any additional tax that may be assessed under Internal Revenue Code Section 2032A. Co 'Any federal or state tax imposed .on a generation-skipping transfer, as that term is defined in the federal tax laws, unless that generation- skipping transfer tax is payable directly out of the assets of a trust creat.ed by this instrument. Section .11. Words Relating to the Internal Revenue Code As used in this agreement, the words "gross estate," "adjusted' gross estate," "taxable estate," "unified credit," "state death tax credit," "maximum marital deduction," "marital deduction," "pass" and any other word or words which from the context in which it or they are used refer to the Internal Revenue Code shall have the same meaning as such words have for the purposes · of applying the Internal Revenue Code to our estate. For purposes of this agreement, our "available generation-skipping transfer exemption" means the generation-skipping transfer tax exemption provided in section 2631 of the Internal Revenue Code of 1986, as amended, in effect at the time of each of our deaths reduced by the aggregate of (I) the amount, if any, of our exemption allocated to our lifetime transfers by us or by operation of law and (2) the amount, if any,' we have specifically allocated to other property of our gross estate for federal estate tax purposes. For purposes of this trust agreement, if at the time of each of our deaths either of us has made gifts with an inclusion ratio of greater than zero for which the gift tax return due date has not expired including extensions and a return has not yet been filed, it shall be deemed that the generation-skipping transfer exemption has been allocated to these transfers to the extent necessary and possible to exempt the transfers from generation-skipping transfer tax. Reference to Sections of the Internal Revenue Code and to the Internal Revenue Code shall refer to the Internal Revenue Code amended to the date of each of our deaths. Section 12. Personal Representative 15-4 For purpgses of this agreement, the term "personal representative" shall mean Trustee, executor, executrix, administrator, administratrix, conservator, guardian, custodian or any other type of personal representation. Section 13. Gender and Number In this agreement where appropriate except where the context otherwise requires, the singular includes the plural and words 0f any gender shall not be limited to that gender. Section 14. Definition of Per Stirpes As used in this agreement, when a distribution to beneficiaries is "per stirpes," it shall mean that the distributions are to be divided into as many equal Shares as there are then living children of such beneficiaries and deceased children of such beneficiaries who left then-living descendants. Each then-living child of the beneficiary shall receive one share and the share that is allocated to each deceased child of the beneficiary shall be divided equally among such deceased child's then-living descendants. Section 15. Captions The captions of Articles, Sections and Paragraphs used in this agreement are for convenience of reference only and shall have no significance in the construction or interpretation of this agreement. Section 16. Severability Should any of the provisions of this agreement be for any reason declared invalid, such invalidity shall not affect any of the other provisions of this instrument, and all invalid provisions shall be wholly disregarded in interpreting this agreement. Section 17. Statutory References Unless the context clearly requires another construction, each statutory reference in this agreement shall be construed to refer to the statutory section mentioned, related successor sections and corresponding provisions of any subsequent law including all amendments. i5-5 Section 18. Governing State Law This agreement and the trusts created under it shall be construed, regulated and governed by and in accordance with the l~aws of the State of Pennsylvania. We have executed this agreement on the date set forth on the first page of this agreement. We certify that we have read our foregoing revocable living trust agreement and that it correctly states the terms and conditions under which our trust property is to be 'held, managed and disposed of by our Trustee. We approve this revocable living trust in all particulars and request our Trustee to execute it. WILLIAM NICOLAI, Tmstor WILLIAM NICOLAI, Trustee FRANCES D. NICOLAI, Tmstor FRANCES D. NICOLAI, Trustee 15-6 l STATE OF PENNSYLVANIA COUNTY OF DAUPHIN SS On this the oZ-~4b day of /9?/ql t_ ,19.~ ,beforeme, /9 ,q/d'77h%~/ PL[P2LiC , the undersigned officer, personally appel'ed WILLIAM NICOLAI and FR~CES D. NICOLAI, Tmstors, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument and acknowledged that they executed the same for the purposes therein contained. In witness whereof I hereunto set my hand and official seal. Tide of Officer J Hershey, P.A Dauphin County .. J [ My Commie.on Exoires June 2, 1997j STATE OF PENNSYLVANIA ) SS COUNTY OF DAUPHIN . ) " On th/s the ~PC-o4~ day of ~i/,_ , 19 ~, before me, /6[ /VdYT'/C-tL[/ /c:'Lt~t...iC. , the undersigned officer, personally appeared WILLIAM NICOLAI, and FRANCES D. NICOLAI, Trustees, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument and acknowledged that 'they executed the 'same for the purposes therein contained. In witness whereof I hereunto set my hand and Official seal. ~5~ary Public''/ Title of Officer NOTARIAL SEAL J JENNIFER D. MILLER, Notary Public 1 Hershey, PA Dauphin County '.'| My Commission Expires June 2. ggTj 15-7 ~ '~~U~, made the ~ay~of April, in the year of our Lord one thousand nine hundred and ninety-five (1995), WILLIAM NICOLAI and FRANCES D. NICOLAI, husband and wife, of Cumberland County, Pennsylvania~ Grantors .- WILLIAM NICOLAI and FRANCES D. NICOLAI, Trustees, or their successors in trust, under the WILLIAM NICOLAI and FRANCES D. NICOLAI LIVING TRUST DATED APR 2 5 7~9~ ,.and any amendments thereto, as Joint Tenants With the Right of Survivorship, Grantees ~'~e~eg, That the said Grantors, for and in consideration of the sum of One and No/100 ($1.00)' Dollars, lawful money of the United States of America, unto them well and truly paid by the said Grantees at or before the sealing and delivery hereof, the receipt whereof is hereby acknowledged, have granted, bargained and sold, released and confirmed, and by these presents do grant, bargain and sell, release and confirm unto the said Grantees, their heirs, personal representatives and assigns. ALL THAT CERTAIN lot or piece of land situate in the Borough of New Cumberland, County of Cumberland and State of Pennsylvania, more particularly bounded and described on Exhibit "A" attached hereto. BEING the same premises which Ernest T. Papp, by his Deed dated and 'recorded August 17, i990 in Deed Book Vol. S-34,. Page 747 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, granted and conveyed unto William Nicolai and Frances D. Nicolai, husband and wife, the Grantors herein. UNDER AND SUBJECT to all restrictions, easements, covenants, conditions and agreements of record. TOGETHER with all and singular the buildings and improvements, ways, streets, alleys, passages, waters, water- courses, rights, liberties, privileges, hereditaments and appurtenances, whatsoever unto the hereby granted premises belonging, or in any wise appertaining, and the reversions and remainders, rents, issues and profits thereof; and all the estafe, right, title interest, property, claim and demand whatsoever of them, the said Grantors, as well at law as in equity, of, in and to the same. TO HAVE AND TO HOLD the said lot or piece of ground above described, with the messuage or tenement thereon erected, hereditaments and premises hereby granted, or mentioned and intended so to be, with the appurtenances, unto the said Grantees, their heirs, personal representatives assigns, to and for the only proper use and behoof of the said Grantees, their heirs, personal representatives and assigns, forever. AND the said Grantors, for themselves, their heirs, personal representatives and assigns, do covenant, promise and agree, to and with the said Grantees, their heirs,.personal representatives and assigns, by these presents, that they, the said GrantOrs, their heirs, personal representatives and assigns, all and singular the hereditaments and premises hereby granted or mentioned and intended so to be, with the appurtenances, unto the said Grantees, their heirs, personal representatives and assigns, against them, the said Grantors, their heirs, personal representatives and assigns, and against all and every person and persons whomsoever lawfully claiming or t6 claim the same or any part thereof, by, from or under him, her, them or any of them, shall and will, Subject as aforesaid, WARRANT and forever DEFEND. ~~ ~~, the Grantors have hereunto set their hands and seals. Dated the day and year first above written. Sealed and Delivered WIL~LIAM NICOLAI FRANCES D. NICOLAI [00 i2i 463 -2- I hereby certify that the precise residence of the Grantee herein is as follows: c/o William and Frances D. Nicolai, Trustees 334 Bailey Street, New Cumberland, PA 17070 Agent/AttOrney for Grantees COMMONWEALTH OF PENNSYLVANIA : : ss COU19~Y OF DAUPHIN : On this, the~~ay of April, 1995, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared WILLIAM NICOLAI and FRANCES D. NICOLAI, husband and wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument and acknowledged that they 'executed the same for the purposes therein contained. IN WITNESS WHEREOF. I hereunto set my hand and official seal. NOTARIAL SEAL I ,/~ JENNIFER D. MILLER, Notary Public . Hershey, PA Dauphin County ~____.Z~y..~c_~ My Commission Ex0ires June 2,1997 J / /- Nota~ ~lic ,~' ,3i~'- '":'~ CO~Y OF C~ER~ ~CORDED in the Office of the Recorder of Deeds,in 'and ~,~.~: ' C~erland County, zn Record Book ..%% k , Page ~ ~%~ ........... WITNESS my hand~~~i!qia~.s,ea1 this ~ & day o* .... i21 464 EXHIBIT "A" ALL THAT CERTAIN lot or piece of land'situate in the Borough of New Cumberland, County of Cumberland and.State of Pennsylvania, bounded and described as follows: BEGINNING at a point on the south side of Bailey Street 411-3/10 feet West of the northwest corner of Bailey and Bridge Streets, at the division line between Lot Nos. 101 and 102 on Plan hereinafter mentioned; thence southwardly by said division line, at right angles to Bailey Street~160 feet to a 20-foot wide lane; thence westwardly by the northern line of said lane 65 feet; thence northwardly at right angles to Bailey Street 160 feet to Bailey Street; thence eastwardly by the southern line of Bailey Street 65 feet to the place of BEGINNING. BEING the eastern most 15.~et of Lot No. 100 and all of Lot No. 101 on'th~"P~an--o~ ~ldeman recorded in the Cumberland County Recorder of.Deeds Office in Plan Book 2, Page 48 BEING the premises known as 334 Bailey Street, New Cumberland, Pennsylvania. First Union National Bank Atto: Account Verifications P O Box 40028 Roanoke VA 24022-7313 Reference ID: 188724 August 16, 2001 SUSAN E LEDERER LAW OFFICES 4811 JONESTOWN ROAD, SUITE 226 HARRISBURG, PA 17109 SUBJECT: Verification / Con/marion of Account and Balance Information provided for: FRANCES D NICOLAI (SSN# 313-20-7563) Date of Death: April 27, 2001 Account Type Deposit Account Information Account Date of Death Average Date Maturity Interest Accrued Number Balance Balance* Opened Date Rate Interest CHECKING 1000501520813 $268.14 LEGAL TITLE: WILLIAM NICOLAI TR OR FRANCES D. NICOLAI TR W & F NICOLAI LIV TRUST DTD 04/25/95 YTD Interest Paid 3/3/1988 $0.05 $0.04 Date Closed 6/27/2001 IRA 257410050265044 $2,952.31 LEGAL TITLE: FRANCES D. NICOLAI For Beneficiary Claim Form information, please call 1 (800)669-2136. 10/26/1999 $9.92 $36.32 * Due to system limitations, we can only provide a twelve month average balance on depository accounts. Account Account Type Number INSTANT CASH RESERVE Revolvine Credit Information Date of Death Credit Date Date Times Title(s) Balance Limit Opened Closed Late 4361065012402838 $0.00 9/30/1988 WILLIAM NICOLAI TROR FRANCES D. NICOLAI TR W/F NICOLAI LIV TRUST DTD 04/25/95 001032 Reference ID: 188724 No Safe Deposit Box found for customer. * Date.of death balance does not include accrued interest. * If date of death occurrs on a weekend or a holiday, date of death balance does not include any transactions that were made during that time period. Julia Sorrells August 16, 2001 Date Servicenter Associate (540)563-7323 Depository Representative Title . Phone Number abs; ag 001032 To: Bonnie L SnydedConsumedSCP/PNC@PNC cc: Subject: Re: Date of death balances~ Estate of Frances D NiColai Deceased SS# 313-20-7563 DOD 04-27-2001 ACCOUNT NUMBER *DATE OF DEATH BALANCE + ACCRUED INTEREST CDS ~31500189874 $21,163.83 + $39.43 - CDS ~31700157063 $5,517.92 + $12.23- DDA #5140232244 $859.28 + SVG #5130160419 $10,271.80 + SVG #5130160523 $26,234.10 + .Safe deposit box #7. Located at the Cedar Cliff Mall . If you selected the balances to be sent to the "Branch" they will only be sent to the requestor by Lotus Notes. Have a great day!!! :-) Mon tgomery Scott August 8, 2001 Susan E. Lederer 4811 Jonestown Road Suite 226 Harrisburg, PA 17109 20 Erford Road Suite 315 Lemoyne, PA 17043~1109 (7 i 7) 731~4400 fax: (717) 731-4411 RE: Account# HB07 6230-4523 William Nicolai and Frances D Nicolai Co-Trustees William Nicolai & Frances D. Nicolai Living Trust DTD 4-25-95 Dear Ms. Lederer, . In resPonse to you letter dated August 4, 2001 concerning the above- mentioned account, which was established on September 15, 1995, the date of death value is attached. I apologize for the incomplete information you received after your first request. If you need any additional information, please feel free to contact either H. Craig Watkins or myself at 717-731-4400. Sincerely, Daphne L. Williams Sales Assistant HCW/dlw Members: NYSE · NASD · SIPC Quantity Security High Low 1,000 American United Global Inc .16 .16 166 Canadian Piper Air Corporation .005 .005 400 Corporate Office PPTYS Preferred 25.00 24.75 1,500 Credit Suisse High Yield Bond 6.07 5.96 1,000 Sun Capital Trust II 8.875% 9.60 9.50 NAV Value 500 PLM Equipment Growth Fund VI 9.004 4,502.00 500 PLM Equipment Growth & Income 10.784 5,392.00 Fund VIII 1,000 Nuveen Peroni Summer 2000 5.3182 5,318.20 Price 10,000 Butler PA Authority 8.00% 2/01/21 98.00 9800.00 Cusip# 123591AR0 14,000 Chevy ChaseBank 7.25% 05/17/02 100.00 10,000.00 Cusip# 166784HS0 15,000 Ford Motor Credit 5.75% 02/23/04 99.375 14,906.25 Cusip# 345397SH7 15,000 Gettysburg PA 4.20% 06/01/01 100.125 15,018.75 Cusip# 374305AW0 10,000 Household Bank 7.35% 05/24/02 100.00 10,000.00 10,000 Montgomery County PA 5.50% 97.00 9,700.00 07/01/04 Cusip# 613603MY2 10,000 Montgomery County PA Higher Ed 99.00 9,900.00 5.10% 09/01/01 Cusip# 613603 LR8 10,000 Niagara Mohawk 9.25% 10/01/01 101.625 10,162.50 15,000 Cusip# 653522BV3 Northampton PA 4.65% 12/15/02 98.50 14,775.00 Cusip# 66359KR3 10,000 Philadelphia PA Hospital Rev 98.50 9,850.00 6.60% 07/01/10 Cusip# 717903PU6 15,000 Westmoreland PA 4.90% 11/15/02 98.60 17,790.00 Cusip# 961008NJ4 Money Market Balance 21,579.08 eg~s~er or Wii!s 65 =~' .... PB99o~ 6 ~ ~_ ~ MAILED FROM ZiP CODE First Class Mail I!elN sselo 4811 Jonestown Road Suite 226 Harrisburg, PA 17109 TO: Register of Wills Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 BUREAU OF INDIVIDUAL TAXES ZNHERZTAHCE TAX DZV/SIOH DEPT. HARRISBURG, PA 17118-0601 COHHONWEALTH OF PENNSYLVANIA DEPARTHENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAZSEHENT, ALLONANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSHENT OF TAX RE¥-lSgi7 EX AFP (01-02) SUSAN E LEDERER STE 226 q811JONESTOWN RD HBG Reco, ~:~;,,~*- ~ ,,~L.<;. * of DATE 0~,-22-2002 ~, ~,~ ~/: ~ ESTATE OF N~COLA~ DATE OF DEATH 0q-27-2001 FILE NUH~ER 21 02-0018 '02 29 P3:21 COUNTY CUHBERLAND ACN 'Z01 Amoun~ Ram~ed FRANCES HAKE CHECK PAYABLE AND REHZT PAYHENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG TH'rS LZNE ~'* RETAZN LOWER PORTZON FOR YOUR RECORDS *-~ REV-15~7 EX AFP (01-02) NOTI'CE OF ZNHERZTANCE TAX APPRAZSEHENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSHENT OF TAX ESTATE OF NICOLAI FRANCES D F]:LE NO. 21 02-0018 ACN 101 DATE 0q-22-2002 TAX RETURN HAS: (X) ACCEPTED AS F/LED ( ) CHANGED RESERVATION CONCERN]:NG FUTURE ]:NTEREST - SEE REVERSE APPRAZSED VALUE OF RETURN BASED OH: ORIGINAL RETURN' 1~ Real Es~a~e (Schedule A) (1) 2. S~ocks and Bonds (Schedule B) (2) $. Closely Held S~ock/Par~nership Zn~eres~ (Schedule C) ($) ~. Hot,gages/No,es Receivable (Schedule D) (q) $. Cash/Bank Deposi~s/Hisc. Personal Proper~y (Schedule E) (5) 6. Jointly O~ned Proper~y (Schedule F) (6) 7. Transfers (Schedule G) (7) 8. To~al Asse~s APPROVED DEDUCTIONS AND EXEHPTZONS: 9. Funeral Expenses/Adm. Cos~s/Hisc. Expenses (Schedule H) (9) 10. Debts/Hot,gage L[abili~ies/Liens (Schedule 1) (10) 11. To~al Deductions 12. Ne~ Value of Tax Re~urn 15. 1~. Charitable~Governmental Bequests; Non-elec*ed 9115 Trusts (Schedule J) Ne~ Value of Es*a~e Sub5ec~ ~o Tax O0 O0 O0 O0 $06 ~~. O0 182;796.$6 (8) 5,10q.78 36.51 NOTE: To insure proper credi~ *o your account, submi~ ~he upper portion of ~his for. wi~h your ~ax payment. NOTE: 183,102.36 ASSESSHENT OF TAX: 15. Amoun~ of Line 1~ a~ Spousal ra~e 16. Amoun~ of Line 1~ ~axable a~ Lineal/Class A ra*e 17. Amoun~ of L~ne 1~ a~ SiblAng ra~a 18. Amoun~ of Line 1~ ~axable at Collateral/Class B 19. Principa! Tax Due TAX CREDITS: PAYHENT RECEZPT DISCOUNT DATE NUHBER /NTEREST/PEN PAID (-) (15) 2,962.23 x O0 = .00 (16) .00 x Off5= .00 (17) .00 x 1Z = .00 (18) .00 X 15 = .00 (19)= . O0 AHOUNT PAID TOTAL TAX CREDIT BALANCE OF TAX DUE ZNTEREST AND PEN. TOTAL DUE ZF PAID AFTER DATE INDICATED, SEE REVERSE ( ZF TOTAL DUE IS LESS THAN $1, NO PAYNENT IS REQUIRED. FOR CALCULATION OF ADDITIONAL INTEREST. ZF TOTAL DUE ZS REFLECTED AS A 'CREDIT' (CR), YOU NAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORH FOR INSTRUCTIONS.) .00 .00 .00 .00 reflect figures that include the total of ALL returns assessed to date. ]:t: an assessment was lssued previously, lines 1~, 15 and/or 16, 17, 18 and 19 will (11) (12) 177,961.07 (15) 17~,998.8~ (1~) 2,962.23 , RESERVATION: PURPOSE OF NOTICE: PAYNENT: REFUND OBJECTIONS: ADNIN- ZSTRATIVE CORRECTIONS: DISCOUNT: PENALTY: INTEREST: Estates of decedents dying on or before December 12, 198Z -- if any future interest in the estate is transferred inpossassion or enjoyment to Class D (collateral) beneficiaries of the decedent after the expiration of any estate for lifo or for years, the Commonaealth hereby expressly reserves the right to appraise and assess transfer'Inheritance Taxes at the 1aclu1 Class B (collateral) rate on any such future interest. To fulfill the requirements of Section ZlqO of the-Inheritance and Estate Tax Act, Act ZS of ZOO0. (TZ P.S. Section 91qO). ' ' Detach the top portion of this Notice and submit mith your payment to the Register of Nills printed on the reverse side. --Make check or money order payable to: REGISTER OF NI~LS~ AGENT A refund of a tax credit, which was not requested on the Tax Return, may be requested by completing an "Application for Refund of Pennsylvania Inheritance and Estate Tax" [REV-ISIS). Applications are available at the Office of the Register of Nills, any of the ZS Revenue District Offices, or by calling the special Z~-hour answering service for forms ordering: 1-800-36Z-ZOSO~ services for taxpayers ~ith special hearing and / or speaking needs: 1-800-qqT-SOZO (TT only)r. Any party in interest not.satisfied ~iththe appraisement, allowance, er disalloeance of deductions, or assessment of tax (including discount or interest) as sho~n on this Notice must abject ~ithin sixty (60) days of receipt of this Notice by: --~rittan protest to the PA Department of Revenue, Board of Appeals, Dept. Z81021, Harrisburg, PA IT1ZS-IOZ1, OR --election to have the matter determined at audit of the account of the personal representative, OR --appeal to the Orphans' Court. Factual errors discovered on this assessment should be addressed in writing to: PA Department of Revenue,. Bureau of Individual Taxes, ATTN: Post Assessment Review Unit, Dept. 280601, Harrisburg, PA 17128-0601 Phone (717) 787-6505. See page 5 of the booklet "Instructions for Inheritance Tax Return for a Resident Decedent" (REVr1501) for an explanation of administratively correctable errors. . If any tax due is paid within three (S) calendar months after the decedent's death, a five percent (SI) discount of the tax paid is alloaed. The 1SI tax amnesty pan-participation pehalty is computed'on the total of the tax and interest assessed, and not paid before January 18, 1996, the first, day after the end of the tax amnesty period. This non-participation penalty is appealable in the same manne~ and in the the same time'period as you would appeal the tax and interest that has been assessed as indicated on this notice. Interest is charged beginning ~ith first day of delinquency, or nine (93 months and one (1) day from the date of death, to the date of payment. Taxes ~hich became delinquan~ before January 1, 198Z bear interest at the rate of six (SZ) percent per annum calculated at a daily rate of .OOO16q. All taxes which became delinquent on and after January 1, 198~ will bear interest at a rate which will vary from calendar year to calendar year with that rate announced by the PA Department of Revenue. The'applicable interest rates for 198Z through ZOOZ are: Year' Interest Rate Daily Interest Factor 'Year Interest Rate Daily Interest Factor 1982 20Z .0005q8 1992 9Z .O00Zq7 1985 16Z .OOOfiS8 199~-199~ · 7Z .00019Z 198q llZ .000~01 1995-1998 9Z .O00Z~7 1985 lSZ .000556 1999 7Z .O0019Z 1986 IOZ .O00Z7fi ZOOO 8Z .O00gl9 1987 9Z .O00Zfi7 2001 9Z .O00Zq7 1988-1991 llZ .O00SO! ZOO2 62 .00016~ --Interest is calculated as'follo~s: INTEREST = BALANCE OF TAX UNPAID X NUNBER OF DAYS DELINQUENT X DAILY INTEREST FACTOR -:Any Notice issued after the tax becomes'delinquent will reflect an interest calculation to fifteen (15) days beyond the date of the assessment. If payment is made after the interest computation da~e sheen on the Notice, additional interest must be calculated.