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HomeMy WebLinkAbout04-0409ESTATE OF BRIAN PETER KOSER IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION · NO. di-O¢-q'Oq PETITION OF MABEL J. KOSER, AS ADMINIST,_,R~TOR · '~ OF THE ESTATE OF BRIAN PETER KOSER, FOR AI?ROvA~ OF ...... ~ ~ WRONGFUL DEATH/SURVIVAL ACTION SETT~MEN'~ -~', ~57 . ( AND NOW, comes Petitioner, Mabel J. Koser, as Administrator of the Estate of:B~rian Peter Kq~er, seeking court approval of the settlement on behalf of the Estate of Brian Peter Koser, and~respectfully'~present the following: ~ 1. Petitioner, Mabel J. Koser, is the natural parent and guardian of decedent, and administrator of the Estate of Brian Peter Koser, deceased, by virtue of Letters of Administration granted to them by the Register of Wills of Cumberland County, Pennsylvania on December 2, 2003. (A true and correct copy of the Short Certificate is attached hereto as Exhibit "A".) 2. The decedent, Brian Peter Koser, was 12 years old at the time of his death with a date of birth of October 5, 1989, and was a resident of Newburg, Cumberland County, Pennsylvania. 3. Decedent died as a result of injuries sustained in a fatal motor vehicle accident on May 15, 2002, when the vehicle in which the decedent was a passenger went out of control, and flipped over, ejecting decedent from the vehicle. The accident occurred on Mongul Hill Road, South Hampton Township, Franklin County, Pennsylvania. (A true and correct copy of the Pennsylvania State Police Report is attached hereto as Exhibit 4. At the time of the accident, the vehicle in which decedent was a passenger was being operated by David J. Koser, the brother of the decedent. 5. By reason of the death of the decedent, Brian Peter Koser, a cause of action arose against the tortfeasor, David J. Koser; however, no civil action has been filed to date. 6. At the time of the accident, the tortfeasor was covered by a policy of insurance through Allstate Insurance Company that provided a liability limit of $100,000, as confirmed by the certified letter and declarations page supplied by Allstate Insurance Company. (A true and correct copy of the certified letter and declarations page printout is attached hereto as Exhibit "C"). 7. Although not admitting liability on the part of the tortfeasor, Allstate Insurance Company on behalf of the tortfeasor proposed a structured settlement, in full and final settlement of all claims against the tortfeasor as follows: a. A lump sum payment of $40,000 to be paid on or before 14 days from receipt of the executed structured settlement release; b. Lump sum guaranteed payments as follows: (1) $7,500 guaranteed payment on March 1, 2007; (2) $12,500 guaranteed payment on March 1, 2010; (3) $20,000 guaranteed payment on March 1, 2013; (4) $25,000 guaranteed payment on March 1, 2016; and (5) $35,000 guaranteed payment on March 1, 2019. (A true and correct copy of the release and settlement agreement is attached hereto as Exhibit D.) 8. Subject to the approval of this Honorable Court, Petitioner, Mabel J. Koser, as Administrator of the Estate of Brian Peter Koser, has agreed to accept the aforementioned structured settlement proposal from Allstate Insurance Company, representing satisfaction of the claims against the tortfeasor, in light of the fact that there is no other available insurance or assets to satisfy Petitioner's claim. 9. The law provides for recovery of funeral expenses and loss contributions and services under the wrongful death act and net lost earnings under the survival act. 10. In the instant case, the funeral expenses totaled $5,069.00, $2,500.00 of which has been paid by Allstate pursuant to Petitioner's policy of insurance and the balance of which will be paid by Petitioner as Administrator of the Estate of Brian Peter Koser out of the available life insurance proceeds. 11. At the time of his death, Petitioner's decedent was a 12 year old student and was not employed, and, therefore, there is no claim for loss of earnings or earning capacity. 12. The evidence suggests that Petitioner's decedent was conscious, if at all, for only a very brief period of time following the accident and became unconscious at the time of, or before, being placed on the helicopter and before being flown to the hospital where he passed away. 13. In light of the foregoing, it is believed, and therefore averred, that any pain and suffering endured by the decedent was brief and ended before being transported to the hospital. 14. In light of the above facts, Petitioner's believes and therefore avers that an allocation of $10,000 to the survival action and the remainder being allocated to the wrongful death action is a fair and reasonable allocation of the settlement proceeds. 15. Petitioner has sought approval of the above-mentioned distribution from the Pennsylvania Department of Revenue, and the allocation was approved by J. Paul Dibert, in a letter dated December 15, 2003. (A true and correct copy of the letter from the Pennsylvania Department of Revenue approving the allocation of the settlement proceeds, is attached hereto as Exhibit "E"). 16. The decedent did not have any issue at the time of his death and Petitioner, as natural parent of the decedent, is the only heir entitled to share in the estate of the decedent, pursuant to Pennsylvania Law of Intestate Succession. 20 P.C.S. §2103 (2003). (See Exhibit "A"). 17. The fees of the undersigned counsel for the Petitioner is being paid by Allstate Insurance Company at no cost to Petitioner. 18. Petitioner believes, and therefore avers, that in light of the facts set forth in this Petition, the allocation of $10,000 to the survival action claims with the remainder allocated to the wrongful death claim is fair, just and equitable. WHEREFORE, Petitioner respectfully requests that this Honorable Court enter an order approving the settlement, directing the distribution of the proceeds thereof in accordance with the averments of this Petition, and authorizing Petitioner, upon payment of the aforesaid sums to execute and deliver to Allstate's insured, a good and sufficient general release discharging their liability in this matter. \05_A\LIABXJPM\LLPG\I 38993~EMP\01199\00365 Respectfully submitted, MARSHALL, DENNEHEY, WARNER, COLEMAN & GOGGIN ~t~42 0~C F'rumMsuM~i ll~R~aS~d~l]ire Suite B Harrisburg, PA 17112 I.D. No. 78119 (717) 651-3509 VERIFICATION The undersigned hereby verifies that the statements in the foregoing Petition are based upon information which has been furnished to counsel by me and information which has been gathered by counsel in the preparation of the defense of this lawsuit. The language of the Petition is that of counsel and not my own. I have read the Petition, and to the extent that it is based upon information which I have given to counsel, it is true and correct to the best of my knowledge, information and belief. To the extent that the contents of the Petition are that of counsel, I have relied upon my counsel in making this verification. The undersigned also understands that the statements therein are made subject to the penalties of 18 Pa.C.S. Section 4904, relating to unsworn falsification to authorities. BY: Mal~$1 J. Ko~eO ' - STATE OF PENNSYLVANIA COUNTY OF CUMBERLAND SHORT CERTIFICATE I, DONNA M. OTTO Register for the Probate of Wills and Granting Letters of Administration &c. in and for said County of CUMBERLAND do hereby certify that on the 2nd day of December A.D., - Two Thousand and Three, Letters of ADMINISTRATION in common form were granted by the Register of said County, on the estate of KOSER BRIAN PETER , late of HOPEWELL TOWNSHIP (LA~'I', b'l~5'l', MIDDLE) in said county, deceased, to KOSER MABEL J and that same has not since been revoked. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seal of said office at CARLISLE, PENNSYLVANIA, this 2nd day of December A.D., Two Thousand and Three. 2003-00996 21-03-0996 5/15/2002 204-70-2422 File No. PA File No. Date of Death s.s. # NOT VALID WITHOUT ORIGINAL SIGNATURE AND IMPRESSED SEAL · COMMONWEALTH OF PENNSYLVANIA . 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COMMONWEALTH POLICE CRASH REPORTING FORM 001491 ,~-- Ch~ngey Cr .,s,h Number mmmm Pl~e C°mp~e~e'Unit ~nform~:cn for e~ un~ in~l~ ~ a f~ ~h. Do not re~a~ ~for~o~ in ~* fielas a~ OR muhi~ ~g~ .. . ,'~ Driver Endorser~e,~t ~e~;.. fei - NOT a Penr~!;atfia ] (~ U~tk~owr~ - ~ Complian~e - ~ None Rzqutr~ ~..1 Ctm~phan~ .. CJ Comphan~e J ,~ loAvodance ~"Br-km .... '-- "' ..... ' :"-':'~ Under R/de/ndi~a~oF ~ , Undemde. No D'~.TesrTF~'e c~ 3~r~j (~ Other ~NoUnderrideor ~Companment ~erride, ~,~en ~ Undemde. Undemde, Unknown if ' ' Siren ) = Coca:.*,,: 3: L n~ 9;,,~ re~t i ~ t ~ ,-~ Not in Emergen~ 4 = ~:ates ~ ~ ,Rs -- · ~ k~ Use 0 Siren Sounding 0 Unkno~ Re,:r/cftc;ns Not ~ Ur kncwn 'j LJ Undercarriage ~ ~/J~ J '.~'" '- .' ,:~-:~ CJm~hance ~ Ccrn~hed W~th '~De~ver '~ Unknown ' 0 ~ .. ', .... ' ' :":-.;d~ ~ ~e~b~red - NOn U~kncwrt A~,o~dance Maneuve~ ~ None Rea,~.red '~ C3mchance ~ Com~ha~ce -- ReQ::~fe~J - U Maneuver ~, B~ak*ng - SMd . ' cv'uence ~ Maneuver, Nc.t ~equi~ed ~or f~ Unk if CDL'or :. ~ Markj E~(den~ ~ or Dr~er Stat~ '.: -: ' 0 )n~Q~l~lve ~ St.~i~g ~nd 8raK ng- ~ Unknown' ' "~ Druff Test ~su't~ · ~U~ to Four Re u~) ' ~ ~ ' ' ':/ ~ Compartment ~ Com~att~nt '. ~ Under--;[ · O = ~tr: Te:t G;ven S = A~p~ta~n~ ~ ~ ~ I PENNDOTCOPY ~' ,~ : .. . . _ .... . ~ - ~- , ~ National Support Center Allstate Insurance Company 1819 Electric Road S.W. Rbanoke, VA 24018-1618 Bus: (540) 989-2200 You re m good hands To Whom It May Concern: I, Linda Sisson, employee of Allstate Insurance Company, Roanoke, Virginia, do certify that the enclosed is a copy of Policy Number in the name of showing the coverages that were on the policy at the time of loss of State of Virginia, County of Roanoke On this ! ~ day of ~ r~,/.~_.~"~.:~' ', 2003, before me personally appeared Linda Sisson to me known to be the person who executed the foregoing instrument and acknowledged that she executed the same as a free act and deed. My Commission Expires: Notary Public G L Fogelsonger Agy 66 E King Street Shippensburg PA 17257 h,,llh,,h,hhh,llh,,hh,,,Ih,hh,,,llh,h,,hlh,hl James R & Mabel Koser 1482 Three Sq Hollow Newburg PA 17240-9351 vt Verify vehicles and drivers listed on the Policy Declarations and ID cards. Vt Verify the vehicle identification number (VIN) listed on these documents; its accuracy could affect your premium. Vt This is not a bill. Confirming Your Policy Change We've sent along this mailing to verify the changes to your policy that you recently requested. The changes took effect on 02/14/02. Please look over all the information in this mailing, and call us right away if you have any questions or if anything isn't exactly right. The accompanying Amended Policy Declarations includes these changes: A change in driver or use of your 88 Ford Truck Ranger. The addition of one or more operators. Your premium for this current period has been increased by a total of $386.00. The coverages and limits you carry for your vehicles, and the costs of those coverages, are listed in detail on the enclosed Amended Policy Declarations. By comparing this Amended Policy Declarations with the Policy Declarations previously mailed to you, you can see any changes in detail. If You have any questions or concerns please contact me at (717) 532-4181--or call the Allstate Customer Information Center at 1-800-ALLSTATE (1-800-255-7828). G L Fogelsonger Agy Your Allstate Agent AUTO '510003702020703031830401' Inlorma~lon as ol Februa[y 7.2002 Illlll ! IIll Illl Il lll Ill IIII IlHIllllllllll Illl IIlll Illlllll EA23 Allstate Insurance Company Summary NAMED INSURED(S) James R & Mabel Koser 1482 Three Sq Hollow Newburg PA 17240-9351 AMENDED Auto Policy Declarations YOUR ALLSTATE AGENT IS G L Fogelsonger Agy (717) 532-4181 66 E King Street Shippensburg PA 17257 YOUR BILL lists your payment options. POLICY NUMBER POLICY PERIOD 0 77 051795 02/14 Feb. 14, 2002 to Aug. 14, 2002 at 12:01 a.m. standard time DRIVER(S) LISTED DRIVER(S) EXCLUDED James Mabel None David VEHICLES COVERED VEHICLE ID NUMBER LIENHOLDER 1. 88 Ford Truck Ranger 1FTBR10A3JUA88694 None 2. 88 Ford Taurus 1FABP5709JA128295 None 3. 83 Chew Blazer 1GSCT18B3D0136686 None Total Premium Premium for 88 Ford Truck Ranger $516,70 Premium for 88 Ford Taurus $356.80 Premium for 83 Chew Blazer $337~80 TOTAL $1,211.30 Your total premium reflects a combined discount of $498.00 VI Your total premium reflects a combined surcharge of $19.00 Your Policy Effective Date is Feb. 14, 2002 IN ACCORDANCE WITH SECTION 172§ OF THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY LAW, THIS IS TO INFORM YOU THAT COLLISION DAMAGE TO A RENTAL VEHICLE WILL BE COVERED IF: 1 ) THE RENTAL VEHICLE IS A FOUR WHEEL PRIVATE PASSENGER AUTOMOBILE OR A UTILITY AUTOMOBILE, AND 2) AT LEAST ONE PREMIUM FOR AUTO COLLISION COVERAGE APPEARS ON YOUR POLICY DECLARATIONS. COVERAGE WILL BE SUBJECT TO DEDUCTIBLES AND TO POLICY TERMS AND CONDITIONS, INCLUDING ANY APPLICABLE ENDORSEMENTS. AUTO *510003702020703031830402 * lllllfll IIIIlflllllll fill fll I fllllllfl Illllllllllll I I1[111 ill II IIII II ,.fo~,, ..... ~ Page 1 February 7. 2002 PAO10AMD Allstate Insurance Company Policy Number: 0 77 051795 02/14 Policy Effective Date: Fcb. 14, 2002 Your Agent: G L Fogelsonger Agy (717) 532-4181 COVERAGE FOR VEHICLE # 2 1988 Ford Taurus COVERAGE LIMITS DEDUCTIBLE PREMIUM Automobile Liability Insurance ~- Full Tort · Bodily Injury $100,000 each person Not Applicable $72.00 $300,000 each occurrence · Property Damage $100,000 each occurrence Not Applicable $60.00 Medical Expenses $25,000 each person Not Applicable $44.00 Funeral Expenses $2,500 each person Not Applicable $0.50 Income Loss Each person up to $5,000 maximum benefit Not Applicable $5.00 Subject to $1,000 monthly maximum Uninsured Motorists Insurance $100,000 each person Not Applicable $26.70 Full Tort / Stacked Limits $300,000 each accident Underinsured Motorists Insurance $100,000 each person Not Applicable $24.60 Full Tort / Stacked Limits $300,000 each accident Auto Collision Insurance Actual Cash Value $500 $90.00 Auto Comprehensive Insurance Actual Cash Value $50 $34.00 Total Premium for 88 Ford Taurus $356.80 DISCOUNTS Your premium for this vehicle reflects the following discounts: Multiple Car $68.00 Premier Plus $75.00 RATING INFORMATION This vehicle is driven over 7,500 miles per year, over 20 miles to work/school, adult age 37, with no unmarried driver under 25 AUTO '510003702020103031830403' IIIIlIl Il Illllll Jill Iilll] IIIllllllllll lllllllllll i[ Illll Il Feb~aP/7, 2002 PAOIOAMD Allstate Insurance Company Policy Number: 0 77 051795 02/14 Policy Effeclive Date: Feb. 14, 2002 Your Agent: G L Fogelsonger Agy (717) 532-4181 Your Policy Documents Your auto policy consists of this Policy Declarations and the documents listed below. Please keep these together. - Pennsylvania Auto Insurance Policy form AU137-3 - Amendment of Policy Provisions form AU10600 - Amendment of Policy Provisions form AU1900-3 IN WITNESS WHEREOF, Allstate has caused this policy to be signed by its Secretary and its President at Northbrook, Illinois, and if required by state law, this policy shall not be binding unless countersigned on the Policy Declarations by an authorized agent of Allstate. Secretary President, Personal Lines AUTO '510003102020703031830404' Illillllllllllllllllllll Iill II IIIllllllill I II III II II II II II FebruaPJ 7, 2002PA010AMD EXHIBIT D Settlement Aqreement and Release This Settlement Agreement and Release (the "Settlement Agreement") is made and entered into this day of , 2004, by and between: "Claimant" - "Insureds" - "Insurer" - Mabel Koser as Executrix of the Estate of Brian Koser Mabel Koser and David Koser Allstate Insurance Company Recitals A. On or about May 15, 2002, Brian Koser was fatally injured in an accident occurring at or near Southampton Township, Franklin County, Pennsylvania. Claimant has made a claim seeking monetary damages on account of those injuries. B. Insurer is the liability insurer of the Insureds, and as such, would be obligated to pay any claim made or judgment obtained against the Insureds which is covered by its policy with the Insureds. C. The parties desire to enter into this Settlement Agreement in order to provide for certain payments in full settlement and discharge of all claims which have, or might be made, by reason of the incident described in Recital A above, upon the terms and conditions set forth below. Agreement The parties agree as follows: 1.0 Release and Discharge 1.1 In consideration of the payments set forth in Section 2, Claimant hereby completely releases and forever discharges the Insureds and Insurer from any and all past, present, or future claims, demands, obligations, actions, causes of action, wrongful death claims, rights, damages, costs, losses of services, expenses and compensation of any nature whatsoever, whether based on a tort, contract or other theory of recovery, which the Claimant now has, or which may hereafter accrue or otherwise be acquired, on account of, or may in any way grow out of the incident described in Recital A above, including, without limitation, any and all known or unknown claims for bodily and personal injuries to Claimant, or any future wrongful death claim of Claimant's representatives or heirs, which have resulted or may result from the alleged acts or omissions of the Insureds. 1.2 This release and discharge shall also apply to Insureds' and Insurer's past, present and future officers, directors, stockholders, attorneys, agents, servants, representatives, employees, subsidiaries, affiliates, partners, predecessors and successors in interest, and assigns and all other persons, firms or corporations with whom any of the former have been, are now, or may hereafter be affiliated. 1.3 This release, on the part of the Claimant, shall be a fully binding and complete settlement among the Claimant, the Insureds and the Insurer, and their heirs, assigns and successors. 1.4 The Claimant acknowledges and agrees that the release and discharge set forth above is a general release. Claimant expressly waives and assumes the risk of any and all claims for damages which exist as of this date, but of which the Claimant does not know or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known, would materially affect Claimant's decision to enter into this Settlement Agreement. The Claimant further agrees that Claimant 2 has accepted payment of the sums specified herein as a complete compromise of matters involving disputed issues of law and fact. Claimant assumes the risk that the facts or law may be other than Claimant believes. It is understood and agreed to by the parties that this settlement is a compromise of a doubtful and disputed claim, and the payments are not to be construed as an admission of liability on the part of the Insureds, by whom liability is expressly denied. 2.0 Payments In consideration of the release set forth above, the Insurer on behalf of the Insureds agrees to pay to the individual(s) named below ("Payee(s)") the sums outlined in this Section 2 below: 2.1 Payments due at the time of settlement to the Claimant: The sum of Forty Thousand Dollars ($40,000.00) on or before fourteen days from receipt of this fully and properly executed document. 2.2 Periodic Payments. Insurer agrees to make payment to Mabel Koser and James Koser "Payees,, in the following manner: (i) Lump sum guaranteed payments: On March 1, 2007, guaranteed payment of Seven Thousand Five Hundred Dollars ($7,500.00); On March 1, 2010, guaranteed payment of Twelve Thousand Five Hundred Dollars ($12,500.00); On March 1, 2013, guaranteed payment of Twenty Thousand Dollars ($20,000.00); On March 1, 2016, guaranteed payment of Twenty-Five Thousand Dollars ($25,000.00); 3 On March 1, 2019, guaranteed payment of Thirty-Five Thousand Dollars ($35,000.00). Ail sums set forth herein constitute damages on account of personal injuries and sickness, within the meaning of Section 104(a)(2) of the Internal Revenue Code of 1986, as amended. 3.0 Payees, Rights to Payments Claimant acknowledges that the Periodic Payments cannot be accelerated, deferred, increased or decreased by the Claimant or any Payee; nor shall the Claimant or any Payee have the right or power to sell, mortgage, encumber, or anticipate the Periodic Payments, or any part thereof, by assignment or otherwise. 4.0 Payees'Beneficiary Any payments to be made after the death of any Payee, pursuant to the terms of this Settlement Agreement, shall be made to their named beneficiary. If no person or entity is so designated by Payee, or if the person designated is not living at time of the Payee's death, such payments shall be made to the estate of Payee. Payee may request in writing that Assignee change the beneficiary designation under this Agreement. Assignee will do so but will not be liable, however, for any payment made prior to receipt of the request or so soon thereafter that payment could not reasonably be stopped. 5.0 Consent to Qualified Assignment 5.1 Claimant acknowledges and agrees that the Insurer will make a "qualified assignment", within the meaning of Section 130(c) of the Internal Revenue Code of 1986, as amended, of the Insurer's liability to make the Periodic Payments set forth in Section 2.2 to Allstate Assignment Company ("the Assignee"). The Assignee's obligation for payment of the Periodic Payments shall 4 be no greater than that of Insurer (whether by judgment or agreement) immediately preceding the assignment of the Periodic Payments obligation. 5.2 Such assignment shall be accepted by the Claimant without right of rejection and shall completely release and discharge the Insureds and the Insurer from the Periodic Payments obligation assigned to the Assignee. The Claimant recognizes that the Assignee shall be the sole obligor with respect to the Periodic Payments obligation, and that all other releases with respect to the Periodic Payments obligation that pertain to the liability of the Insurer shall thereupon become final, irrevocable and absolute. 6.0 Right to Purchase an Annuity The Insurer, itself or through its Assignee, will fund the liability to make the Periodic Payments through the purchase of an annuity policy from Allstate Life Insurance Company. The Insurer or the Assignee shall be the sole owner of the annuity policy and shall have all rights of ownership. The Insurer or the Assignee may have Allstate Life Insurance Company mail payments directly to the Payee(s). The Claimant shall be responsible for maintaining a current mailing address for Payee(s) with Allstate Life Insurance Company. 7.0 Discharge of Obligation The obligation of the Insurer and/or Assignee to make each Periodic Payment shall be discharged upon the mailing of a valid check in the amount of such payment to the designated address of the Payee(s) named in Section 2 of this Settlement Agreement. 5 8.0 Representation of Comprehension of Document In entering into this Settlement Agreement the Claimant represents that the terms of this Settlement Agreement have been completely read and are fully understood and voluntarily accepted by Claimant. 9.0 Warranty of Capacity to Execute Agreement Claimant represents and warrants that no other person or entity has, or has had, any interest in the claims, demands, obligations, or causes of action referred to in this Settlement Agreement, except as otherwise set forth herein; that Claimant has the sole right and exclusive authority to execute this Settlement Agreement and receive the sums specified in it; and that Claimant has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations or causes of action referred to in this Settlement Agreement. 10.0 Governing Law This Settlement Agreement shall be construed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania. 11.0 Additional Documents Ail parties agree to cooperate fully and execute any and all supplementary documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement. 12.0 Entire Agreement and Successors in Interest This Settlement Agreement contains the entire agreement between the Claimant, the Insureds and the Insurer with regard to the matters set forth in it and shall be binding upon and inure 6 to the benefit of the executors, administrators, personal representatives, heirs, successors and assigns of each. 7 13.0 Effectiveness This Settlement Agreement shall become effective immediately following execution by each of the parties. Claimant Mabel Koser as Executrix of the Estate of Brian Koser By: Date: Mabel Koser By: Date: James Koser By: Date: Insurer Allstate Insurance Company By: Title: Date: 8 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPARTMENT 280601 HARRISBURG, PA 17128-0601 Telephone 12/15/2003 717-783-0972 Joseph F Murphy, Esquire Marshall et al 4200 Crums Mill Road, Suite B Harrisburg, PA 17112 Re: Estate of Brian P Koser File Number: 2103-0996 Date of Death: May 15, 2002 Court Number: Cumberland Dear Mr. Murphy: The Department of Revenue received the Petition for Approval of Settlement Claim to be filed on behalf of the above-referenced Estate in regard to a wrongful death and survival action. It was forwarded to this Bureau for the Commonwealth's approval of the allocation of the proceeds paid to settle the actions. Pursuant to the Petition, the 12-year-old-decedent died as a result of motor vehicle accident. The heirs to the decedent's estate are his parents. Therefore, any proceeds paid to settle the survival action would pass to decedent's parents and would be subject to a zero percent inheritance tax rate. 72 P.S. §9116(a)(1.2). Accordingly, regardless of the allocation of the subject proceeds, there would be no inheritance tax consequences. Please be advised that based upon these facts and for inheritance tax purposes only, this Department has no objection to the proposed allocation of the gross proceeds of this action, $ 90,000.00 to the wrongful death claim and $10,000.00 to the survival claim. Proceeds of a survival action are an asset included in the decedent's estate and, although subject to the imposition of a zero percent inheritance tax rate in this instance, they must be reported on decedent's Pennsylvania inheritance tax return. 42 Pa.C.S.A. §8302; 72 P.S. §§9106, 9107. Costs and fees must be deducted in the same percentages as the proceeds are allocated. In re Estate of Merryman, 669 A.2d 1059 (Pa. Cmwlth. 1995). I trust that this letter is a sufficient representation of the Department's position on this matter. As the Department has no objections to the Petition, an attorney from the Department of Revenue will not be attending the hearing regarding it. Please contact me if you or the Court has any questions or requires anything additional from this Bureau. Finally, the approval of this allocation is limited to this estate and does not reflect the position that the Department may take in any other proposed distribution of proceeds of a wrongful death / survival action. cc: Cumberland County Clerk of Orphans Courts Trust Valuation Manager Inheritance Tax Division Bureau of Individual Taxes ESTATE OF BRIAN PETER KOSER IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION · NO. ZI- O't-q0q AND NOW, this Koser, as Administrator of the Estate of Brian i ~d ORDER ay of/~/__~_~~, 2004, upon consideration of the Petition of Mabel J. Koscr, it is hereby ordered that said Petition is approved with the following allocation of the settlement funds: 1. $10,000 allocated to the survival action; 2. $30,000 lump sum paid to the beneficiaries on or before 14 days from receipt by Ringler Associates of the executed release and settlement agreement; 3. The following periodic payments to be made to the benefimane~ a. $7,500 guaranteed payment on March 1, 2007; b. $12,500 guaranteed payment on March 1, 2010; c. $20,000 guaranteed payment on March 1, 2013; d. $25,000 guaranteed payment on March 1, 2016; and e. $35,000 guaranteed payment on March 1, 2019. BY THE COURT: