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HomeMy WebLinkAbout10-25-04 MILLER LIPSITI LLC 2157 M.nk,,! Stn.,,,t eml!, Hill. PA 17011 717-737-6400 fax: 717-737-5355 n'l""\v. pa,utl a'\'\~ .com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA IN RE ESTATE OF ORPHAN'S COURT DIVISION ROBERT M. MUMMA, Deceased. No.: 21-86-398 MOTION FOR A RULE TO SHOW CAUSE WHY THE ESTATE SHOULD NOT BE REQUIRED TO PROVIDE NOTICE TO ALL BENEFICIARIES BEFORE THE DISPOSITION OF ANY ESTATE PROPERTY AND NOW, comes beneficiary Robert M. Mumma, II, by and through his counsel MILLER LIPSITT LLC and makes the following Motion for a Rule to Show Cause: 1. At the time of his death in 1986, Robert M. Mumma owned significant assets and managed numerous family-owned businesses. 2. In his will, Robert M. Mumma created two testamentary trusts into which the vast majority of his assets were to be divided equally. 3. Robert M. Mumma, II is a beneficiary of the Estate of Robert M,J\1umma and a '" J '. ~ ~( d residual beneficiary of each of the testamentary trusts. - "'" (;': C = C'J 4. The two trusts, marital and residuary, have not been funded equally even though N U1 the will requires equal funding. v w .r.:;. CXJ 5. The marital trust, which allows co-trustee and income beneficiary Barbara McK. Mumma to invade up to 5% of the principal of the trust annually, was funded with substantial assets beginning in 1987. 6. These assets had a carrying value within the Estate of Nine Million Three Hundred Ninety-Seven Thousand Seven Hundred Twenty-Six Dollars and Seventy-Eight Cents ($9,397,726.78). 7. However, the assets were significantly undervalued. Soon after they were placed into the Marital Trust, many family businesses were sold. According to the asset values at the time of sale, the Marital Trust was funded with over Twelve Million Dollars ($12,000,000,00). 8. The Residuary Trust, which under the will must be funded with Fifty percent (50%) of the Estate's assets, did not receive significant assets until 2002. 9. The vast majority of the funding of the Residuary Trust did not occur until 2003, Seventeen (17) Years after the death of Robert M. Mumma. 10. Eventually, the Residuary Trust was funded with only Three Million Seven Hundred Sixty-Three Thousand Eight Hundred Fifteen Dollars and Thirty-Eight Cents ($3,763,815.38). II. Cleary, the Estate was not distributed equally to the two trusts. 12. The Executrixes have also distributed to Barbara McK. Mumma directly from the Estate and in contravention of the will of Robert M. Mumma One Million Six Hundred Thirty-Three Thousand Four Hundred Seventy-Nine Dollars and Sixty- Nine Cents ($1,633,479.69). 13. In direct opposition to the expressed wishes of Robert M. Mumma, the executrixes / trustees have sold or have allowed others to sell and continue to sell or allow others to sell numerous estate-owned or controlled businesses and assets. 14. The executrixes / trustees have continuously thwarted efforts made by the beneficiaries to learn of these asset and business sales before they occur. 15. Beneficiary Robert M. Mumma, II would like notice of said sales, transfer or dispositions before they occur so that he can protect his interests in the Estate and ensure that these assets are sold, transferred or disposed of at or above fair market value. WHEREFORE, beneficiary Robert M. Mumma, II requests that this Honorable Court issue a Rule to Show Cause upon the Estate of Robert Mann Mumma why it should not be required to provide one month of notice to all beneficiaries of the Estate before it sells, swaps, exchanges, abandons, allows others to sell, or otherwise disposes of any property, other than cash or cash equivalents, owned or controlled by the Estate, owned or controlled by the trusts created by the Estate, or owned or controlled by any entities in which the Estate or trusts created by the estate have a ten percent (10%) interest. Respectfully Submitted, Kirk .S nage, Esquire LD. No. 77851 ~~) I ~ /C--- Daryf E. Christopher LD. No.: 91895 2157 Market Street Camp Hill, P A 17011 (717) 737-6400 Attorneys for the Beneficiary AFFIDAVIT I, Robert M. Mumma, II, have read the foregoing Motion for a RuIe to Show Cause and do hereby swear that all of the facts contained therein are true and correct to the best of my knowledge, information, and belief. ~ 7/;) Wf ~c~,.~ Date obert M. Mumma, II . CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of the foregoing was served via first class United States mail, postage pre-paid upon the following: Ivo V. Otto, III, Esquire Martson Deardorff Williams & Otto Ten East High Street Carlisle, P A 17013 Joseph A. O'Connor, Jr., Esquire Brady L. Green, Esquire Morgan, Lewis & Bockius, LLP 1701 Market Street Philadelphia, PA 19103-2921 Dated Io,h~/() ~ nj~ Daryl E. Christopher, Esq.