HomeMy WebLinkAbout09-15-08 (2)J 1 505605 1 058
._.
06
REV-1500 EX
05
PA De
artment
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Bureau of Individual Taxes
e~. Coun Code Year File Number
ty
Po Boxzsosol INHERITANCE TAX RETURN
Harrisburg, PA 17128-0601 RESIDENT DECEDENT a ~ 6`~ dU1-1
ENTER DECEDENT INFORMATION BELOW
Social Security Number Date of Death Date of Birth
168-21i-3874 12/16/2007 '. 09/10/1933
Decedent's Last Name Suffix Decedent's Firs t Name MI
Runk Donald L
(If Applicable) Enter Surviving Spouse's Information Below
Spouse's Last Name Suffix Spouse's First Name MI
Runk Joyce L
Spouse's Social Security Number _ __
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
zo9-2s-s41a REGISTER OF WILLS
FILL IN APPROPRIATE OVALS BELOW
1. Original Return `;:,, 2. Supplemental Return „_:.~. 3. Remainder Return (date of death
prior to 12-13-82)
-:-, 4. Limited Estate _,_, 4a. Future Interest Compromise (date of ._.. . 5. Federal Estate Tax Return Required
death after 12-12-82)
'. 6. Decedent Died Testate *~', 7. Decedent Maintained a Living Trust 1.- .. 8. Total Number of Safe Deposit Boxes
(Attach Copy of Will) (Attach Copy of Trust)
9. Litigation Proceeds Received ~.'m~ 10. Spousal Poverty Credit (date of death ;~~""~ 11. Election to tax under Sec. 9113(A)
between 12-31-91 and 1-1-95) (Attach Sch, O)
CORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO:
Name Daytime Telephone Number
.Charles L. Kern (717) 763-0888
Firm Name (If Applicable) - --
REGISTER OF WILLS USE O~II~Y
Kern and Company
P.C ~~
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:
First line of address ._
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2331 Market St : ~ ' ~~
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Second line of address J.-. ~' t r ~ ~"i
--
_ _ _ - _
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,
City or Post Office
_ State ZIP Code
~ DATE_FIIED --
~_ _ . _ _ _ _-
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Camp Hill PA 17011 --_
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Correspondent's a-mail address: kern@panetWOrk.COm
Under penalties of perjury, I declare that I have
it is true, correct and complete. Decla~n of
SIGNATURE OF
i d this return, including accompanying schedules and statements, and to the best of my knowledge and belief,
other than the personal representative is based on all information of which preparer has any knowledge.
RETURN
DATE
..- / ) ,
ADDRESS I ~' '
SIGN RE PREP ER OT E TH EPRESENTATIVE ~ DATE
ADDRESS
2331 Market St. Camp Hill, PA 17011
PLEASE USE ORIGINAL FORM ONLY
Side 1
15056051058 15056051058
r~
15056052059
REV-1500 EX
Decedent's Social Security Number
Donald L Runk
' 168-26-3874
Decedent
s Name:
REC APITULATION
1.
..........................................
Real estate (Schedule A). 1.
.. 0.00
2.
.....................................
Stocks and Bonds (Schedule B) 2,
.. 0.00
3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ... .. 3. 0.00
4.
9 9 ( ) ...........................
Mort a es & Notes Receivable Schedule D 4.
.. 0.00
5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ...... .. 5. 96,151.00
6. Jointly Owned Property (Schedule F) ::~:' Separate Billing Requested ..... .. 6. 0.00
7. Inter-Vivos Transfers i;< Miscellaneous Non-Probate Property
(Schedule G) ':: ::: Separate Billing Requested...... .. 7. 2,576,644.00
8. Total Gross Assets (total Lines 1-7) .................................. .. 8. 2,672,795.00
9. Funeral Expenses BAdministrative Costs (Schedule H) ................... .. 9. 8,305.00
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) .............. .. 10. 0.00
11. Total Deductions (total Lines 9 & 10) ................................. .. 11. 8,305.00
12. Net Value of Estate (Line 8 minus Line 11) ............................ .. 12. 2,664,490.00
13. Charitable and Governmental Bequests/Sec 9113 Trusts for which
an election to tax has not been made (Schedule J) ...................... .. 13. 2,205,030.00
14. Net Value Subject to Tax (Line 12 minus Line 13) ......................
. .. 14.
_
. 459,460.00
._.._ .
.
_.._._~e __ ..__.. _ _...._. _ _......_ _.. _., __ ,. _..~ _
TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES _
.
.
15. Amount of Line 14 taxable
at the spousal tax rate, or
transfers under Sec. 9116
(a)(1.2) X .0_ 15.
16. Amount of Line 14 taxable
at lineal rate X .0 45 459,460.00
18.
20,676.00
17. Amount of Line 14 taxable
at sibling rate X .12 17.
18. Amount of Line 14 taxable
at collateral rate X .15 18.
19. TAX DUE ....................................................... ..19. 20,676.00
20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT ~
15056052059 Side 2
15056052059
REV-1500 EX Page 3
Decedent's Complete Address:
File Number
DECEDENT'S NAME DECEDENT'S SOCIAL SECURITY NUMBER
Donald L Runk 168-26-3874
STREET ADDRESS
6350 North Powderhorn Rd.
CITY
Mechanicsburg STATE
PA ZIP
17055
Tax Payments and Credits:
1. Tax Due (Page 2 Line 19)
2. Credits/Payments 0.00
A. Spousal Poverty Credit
B. Prior Payments 25,000.00
C. Discount
3. InterestlPenalty if applicable
D. Interest
E. Penalty
1,034.00
0.00
0.00
Total Credits (A + B + C) (2)
Total Interest/Penalty (D + E) (3)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Fill in oval on Page 2, Line 20 to request a refund. (4)
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5)
A. Enter the interest on the tax due. (5A)
B. En1:er the total of Line 5 + 5A. This is the BALANCE DUE. (5B)
20,676.00
26,034.00
0.00
5, 358.00
0.00
0.00
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 transierred :.................................................................................... ...... ~ ^
b. retain the right 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? ................................................................ ...... ^ 0
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death
without receiving adequate consideration? ....................................................................................................... ....... ^X ^
3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? ....... ....... ^
4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ................................................................................................................. ....... 0 ^
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
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 three (3) percent [72 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 to or for the use of the surviving spouse is zero (0) percent
[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 zero (0) percent [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 four and one-half (4.5) percent, 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 twelve (12) percent [72 P.S. §9116(a)(1.3)]. Asibling 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-1508 EX+ (6-98)
~~~
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
ESTATE OF FILE NUMBER
Donald L. Runk
Include the proceeds of litigation and the date the proceeds were received by the estate.
All property jointly-owned with right of survivorship must be disclosed on Schedule F.
(If more space is needed, insert additional sheets of the same size)
REV-1510 EX+ (6-98)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
ESTATE OF FILE NUMBER
Donald L. Runk
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 yes.
ITEtvI
NUMBER DESCRIPTION OF PROPERTY
INCLUDE THE NAME Of THE TRANSFEREE, THEIR RELATIONSHIP TO DECEOENTAND
THE DATE OF TRANSFER.ATTACHACDPYOFTHEDEEDFDRREALESTATE.
DATE OF DEATH
VALUE OF ASSET
% OF DECD'S
INTEREST
EXCLUSION
(IF APPLICABLE)
TAXABLE
VALUE
~ Merrill Lynch IRA Account. Transferred 2/4/08 470,118.00 100 470,118.00
Beneficiaries: Donna Friedman, daughter
Debra Brooks, daughter
Diana Boyer, daughter
Darlene Sworen, daughter
Sheila Douglas, daughter
St. Jude's Children's Hospital
2 Two Life Charitable Gift Annuity. Transferred 214108
The United Methodist Stewardship Foundation 44,452.00 100 44,452.00
3 Charitable Gift Annuity. Transferred 1130108 52,718.00 100 52,718.00
St. Jude's Children's Hospital
4 Donald and Joyce L. Runk Trust. Transferred 2/5108 2,009,356.00 100 2,009,356.00
TOTAL (Also enter on line 7 Recapitulation) $ I 2,576,644.00
(If more space is needed, insert additional sheets of the same size)
REV-1511 EX+ (12-99)
SCHEDULE H
COMMONWEALTH OF PENNSYLVANIA FUNERAL EXPENSES &
INHERITANCE TAX RETURN ADMINISTRATIVE COSTS
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
Donald L. Runk
Debts of decedent must be reported on Schedule I.
ITEM
NUMBER DESCRIPTION AMOUNT
A. FUNERAL EXPENSES:
~' St. Mark's Church 1,300.00
B. ADMINISTRATIVE COSTS:
1. Personal Representative's Commissions
Name of Personal Representative(s)
Social Security Number(s)/EIN Number of Personal Representative(s)
Street Address
City .State
Year(s) Commission Paid:
2. Attorney Fees
3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
Claimant
Street Address
City State
Relationship of Claimant to Decedent
4. Probate Fees
5. Accountant's Fees
6. Tax Return Preparer's Fees
z. Estate Publication
Zip
Zip
5,500.00
530.00
0.00
900.00
75.00
TOTAL (Also enter on line 9, Recapitulation) I $ 8, 305.00
(If more space is needed, insert additional sheets of the same size)
REV-1513 EX+ (9-00) ~
SCHEDULE J
COMMONWEALTH OF PENNSYLVANIA BENEFICIARIES
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
Donald L. Runk
RELATIONSHIP TO DECEDENT AMOUNT OR SHARE
NUMBER 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))
1 Donna Friedman 7979 Drumbeat Place Jessup, MD 20794 Daughter 93,553
2 Debra Brooks 12 Bay Pines Drive Hilton Head Island, SC 29928 Daughter 93,553
3 Dianna Boyer P 0 Box 802 Valley View, PA 17983 Daughter 93,553
4 Darlene Sworen 924 S. York St. Mechanicsburg, PA 17055 Daughter 93,553
5 Sheila Douglas 2249 Casper Ave. Waterloo, IA 50701 Daughter 93,553
Total I I 467,765
ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET
d[
1
2
3
4
NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE
Orrstown Bank 81,603
Merrill Lynch 5,128
Donald and Joyce L. Runk Trust 2,009,356
2004 Mercury Monterey Minivan 9,420
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
5 St. Jude's Children's Hospital .5% of the Merrill Lynch IRA 2, 353
6 St. Jude's Children's Hospital 52,718
7 The United Methodist Stewardship Foundation 44,452
TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ 2,205,030
(If more space is needed, insert additional sheets of the same size)
~'
D ~UNDED REVOCABLE TRUST AGREEMENT
op
~^ ~ THIS AGREEMENT OF TRUST executed in duplicate this
~/ -
22nd day of August 1985 between
Donald L. Runk and Joyce L. Runk, of 110 Orchard Street, Mechanicsburg,
Pennsylvania, (hereinafter called Settlore), and CCNB Bank, N.A., of New
Cumberland, Cumberland County, Pennsylvania (hereinafter called Trustee),
W I T N E S SET H
FIRST: Settlore grant, assign and set over to Trustee
and its successors all of the property described in Schedule A, annexed hereto
and said property, together with all other property, real or personal, that may
be added to the trust (such property and additions. being hereinafter called
principal) shall be held by Trustee, IN TRUST, upon the following terms.
SECOND: Trustee shall manage all property comprising the
principal of this trust and shall collect the income therefrom and accretions
thereto and shall pay the net income and hold and distribute the principal of
said trust as follows:
A. Trustee shall pay the net income therefrom to Settlore
and the survivor of them for and during. their lives and the lifetime of the sur-
vivor of them, subject to the provisions of Item FIFTH, in such periodlc in-
stallments as Trustee shall find convenient but at least ae often as quarter-
annually.
B. Upon the death of the survivor of Settlore, Trustee
shall distribute the then-remaining principal and any accumulated or undistributed
income to the executor or administrator of the estate of the survivor of Settlore
for distribution as a part of his or her estate.
THIRD: The principal and income of this treat shall be free
from anticipation, assignment, pledge or obligation of Settlore and shall not be
subject to any execution or attachment or to voluntary or involuntary alienation.
FOURTH: Trustee shall have the folloving povera i^ additio^
to those vested in iC by lav and by other provisions of this trust, applicable to
sll property, whether principal or income, exercisable without court approval, and
effective until actual distribution of all property:
PAGE 1
A. To retain any or all of the. assets of this trust, real
or personal, including stock of Trustee, or of its parent holding company,
without regard to any principal of diversification or risk.
B. To. invest in all forms of property including stock,
common trust funds and mortgage investment funds whether operated by Trustee
or its parent holding company, without restriction to investments authorized
for Pennsylvania fiduciaries as it deems proper, without regard to any principal
of diversification or risk.
G. To sell at public or private sale, to exchange, or to
lease for any period of time, any real or personal property and to give options
for sales,~exchanges or leases, for such prices and upon such terms or conditions
as it deems proper.
D. To allocate receipts and expenses to principal or income
or partly to each as Trustee from time to time thinks proper in its sole discretion.
E. To hold property in the name of Settlors or either of
them, or in its name without designation of any fiduciary capacity, or in the ~ ~ /~
~"
name of a nominee or. unregistered. ~' ~ ~ ,. ~ ~~ ~ ~ ~~~ C / ~:
~FTH: ,'Trustee may apply the net income of this trust for
the support of Settlors and the survivor of them, should he, she or they by
reason of age, illness or any other cause in the opinion of Trustee be incapable
of disbursing it;~and Trustee is further authorized to expend or apply from the
principal of this trust such sums as it, in its sole discretion, may from time to
time think advisable for the support of Settlors or the survivor of them, to
maintain them and the survivor of them in the station of life to which they are
accustomed at the creation of this trust, or during illness or emergency.
SIXTH: Subject to the approval of Trustee, anyone may add
property, real or personal to the principal of this trust by deed, will or ottier-
wise.
SEVENTH: Trustee shall receive compensation for the performance
of its function hereunder in accordance with its standard schedule of fees in
effect from time to time during the period over which its services are performed.
PAGE 2
~`,
EIGHTH: Settlors reserve to themselves, and to the
survivor of them, the right by an instrument in writing intended to
take effect during their lifetime or during the lifetime of the survivor
signed by them or by the survivor and delivered to Trustee to revoke or
amend this agreement in whole or in part provided that the duties, powers
and liabilities of Trustee shall not. be substantially changed without i[a
written consent. Both 5ettlora must execute any such amendment or re-
vocation if both of them are living.
_ _. _.
_____ --- NINTH: The situs of this trust for administration and
accounting purposes shall be in the County of Cumberland and Commonwealth of
Pennsylvania, and all questions pertaining to the construction or validity
of the provisions of this instrument shall be governed by the laws of that
Commonwealth.
IN WITNESS WHEREOF, Settlors have hereunto set their
hands the day and year first above written and Trustee has executed this
instrument and caused i,ts corporate seal to be affixed hereto.
~~~~~~
uonald L. Runk
oy c L . Runic ~~~
CCNB Bank, N.A.
ATTEST:
~• BY ~~~~
Robert M. Lane
s' : Vite Pres. & Tr ,1 Oif. Vice President and
Senior Trust Officer
PAGE 3
C Oo G'~J
AMENDMENT TO THE FUNDED REVOCALBE TRUST AGREEMENT
DONALD L. RUNK AND JOYCE L. RUNK, SETTLORS
THIS AMENDMENT TO THE FUNDED REVOCABLE TRUST
AGREEMENT dated August 22, 1985, is made this 13`h day of November, 2007, by
DONALD L. RUNK and JOYCE L. RUNK (hereinafter called Settlors).
V6TTNESSETH
Settlors in accordance with Article EIGHTH of the Funded Revocable Trust
Agreement (hereinafter called Trust) dated August 22, 1985, which article provides for
the revocation or amendment of the Trust in whole or in part by Settlors, hereby make the
following amendments:
1. Article SECOND shall be eliminated in its entirety and substituted in lieu
thereof with the following:
A. Distributions During Settlors' Lives. While both Settlors are living, the
Trustee shall distribute to or for the benefit of the Settlors, the net income and principal
as the Settlors, or either of them, shall direct in writing. Initially, and until further written
notice from the Settlors, or either of them, to the Trustee, the Trustee shall distribute to
the Settlors the net income of the Trust. In the event of the incapacity of either of the
Settlors, then, notwithstanding any prior written instructions, the Trustee may distribute
to or for the benefit of either Settlor so much of the net income and principal as the
Trustee shall determine in its sole discretion to be necessary or appropriate for the health,
maintenance and support of either Settlor. The Trustee shall, for the purpose of this
Section, be the sole judge of the incapacity of the Settlors; no judicial determination shall
be required and the Trustee shall incur no liability to any person whomsoever for making
anv distribution under this Section.
B. Disposition of Trust Property on Settlor's Death.
1. Death of First Settlor. Upon the death of the first Settlor to die, the Trust,
including any assets to be made a part of this Trust as set forth in the Last Will and
Testament of the first Settlor to die (but excluding assets used to make the payments
described in Article ELEVENTH) shall be divided into two portions to be designated the
Family Fund and the Marital Fund.
2. Family Fund. The Family Trust shall consist of the largest amount that can
pass free of federal estate tax by reason of the applicable credit amount, the state death
tax credit and any other estate tax credits allowed by the Code; provided, however, that
any state death tax credit shall be taken into account only to the extent that it does not
result in an increase in the state death taxes which would otherwise be payable. In
making the computations necessary to determine the amount of this bequest, valuations
and credit amounts as finally determined for federal estate tax purposes shall control, and
the addition of adjusted taxable gifts to the value of the taxable estate shall be taken into
account so an to increase the amount of this legacy.
2.01 Principal and Income, Right of Withdrawal. After the death of
the first Settlor to die, the Trustee shall have the power to accumulate and distribute the
net income of the Family Trust in quarter-annual installments, or more frequently if the
Trustee deems it advisable, to or for the benefit of the surviving Settlor. The Settlors
suggest, but do not require, that principal distributions to the surviving Settlor for these
purposes be made first from the Marital Trust and second from the Family Trust. 1st
addition, the surviving Settlor shall have the absolute power to withdraw from the
principal such amount in any one calendar year, which amount shall be up to the greater
of Five Thousand Dollars ($5,000) or two percent (2%) of the aggregate value of the
principal of the Family Trust at the time of such withdrawal as he or she personally may,
in writing to the Trustee, demand at any time and from time to time; this right of
withdrawal shall not be cumulative.
2.02 Death of Surviving Settlor. Upon the death of the surviving
Settlor, any trust assets not currently in the Marital Fund or the Family Fund, and any
assets that would pour over from the Last Will and Testament of the surviving Settlor,
shall pass to the Family Fund for distribution in accordance with Sections 2.03, 2.04 and
2.05.
2.03 Division of Family Trust. Upon the .death of the surviving
Settlor, the Trustee shall make the following distributions from the Family Trust:
2.03.01 One-tenth (1/10`") for the benefit of my child, DARLENE
SWOREN, and one-tenth (1/10`") to be divided equally for the benefit of each of her
children then living, provided that if there are no children of my child then living, their
share shall be one-fifth (1!5`"} and not one-tenth (1/10`")
2.03.02 One-tenth (1/10`") for the benefit of my child, DIANE E.
BOYER, and one-tenth (1/10`") to be divided equally for the benefit of each of her
children then living, provided that if there are no children of my child then living, their
share shall be one-fifth (1/5`") and not one-tenth (1/10`")
2.03.03 One-tenth (1/l0`") for the benefit of my child, DEBBI'
BROOKS, and one-tenth (1110`") to be divided equally for the benefit of each of her
children then living, provided that if there are no children of my child then living, their
share shall be one-fifth (1/5`") and not one-tenth (1/10`").
2.03.04 One-tenth (1/10`") for the benefit of my child, DONNA
FREEDMAN, and one-tenth (1110`") to be divided equally for the benefit of each of her
children then living, provided that if there are no children of my child then living, their
share shall be one-fifth (1/5`") and not one-tenth (1/10`")
2.03.05 One-tenth (1/10th) for the benefit of my child, SHEILA R.
DOUGLAS, and one-tenth (1(10`h) to be divided equally for the benefit of each of her
children then living, provided that if there are no children of my child then living, their
share shall be one-fifth (1/5`h) and not one-tenth (1/10`h).
Any portion for the benefit of a child's children, my "grandchildren", set
forth above shall be held in Trust. Each such Trust shall be held and administered for the
benefit of the grandchild of the Settlors whose name designates that particular Trust and
for that child's descendants, subject to the other provisions of this Agreement.
(i) Distributions of Income and Principal. The Trustee, in its sole and
absolute discretion, shall accumulate the income of each Trust or shall
distribute to and among the beneficiaries of each Trust such amounts of
income and principal (even to the exhaustion thereof) as are necessary for
the health, support, maintenance, and (where applicable) education of the
respective beneficiaries, with such standards to be construed liberally. Tn
determining what distributions, if any, should be made, the Trustee may
(but is not so directed to) take into consideration all other sources of
income and principal available to each beneficiary. The Trustee may
make unequal distributions among the beneficiaries of each Trust and no
such distributions shall be taken into account in determining the respective
shares of beneficiaries upon the final distribution or division of each Trust.
(ii) Distribution Priorities. It is the Settlors' desire that, in determining
which beneficiaries of each Trust shall receive distributions, the Trustee
shall give preference to the individual needs of the beneficiaries taking
into consideration other available assets of the beneficiaries.
2.04 Final Distribution of the Family Fund. At the Distribution Date,
or as soon thereafter as is reasonably practicable, the Trustee shall make the following
dispositions of the properties in the Trusts established from the Family Trust. For
purposes of this section, the term "Distribution Date" shall mean the date of death of the
surviving Settlor.
(i) Younger Than Twenty-Five Years. As to any such Trust created for a
grandchild who has not reached his or her twenty-fifth (25th) birthday at
the Distribution Date, the trustee shall retain such share in Trust hereunder
for such child; and when such child reaches his twenty-fifth (25`h)
birthday, the Trustee shall distribute to such child one-third (U3) of the
principal and undistributed income then remaining in the Trust hereunder
for such grandchild. The balance of the Trust estate shall be continued in
trust for the beneficiary of such Trust, as set forth in Section 2.03. lUhen
such grandchild reaches his thirtieth (30`h) birthday, the Trustee shall
distribute to such child one-half (1/2) of the principal and undistributed
income then remaining in the Trust hereunder for such grandchild. The
balance of the Trust estate shall be continued in trust for the beneficiary of
such Trust, as set forth in Section 2.03.
(ii) Twenty-Five Years of Age. As to any grandchild of the Settlors who
has reached his or her twenty-fifth (25`h) birthday at the Distribution Date,
the Trustee shall distribute to such child one-third (1/3) of the principal
and undistributed income then remaining in the Trust of such child. The
balance of the Trust estate shall be continued in trust for the beneficiary of
such Trust, as set forth in Section 2.03. When such child reaches his
thirtieth (30`h) birthday, the Trustee shall distribute to such grandchild one-
half (1(2) of the principal and undistributed income then remaining in the
Trust hereunder for such grandchild. The balance of the Trust estate shall
be continued in trust for the beneficiary of such Trust, as set forth in
Section 2.03.
(iii) Termination of Trust at Age Thirty-Five. When any grandchild of
the Settlor has reached his or her thirty-fifth (35`h) birthday, the Trustee
shall distribute to such grandchild the principal and undistributed income
then remaining in the Trust of such grandchild and such Trust shall
terminate.
2.05 Special Power of Appointment in Child Dying Before Trust
Distribution. As to any grandchild of the Settlors for whom a trust is designated
pursuant to Section 2.04 but who dies before reaching his thirty-fifth (35`h) birthday, upon
the death of such grandchild the Trustee shall distribute all the principal and undistributed
income then remaining in the Trust for such grandchild as follows:
(i) Exercise of Power. In such proportions and in such manner, outright or
in trust or otherwise, to or for the benefit of any one or more persons or
corporations as such grandchild may appoint by specific reference hereto
in his Will admitted to probate; provided, however, that such child shall
have no power to appoint any principal or any undistributed income of the
Trust to himself, to his estate, to his creditors, or to the creditors of his
estate.
(ii) Non-Exercise of Power. If such grandchild shall not validly and
effectually exercise the foregoing power of appointment with respect to
the entire principal and undistributed income of her Trust, then such part
as he shall not effectually appoint shall be distributed to the descendants of
such grandchild, living at the death of such grandchild, per stirpes; or, if
such grandchild has no descendants then living, then to the Settlors'
descendants living at the death of such grandchild, per stirpes.
3. Alarital Fund. The remaining trust estate not allocated to the Family Fund
shall be allocated to the Marital Fund and shall be held as a separate trust known as the
Marital Trust.
3.01 Income and Principal. During the lifetime of the surviving Settlor,
the Trustee shall pay all the net income from the Marital Trust to the surviving Settlor in
quarterly or other convenient installments, but at least annually. The Trustee shall also
pay to the surviving Settlor such amounts of principal as the Trustee may deem necessary
for the health, support, and maintenance of the surviving Settlor, with such terms to be
liberally construed. The Settlors suggest, but do not require, that principal distributions
for these purposes be made first from this Trust rather than from the Family Trust. In
addition to the distribution of principal allo~~ed by the foregoing standards, the surviving
Settlor also shall have the right to withdraw such sums as the surviving Settlor shall
request at any time during the lifetime of the surviving Settlor, even to the exhaustion of
the Marital Trust. The right of the surviving Settlor to make these withdrawals shall be
exercised in each case by the surviving Settlor notifying the Trustee in writing to that
effect, specifying the amount desired to be withdrawn. Within a reasonable time
thereafter, the Trustee shall make the distributions directly to the surviving Settlor. In no
event and at no time during the life of the surviving Settlor shall Trustee pay to or apply
for the benefit of any person (other than the surviving Settlor) any portion of the principal
of the Marital Trust.
3.02 Termination of Marital Trust. Upon the death of the surviving
Settlor, the Trustee shall distribute the remaining principal and undistributed interest to
and among the Settlors' descendants and in such portions or amounts, either outright or
subject to lawful trusts, as the surviving Settlor may direct in his/her Will. This power
shall be deemed to have been exercised only in the event that the Will of the surviving
Settlor refers specifically to this power of appointment. To the extent that the surviving
Settlor shall fail to so exercise the foregoing power of appointment, the then remaining
principal of the Marital Trust and any undistributed income shall be disposed of as
follows:
(i) Administration and Other Expenses of Settlor. The Trustee may
distribute from the Marital Trust to the Executor or Administrator of the
estate of the surviving Settlor any amount of the remaining undistributed
income or principal (even to the exhaustion thereof) to pay any legally
enforceable debts (excluding debts secured by real estate) and funeral
expenses of the surviving Settlor, the expenses of the administration of the
estate of the surviving Settlor, and the federal estate and state death taxes,
if applicable, which may be due because of the death of the surviving
Settlor. The Trustee shall have the sole and absolute discretion to
determine the appropriateness of and amounts of any such distributions.
The Trustee shall not be responsible for the application of the amounts
distributed to such executor or administrator.
(ii) Other Dispositions. The assets remaining in the Marital Trust after
the above distributions shall be added to and become part of the principal
of the Family Trust as if originally a part thereof, to be continued in trust
or distributed as provided in this Agreement. Notwithstanding the
preceding sentence, to the extent that an allocation of Settlor's generation-
skipping transfer tax exemption under Section 2631 of the Code (the "GST
exemption" under Section 2631) is not made as to any asset remaining in
the Marital Trust after the above distributions, the Trustee may set apart,
in a separate Trust or Trusts (rather than adding such assets to the Family
Trust), assets equal in value to such assets as to which such election was
not made, with such set apart assets to be continued in trust or distributed
as provided in Article SECOND, Section B.2. of this Agreement. Any
such division into a separate Trust shall be made on the basis of the value
of the assets on the date of such division.
C. Contingent Trust for Persons Less than Age Thirty-Five.
Notwithstanding the preceding provisions of this Agreement, this Section shall apply if
any part of any Trust created in this Agreement would, upon partial or final termination
of the Trust, be distributed to a beneficiary (other than a child of the Settlor) who has not
reached his or her thirty-fifth (35`h) birthday, and no other Trust is created in this
Agreement for that beneficiary. If the Trustee, in its sole discretion so elects, that portion
shall be retained by the Trustee as a separate Trust for the benefit of the beneficiary.
Until the beneficiary reaches his or her thirty-fifth (35`h) birthday, the Trustee shall have
the power to accumulate all or a part of the income of that Trust or to distribute so much
of the income and principal of that Trust to or for the benefit of the beneficiary as the
Trustee, in its sole judgment and discretion, deems necessary for the health, support,
maintenance, and education of the beneficiary. When the beneficiary reaches his or her
twenty-fifth (25`h) birthday, the Trustee shall distribute one-third (1/3) of the then
remaining principal and undistributed income of the Trust to the beneficiary. When the
beneficiary reaches his or her thirtieth (30"') birthday, the Trustee shall distribute one-half
(1; 2) of the then remaining principal and undistributed income of the Trust to the
beneficiary. When the beneficiary reaches his or her thirty-fifth (35`h) birthday, the
Trustee shall distribute all of the then remaining principal and undistributed income of
the Trust to the beneficiary. If the beneficiary dies before reaching his or her thirty-fifth
(35`h) birthday, the Trustee shall distribute the then remaining principal and undistributed
income of the Trust to the estate of the beneficiary.
D. Spendthrift Clause. All trusts created in this Agreement shall be
Spendthrift Trusts.
E. Undistributed Income Added to Principal Any income of any Trust
except the Marital Trust not distributed within the first sixty-five (65) days following the
end of the taxable year of the Trust shall be added to the principal thereof and
administered as part of such principal.
F. Distribution to Beneficiary for V~'hom Trust Already Established. If any
distribution of any property previously held in trust under this Agreement for any
beneficiary is to be made to another beneficiary (other than the surviving Settlor) for
whom at that time the Trustee holds property in any trust, then such distribution, in the
Trustee's sole and absolute discretion, may be made to the latter beneficiary or may be
added to and become a part of the latter beneficiar}~s trust.
?. Article FOURTH shall be eliminate in its entirety and substituted in lieu thereof
with the following:
A. Appointments; Amendments; Change In Trustee
1. Appointment of Trustee. The Settlors hereby appoint MERRILL
LYNCH BANK & TRUST CO., FSB as the "Trustee" of this Funded Revocable Trust
Agreement.
2. Powers Reserved by the Settlors. The Settlors reserve, during the
lifetime of both Settlors, the right to amend, modify, or revoke this Agreement, in whole
or in part, at any time or times, by notice in writing signed by both Settlors and delivered
to the Trustee, and such amendment, modification, or revocation shall be effective
immediately upon actual delivery to the Trustee. This Agreement and Trusts herein shall
become irrevocable upon the death of the first Settlor to die.
3. Changes Requiring Consent of Trustee. No amendment of this Agreement
by the Settlors (other than the removal of the corporate Trustee by the Settlors) which
effects the Trustee's duties, liabilities, or compensation shall be effective unless accepted
in writing by the Trustee.
4. Resignation of Trustee. Any Trustee may resign at any time without court
approval by giving written notice thereof to the Settlors, or either of them during the life
of both Settlors, or to all beneficiaries to whom current trust payments may or must then
be distributed or to the natural or legal guardians of such beneficiaries (the
"Beneficiaries"). Such resignation shall be effective upon the written appointment and
acceptance of a Successor Trustee. The Settlors, or either of them during the life of both
Settlors, or a majority of the Beneficiaries shall have the power to appoint a Successor
Trustee. If in default of such appointment the office of Trustee would be vacant and none
has been appointed, then sixty days following the Trustee's initial notice of its intent to
resign, the Trustee shall have the power to petition the court at trust expense (including
reasonable attorney's fees) to appoint its Successor. No bond or other security shall be
required of the Trustee in any jurisdiction. No purchaser from, or other person dealing
with, any Trustee is obligated to examine such Records, and any such person acting in
good faith shall be protected in all transactions ~~ith any Trustee whether or not any such
replacement has taken place. If the original Trustee and any successor Trustees named
herein, or if any other successor Trustee shall resign, or otherwise cease or fail to serve
during the lifetime of both Settlors or either of them then the Settlors or either of them
shall appoint a successor Trustee in the manner set forth in the next section of this
Agreement.
5. Removal of Trustee. Any Trustee may be removed under this agreement as
follows:
5.01 While both Settlors are alive and legally competent and if both
Settlors agree, they 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.
5.02 After the death of one of the Settlors or when both Settlors are alive
but only one Settlor is legally competent, any Trustee appointed under this trust
agreement maybe removed by the competent Settlor at any time for cause.
5.03 After the death or legal incompetency of both Settlors, any Trustee
may be removed by a majority vote of the Beneficiaries then entitled to receive income or
principal distributions under this trust agreement or their respective personal
representatives at any time.
5.04 Written notice of the 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.
5.05 The Trustee so removed shall promptly transfer and deliver to the
successor Trustee all property of the trust under the Trustees' possession and control.
6. Powers of Trustees. In addition to the powers given to them by law, all
Trustees in their fiduciary capacity acting hereunder, whether or not named herein, shall
have the following discretionary powers applicable to all property held by them, effective
without court order and until actual distribution:
6.01 To retain any property received by them without regard to any
principal of investment diversification.
6.02 To invest in all forms of property, without restriction to investments
authorized by law and without regard to any principal of investment diversification.
6.03 To operate any business; to cause or join in any incorporation,
partnership, or other form of association, recapitalization, merger, reorganization,
liquidation or voting trust plan; to deposit investments under agreements and pay
assessments; to delegate discretionary authority with respect to any of such actions and
generally to exercise all rights of investors.
6.04 To compromise controversies.
6.05 To buy, exchange, or sell real or personal property publicly or
privately, for such prices and on such terms as they deem proper; to lease for any term
regardless of the duration of any trust hereunder; and to give options for these purposes
without obligation to repudiate them in favor of a higher offer.
6.06 To abandon any property which the disinterested fiduciary, in such
fiduciary's sole discretion, deems to be in the best interests of the trust and its
beneficiaries.
6.07 To borrow money from any source and to mortgage or pledge estate
or trust assets as security.
6.08 To hold investments in the name of a nominee
6.09 To employ and/or to delegate any of its discretionary and
nondiscretionarypnwers to agents (including, any corporation, partnership or other entity
affiliated with the corporate Trustee) including, but not limited to, attorneys, investment
advisers, appraisers or accountants, as it deems appropriate and to pay for such services
from the trust property.
6.10 To make distributions in cash or in kind or partly in each at fair
market ~°alues on the date of distribution.
6.11 In any division of principal into separate trust or shares, and in any
distribution of trusts or shares, to allocate to any trust, share, or beneficiary, property
different from the property allocated to another trust, share or beneficiary, as the
disinterested fiduciary, using fair market values on the date of division of distribution,
deems appropriate; provided, however, that this power shall not be exercised in a manner
contrary to any specific allocation of property elsewhere in this instrument or in a manner
that renders ineligible all or any part of any gift for any tax deduction.
6.12 As to a corporate Trustee, to cause all or any part of any trust
hereunder to be maintained or managed in any jurisdiction and may hold any trust
property in the name of its nominee or a nominee of any corporation, partnership or other
entity affiliated with the corporate Trustee.
6.13 To (i) conduct environmental assessments, audits, and site
monitoring to determine compliance with any envirorunental law or regulation; (ii) take
all appropriate remedial action to contain, cleanup or remove any environmental hazard
including a spill, release, discharge or contamination, either on it own accord or in
response to an actual or threatened violation of any environmental law or regulation; (iii)
institute legal proceedings concerning environmental hazards or contest or settle legal
proceedings brought by any local, state, or federal agency concerned with environmental
compliance, or by a private litigant; (iv) comply with any local, state, or federal agency
order or court order directing an assessment, abatement or cleanup of any environmental
hazards; and (v) employ agents, consultants and legal counsel to assist or perform the
above undertakings or actions. Any expenses incurred by the Trustee under this
paragraph shall be paid from the trust.
The Trustee shall not be liable for any loss or depreciation in value
sustained by the trust as a result of the Trustee's retaining any property upon which there
is later discovered to be hazardous material or substances requiring remedial action
pursuant to any federal, state or local environmental law, unless the Trustee contributed
to the loss or depreciation in value through willful misconduct or gross negligence.
7. Powers and Duties of Successor Trustee. Upon the appointment and
qualification of any successor Trustee, the same duties shall devolve upon, and the same
rights, powers, authorities, privileges, and discretions shall inure to it as to the Trustee
originally designated hereunder; and all rights, powers, authorities, privileges, and
discretion shall be exercised without the supervision of any court.
8. Reorganization of Corporate Trustee. If a corporate Trustee should,
before or after qualification, change its name; be reorganized, merged, or consolidated
with, or acquired by any other corporation; or be converted into or assign its trust
functions to a different type of entity, the resulting entity shall be deemed a continuation
of the former one and shall continue to act as Trustee or continue to be eligible to become
a Trustee, as the case maybe.
9. Compensation. A Trustee shall be entitled to receive reasonable
compensation for such fiduciary's services hereunder. A corporate Trustee shall receive
payment for its services in accordance with it schedule of rates in effect at the time such
compensation becomes payable without reduction for any other fees or other
compensation paid to the corporate Trustee (or any corporation, partnership or other
entity affiliated with the corporate Trustee) including, but not limited to, such fees or
other compensation paid by any open-ended or closed-ended investment company, unit
investment trust or other investment vehicle, or an agent).
10. Concerning Self-Dealing. No rule of law against self-dealing, dividing
loyalty, or conflict of interest shall be applied to render any transaction effected by the
Trustee void, voidable, or otherwise subject to attack solely for violation of such rule, nor
shall the Trustee incur any liability, nor shall any Trustee commissions for acting
hereunder be reduced, solely for the violation of such rule. Any transaction which
involves self-dealing, divided loyalty, or conflict of interest by the Trustee shall be
judged by the rules of law which would apply to the same transaction at armOs length
between strangers free of any element of self-dealing, divided loyalty, or conflict of
interest. Thus, by way of illustration and not of limitation, all Trustees are authorized,
without giving any notice required by statute, to:
10.01 To engage an corporation, partnership or other entity with the
corporate Trustee (an "Affiliated Entit}~') to render services to any trust hereunder,
including, without limitation, to act as a broker or dealer to execute transactions
(including the purchase of an securities currently distributed, underwritten or issued by an
Affiliated Entity) at standard commissions rates, markups or concessions and to provide
affiliated entity's standard rates, and to pay for any such services from trust property.
10.02 Borrow from the commercial department of any cotporate Trustee
or any affiliate at current interest rates.
10.03 Buy, retain, and sell any debt or equity security issued or
underwritten by any cooperate Trustee or any Affiliated Entity and any debt security
secured, supported, and/or otherwise enhanced by a letter of credit issued by any
corporate Trustee or any Affiliated Entity.
10.04 Buy, retain, and sell any security of any investment company or
trust registered under the Investment Company Act of 1940 to which any corporate
Trustee or any Affiliated Entity renders services for compensation.
10.05 Buy property from or sell property to any beneficiary or Trustee
acting hereunder or otherwise on arms length terms.
10.06 Invest in open-end or closed-end investment companies offered
by an Affiliated Entity or to which an Affiliated Entity may render services for
compensation.
10.07 Invest trust assets or sweep cash awaiting distribution or
investment into the corporate Trustee's own deposits of the deposits of Affiliated Entity.
11. Trustee's Accounting. The Trustee may, but shall not be required to, at
any time, and from time to time, file an account of its administration with a court of
competent jurisdiction. Prior to the transferring of any or all of the assets of any trust
hereunder to a Successor Trustee or to making complete distribution of trust principal, the
Trustee may require an approval of its account either by a court of competent jurisdiction
or by such of the beneficiaries as it deems appropriate. All of the Trustee's fees and
expenses (including reasonable attorneys' fees) attributable to any such accounting and
approval shall be paid by the trust.
3. Article FIFTH shall be eliminated in its entirety.
4. Article EIGHTH shall be eliminated in its entirety and substituted in lieu
thereof with the following:
Settlors reserve the right to revoke this Agreement at any time during their joint
lives by an instrument in writing signed by both Settlors and delivered to Trustee. The
Settlors may jointly alter or amend any of its provisions, by an instrument in writing
signed by both Settlors and delivered to Trustee, provided however, that the duties and
responsibilities of the Trustees shall not be substantially changed without the Trustees'
written consent. This Trust shall become irrevocable upon the death of the first Settlor.
5. Article TENTH shall be added as follows:
A. Definitions.
1. Survive. Except as otherwise provided in this Article TENTH, paragraph A,
for purposes of this instrument, one person shall be regarded as having survived another
only if the former, survived the latter by thirty (30) days or more. However, if the
Settlor-Wife actually survives the Settlor-Husband, the Settlor-Wife shall be deemed to
have survived the SettlorHusband whether or not such survival is by thirty (30) days or
more. If the order of death of the Settlors cannot be established by direct evidence, then
for purposes of this Agreement, the Settlor-Wife shall be presumed to have survived the
Settlor-Husband.
2. Issue, Descendants, and Children. Whenever used in this Agreement, the
word "issue" or the word "descendants" shall mean legitimate descendants of whatever
degree, including descendants both by blood and adoption. Any reference in this
Agreement to the Settlors' "children" shall mean DARLENE SWOREN, DIANE E.
BOYER, DEBBY BROOKS, DONNA FREEDMAN and SHEILA R. DOUGLAS.
3. Per Stirpes. All references in this Agreement to "per stirpes" shall mean a
distribution in accordance with this Section. Whenever a distribution is to be made to the
descendants of any person, the property to be distributed shall be divided into as many
shares as there are (1) living children of the person, and (2) deceased children, who left
beneficiaries who are then living, of the person. Each living child (if any) shall take one
share and the share of each deceased child shall be divided among his or her then living
descendants in the same manner.
4. Code. All references in this Agreement to the "Code" shall mean the
Internal Revenue Code of 1986, as amended, and shall be deemed to refer to
corresponding provisions of any subsequent federal tax law.
5. Education. Whenever used in this Agreement, the term "education" shall
include elementary, secondary, college, and postgraduate study or vocational training or
study, so long as pursued to advantage by the beneficiary at an institution of the
beneficiary's choice. In determining distributions for education, the Trustees may
consider the beneficiary's reasonable living expenses.
6. Spendthrift Trust. Wherever used in this Agreement, the term "Spendthrift
Trust" shall mean a trust no part of the income or principal of which ever shall be
transferred or assigned by any beneficiary or disMbutee, or subjected to any judicial
process against any beneficiary or distributee before the same has been paid. No part of
the interest of any beneficiary or distributee shall in any event be subject to sale,
hypothecation, assignment, or transfer. Nor shall the principal or income of any
Spendthrift Trust estate be liable for the debt of any beneficiary or distributee. Nor shall
any part of the principal or income be seized, attached, or in any manner taken by judicial
proceedings against any beneficiary or disttibutee on account of the debts, assignments,
sale, divorce, or encumbrance of any beneficiary or distributee. In accordance with these
provisions, the Trustee shall pay to the beneficiary or distributee the sum payable to the
beneficiary according to the Trust terms, notwithstanding any purported sale, assignment,
hypothecation, transfer, attachment, or judicial process, exactly as if the same did not
exist. Nothing contained in this Section shall be construed as restricting the exercise of
any power of appointment granted in this Agreement.
~. Qualified Disclaimer. Wherever used in this Agreement, the term "qualified
disclaimer" shall mean an irrevocable and unqualified refusal by a person to accept an
interest in property provided it also meets the conditions of Section 2518(b) of the Code.
8. The terms "gross estate," "marital deduction," "pass or have passed,"
"applicable credit," and "state death tax credit" shall have the meanings they have in the
federal lrtternal Revenue Code of 1986 (as amended from time to time).
6. Article ELEVENTH shall be added as follows:
Payment of Charges Against Estate:
Upon the death of the first Settlor to die, the Trustee may, if the Trustee shall
deem it appropriate, provide executor or administrator with funds to pay all or any part of
these charges against the estate: debts, funeral and burial expenses, costs of
administration, estate, inheritance, or other death taxes, and pre-residuary bequests in the
Will. These payments shall be made by the Trustee from the trust assets before their
division, and in no event shall the payments be charged against the Marital Trust. If the
Trustee shall hold United States Treasury Securities that may be used at par to pay
federal estate taxes, they shall be used for such purpose. The Trustee shall not seek
reimbursement from any person on account of a payment made pursuant to this Article.
Assets that are not otherwise subject to federal estate taxes shall be segregated by the
Trustee and not used for payments pursuant to this Article. Payments pursuant to this
Article maybe made either directly to my executor or administrator or upon the direction
of my executor or administrator, and the Trustee may rely upon my executor or
administrator as to the amount of the charges.
7. Article TWELTH shall be added as follows:
A. ivliscellaneous.
1. Use of Word. As used in this Agreement, whenever the context so
indicates, the gender of all words shall include the masculine, feminine, and neuter, and
the number of all words shall include the singular and plural.
2. Parties Bound. This Agreement shall extend to and be binding upon the
Trustee, the Settlors, and upon their heirs, executors, administrators, successors and
assigns, and the beneficiaries designated in this Agreement.
3. Invalid Provisions. If any part of this Agreement shall be invalid, illegal,
or inoperative for any reason, it is the Settlors' intention that the remaining parts, so far as
possible and reasonable, shall be effective and fully operative. The Trustee may seek and
obtain court instructions for the purpose of carrying out as nearly as maybe possible the
intention of this Agreement as shown by the terms hereof, including any terms held
invalid, illegal, or inoperative.
4. Headings. The headings used throughout this Agreement have been
inserted for administrative convenience only, and do not constitute matter to be construed
in interpreting this Agreement.
All other terms of the Trust shall remain in full force and effect.
IN WITNESS WHEREOF, this Amendment to the Funded Revocable Trust
Agreement has been executed this 13`h day of November, 2007, by the undersigned
Settlors.
~~
DONALD L. RUNK, Settlor
JOY L 1K> Settlor