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Home My WebLink About08-22-08 (2)F:IFILES1Clients112690 Dixon\12690.1.objections.QTIP.8.21.0$.wpd ~ ~; : IN THE COURT OF COMMON PLEAS OF ESTATE OF LOTTIE TVY DIXON, :CUMBERLAND COUNTY, PENNSYLVANIA Deceased, ORPHANS' COURT DIVISION ~, "~; ~: _- `-, ~.,,. NO.21-07-0686 ~ ~ ,a ._, ;- ~ :< , - -- ;.~ - _ OBJECTIONS TO THE FIRST INTERMEDIATE ACCOUNTING -`~ '~ OF THE ESTATE OF LOTTIE IVY DIXON - ~~ ~- ' -5 ,,~ ^-., AND NOW, comes Richard E. Dixon, George F. Dixon, III and Manufacturers and Traders .~; 'Trust Company, Trustees of the QTIP Trust under the George F. Dixon, Jr. Revocable Trust under ~4greement dated May 16, 1985 (the "QTIP Trust"), by and through their attorneys, MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, and file the following Objections to the First and Intermediate Accounting of Marshall L. Dixon, Executor of the Estate of Lottie Ivy Dixon, and aver as follows: 1. The Decedent's husband, George F. Dixon, Jr., died before the Decedent and through h.is amended and restated Agreement of Trust he created a QTIP Trust for the lifetime benefit of the Lecedent. 2. The assets of the QTIl' Trust are included in the Decedent's Estate for federal estate tax purposes. 3. The Trustees of the QTIP Trust remitted to Elizabeth P. Mullaugh, Esquire, of McNees, Wallace & Nurick, as counsel to the Estate, a check in the sum of $4,851,303.78 payable to the United States Treasury for the amount of federal estate tax which the Estate determined to be allocated to the QTIP Trust. 4. The check was submitted to McNees, Wallace & Nurick with a clearly expressed understanding that the check would be remitted to the Internal Revenue Service with the request for extension of time to file the estate tax return, and that any refund received after the filing of the eventual return would be immediately returned to the QTIP Trust. A copy of the letter transmitting such check is attached as Exhibit "A". 5. The federal estate tax return for Decedent's Estate showed that the QTIP Trust's share of the federal estate tax return was in fact $4,713,491.28, thus producing a refund of $137,812.50. 6. The Internal Revenue Service issued a refund of the federal estate tax by check payable to the Estate of Lottie Ivy Dixon and such check was deposited to the Estate. 7. Rather than returning to the QTIP Trust its rightful share of the federal estate tax and in complete disregard of the terms and conditions under which the QTIP Trust delivered the check to McNees, Wallace & Nurick, the Estate and its counsel confiscated $128,344.28 of such refund. WHEREFORE, Objectors respectfully request that The Executor immediately return to the QTIP Trust the sum of $128,344.28 with interest. Respectfully submitted, MARTSON LAW OFFICES By: No V. Otto, III, Esquire I.D. No. 27763 Hubert X. Gilroy I.D. No. 29943 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: Augus008 Attorneys for Objectors t,; _. Y ~1~~~+1~5~; ~LV..lO~~ itll^ & SINC~N LLP March 28, 2008 Rte: DIXON MATT>/RS VIA HAND DELIVERY Elizabeth P. Mullaugh, Esquire MCN>rls, WALLACE & NURICK 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Dear Elizabeth: Enclosed please find the following checks: ~ ~ ~~ Stanley A. Smith plr (717) 23 t-6628 fx (7l 7) 23 f -6676 ssmith a rhoads-ninon,cam Fis.e rto: l 0789/02 1. M&T Investment Group check from the George Dixon QTIP Trust payable to the U.S. Treasury in the amount of $4,851,303.78. . 2. M&T Bank check from Mrs. Dixon's Revocable Trust payable to the U.S. • Treasury in the amount of $18,626.67. 3. M&T Bank check from Mrs. Dixon's Revocable Trust payable to the Pennsylvania Department of Revenue in the amount of $6,438.43. 4. M~ScT Bank check from the George Dixon QTIP Trust payable to the Estate of Lottie Ivy Dixon in the amount of $12,430.07, being accnled #ncome on the Trust's investment portfolio as of Mrs. Dixon's date of death. S. M&T Bank check payable to the Pennsylvania Department of Revernle in t#le amount of $422.72 in payment of George Dixon's and Richard Dixon's share of the Pennsylvania Inheritance Tax. This was not drawn from the George or Lottie Dixon accounts. These checlts are being remitted to you as counsel to Mrs. Dixon's estate and with the following understandings. We understand that they will be remitted to the appropriate tax authorities today with extension requests, along with other checks for tax due. Additionally, we -- are delivering the checks to you and your firm with the expectation that you will assure that any refunds that might arise will be promptly delivered to the source of the payment to'whicll the refund relates. In particular, if the ultimate valuation of the Sheaffer Farm should be lower than the presumed amount for the purposes of the prepayment of tax, it is •our understanding and expectation that that refund resulting from that reduction would be promptly returned to the QTIP Trust. ~~ 6841',76.1 Rhoads Sr 5inon LLP • Attorneys at Law • Twelfth door • Onc South Maricct 5quarc• • PO. Doi 1116 ' - HarrisUurg. PA 1710$-1.146.• plt (717) 233-5731 • fe (717) 232-1459 • w~vw.rlioacl5-sinan.com _ ~....~ March 2S, 2008 Page 2 ,,, Thank you for your continued efforts in this matter. Very truly yours, Enclosures cc: Mr. Joseph A. Macri, M&T•Bank (w/o encl) Mr. Richard Dixon (w/enci) Mr. George Dixon (wlcncl) No V. Otto, III, Esquire (wlencl} 1h CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent for Martson Deardorff Williams Otto Gilroy & Faller, hereby certify that a copy of the foregoing Obj ections was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Elizabeth P. Mullaugh, Esquire McNEES, WALLACE & NURICK 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 MARTSON LAW OFFICES By: / (. M .Price Ten st High Street Carlisle, PA 17013 (717) 243-3341 Dated: ~~~~~