HomeMy WebLinkAbout10-17-08REf'~1500~yi~ ~
REV 15 0 0 C)Fa=1CIAL USE ONLY
COMMONWEALTH OF ~
PENNSYLVANIA
DEPARDEPT.28060EVENUE INHERITANCE TAX RETURN FILE"UMBER ~~~~~~~~~~-w•---
HARRISBURG, PA 17128-0601
IZ E S I D E N T D E C EDEN T 2 1_ 0 8 0 1 3 2
COUNTY CODE YEAR NUMBER
DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER
W McSparran, Mary Lou 208 - 22 - 2195
~ DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
V 01 -20-2008 09-01 -1927 REGISTER OF WILLS
W
ID (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER
a ~ ~ 1.Original Retum ^ 2. Supplemental Return ^ 3. Remainder Return (dace of dean, poor w 1z-laaz)
w a ~ ^ 4. Limited Estate ^ 4a. Future Interest Compromise (dace of death aver 1z-12-82) ^ 5. Federal Estate Tax Retum Required
~ a m '~ 6. Decedent Died Testate (Attach copy of wii) ^ 7. Decedent Maintained a Living Trust (Attach copy of rmsc) 1 8. Total Number of Safe Deposit Boxes
a
a
^ 9. Litigation Proceeds Received ^ 1 O. SpOUSaI POVerty Credit (date of death between 12-31.91 and 1-1-95)
^ 11. Election to tax under Sec. 9113(A) (Attach sch o)
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~ >Ir~ttl;lyluSl°~ _ q~ IAL~,:;fi[~R$~aliall',NG. `. B,C3i~1~1I3>~~(1'IAI..TA.~X Id~I~~~IATION'SHdULt1'~E,R!}?EL~7'E[S'',7'0:
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o NAME
Richard S. Friedman, Esquire COMPLETE MAILING ADDRESS
y FIRM NAME (IfAppiicabie)
3820 Mark
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TELEPHONE NUMBER e ree
U - - - Camp H 111 , PA 1 7 01 1
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1. Real Estate (Schedule A) (1)
2. Stocks and Bonds (Schedule B) (2) 3 5 3 , 0 2 3 . ?. 9
3. Closely Held Corporation, Partnership or Sole-Proprietorship (3)
4. Mortgages & Notes Receivable (Schedule D) (4)
5. Cash, Bank Deposits & Miscellaneous Personal Property (5) 1 5 , 19 9. 3 7
(Schedule E)
6. Jointi Owned Pro
y party (Schedule F)
(6) 1, 5 fi 7. 7 5
^ Separate Billing Requested
7. Inter-Vivos Transfers 8 Miscellaneous Non-Probate Properly
(7) 37,458.05
(Schedule G or L)
OFFICIAL,,I~SE ONLY ..1
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8. Total Gross Assets (total Lines 1-7) (8) 4 0 7, 2 4 8. 4 6
9. Funeral Expenses & Administrative Costs (Schedule H) (g) 5 7 , 6 2 6. 4 3
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 4~-4-r~ 8
11. Total Deductions (total Lines 9 810) (11) 5 8 , 0 9 0.71
12. Net Value of Estate (Line 8 minus Line 11) (12) 3 4 9 ,1 5 7 . 7 5
13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been (13) 3 0 , 2 2 6.51
made (Schedule J)
14. Net Value Subject to Tax (Line 12 minus Line 13) (14) 318 , 9 31.2 4
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) x .0 _ (15)
$318,931.24 4.5~
f6. Amount of Line 14 taxable at lineal rate x .0 - (16)
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)
„ ,. .;~` ~ •~ ?c'EIE_: J-~AIS t't?-A11 ~ 7i3~atf!_ir~~ :" nom`. ~~~.;~., ~:
14,351.91
14,351.91
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nnnnrlnnt°c f_mm~lcitP ~f~f'OrP_SS'
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STREET ADDRESS
20 N. Twelfth St., Apt. 124
ciTr Lemoyne sTATE P A ZIP 17 0 4 3
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19) (1) 1 4 , 3 51.91
2. Credits/Payments
A. Spousal Poverty Credit
B. Prior Payments $1 5, 3 0 0. 0 0
C. Discount 7 6 5.0 0 1 6 0 6 5.0 0
Total Credits (A + B + C) (2) ~
3. InterestlPenalty if applicable
D. Interest
E. Penalty
Total Interest/Penalty (D + E) (3)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. 4 1 , 71 3 . 0 9
Check box on Page 1 Line 20 to request a refund ( )
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. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B)
Make Check Payable to: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN 7HE APPROPRIATE BLOCKS
1. Did decedent make a transfer and: Yes No
a. retain the use or income of the property transferred :.......................................................................................... ^
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? ...................................................................... ^
~` 2. If death occurred after December 12,1982, did decedent transfer property within one year of death
without receiving adequate consideration? ..............................................................................................................
\" ~~ 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? ........................................................................................................................ ®X ^
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
Under penalties of 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 of preparer other than the personal representative is based on all information of which preparer has any knowledge.
SIGNATURE F PERSON R SPONSI L FOR FI NG RETURN DATE_
(d ~~l~8
ADDRESS ame . ooer,. e s one, _.xecu or
324 Evergr~~n St., New Cumberland, PA 17070
SIGNATURE OF PREP THER THAN REPRESENTATIVE DATE
1,~ ~ v~
ADDRESS Richard S. Friedman, Esquire
%~ _.. ,, ,. -- '- ~ ,.~ .,_~~ tom, , , nr 9^1(11 1
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%
[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 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)]. Asibling is defined, under Section 9102, as an
individual wlto has at least one parent in common with the decedent, whether by blood or adoption.
~~
REV-1503 EX+ (6-98)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCNEDt~LE B
STOCKS & BONDS
wihit= yr FILE NUMBER
Mary Lou McSparran 21-08-0132
All prOPeety j01t1tIY•OWtled With ~lehi' of survivnrshin muc! M dienl..esd ..., Q_L_J..~_
~~~ ~~M~ ~~ ~~ ~roexrc~,, mser[ aaamonai sheets m the same Size)
~ ~ r
REV-1508 EX,1757)
SCHEDULE E
COMMONWEALTH OF PENNSYLVANIA CASH, BANK DEPOSITS, & MISC.
IN RESIDENT DECEDENTRN PERSONAL PROPERTY
ESTATE OF FILE NUMBER
Mary Lou McSparran 21-08-0132
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
~• Reader's Digest - refund 20.72
2. Nationwide Ins. - renter's insurance refund 7.00
3. Jewelry(appraisal attached) 13,605.81
4. Delaware Investments dividends 65.84
5. Miscellaneous personal property 1 500.00
TOTAL (Also enter on line 5, Recapitulation) I S 1 5, 1 9 9. 3 7
(If more space Is needed, insert additional sheets of the same size)
REK1509IX«(~_g7)
SCHEDULE F
COMMONWEALTH OF PENNSYLVANIA JOINTLY-OWNED PROPERTY
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Mary Lou McSparran
If an asset was made joint within one year of the decedent's date of death, it must be reported on Schedule G.
SURVIVING JOINT TENANT(S) NAME
ADDRESS
A.
James R. Whetstone 324 Evergreen St.
New Cumberland, PA 17070
B.
C.
FILE NUM~R _ 0-- 8- 0
RELATIONSHIP TO DECEDENT
Son
JOINT LY-0WNED PROPERTY:
ITEM LETTER
FOR JOINT DATE DESCRIPTION OF PROPERTY
MADE Include name of finandal insfilufion and bank account numb
i
~ OF
NUMBER
TENANT er or s
DATE OF DEATH
milar identifying number, Attach DATE OF DEATH
JOINT deed for jandy-held real estate
DECD'S
~
A ,
VALUE OF
VALUE OF ASSET tNTEREST DECEDENT'S INTEREST
• • 2/7/0 PNC Checking (Acct. #5140068464) $3
135
49 50$
,
.
1,567.75
TOTAL (Also enter on line 6, Recapitulation) 3 1 , 5 6 7. 7 5
(If more space is needed, insert additional sheets of the same siael
~ REV-1510 EX.1~-97) -
SCHEDULE G
COMMONWEALTH OF PENNSYLVANIA INTER-VIVOS TRANSFERS 8c
INHERITANCE TAX RETURN MISC. NON-PROBATE PROPERTY
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
Mary Lou McSparran 21-08-0132
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.
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
JMBER ATTACH A COPY OF THE DEED FOR REAL ESTATE .
VALUE OF ASSET INTEREST IFAPPLICABLE
~• Morgan Stanley IRA (Acct. #410-04453 ) 7,379.65 100 7,379.65
transferred to John E. Whetstone, so
2. Ameriprise IRA (Acct. #9310734304860 4) 30,078..0 100 30,078.40
transferred to John E. Whetstone and
James R. Whetstone, sons
TOTAL (Also enter on line 7 Recapitulation) I$ 3 7, 4 5 8. 0 5
(If more space Is needed, Insert addltlonal sheets of the same size)
REV~1511 EX+ (12-99)
,' ~` SCHEDULE N
COMMONWEALTH OF PENNSYLVANIA FUNERAL EXPENSES &
INHERITANCE TAX RETURN ADMINISTRATIVE COSTS
RESIDENT DECEDENT
w~n~c Vr
Mary Lou McSparran
Debts of decedent must be reported on Schedule I.
ITEM
NUMBER DESCRIPTION
A. FUNERAL EXPENSES:
t' Parthemore Funeral Home
2 Borough of Camp Hill (burial services)
3 Pealer's Flowers
4 Rhonda Marsh (soloist)
5 West Shore Country Club (luncheon)
6 Parthemore Funeral Home (engraving)
FILE NUMBER
21-08-01 32
B. ADMINISTRATIVE COSTS:
1. Personal Representative's Commissions
Name of Personal Representative(s) James R. Whetstone, Executor
Social Security Number(s)/EIN Number of Personal Representative(s)
Street Address 324 Evergreen St.
city New Cumberland State PA Z;p 17070
Year(s) Commission Paid: 2 0 0 8~ 2 0 0 9
2. Attorney Fees
3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
Claimant
Street Address
City State Zip
Relationship of Claimant to Decedent
4. Probate Fees
5. Accountant's Fees Martin Van Coevering, CPA
6. Tax Return Preparer's Fees
~• Cumberland Law Journal - advertising
8. Carlisle Sentinel - advertising
9. Mountz Jewelers - appraisal
10. 2007 IRS taxes
11. 2007 Pa Dept, of Revenue
12. PSERS (overpayment - Jan, & Feb.)
13. Cumberland County Register of Wills (filing of
.Inheritance Tax Return)
AMOUNT
10,386.67
825.00
275.55
50.00
481.65
110.00
19,670.59
19,670.59
422.00
300.00
75.00
126.70
365.00
2,900.00
125.00
1,827.68
15.00
TOTAL (Also enter on line 9, Recapitulation) ~ $ 5 7 r 6 2 6.4 3
(If more space is needed, insert additional sheets of the same size)
REV-1512 EX+ (12-03)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE 1
DEBTS OF DECEDENT,
MORTGAGE LIABILITIES, & LIENS
ESTATE OF
Mary Loin McSparran FILE NUMBER
21-08-0132
Report debts incurred by the decedent prior to death which remained unpaid as of the date ~f dpa~ti ~~~i~„~~.,,, ~~~.e....~...~.,a _...,:__~ _..______
~u nwre space is neeaea, msett aaaftional sheets of the same size)
' REV-f 513 EX+ (9-00)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDt~LE J
BENEFICIARIES
es~wit ur FILE NUMBER
Mary Lou McSparran .,, ,, ,,
NUMBER
NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY V
RELATIONSHIP TO DECEDENT
Do Not LlstTrustee(s) V- V I J G
AMOUNT OR SHARE
OF ESTATE
I TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under
Sec. 9116 (a) (1.2)]
1 • James Robert Whetstone
Son
50$
324 Evergreen St.
New Cumberland, PA 17070
2 . John Elvin Whetstone Son
2604 Whistling Quail Run 50$
Apex, NC 27502
ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THR OUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET
II NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE
1.
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
1' The Salvation Army
1,500.00
2. Charitable Gift Annuities (attached) 28,726.51
TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ 3 0 , 2 2 6 , 51
(ff more space is needed, insert additional sheets of the same size)
SCHEDULE E
ITEM 3 - JEWELRYAPPRAISAL
Z
---.~.. ~....: __ J E W E L E R S
Trust Your Special Moments To Mountz.
January 31, 2008
Jim and Barbara Whetstone
324 Evergreen Street
New Cumberland, PA 17070
Dear Jim and Barbara Whetstone,
At your request I examined the jewelry you submitted for valuation and have provided an opinion of the
Fair Market Value for the estate of Mary Lou McSparran.
This report is valid only in its entirety and the final figure excludes any applicable taxes. You may wish to
take this into consideration when using the report. The value conclusions are subject to limiting conditions
that are set forth in the body of the report. To the best of my knowledge and experience, I estimate the
jewelry has a total Fair Market Value of $13,605.81.
Photographs are included with the original report for your reference. I suggest that you keep your copy of
this report in a safe place.
This report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice
(USPAP).
If I can be of any further assistance, please call.
Sincerely,
~~
Cherie Lynn Grove
Graduate Gemologist, GIA
Enclosures
`~, Member
AMERICAN - ' LEAt)FNG ~.
GEM 3780 Trindle Road • Camp Hill PA 17011 • (717) 763-1199 ~.rEw~LSxs v;,
SOCIETY' ,WOIiLD.W
www ~~~>~~~elers.com
Table of Contents
• Letter of Transmittal
• Table of Contents
• Purpose
• Intended Use
• Definition of Fair Market Value
• Approach to Value
• Market
• Limiting Conditions
• Subscriptions Retained for Value Consulting
• Metal Mazkets
• Certification
• List of Laboratory Instruments
• Item Descriptions
• Photograph(s)
• Biographical Information
This report is valid only in its entirety and for its stated purpose and intended use and was prepared in
accordance with the Uniform Standards of Professional Appraisal Practice (USPAP).
Statements and Limiting Conditions
Purpose
The purpose of this report is to describe and document the quality of the jewelry listed and to estimate. it's
Fair Market Value.
Intended Use
Valuation Date: 1/31/2008
Definition of Fair Market Value
The fair market value is the price at which the property would change hands between a willing buyer and
willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of
relevant facts. The fair market value of a particulaz item of property... is not to be determined by a forced
sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item
in a market other than that in which such item is most commonly sold to the public, taking into account
location of the item wherever appropriate. Taken from Treasury Regulation 20.2031-1 (b)
Approach to Value
There are three traditional approaches to value that are as follows:
Income approach: Applies to income producing properties and is used only if an income situation or rental
property can be identified.
Market Data approach: Compazes the qualities of the subject item to an article with similar or identical
qualities, and researches and records current verifiable sales of such merchandise.
Cost approach: Establishes the total value of an item by considering the value of its component parts
(precious metal content, gemstone weights and qualities, labor, and any other fees) together with the
appropriate retail markup according to the norms of the jewelers in the locale, supply and demand, and the
current state of the marketplace.
Page 2 of 12
Fair Market Value is estimated using the mazket data approach. Neither the income approach nor the cost
approach apply in establishing Fair Mazket Value. However, the cost approach to value was used to check
on the reasonableness or market values found.
Market
To value an item a market (and market level) must be recognized. The most appropriate mazket for jewelry
can vary depending upon the article's age, condition, quality, intrinsic content, .aesthetic appeal,
provenance, current fashion trends, artistic interpretation, period of manufacture among others.
The type of retail outlet that most commonly carries the items being appraised is considered to be the most
appropriate mazket. However, the auction market was also considered as another appropriate mazket in
establishing Fair market Value for this type of jewelry.
Limiting Conditions
The jewelry described within has been analyzed and graded in accordance with prescribed grading
standards using "state of the art" methods and precision laboratory equipment.
Jewelry constructed solely of, or in combination with, precious metals (i.e. platinum, palladium, yellow or
white gold and/or silver) is tested, analyzed and described for its type and content of such metal. Unless
otherwise stated, all gemstone weights, grades and measurements are approximate and stones have not been
removed from their mountings.
Diamonds are graded with the prescribed grading nomenclature of the Gemological Institute of America
(GIA) and the use ofpre-graded permanent master diamond color compazison stones.
Colored stones are color graded according to the GIA color grading system. Unless otherwise stated, all
colored stones listed on this appraisal report have probably been subjected to various treatments to improve
their appearance. Treatments are considered usual and customary practices when properly disclosed and
.when done without intent to defraud the consumer. The treatments are mostly stable and do not require
special care. When a treatment is detected and considered unusual it will be so noted by this appraiser.
Some treatments are reversible and re-treatable. It may be beyond the scope of an appraisal to determine
exact treatment methods or the amount of treatment present. Some treatments require sophisticated
equipment not found in a standard gemological laboratory. Prevailing market values are based on these
universally practiced and accepted processes by the gems and jewelry trade.
Sources are assumed to be reliable and the appraiser does not assume responsibility for their information.
The appraiser assumes the ownership of the subject property is true as stated by the client.
The fees paid for this appraisal do not include the services of the appraiser for any other matter. In
particular, fees paid to date do not include any of the appraiser's time or services in connection with any
statement, testimony or other matters before an insurance company, its agents, employees or any court or
other body in connection with the property herein described.
If the appraiser is required to testify or to make any statements to a third party concerning the described
property and/or appraisal, the applicant shall pay the appraiser for all of such time and services so rendered.
This document is limited to its stated intended use and is invalid if all items listed in the Table of Contents
are not present.
Unless expressly stated, the items appraised are in good condition. Any serious deficiencies and repairs are
noted. Ordinary wear and tear is not noted.
The information in this report is confidential.
Page 3 of 12
This appraisal process does not discover liens, encumbrances, or fractional interests but, if known, they are
noted.
The limited owner of this appraisal is the party for whom the work was performed.
Possession of this report does not provide title to the items appraised.
Possession of this report, any portion of this report, or any copy thereof, does not include the right of
publication without the appraiser's written consent.
Use of the information contained in the appraisal is invalid if all items listed in the Table of Contents aze
not present.
Each item described in this report has been photographed and file copies of the photograph(s) as well as a
copy of the report are maintained in the appraiser's files for at least five yeazs after the report date.
Third parties may rely on the information in this report for the defined purpose and intended use only.
Third parties requiring further information than what is in the report must obtain the written permission of
the owner of the appraisal before the appraiser will discus the report.
No changes maybe made to this report by anyone other than the appraiser. The appraiser cannot be
responsible for unauthorized alterations.
The professional relationship between the appraiser and the client ends with the delivery of this report.
Subscriptions Retained for Value Consulting
Drucker, Richard -The Guide. Northbrook, IL
Rapaport, Martin - Rapaport Diamond Report, New York, NY
Metal Market 1/31/2008
Gold $922.50
Silver $16.76
Platinum $1,722.00
List of Laboratory Instruments
Binocular microscope Leveridge gauge
Electronic scale Thermal conductivity diamond tester
Touchstone and acids Ultraviolet light unit
Spectrascope Proportionscope
Polariscope Dichroscope
Refractometer Chelsea color filter
Heavy liquids
Diamond light and graded master comparison diamonds
Page 4 of 12
Certification
• I hereby certify that, to the best of my Irnowledge and belief:
• The statements of fact contained in this report are true and correct.
• The reported analyses, opinions, and conclusions ~ aze limited only by the reported assumptions and limiting
conditions, and is my unbiased professional analysis, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this report and I have no personal
interest or bias with respect to the pazties involved.
• My compensation is not contingent upon the development or reporting of a predetermined value or direction
in value that favors the cause of my client, the amount of the value estimate, the attainment of a stipulated
result, or the occurrence of a subsequent event
• I have made a personal inspection of the property that is the subject of this report.
• No one provided significant professional assistance to the person signing this report.
• My analyses, opinions, and conclusions were developed, and this report has been prepazed, in conformity
with the Uniform Standards of Professional Appraisal Practice.
,,-'-.
Cherie Lynn Grove
Graduate Gemologist, GIA
2/7/2008
Page5of12
Prepared For: Jim and Barbara Whetstone Date: 1/31/2008
324 Evergreen Street
New Cumberland, PA 17070
Item 1
Bracelet
One lady's 14K white gold omega style bracelet. The bracelet measures 4.21mm wide, has a low dome
profile, a high polish finish, hidden box clasp with a side fold over figure eight safety. The bracelet weighs
7.2dwt, is stamped "14K" and "ITALY", and measures 7 1/8".long.
Total Approximate Retail Value Excluding Tax $207.83
Item 2
Bracelet
One lady's 14K yellow gold herringbone bracelet. The bracelet measures 5.66mm wide, 8" long, has a
lobster claw clasp, weighs 4.1 dwt, and is not stamped; therefore, the gold content was determined through
acid testing.
Total Approximate Retail Value Excluding Tax
$125.79
Item 3
Necklace
One strand of cultured pearls with a 14K yellow gold clasp. The strand has 94 5-S.Smm pearls strung and
knotted on silk, with a 14K yellow gold filigree pearl clasp. The strand measures 24", and weighs 16.8dwt.
Strung Pearls
Strand length: 24 inches- -Matinee
Number of strands: 1
Number of pearls: 94
Size: 5-1/2 mm to 6 mm
Color: White to light cream with no overtone
Shape: Slightly offround
Luster: Medium
Nacre thickness: Medium
Blemishes: Blemished
Total Approximate Retail Value Excluding Tax $370.07
Page 6 of 12
Item 4
Bracelet
One lady's cultured pearl bracelet. The bracelet measures 7.25" long, has three strands of 34 pearls
measuring 4.5-S.Omm. The bracelet has two 14K yellow gold spacer bars and a flat round button clasp
with a cross Florentine fmish and a ribbed edge with a fold over figure eight safety. The clasp is stamped
"14K", and the bracelet weighs 11.Sdwt.
Strung Pearls
Strand length: 7,25"
Number of strands: 3
Number of pearls: 102
.Size: 4-1/2 mm to 5 mm
Color: White with no overtone
Shape: Mostly round
Luster: Medium
Nacre thickness: Medium
Blemishes: Slightly blemished
Matching: Good
Total Approximate Retail Value Excluding Tax
$390.65
Item 5
Earrings
One pair of 14K white gold pearl and diamond earrings. Each earring has two 6.5-7.Omm pearls that are
half drilled, with four approximately .03ct round brilliant cut diamonds set in four prongs each in an
abstract curved bar design. The earrings are non-pierced with a screw fast back. The earrings weigh.
3.7dwt and are stamped "14K".
Pearl Attributes
Number: 4
Size: 6-1/2 mm to 7 mm
Color: White
Shape: Mostly round
Luster: Medium
Nacre thickness: Medium
Blemishes: Slightly blemished
Diamond Melee Attributes
Shape and cut: Round full cut
Measurements: 2.0 mm
Number of diamonds: 8
Total Weight: .24 cts. (estimated)
Clarity: VS
Color: H-I
Total Approximate Retail Value Excluding Tax
$416.58
Page 7 of 12
Item 6
Earrings
One pair of lady's 14K yellow gold pearl and diamond clip earrings. Each earring has four 5.0-S.Smm half
drilled cultured pearls set are at north, east, south, and west locations. In the center of the four pearls in
each earring is a gold bead. In between each pearl is one approximately .015ct round brilliant cut diamond
bezel set. The earrings have a fold up clip back that is stamped "585", and the earrings weigh 2.Sdwt.
Pearl Attributes
Number:
Size:
Color:
Shape:
Luster:
Nacre thickness:
Blemishes:
Matching:
Diamond Melee Attributes
Shape and cut:
Measurements:
Number of diamonds:
Total Weight:
Clarity:
Color:
8
5 mm to 5-1/2 mm
White
Off round
Medium to Low
Medium
Very slightly blemished
Very good
Round full cut
1.6 mm
8
.12 cts. (estimated)
VS
H-I
Total Approximate Retail Value Excluding Tax
$320.41
Item 7
Watch
One lady's stainless steel and 18K yellow gold Alfred Hammel watch. The watch has the following
characteristics:
Watch Attributes
Maker: Alfred Hammel
Type: Lady's
Movement: (auk
Material: Stainless and 14K gold
Shape: Round
Bezel Polished
Dial /Features: White /Center second hand, date
Hour markings: Roman numerals
Hands: Gold
StrapBracelet: Stainless steel and 14K gold
Clasp: Center folding
Condition: Fair to good
Serial number: 7.458.5.0.82
Total Approximate Retail Value Excluding Tax $83.09
Page 8 of 12
Item 8
Ring
One lady's 14K yellow gold diamond engagement ring. In the center is one approximately 1.06ct round
brilliant cut diamond set in four 14K white gold prongs. The ring has a high polish, domed profile,
measures 2.47mm wide at the shoulders and tapers to 1.29mm at the base of the ring. The ring weighs
1.4dwt, measures finger size 6.5, and is stamped "i4K" and "EGHGO".
Diamond Grading Report
Shape and Cut:
Measurements:
Weight:
Proportions:
Depth:
Table:
Girdle:
Culet:
Finish
Polish:
Symmetry:
Clarity:
Color:
Fluorescence:
Round brilliant
6.68 x 6.63 x 3.90 mm (approximate)
1.06 Cts. (estimated)
Good
58.60%
64.6%
Medium
Small
Very Good
Good
VVS-1
G
Moderate blue (lw)
Total Approximate Retail Value Excluding Tax $8,781.73
Item 9
Earrings
One pair of 14K yellow gold diamond non-pierced earrings. Each earring has one approximately .44ct-
.45ct round brilliant cut diamond set in a four prong setting. The earrings have a wire that wiaps around
the lobe and a flip up clip back. The earrings weigh 1.9dwt and are stamped "14K".
Diamond Attributes
Shape and cut: Round brilliant
Measurements: 4.85 x 490 x 3.02 mm (approximate)
Weight: 0.44 Cts. (estimated)
Clarity: SI-1
Color: G
Proportions: Good
Finish: Good
Diamond Attributes
Shape and cut: Round brilliant
Measurements: 4.86 x 4.90 x 3.05 mm (approximate)
Weight: 0.45 Cts. (estimated)
Clarity: SI-1
Color: G
Proportions: Good
Finish: Good
Total Approximate Retail Value Excluding Tax $1,371.41
Page 9 of 12
Item 10
Necklace
One lady's 14K yellow ruby and diamond heart pendant. The pendant has 16 2mm round faceted rubies set
around the outside of a gold heart outline with one prong. Inside the heart, there is one approximately .03ct
round brilliant cut diamond set with four prongs off of the clef of the heart. The pendant has a rabbit ear
bail and 16" light rope chain with a spring ring clasp that is stamped "14KT". The pendant and chain
weighs 2.2dwt.
Ruby Melee Attributes
Shape and cut: Round faceted
Measurements: 2 mm
Number: 16
Total Weight: .64 cts. (estimated)
Clarity: Type II, moderately included
Color: Medium dark, moderately strong, slightly purplish Red
Diamond Melee Attributes
Shape and cut: Round full cut
Measurements: 2.1 mm
Number of diamonds: 1
Total Weight: .03 cts. (estimated)
Clarity: SI
Color: G-H
Total Approximate Retail Value Excluding Tax $230.36
Page 10 of 12
Item. l l
Ring
One lady's 14K yellow gold sapphire and diamond ring. In the center is one 9.08 x 7.17 x 3.75mm oval
faceted sapphire set in four prongs. On either side of the center is three approximately .04-.07ct round
brilliant cut diamonds set with 3-4 shared prongs each. The shoulders have a gold step design above and
below the side diamond settings. The shank has a double high polish profile, and measures 4.08mm at the
top and tapers to 2.42mm at the base of the ring. The ring is stamped "14KP", measures finger size 6.5, and
weighs 3.Sdwt.
Sapphire Attributes
Shape and cut:
Measurements:
Weight:
Clarity:
Color:
Comments:
Diamond Melee Attributes
Shape and cut:
Measurements:
Weight:
Number of diamonds:
Total Weight: ''~`
Clarity:
Color:
Oval faceted
9.08 x 7.17 x 3.75 mm (approximate)
1.95 Cts: (estimated)
Type II, moderately included
Very dark, gayish, greenish Blue
Chipped at the top and bottom.
Round full cut
2.0 mm
0.04 to 0.07 cts. each
6
.34 cts. (estimated)
VS, one chipped
G-H
Total Approximate Retail Value Excluding Tax $1,307.89
Total Approximate Retail Value for All Items -Excluding Tax: $13,605.81
Thirteen thousand six hundred five dollars and eighty-one cents
.^ ~,.-~
Signature of Appraiser:
Cherie Lynn Grove
Graduate Gemologist, GIA
Page 11 of 12
Biographical Background and Qualifications
Appraiser's Name
Cherie Lynn Grove, G.G. R. J.
Education: Bachelor of Science, the Shippensburg University, 2000.
Graduate Gemologist, Gemological Institute of America, 2006.
Registered Jeweler, American Gem Society, 2007.
Pearl Grading, Gemological Institute of America, 2006
Business: In the jewelry trade since 2000.
Member American Gem Society.
American Gem Society Conclave 2007-Denver, CO.
Page 12 of 12
SCHEDULE J
NUMBER II. NON-TAXABLE DISTRIBUTIONS:
B. CHARITABLEAND GOVERNMENTAL DISTRIBUTIONS
2. Charitable Gift Annuities
F'EN'NSTATI:
~~f~ ASS~~ 11/ianagel~nent ~ ~ffr.~e ~f li~v~~s'rr~ient (~~1an~t~e~~~nt
.''----~
February 11, 2008
Mr. James R. Whetstone
324 Evergreen Street
New Cumberland, PA 17070-1348
Dear Mr. Whetstone:
I am very sorry to hear of your mother's death. Mary Lou Whetstone McSparran was a generous
benefactor of The Pennsylvania State University.
I am writing regarding the two charitable gift annuities that your mother established with the
University on June 2, 2000 and June 5, 2000 respectively. A copy of each agreement is enclosed
for the Estate's file.
Under the terms of the gift annuity agreement established on June 2, 2000, the obligation of the
University to pay the annuity terminates with the regular payment next preceding the death of the
donor. Under the terms of the gift annuity agreement established on June 5, 2000, the obligation
of the University to pay the annuity terminated with the regular payment next preceding the
death of the survivor of J. Collins McSparran or Mary Lou McSparran. You will find this
provision in item 7 of each of the agreements enclosed. According to our records, J. Collins
McSparran predeceased his wife on May 24, 2004 and your mother died on January 20, 2008.
Her final payment was, therefore, made January 1, 2008. At the time of her death the combined
date of death market value of the annuities totale 28,726.51.
A portion of each gift annuity payment received by your mother was excludable from her gross
income as a tax-free return of the "investment in the contract." The return of investment was to
occur ratably over her actuarial life expectancy and was to include both reportable- capital gain
and tax-free income. The capital gain that was unreported at the time of her death ceased to be
reportable. On the other hand, the unrecovered investment in contract, reduced by the unreported
capital gain, may be claimed as a deduction on the final income tax return.
According to our records, for the annuity established on June 2, 2000, $49.50 of the tax-free
investment was unrecovered. For the annuity established on June 5, 2000, $4,210.35 was
unrecovered, for a combined total of $4,259.85. You may wish to refer to Code Section 72(b)(3)
for authorization to claim this deduction.
The Pennsylvania State University Phone: 814-863-0911
Universit Park, PA 16802 ArernacPPort~~;=ru~~„e=sty
Y Toll free: 1-888-800-9170
Fax: 814-865-0893
~j~.~`' ~~~ 2 t $
Lastly, in order to fully terminate the annuity contract, our auditors require that we obtain a_ py
of the Certificate of Death. I have provided a postage pre-paid envelope for your conveniencein
prove mg this certificate to us.
Should you have any questions, do not hesitate to contact me toll-free at 1-888-800-9170. I will
certainly be happy to be of assistance to you.
Sincerely,
Gi
Michael J. Degenhart
Director, Office of Gift Planning
MJD/tla
Enclosures
PENNSTATE
~ift Asset Management
__.__~
~ ~~~
THE PENNSYLVANIA STATE UNIVERSITY
GIFT ANNUITY AGREEMENT
THIS AGREEMENT is made this 2"d day of June, 2000, between Mary Lou McSpazran,
of Camp Hill, Pennsylvania, hereafter referred to as the "Donor," and THE PENNSYLVANIA STATE
UNIVERSITY, a Pennsylvania non-profit educational corporation located at University Park,
Pennsylvania, hereafter referred to as the "University."
1. Transfer of Property by Donor. The Donor hereby transfers to .the University; and
the University hereby acknowledges receipt of, the property listed on Exhibit "A" attached~hereto for
"J. Collins and Mary Lou McSparran Endowed Football Scholarship."
2. Payment of Annuit~r. In consideration of the property transferred by the Donor,
the University agrees to pay to the Donor for her life, an annual annuity in the amount of $1,039.60,
from the date hereof, which is to be paid in equal installments of $259.90 on the first day of January,
April, July and October. The first installment shall be payable on July 1, 2000, and shall be prorated on
the basis of the number of days from the date hereof through June 30, 2000.
3. Gift to the University. The parties acknowledge that, as of the date hereof, the
fair mazket value of the property transferred to the University is substantially in excess of the fair mazket
value of the annuity and that the difference between those values constitutes a gift by the Donor to the
University for its charitable purposes.
4. Not Primarily an Investment. The University has advised the Donor that a
charitable gift annuity is not designed primarily as an investment but rather as a chazitable gift.
Mary Lou McSparran
Page 2
5. Gift Annuity is not Insurance. The promise to pay the annuity is not insurance
under the laws of Pennsylvania, is not subject to regulation by the Insurance Department and is not
protected by The Pennsylvania Life and Health Insurance Guaranty Association under Article XVlI of
the Act of May 17, 1921 (P.L. ,682, No. 284), known as The Insurance Company Law of 1921, or other
protective device.
6. Nonassianability of Annuity The annuity specified in Paragraph 2 hereof shall be
nonassignable except to the University.
7. Termination of Annuity. The obligation of the University under this Agreement
shall terminate with the regular payment next preceding the death of the Donor.
8. Applicable Law. This annuity shall be governed by the laws of the
Commonwealth of Pennsylvania.
9. Oualified Charity.. Only Qualified Charities are authorized to issue charitable gift
annuities in the Commonwealth of Pennsylvania. Qualified Charities must meet certain criteria
including the fact that they must have been in existence at least. three years prior to the issuance of a
Qualified Charitable Gift .~_r!!:uity.
The University qualifies as a Qualified Charity in that:
A) The University is an educational institution, the curricula of which have been
accredited by the Department of Education;
B) The University is an organization described in Section 170 (c) of the Internal
Revenue Code of 1986 [Public Law 99-514, 26 U.S.C. ~ 170 (c));
C) The University has been in continuous existence since 1855; and
D) The University has unrestricted and unencumbered assets of cash, cash
Mary Lou McSparran
Page 3
equivalents or publicly traded securities of at least $100,000 plus one-half
of the principal value of any annuities issued by the University and currently
in effect.
10. Additional Information. The University would be pleased to answer any questions
the Donor has with regard to this Agreement and to provide any additional information that the Donor
may require. Copies of specific information concerning the University's status as an organization
described in 170 (cj of the Internal iZeverue Code rind of financial statements filed with a governmental
agency or of audited financial statements showing that the University has the required unrestricted and
unencumbered assets described in Paragraph 9-D above can be obtained by contacting the Corporate
Controller's office, 408 Old Main, University Park, PA.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement with the
intent to be legally bound hereby.
WITNESS
fitness Signature
~~~~
M ou McSparran
ATTEST:
L
THE PENNSYLVANIA STATE UNIVERSITY
By: ~
David E. 3ranigan
Associate Treasurer
EXHIBIT "A"
Gift/Valuation Date: June 2, 2000
100 shares of Intel Corp. stock
High: $134.563
Low: $132
Mean: $133.2815
Fair Market Value: $13,328.15
Mary Lou McSparran
Charitable Gift Annuity
Exhibit "A"
PENNSTATE
~" Office of Planned Giving
and Endowments
July 19, 2000.
Mrs. Mary Lou McSparran
1922 Columbia Avenue
Camp Hill, PA 17011-5420
Dear Mrs. McSparran:
The Pennsylvania State University
seven Old Main
University Park, PA 16802-1502
(814)863-0911
Toll free: 1 (888) 800-9170
Fax: (814)865-0893
www.development.ps u.edu
On behalf of The Pennsylvania State University, we would like to thank you for your
contribution in the amount of $13,328.15, which was transferred to the University on
June 2, 2000, in the form of your first Charitable Gift Annuity. The annuity. is for the
benefit of yourself for your lifetime. After your lifetime, ,the remaining amount in the
annuity will be used for the "J. Collins and Mary Lou McSparran Endowed Football
Scholarship."
A copy of your Gift Annuity Agreement is enclosed for your personal records.
Your Annual Annuity Payments
As the Gift Annuity Agreement states, you will receive quarterly payments of $259.90
from the University on the first day of January, April, July and October, for your lifetime.
Your first annuity payment will be prorated based on the number of days in this quarter
since the execution of your Gift Annuity Agreement. This payment, in the amount of
$82.83, will be combined with your October 1 annuity payment. Your total payment on
October 1 will, therefore, be $342.73.
Income Tax Effects
The stock which you transferred to Penn State had appreciated $13,128.15 while you held
it. Under the bargain sale rules which are applicable when appreciated property is
transferred for a Charitable Gift Annuity, $7,214.97 of this gain is attributable to the
actuarial value of your annuity and is reportable by you ratably over your life expectancy.
The amount which you must report annually is $523.27. Any amount which is unreported
at the time annuity payments cease will escape federal income taxation.
- - Accordingly a portion of each annuity payment will be taxable income to you as capital
gain income. Another portion will be taxable ordinary income. Both aze reportable on
your federal income tax return. (Gain from the sale of capital assets held more than one
yeaz is taxed at a maximum rate of 20% [10% for taxpayers in the 15% income tax
~ racket). You should consult your tax advisor for more specific information about the
THE
PENN STATE
CAMPAIGN
An Equal Opportunity University
Mary Lou McSparran
Page 2
taxation of capital gains.) The other portion will be treated as a tax-free "return of original
investment" and will benon-reportable.
As a further explanation of this, the tax-free portion of the annuity payment is the
"investment in the contract" divided by the total expected payments for the period of the
annuity. Your actuarial life expectancy (determined from Treasury tables) is used to
compute the total expected payments. The Tax Reform Act of 19861imits the total amount
you may count as non-taxable income to this investment in the contract.
Thus if you outlive your actuarial life expectancy of 13.8 years, the tax-free portion will
cease at the end of your life expectancy. Thereafter, your full annuity payments will be
taxed entirely as ordinary income. By the same token, if your annuity payments cease
before your total investment in the contract has been recovered, the amount of unrecovered
investment will be allowed as a deduction on your final income tax return.
In 2000, you will not receive a full year's annuity payment. However, the ordinary/non-
taxable/capital gain income ratio will remain constant. For your records, your annuity
payments are characterized for income tax purposes as follows:
Year Capital Gain Tax-free
Portion Ordinary
Income Total Annuity
2000 to 2000 $172.51 $2.63 $167.59 $342.73
2001 to 2013 523.27 7.97 508.36 1,039.60
2014 to 2014 239.95 3.67 795.98 1,039.60
2015 onward 0.00 -0.00 1,039.60 1,039.60
Each year, you will receive a 1099R form from the University. This form will restate the
above information for the current tax year and will assist you or your tax preparer in
completing your tax return.
Under current Pennsylvania law, income from a charitable gift annuity need not be reported
on the Pennsylvania income tax return. However, you or your advisor should check each
year to determine whether state reporting requirements have changed.
Your Federal Income Tax Deduction
For the purpose of your 2000 federal income tax return, the charitable contribution from
your gift annuity is $6,003.27. You may deduct this contribution up to 30 percent of your
adjusted gross income. If your contribution exceeds this amount, you may deduct the
excess over the five following years until exhausted, up to 30 percent of your adjusted
gross income each year.
Mary Lou McSparran
Page 3
The Internal Revenue Service requires us to notify you that because your gift gives you the
right to purchase tickets for Penn State football games, you may deduct only 80% of the
charitable contribution amount. This amount should be further reduced by $110, which is
the value of benefits received for a gift of this level to the Nittany Lion Club.
You should attach a statement to your federal income tax return to explain how the
charitable contribution was determined. For your convenience, we have enclosed a sample
statement. The tax consequences of your gift and how it should be reported on your tax
return depend upon your particular circumstances. As in all cases, you are urged to consult
your own advisors.
Gift Tax Effects
Because the charitable gift element of your gift annuity is.less than $10,000, you do not
need to file a federal gift tax return for your gift to the University.
We hope this information is helpful to you. You should consult your tax advisor for more
specific information about how your gift annuity will impact your particular tax situation.
If we can assist you or your advisor, or answer any questions about the material in this
letter, please feel free to contact us.
Once again, thank you for your generous gift to Penn State.
Sincerely,
Kenneth S . Babe
Corporate Controller
~'
,~ ~-
Patricia L. Roenigk, , sq.
Director
KSB:PLR/baw
Enclosure
cc: David E. Branigan, Associate Treasurer
NAME: Mary Lou McSparran
ADDRESS: 1922 Columbia Avenue, Camp Hill, PA 17011-5420
SOCIAL SECURITY NUMBER: 208-22-2195
Statement Attached to Schedule A (Form 1040) "Contributions"
On June 2, 2000, I entered into a Charitable Gift Annuity Agreement with The Pennsylvania State University.
Copy of Agreement attached.
Amount contributed:
Less: Actuarial Value
Name
Mary Lou McSparran
Charitable contribution
$6,003.27
7520(a~ Election
1. An election is not being made under section 7520(a) of the Internal Revenue Code.
2. The interest to be valued is a Charitable Gift Annuity (see attached agreement.)
3. The applicable valuation date would be June 2000.
4. In accordance with Internal Revenue Code Sect. 7520(a), the charitable contribution was determined
using Internal Revenue Service valuation tables based on an applicable interest rate of eight (8.0%)
percent which is one hundred twenty (120%) percent of the Applicable Federal Midterm Rate for the
month of June 2000, rounded to the nearest two-tenths (2/lOths) of one (1%) percent.
$13,328.15
$7,324.88
Annuitant
Date of Birth Social Security Number
9/O 1 /27 208-22-2195
*The tax consequences of your gift and how it should be reported on your tax return depend upon your
;particular circumstances. As in all cases, you are urged to consult your own advisors.
# Sya
THE PENNSYLVANIA STATE UNIVERSITY
' GIFT ANNUITY AGREEMENT
THIS AGREEMENT is made this 5`h day of June, 2000, between J. Collins McSparran
and Mary Lou McSparran, husband and wife, of Camp Hill, Pennsylvania, hereafter referred to as the
"Donors," and THE PENNSYLVANIA STATE UNIVERSITY, a Pennsylvania non-profit educational
corporation located at University Park, Pennsylvania, hereafter referred to as the "University."
1. Transfer of Property by Donors The Donors hereby transfer to the University,
and the University hereby acknowledges receipt of, the sum of $15,000 in cash for the "J. Collins and
Mary Lou McSparran Endowed Football Scholarship."
2. Payment of Annuity In consideration of the sum transferred by the Donors, the
University agrees to pay to the Donors, for their joint lives and to the survivor of them for his or her life,
an annual annuity in the amount of $1,140.00, from the date hereof, which is to be paid in equal
installments of $285.00 on the first day of January, April, July and October. The first installment shall
be payable on July 1, 2000, and shall be prorated on the basis of the number of days from the date hereof
through June 30, 2000.
3. Gift to the University. The parties acknowledge that, as of the date hereof, the
amount transferred to the University is substantially in excess of the fair market value of the annuity and
that the difference between those values constitutes a gift by the Donors to the University for its
charitable purposes.
J. Collins and Mary Lou McSparran
Page 2
4. Not Primarily an Investment. The University has advised the Donors that a
charitable gift annuity is not designed primarily as an investment but rather as a charitable gift.
5. Gift Annuity is not Insurance. The promise to pay the annuity is not insurance
under the laws of Pennsylvania, is not subject to regulation by the Insurance Department and is not
protected by The Pennsylvania Life and Health Insurance Guaranty Association under Article XVII of
the Act of May 17, 1921 (P.L. 682, No. 284), known as The Insurance Company Law of 1921, or other
protective device.
6. Nonassi~nability of Annuity. The annuity specified in Paragraph 2 hereof shall be
nonassignable except to the University.
~ 7. Termination of Annuity. The obligation of the University under this Agreement
shall terminate with the regular payment next preceding the death of the survivor of J. Collins
McSparran or Mary Lou McSparran.
8. Revocation of Annuity. Notwithstanding any of the foregoing provisions:
(A) J. Collins McSparran reserves the right by his will to revoke the survivorship
annuity payments for his wife from his one-half interest in the. joint property transferred under this
Agreement. If he exercises that right, the University's obligation to make the annuity payments from the
one-half interest of J. Collins McSparran in the joint property shall terminate with the payment preceding
his death and his wife shall receive an annuity of $570.00 in equal quarterly installments of $142.50
payable as set forth in Paragraph 2 hereof.
(B) Mary Lou McSparran reserves the right by her will to revoke the survivorship
annuity payments for her husband from her one-half interest in the joint property transferred under this
. J. Collins and Mary Lou McSparran
Page 3
Agreement. If she exercises that right, the University's obligation to make the annuity payments from
the one-half interest of Mary Lou McSparran in the joint property shall terminate with the payment
preceding her death and her husband shall receive an annuity of $570.00 in equal quarterly installments
of $142.50 payable as set forth in Paragraph 2 hereof.
9. Applicable Law. This annuity shall be governed by the laws of the
Commonwealth of Pennsylvania.
10. Qualified Charity: Only Qualified Charities are authorized to issue charitable gift
annuities in the Commonwealth of Pennsylvania. Qualified Charities must meet certain criteria
including the fact that they must have been in existence at least three years prior to the issuance of a
Qualified Charitable Gift Annuity.
The University qualifies as a Qualified Charity in that:
A) The University is an educational institution, the curricula of which have been
accredited by the Department of Education;
B) The University is an organization described in Section 170 (c) of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 170 (c)J;
C) The University has been in continuous existence since 1855; and
D) The University has unrestricted and unencumbered assets of cash, cash
equivalents or publicly traded securities of at least $100,000 plus one-half
of the principal value of any annuities issued by the University and currently
in effect.
J. Collins and Mary Lou McSparran
Page 4
11. Additional Information. The University would be pleased to answer any questions
the Donors have with regard to this Agreement and to provide any additional information that the
Donors may require. Copies of specific information concerning the University's status as an
organization described in 170 (c) of the Internal Revenue Code and of financial statements filed with a
governmental agency or of audited financial statements showing that the University has the required
unrestricted and unencumbered assets described in Paragraph 10-D above can be obtained by contacting
the Corporate Controller's office, 408 Old Main, University Park, PA.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement with the
intent to be legally bound hereby.
WITNESS:
~,
Wit ss Signature
c
J. Collins McSparran
'Hess Signature
ATTEST:
.~
A~c~ci~T. ~e~.;rs'ca:~
Mary Lou McSparran ,
THE PENNSYLVANIA STATE UNIVERSITY
By: ~ ~
David E. 6rarrigan~
Associate Treasurer
PENNSTATE
~I
July 10, 2000
Office of Planned Giving The Pennsylvania State University (3I~1) g~3_091 I
and Endowments Seven Old Main Toll i'ree: I (388) 800-y170
University Park. PA 16803-I X03 Fax: (81-F) 8Ei5-0893
ww w.deve lopmen t. psu.edu
Mr. and Mrs. J. Collins McSparran
1922 Columbia Avenue
Camp Hill, PA 17011-5420
Dear Mr. and Mrs. McSparran:
On behalf of The Pennsylvania State University, we would like to thank you for your
contribution in the amount of $15,000, which was transferred to the University on June 5, 2000,
in the form of your third Charitable Gift Annuity. The annuity is for the benefit of yourselves for
your joint lives and then for the survivor for his or her lifetime. After your lifetimes, the
remaining amount in the annuity will be used for the "J. Collins. and Mary Lou McSparran
Endowed Football Scholarship."
A copy of your Gift Annuity Agreement is enclosed for your personal records.
Your Annual Annuity Pa ents
You will receive quarterly payments of $285.00 from the University on the first day of January,
April, r'uly and October, for your joint lives. At the death of the first to die, the survivor will
receive quarterly payments of $285.00 on the same payment schedule for his or her lifetime,
providing the first to die has not exercised the right by will to revoke the survivorship annuity
payments of the survivor as discussed below under Gift Tax Effects. If that right is exercised,
the University's obligation to make the annuity payments from the one-half interest of the
deceased shall terminate with the payment preceding his or her death and the survivor shall
receive equal quarterly payments of $142.50.
Your first annuity payment will be prorated based on the number of days in the quarter since the
execution of your Gift Annuity Agreement. This payment, in the amount of $, will be
combined with your October 1, 2000, annuity payment. ~
Income Tax Effects
A portion of each annuity payment will be taxable income to you and will be reportable on your
federal income tax return. The other portion will be treated as a tax-free "return of original
investment" and will benon-reportable.
THE
PENN STATE
CAMPAIGN
An Equrl Opportunity Univcnity
Mr. and Mrs. J. Collins McSparran
Page 2
As a further explanation of this, the tax-fret portion of the annuity payment is the "investment in
the contract" divided by the total expected payments for the period of the annuity. Your actuarial
life expectancy (determined from Treasury tables) is used to compute the total expected
payments. The Tax Reform Act of 19861imits the total amount you may count as non-taxable
income to this investment in the contract.
Thus if you outlive your two-life actuarial life expectancy of 14.6 years, the tax-free portion will
cease at the end of your joint life expectancy. Thereafter, your full annuity payments will be
taxed entirely as ordinary income. By the same token, if your annuity payments cease before
your total investment in the contract has been recovered, the amount of unrecovered investment
will be allowed as a deduction on your final income tax return.
In 2000, you will not receive a full year's annuity payment. However, the taxable/non-taxable
ratio will remain constant. For your records, your annuity payments are characterized for income
tax purposes as follows:
Year Tax-free Portion Ordin Income Total Annui
2000 to 2000 $348.58 $315.38 $663.96
2001 to 2014 598.50
2015 to 2015 14.27 541.50
1,125.73 1,140.00
1,140.00
2016 onward 0.00 1,140.00 1,140.00
Each year, you will receive a 1099R form from the University. This form will restate the above
information for the current tax year and will assist you or your tax preparer in completing your
tax return.
Under current Pennsylvania law, income from a charitable gift annuity need not be reported on
the Pennsylvania income tax return. However, you or your advisor should check each year to
determine whether state reporting requirements have changed.
Your Federal Income Tax Deduction
For the purpose of your 2000 federal income tax return, the charitable contribution from your gift
annuity is $6,258.15. You may deduct this contribution up to 50 percent of your adjusted gross
income. If your contribution exceeds this amount, you may deduct the excess over the five
following years until exhausted, up to 50 percent of your adjusted gross income each year.
The Internal Revenue Service requires us to notify you that because your gift gives you the right
to purchase tickets for Penn State football games, you may deduct only 80% of the charitable
contribution amount. This amount should be further reduced by $110, which is the value of
benefits received for a gift of this level to the Nittany Lion Club.
You should attach a statement to your federal income tax return to explain how the charitable
contribution was determined. For your convenience, we have enclosed a sample statement.
r Mr, and Mrs. J. Collins McSparran
Page 3
Gift Tax Effects
The creation of a Charitable Gift Annuity funded with jointly-owned property involves each
spouse making two separate gifts -- one to the other spouse (based on the surviving spouse's
right to continue to receive payments for life from the donor-spouse's right to interest in the
property at the death of the donor-spouse) and the other to the University. The gift to the spouse
is a future interest (i.e., there is no immediate economic interest to the spouse resulting from the
gift). Therefore, it does not qualify for the annual $10,000 gift tax exclusion. Neither does this
gift qualify for the marital deduction unless an irrevocable election is made on the decedent's
estate tax return to treat this interest as a qualified terminable income interest. The end result is
that, barring such an election, the creation of the Charitable Gift Annuity could result in a taxable
gift being made by each spouse to the other. However, this negative consequence is avoided by
each spouse retaining in the Gift Annuity Agreement the right by will to revoke the other
spouse's interest in the annuity. This retained right of revocation accomplishes its intended
purpose of eliminating the negative gift tax consequences simply by its existence. It need not be
actually exercised to be effective. It is fully anticipated that it will never be exercised, but its
exercise is always an available option to each spouse.
Having retained in your Gift Annuity Agreement the right to revoke the survivorship annuity
payments for your spouse, the gift to your spouse is considered incomplete for gift tax purposes
and need not be reported on a federal gift. tax return.
Because the charitable gift element of your gift annuity is less than $10,000, you do not need to
file a federal gift tax return for your gift to the University.
We hope this information is helpful to you. You should consult your tax advisor for more
specific information about how your gift annuity will impact your particular tax situation. If we
can assist you or your advisor, or answer any questions about the material in this letter, please
feel free to contact us.
Once again, thank you for your generous gift to Penn State.
Sincerely,
Kenneth S. Babe
Co rate Controller
j,
Patricia L. oenigk, Dir for
KSB:PLR/baw
Enclosures
xc: David E. Branagan, Associate Treasurer
NAME: J. Collins McSparran
ADDRESS: 1922 Columbia Avenue, Camp Hill, PA 1 70 1 1-5420
SOCIAL SECURITY NUMBER: 111-07-2473
Statement Attached to Schedule A (Form 1040), "Contributions"
On June 5, 2000, we entered into a Charitable Gift Annuity Agreement with The Pennsylvania State University.
Copy of Agreement attached.
Amount contributed:
Less: Actuarial Value
Name
J. Collins McSparran
Mary Lou McSparran
Charitable contribution
Annuitant
Date of Birth
10/12/13
09/01/27
7520(a Election
$15,000.00
$8,741.85
Social Security Number
111-07-2473
208-22-2195
$6,258.15
1. An election is being made under section 7520(a) of the Internal Revenue Code.
2. The interest to be valued is a Charitable Gift Annuity (see attached agreement.)
3. The applicable valuation date absent this election would be June 2000.
4. In accordance with Internal Revenue Code Sect. 7520(a), the charitable contribution was determined
using Internal Revenue Service valuation tables based on an applicable interest rate of seven and eight
tenths (7.8%) percent which is one hundred twenty (120%) percent of the Applicable Federal Midterm
Rate for the month of May 2000, rounded to the nearest two-tenths (2/lOths) of one (1%) percent.
*The tax consequences of your gift and how it should be reported on your tax return depend upon your
particular circumstances. As in all cases, you are urged to consult your own advisors.
LAST WILL AND TESTAMENT
OF
MAItYLOUMcSPARRAN
LAST WILL AND TESTAMENT
OF
MARY LOU McSPARRAN
I, MARY LOU McSPARRAN of Camp Hill, Cumberland County,
Pennsylvania, being of sound mind, memory and understanding, do
make and publish this, my Last Will and Testament, hereby
revoking all wills and codicils by me at any time heretofore
made.
ITEM 1: I direct my Executor hereinafter named, to pay the
expenses of my last illness and funeral expenses from the
property passing under this Will as an expense and cost of
administering my estate.
ITEM 2: All expenses of administering my estate and all
inheritance, estate and succession taxes, including interest and
penalties payable by reason of my death,-which may be assessed or
imposed with respect to my estate, or any part thereof,
wheresoever situate, whether or not passing under my Will,
including the taxable value of all policies of insurance on my
life and of all transfers, powers, rights or interests includible
in my estate for the purposes of such taxes and duties, shall be
paid out of my residuary estate as an expense of administering
and with apportionment, and shall not be prorated or charged
against any other gifts in this Will or against property not
passing under this Will.
- 1 of 8 - ~'f ~
ITEM 3: In the event that, at the time of my death, I am
joint owner, co-owner,- or owner of any real estate, bank account,
government bond, security or instrument of indebtedness (whether
issued by a private corporation, a government, a governmental
agency, or an individual) or any similar property which is
registered or issued in my name and that of another person or
persons as tenants by the entirety or as joint tenants with right
of survivorship, or which is shown in writing to be payable to
either the co-owner or named survivor on my death, I give,
bequeath, and devise, absolutely and forever, all my right, title
and interest in any such property to the surviving joint owner or
co-owner thereof or to the other survivor apparently entitled
thereto upon my death. It is my understanding that my right,
title and interest in any such property will, by operation of law
upon my death, vest or pass to such surviving joint owner or co-
owner thereof or to the other survivors apparently entitled
thereto. Nevertheless, I make these provisions in order to
eliminate any doubt or question as to the right of any such
surviving joint owner or co-owner or other person apparently
entitled thereto to succeed to full possession and ownership of
such property upon my death, and to provide for the possible
contingency of an ineffective attempt to create a joint tenancy
or estate by the entirety.
- 2 of 8 - ~i° ? p~rk-- ~
ITEM 4: I give, devise and bequeath unto my beloved son,
JOHN ELVIN WHETSTONE, one-half (1J2) of my estate, real, personal
and mixed, whatsoever nature and kind and wheresoever situate.
ITEM 5: In the event that my son, JOHN ELVIN WHETSTONE,
predeceases me, his one-half (1/2) of my estate shall go to his
wife, C. SUE WHETSTONE, and their children, in equal shares.
ITEM 6: I give, devise and bequeath unto my beloved son,
JAMES ROBERT WHETSTONE, the other one-half (1/2) of my estate,
real, personal and mixed, whatsoever nature and kind and
wheresoever situate.
ITEM 7: In the event that my son, JAMES ROBERT WHETSTONE,
predeceases me, his one-half (1/2) of my estate shall go to his
wife, BARBARA WHETSTONE, and their children, in equal shares.
ITEM 8: In the event that JAMES and BARBARA WHETSTONES
children are minors at the time of my death, I give, devise and
bequeath all the rest and residue of my estate of any kind
whatsoever, real, personal, or mixed, and wheresoever situate to
BARBARA WHETSTONE as Trustee for my grandchildren for the
following purposes:
a) To pay over to the guardian of my grandchildren all
of the income and so much of the principal as she in her sole
discretion deems necessary for the proper support,- maintenance,
welfare, and education of my grandchild.
- 3 of 8 - i~ ~ ~(c
b) The Trustee shall divide the Trust estate into as
many parts as there are then surviving grandchildren of mine, and
distribute one such part to each surviving grandchild at the time
that child attains the age of eighteen (18) years.
c.) My Trustee has the right to invade the principal
of the Trust should any grandchild wish to purchase a home or
business so long as they have completed their college education
or it is determined that they will not continue their education
through college.
d.) Neither the principal nor the income of the Trust
estate shall be liable for the debts of any beneficiary hereof,
nor shall the same be subject to seizure or attachment by any
creditor of any beneficiary under any writ or proceeding at law
or in equity, and no beneficiary hereunder shall have any power
to sell, assign, transfer, encumber or in any other manner to
anticipate or dispose of the principal or income in the Trust
estate produced thereby.
ITEM 9: The Trustee shall possess, among others, the
following powers:
a.) To vary or to retain investments, when deemed
desirable by the Trustee, and to invest in such bonds, stocks,
notes, real estate mortgages or securities or in such other
property, real or personal, as the Trustee shall deem wise,
without being restricted to so-called "legal investments", and
- 4 o f 8 - ~" ~ertci
without being limited by-any statute or rule of law regarding
investments by fiduciaries.
b.) To sell, either at public or private sale and upon
such terms and conditions as the Trustee may deem advantageous to
the Trust, any or all real or personal estate or interests
therein owned by the Trust severally or in conjunction with other
persons, and to consummate said sale or sales by sufficient deeds
or other instruments to the purchaser or purchasers, conveying a
fee simple title, free and clear of all trust and without
obligation or liability of the purchaser or purchasers to see to
the application of the purchase money or to make inquiry into the
validity of said sale or sales; also, to make, execute,
acknowledge and deliver any and all deeds, assignments, options
or other writings which may be necessary or desirable in carrying
out any of the powers conferred upon the Trustee in this
paragraph or elsewhere in this instrument.
c.) To mortgage real estate, and to make leases of
real estate extending beyond the terms of the Trust hereunder.
d.) To borrow money from any part, including the
Trustees, to pay indebtedness of the Trust, and taxes, and to
assign and pledge assets of the Trust therefor.
e.) To pay all costs, taxes, expenses and charges in
connection with the administration of the Trust, including a
reasonable compensation to agents.
- 5 of 8 - ~
~
f.) In the discretion of the Trustee, to unite with
other owners of similar property in carrying out any plans for
the reorganization of any corporation or company whose securities
form a part of the Trust.
g.) To vote any shares of stock which form a part of
the trust.
h.) To assign to and hold in the Trust an undivided
portion of any asset.
i.) To do all other acts in their judgment deemed
necessary or desirable for the proper and advantageous management
investment and distribution of the Trust.
j.) No bond shall be required by law and no surety
shall be required on the bond. My Trustees need not account to
any court in the exercise of any power or discretion.
k.) My Trustee shall be entitled to reasonable
compensation for services in administering and distributing the
Trust property,. and to reimbursement for expenses.
1.) The assets distributed or payable to my Trustee,
hereinafter named, as a result of my death including, but not by
way of limitation, assets received as part of my Residue,
proceeds of life insurance policies, and proceeds of employee
benefit plans, shall be administered by my Trustee in accordance
with the Trust created hereunder.
- 6 o f 8 - p~d2v ~„~~~
If my Trustee is the beneficiary of any life insurance
policy on my life or the beneficiary of any qualified pension or
profit sharing plan, the proceeds of such policy or plan shall be
treated by my Trustee as though received as part of my Residue.
These proceeds shall not be subject, however, to debts and taxes
to which they otherwise would not be subject.
ITEM 10: In the event any beneficiary and I die under such
circumstances that the order of our deaths cannot be established
by proof, it shall be conclusively determined for all purposes of
this Will that I survived the beneficiary.
ITEM 11: I hereby nominate, constitute and appoint my son,
JAMES ROBERT WHETSTONE, of New Cumberland, Pennsylvania, to be my
Executor of this my Last Will and Testament.
My son, James, is being appointed individually, as
opposed to being a Co-Executor with his brother, John, only by
reason of his proximity to the county in which the Will will be
probated.
ITEM 12: I hereby nominate, constitute and appoint my son,
JOHN ELVIN WHETSTONE, of Apex, North Carolina, to be my
Contingent Executor of this my Last Will and~Testament.
- 7 o f 8- azrJ
G
IN WITNESS WHEREOF, I have signed this Will on this -~~_
day of ~~ , 1993. For identification I have
signed the foregoing seven (7) pages of this Will which consists
of eight ( 8 ) pages .
TE RIX
f/p - Wills\MMcSparr.wil
SIGNED, sealed, published and declared by MARY LOU
McSPARRAN, the above-named Testatrix, as and for her Last Will
and Testament, in the presence of us, who, at her request, in her
presence and in the presence of each other, have hereunto
subscribed our names as witnesses.
~ 1~ ~~~a
~ Residences) r~~~ }.Q }(~~ ~(~ - ~ ~'~(~~~
Residence_ ~ ~~~~ f'~,/4 / `7 ~ / ~
ACKNOWLEDGMENT
COMMONWEALTH OF PENNSYLVANIA
SS.
COUNTY OF DAUPHIN .
On this, the 'day of ~~~/Y-l.~`Qti 1993, before
me, a Notary Public, the undersigned officer, personally appeared
MARY LOU McSPARRAN, known to me (or satisfactorily proven) to be
the person whose name is subscribed to the attached or foregoing
instrument, acknowledged that she signed and executed the
instrument as her Last Will; that she signed it willingly; and
that she signed it as her free and voluntary act for the purposes
therein expressed.
IN WITNESS WHEREOF, I hereunto set my hand and official
seal.
Notary Pu `ie `
NOTARIAL SFAL
BARBARA E PALMER, NGiary Public
Harrisburg, Dauphin Gounty
My Commission Expires May 17,1997
~ s ~
AFFIDAVIT
COMMONWEALTH OF PENNSYLVANIA
SS.
COUNTY OF DAUPHIN
We, ~ . ~~ ~ ,~ and ~Q~I.~1 /'~ i,~t! fr the
witnesses whose names are subscribed to the attached or foregoing
instrument, being duly qualified according to law, do depose and
say that we were present and saw the Testatrix sign and execute
the instrument as her Last Will; that she signed it willingly and
that she executed it as her free and voluntary act for the
purposes therein expressed; that each of us in the hearing and
sight of the Testatrix signed the Will as witnesses; and that to
the best of our knowledge the Testatrix was at that time 18 or
more years of age, of sound mind and under no constraint or undue
influence.
WITNESS
SWORN and subscribed to
before me, this ~~ day
of "(n , 1993.
'1,k~
Notary Public
NOTARIAL SEAL -
• ~'~_,!"?ARA E. PALLIER, Notary Public
!;-ri~i1~irg,Dauphin Cour>iy ' :'
•<;,,,~~ ,~a~~'Expires May 17,1997
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FRIEDMAN & KING, P.C.
3820 Market Street
Camp Hill, PA 17011
(717)236-8000
(717)236-8080 (fax)
friedmanandkin~@hotmail.com
October 16, 2008
Register of Wills
Cumberland County Courthouse
1 Courthouse Square
Carlisle, PA 17013
In re: Estate of Mary Lou McSparran
Estate No. - 2008-00132
PA No. - 21-08-0132
Dear sir or madam:
Richard S. Friedman
john F. King
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Enclosed herewith for filing please find an original and two copies of the Inheritance
Tax Return for the above-referenced estate. I have also enclosed a check in the amount of
$15.00 to cover the cost of filing.
After filing, please return a clocked in copy to this office in the enclosed envelope.
Thank you.
Very truly yoy~s,
S. Friedman
RSF/bp
Enclosures
cc: James R. Whetstone, Executor