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HomeMy WebLinkAbout02-17-09~, 15056051058 REV-1500 Ex (O6-OS) OFFICIAL USE ONLY PA Department of Revenue County Code Year File Numtler Bureau of Individual Taxes INHERITANCE TAX RETURN PO BOX 280601 ~' ~ ^ ~/ r~ Harrisburg, PA 17128-0601 RESIDENT DECEDENT t~l/ J ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 1 ~ 3 20 Z.5 Z S ~~la y i~, zlc~ .i~/y iy igz/ Decedent's Last Name Suffix Decedent's First Name MI Ne sb%f ,~u~~ ~ (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL INAPPROPRIATE OVALS BELOW ~ 1. Original Retum 2. Supplemental Retum 3. Remainder Return (date of death prior to 12-13-82) 4. Limited Estate 4a. Future Interest Compromise (date of 5. Federal Estate Tax Return Required death after 12-12-82) 6. Decedent Died Testate ~ 7. Decedent Maintained a Living Trust 8. Total Number of Safe Deposit Boxes (Attach Copy of Will) (Attach Copy of Trust) 9. Litigation Proceeds Received 10. Spousal Poverty Credit (date of death 11. Election to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach Sch. O) CORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED T0: Name Daytime Telephone Number -. 17avfcl ~ l~es~~l ~i~-IOR~-~~t,~ Firm Name (If Applicable) First fine of address l ~7N S /~leRd~w `,br Second line of address City or Post Office /uecLtuh~csbvclc DATE --_. ADDRESS -~10 ~e _ ___ _ _ SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE DATE REGISTER OF WILLS USE ONLYp,J C~? o ;:.1 C O `xs 1 ' - ~ i'T1 - ,_ ,~. ,: l1' ~' ~ I DATE ~p~~~~~~ State ZIP Code "-"'i~ ~ ~D ~- "~ ---I t~~ ~~Qss D .j fV .. W Correspondent's a-mail address: ~Q V ~ n Cj t7 IT ~ CQ ~G~~i ~e~ Under penalties of perjury, I deGare that I have examined this return, inGuding 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 OF PERSON RE IBLE F9 N E ADDRESS PLEASE USE ORIGINAL FORM ONLY Side 1 15056051058 15056051058 - J 15056052059 REV-1500 EX ~(L T ~ `f Decedent's Social Security Number Decedent's Name: ~t(, T " (J ~S ~ ~ lQ 3 La - z 5 z~ RECAPITULATION 1. Real estate (Schedule A) .......................................... ... 1. 2. Stocks and Bonds (Schedule B) .................................... ... 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) .. ... 3. 4. Mortgages 8~ Notes Receivable (Schedule D) .......................... ... 4. 5. Cash, Bank Deposits 8 Miscellaneous Personal Property (Schedule E) ..... ... 5. 6. Jointly Owned Property (Schedule F) Separate Billing Requested .... ... 6. 7. Inter-Vivos Transfers 8 Miscellaneous Non-Probate Property (Schedule G) Separate Billing Requested..... ... 7. ~Q7 ~ ~j Z 3 8. Total Gross Assets (total Lines 1-7) ................................. ... 8. 9. Funeral Expenses & Administrative Costs (Schedule H) .................. ... 9. '?) ~ p~ , 10. Debts of Decedent, Mortgage Liabilities, 8 Liens (Schedule I) ............. ... 10. 11. Total Deductions (total Lines 9 & 10) ................................ ... 11. ~~ 7Q0 12. Net Value of Estate (Line 8 minus Line 11) ........................... ... 12. ~ O3 Q,Z?, 13. Charitable and Governmental BequestslSec 9113 Trusts for which r vv an election to tax has not been made (Schedule J) ..................... ... 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) ...................... .. 14. ~ () ~j, ~ Z~j TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .0__ 15. 16. Amount of Line 14 taxable at lineal rate X .0 ~ ~ ~ ~j g Z~ t 16. z- 7~ ~ ~ Z 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. 2 7/ ~7Z 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT 15056052059 Side 2 15056052059 REV-1500 EX Page 3 Decedent's Complete Address: File Number DECEDENTS NAME DECEDENTS SOCIAL SECURITY NU BER STREET ADDRESS -- (?7 ~( S ~P~6uJ ~r -- - ---- - _- - --- -_. _-- - _ _ -- -_ _ _ _ _ CITY - -- ` - - - - - - - STATE~~ ~ ZIP / 7053 _ _ /LUG!~it~;hres ~ ~j I Tax Payments and Credits: 1. Tax Due (Page 2 Line 19) (1) 2 ~ ~ /7Z 2. Credits/Payments A. Spousal Poverty Credit _ __ ___,__ __ _ _ B. Prior Payments . Discount _ ___ __ Total Credits (A + B + C) (2) Q 3. InteresUPenalty if applicable D. Interest E. Penalty - .-- - Total InteresbPenalty (D + E) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Fill in oval on Page 2, Line 20 to request a refund. (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) Z ~r ~ 7 Z A. Enter the interest on the tax due. (5A) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (56) Z ~, ~ ~ Z Make Check Payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred :...................................................................................... ~ . . ^ b. retain the right to designate who shall use the property transferred or its income : ........................................ . . .... ^ f~ 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 acxount 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? ............ ......................................................................................................... ^ ... IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND F ILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent [72 P.S. §9116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (0) percent [72 P.S. §9116 (a) (1.1) (ii)]. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [72 P.S. §9116(a)(1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent, except as noted in 72 P.S. §9116(1.2) [72 P.S. §9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. §9116(a)(1.3)]. Asibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. ' REV-1511 EX+ (10-06) ' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF ~~ ~ FILE NUMBER ~ /VC56i~ Debts of decedent must be reported on Schedule L ITEM NUMBER DESCRIPTION AMOUNT a. FUNERAL EXPENSES: 1 • S~ der ~u ~ ~ ,~o~{ -~C 3 ~(7 3 ~~~~y ~ y B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name of Personal Representative(s) Street Address _ City_ State Zip _.___ Year(s) Commission Paid: 2. Attorney Fees /~~~./ ~~~!(Qaw%~C'~'~~/ 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 6• Tax Return Preparer's Fees 7. ZZ7 TOTAL (Also enter on line 9, Recapitulation) I S 3 ~~ (If more space is needed, insert additional sheets of the same size) -REV-1510 EX+ (6-98) ' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCNEDt~LE G INTER-VIVOS TRANSFERS 8~ MISC. NON-PROBATE PROPERTY ESTATE OF ^ ~~ ~ / ~, I~ C / ; `{~` NC/-, (O FILE NUMBER 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 ves. ITEM NUMBE DESCRIPTION OF PROPERTY INCLUDE THE NAME OF THE TRANSFEREE, THEIR RELATgNSHIPTO DECEDENTAND THE DATE OF TR AN S FER. ATTACH A COPY OF TH E DEED FOR REAL ESTATE. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST EXCLUSION (IF APPIJCABLE) TAXABLE VALUE ~. __ // ~~ n I~ O C Ctr'1 STCC/! le r~,CGo u of ~ y ~~~ s~ goo 539 s ~ ~c 3 ~ ~c ~3s ~~s Truv-~-~2rt?e ~ D 1Jesy~ ,~ - ~ ~ es b+f ~ ~~ , ,, pavh it Liuin~ t fuS~ ' ~afed D~~~S" ~ ~ lq~~ z • ~iCt.nlc d~~ Lccn~rs~e~ Gou~~~ Rcco~,~ Tcllns fet ee 6~~ ~ ~,~(~ ~ rtSesG, f ., N Da ~~ ~ eS LU vi ~S t rte r l ~ , ~/ ~~~, 1~ca~K ,~ sn~d~ ~ ~ ~8~ i~,6wt~, arc: t ~~ncr~.l 3 TOTAL (Also enter on line 7 Recapitulation) = I ~ UP 7~ ~j'z 7~ (If more space is needed, insert additional sheets of the same size) LL W d ® O O Q 4 ~ O w W V ~I Q~ ~ W O .q. .C 11 q "' C V ~ a~+ ~ •~ ~ ~ d N C U 0 C C' ~ C L o f/~ Z:~ ~~ ~Q -. . C .r 3 t0 ~ C7 /~ C OD l0 ~ U ~ 0:., a ~' H ~ N ~ Vcy e~ C 3 ~ ~j O Qc0 <Qi~.=r, Q ~ ~. .J' W ~' W y ~m m `- w ~ ~ a i ~~ ~~ F- ~ , a a rs _ _ ~ Q ~ NH ~ w ~ . 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Bank of ter County A Division of BLC Bank, N.A. ***************AUTO**MIXED AADC 173 2463 0.8670 MB 0.369 12 12 11 ~n~~~~n~~~~nn~~~n~~~n~~~nn~~~n~~~~~n~n~~i~u~~n~~~ DAUN W AND RUTH D NESBIT LIV TR RUTH D NESBIT TRUSTEE DAVID D NESBIT TRUSTEE 17 7 4 S MFsADOW DR MECHANICSBURG PA 17055-5189 Account Statement Date 5-20-08 Account No. 3300098001 Page 1 Mail 9 - 1 EFFECTIVE 06/25/2008 LOAN PAYMENTS WILL NO LONGER BE ACCEPTED AT STERLING ATMS. PAYMENT CAN BE MADE AT STERLING BRANCHES. 3300098001 INTEREST CHECKING Previous Balance 4-21-08 63,036.56 +Deposits/Credits 4 4,584.83 -Checks/Debits 1 323.00 -Service Fee .00 +Interest Paid 5.18 Current Balance 67,303.57 * - - - - - - -~ - - - - - - TRANSACTION SUMMARY- - - - - - - - - - - - - - Transaction DEPOSITS/ CHECKS/ Date Descripptic,ti CREDITS DEBITS BALANCE 4/30 ELECTRONIC TRANSACTION 1737.05 64773.61 PA TREASURY DEPT ANNUITANT RUTH D NESBIT 4/30 ELECTRONIC TRANSACTION 226.58 65000.19 PA TREASURY DEPT ANNUITANT RUTH D NESBIT 5/02 ELECTRONIC TRANSACTION 1093.00 66093.19 US TREASURY 303 SOC SEC RUTH D NESBIT 5/16 ELECTRONIC TRANSACTION 1528.20 67621.39 ALLSTATE LIFE IN INSURANCE RUTH D NESBIT 5/19 CHECK 1381 323.00 67298 39 5/20 INTEREST PAYMENT 5.18 . 67303.57 - - - - - - - - - - - - - - - - CHECKS PAID - - - - - - - - - - - - - - - - No. Date Amount No. Date Amount 1381 5-19 323.00 * - - - - - - - - -OVERDRAFT CHARGES/REFUNDS SUMMARY - - - - - - - - This Cycle YTD Fees for :returned checks .00 .00 Fees for paid checks .00 .00 Fees from service charge .00 .00 Total fees charged .00 .00 This Cycle YTD Refund of returned check fees .00 .00 Refund of paid check fees .00 .00 Total fees refunded .00 .00 FOR CONVENIENT CUSTC)MER SERVICE, PLEASE CALL OUR CUSTOMERage CONNECTION CENTER AT (717) 560-5800 or 1-800-CALL-BLC. www.blcnet.com Kearney A. Snyder Funeral Home, Inc. Kearney A. Snyder Funeral Home, Inc. Branch Office: ' 141 E. Orange Street Richard A. Sheetz Funeral Home Lancaster, Pennsylvania 17602 2024 Marietta Ave. Lancaster, PA 17603 Phone (717) 394-409i' Fax (394-0292) Phone: (717) 397-6329 Mark C. DeBord, Supervisor Randy L. Stoltzfus, Supervisor Thursday, June 5, 2008 Mr. David Nesbit 1774 S Meadow Dr Mechanicsburg, I'A 17055 Dear Mr. Nesbit, Thank you for selecting our funeral home to provide services for your family during your time of bereavement. I hope that you found our services, so far., to be of the highest standards that we always try to achieve. The following is a summary of the service charges as previously explained and provided in written form on the services for: RUTH D. NESBITT 1. Professional Services Services Of Funeral Director And Staff 3. Automotive Equipment (184 miles @ $2/mile) TOTAL OF PROFESSIONAL SERVICES, FACILITIES AND AUTOMOTIVE EQUIPMENT Merchandise Register Book CASH ADVANCES Newspaper Church or Clergy Certified Copies of Death Certificate 10 Flowers Harrisburg Patriot Organist ($125) + Sexton ($50) TOTAL FUNERAL CONTRACT LESS: Payments Made LESS: Refund of Overpayment $ 1895.00 $1,895.00 $ 368.00 $368.00 $2,263.00 $ 50.00 $50.00 $ 330.00 $ 200.00 $60.00 $ 79.50 $ 315.67 $ 175.00 $1,160.17 $3,473.17 4,159.02 $685.85 PAID IN FULL $0.00 If there are any questions or concerns that remain unanswered, please call me. Sincerely, METZGER, WICKERSHAM, KNAUSS & ERB, P.C. P.O. BOX 5300 HARRISBURG, PA 17110-0300 (717) 238-8187 TAX I.D. 23-2871395 November 14, 2008 Billed through 11/14/2008 Estate of Daun W. Nesbit c/o David Nesbit 1774 South Meadow Drive Mechanicsburg, PA 17055 NESBIT ESTATE,, DAUN W. Estate Administration ~TAL SERVICES RENDERED Review trust and file. Draft letter to David RE: Trust administration. (No Charge) Revise correspondence to David Nesbit. (No Charge) Revise correspondence to David Nesbit. Balance forward as of invoice dated January O1, 1900 $0.00 Payments received since last invoice 0.00 A/R adjustments made since last invoice 0.00 ---------$0.00 ccounts receivable balance carried FOR PROFESSIOP 10/17/2008 RG 10/20/2008 RG 10/21/2008 RG DISBURSEMENTS 11/14/2008 Postage. Total professional services Total expenses incurred Total of new charges for this invoice Total balance naw due BILLING SUMMARY Invoice# 67677 RG Our file# 000003 00259 1.00 hrs 225.00 ~hr 225.00 0.30 hrs 0.00 ~hr N/C 0.50 hrs 0.00 ~hr N/C $225.00 2.10 $2.10 $225.00 $2.10 $227.10 $227.10 PLEASE MAKE CHECKS PAYABLE TO METZGER WICKERSHAM swcr: isss 1 ~~~lC1I~T ~o I~~~]~~7P ~Ir~~l ]~~77C'~HI ~o ~T~~l~~7C THIS AGREEMENT OF TRUST executed in duplicate on December 1, 1999, among and between DAUN W. NESBIT and RUTH D. NESBIT, of Lancaster County, Commonwealth of Pennsylvania as Settlors (hereinafter referred to as "Settlor(s)"), and DAUN ~J. NESBIT and RUTH D. NESBIT, as Trustees (hereinafter referred to as "Trustee"). Settlors hereby declare that we are married to each other. We further declare that the following two (2) children are born to us: Marion J. Nesbit and David D. Nesbit. All references to our children are to these. WITNESSETH: WHEREAS, We wish to create a trust to hold and own the property set forth in Schedules "A", "B" & "C", attached hereto and made a part hereof, together with such monies, securities and all other assets, real or personal, as the Trustee may hereafter at any time hold or acquire hereunder (such property and additions being hereinafter called principal), for the purposes hereinafter set forth; NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, Settlors agree to transfer the aforesaid property to the Trustee and the Trustee agrees to hold the trust estate, IN TRUST, NEVERTHELESS, for the following uses and purposes and subject to the ternls and conditions hereinafter set forth: ARTICLE FIRST GENERAL PROVISIONS A. Name of Trust. This trust shall be known as the "DAUN W. NESBIT and RUTH D. NESBIT LIVING TRUST dated December 1, 1999," and it shall be sufficient that it be referred to as such in any deed, assignment, bequest or devise. B. Trust Estate. Settlors grant, assign, and set over to Trustee and their successors all the property described in Schedules "A", "B" & "C" annexed hereto, and made part of this trust agreement My Trustee acknowledges receipt of all. assets listed on the attached Schedules. All such assets, together with all other assets, real or persona], as the Trustee may hereafter at any time hold or acquire whether in the name of the trust or in the name of the Trustee, shall comprise the trust estate. All o:f Settlor's jointly held property, if any, transferred to our trust, and the proceeds of all suchh property, shall remain our jointly held property, subject to the provisions of this agreement. All of the separate property, if any, of either Settlor transferred to our trust and the proceeds of al] such property, specifically designated as separate property of either of us at the time of the transfer to our Trustee, shall remain the separate property of the contributing Settlor. Settlor, or any other person with the consent of the Trustee, may add to the principal of this trust by deed or will or otherwise. All property transferred to our trust and not disclaimed by our Trustee shall be held, administered and distributed according to the terms of this agreement. C. Revocable Living Trust. This trust agreement creates a revocable living trust. D. Definitions and interpretations. The term "child" means a natural blood descendant to the first degree of a designated person. In addition, a person who is adopted prior to attaining the age of eighteen (18) years shall be deemed to be the "child" of the adopting parent(s): a person conceived by means of in vitro fertilization or artificial insemination shall be deemed to be the "child" of my descendant who is a biological parent or whose spouse is a biological parent; anal a person born out of wedlock shall be deemed to be the "child" of the natural mother and, if the natural father acknowledges paternity, of the natural father. The terns "children" shall mean more than one "child". 2. The term "issue" means the lawful blood descendants of any degree of the party designated; provided that any person who is a child of a lineal descendant of the party designated and the lineal descendants of such person shall be lineal descendants of the party designated. The ternls "child," "children," "issue," "descendant," and "descendants" or those terms preceded by the teams "living" or "then-living" shall include the lawful blood descendants in the first degree of the parent designated even though such descendant is born after the death of such parent. 3. W11en a distribution is to be made to the issue of a designated person "per stirpes", the property to be distributed shall be divided into as many equal shares as there are then-living children of such beneficiary and deceased children of such beneficiary who left then-living descendants. Each then- living child of the beneficiary shall receive one share and the share that is allocated to each deceased child of the beneficiary shall be divided equally among such deceased child's then-living descendants. 4. The terns "education" means technical, preparatory, college, graduate and professional education while enrolled in good standing in a recognized educational institution. 2 5. The terns "adult" means a person who has attained twenty-one (21) years of age and the teen. "minor" means a person who is not an adult. 6. The teen "personal representative" shall mean Trustee, executor, executrix, administrator, administratrix, conservator, guardian, custodian or any other type of personal representative. 7. References to a "Code Section" mean the specified section of the Internal Revenue Code of 1986, as amended, or the corresponding provisions of any future United States internal revenue law. 8. At any particular time with respect to any trust, the phrase "trust estate" means the assets then constituting the principal, including any accumulated income, and any undistributed income. 9. The singular includes the plural and the plural includes the singular; the masculine, feminine and neuter genders shall each be deemed to include the other two. 10. The headings, titles and subtitles in this trust have been inserted solely for convenient reference and shall be ignored in its construction. 11. For all purposes under this agreement a person shall be deemed disabled, incompetent or legally incapacitated if and so long as a guardian or conservator of his or her person or estate duly appointed by a court of competent jurisdiction continues to serve, or upon certification by two licensed physicians that such person is unable properly to care for his or her person or property. ARTICLE SECOND SETTLORS' LIFETIME RIGHTS A. Right to Income and Principal. During the Settlors' joint lifetimes, to pay to them the net income therefrom and so much of the principal as shall be requested by Settlors or as the Trustee in their discretion from time to time deem advisable for Settlors' support to maintain them in the standard of living to which the Settlors were accustomed at the creation of the trust. If either Settlor is, in the opinion of the Trustee, disabled by reason of age, illness or any other cause, Trustee shall apply for that Settlor's benefit so much of the net income and principal of this trust as the Trustee(s), may from time to time deem advisable for such Settlor's support to maintain Settlor in the standard of living to which Settlor was accustomed at creation of this trust. B. Ri~lit To Amend Or Revoke Agreement. During Settlors' joint lifetimes, this trust and any trust created by this agreement may be amended, revoked or terminated, in 3 -_ whole or in part, by either of us acting alone as to any specially designated property of that ` Settlor and as to that Settlor's interest in any of our joint marital estate property. However, - any modification of the rights and interests of either of us in community property during our marriage maybe made only with the joinder or consent of both of us. After the death of the first of us to die, the surviving Settlor may at any time amend, revoke or ternlinate, in whole or in part, the Survivor's Trust in which the surviving Settlor has a general power of appointment. All other trusts shall become irrevocable and shall not be subject to amendment after the death of the first Settlor. After any revocation or tern~ination of any trust created by this agreement the Trustee shall prornptly deliver the designated trust property to both Settlors, or if specially designated separate property, to the respective Settlor. The Trustee shall be entitled to retain sufficient assets to reasonably secure t]Ie payment of liabilities Trustee has lawfully incurred in administering the trust and any fees that have been earned by my Trustee until such time as those liabilities have been discharged and fees paid, unless I indemnify the Trustee against loss or expense. C. Direction of Investments. Settlor(s) shall have the right to direct investments of trust property including the investment, retention, encumbrance, sale or disposition of trust funds in specified securities, properties or other forms of investments. D. Settlor/Trustee Bank Accounts. It is contemplated that Settlor(s) may establish a joint bank account or accounts with the Trustee and create powers of attorney in respect thereof in other persons. Deposits from time to time made by the Settlor(s) or other authorized persons into such. accounts shall constitute transfers to the trust estate and withdrawals therefrom which may be made without the co-signature of my Trustee shall constitute withdraws from the trust estate. However, the Settlor(s) capacity and other authorized persons with respect to any such account shall be that of nominee of the Trustee and not co-owner. At any given time the trust estate shall include the then balance of such account. E. Settlor's Rights During Disability A Settlor shall be considered disabled in the event a court of competent jurisdiction determines that a Settlor is legally incompetent or in the event that a Settlor is not adjudicated incompetent but by reason of illness or mental disability a Settlor has been certified by two licensed physicians to be unable to properly handle his or her own affairs. 1. hlcome and Principal Distributions Our Trustee during the period of a Settlor's disability shall pay to or apply for that Settlor's benefit as much of the principal and net income of that Settlor's separate property estate and his or her interest in the joint marital estate property and community property, if any, as our Trustee in its sole discretion shall deem necessary or advisable. Our Trustee during the period of a Settlor's disability shall, from time to time, pay that Settlor's valid obligations, medical expenses and provide for his or her comfortable maintenance and welfare, taking into consideration his or her other income or resources. 4 ' 2. h~come and Principal Distributions for Non-disabled Settlor During the lifetime of either or both of us, should either or both of us become disabled, our Trustee shall pay to or apply for the non-disabled Settlor's benefit as much of the principal and net income of the disabled Settlor's separate property estate and his or her interest in the joint marital property estate and community property, if any, as our Trustee in its sole discretion shall deem necessary or advisable, from time to time, for the non-disabled Settlor taking into consideration his or her other income or resources. 3. Trustee Guidelines. In making distributions under this Section, our Trustee shall give prim;~ry consideration to the needs of the disabled Settlor and secondary consideration to the needs of the non-disabled Settlor. ARTICLE THIRD ADMINISTRATION UPON DEATH OF FIRST SETTLOR A. Payment of Debts and Taxes. After the death of the first of us to die, the Trustee, in its sole discretion, may pay all or any part of the deceased Settlor's expenses in accordancf; with Article Ninth, Section A, below. B. Division into Survivor's Trust and Famil Trust Upon the death of the first Settlor to die, our Trustee shall allocate and distribute the remaining trust estate, including any propei~:y that becomes distributable or payable to our Trustee at the deceased Settlor's death, into two separate shares to be identified as the Survivor's Share and the Family Share. 1. ;3urvivin~ Settlor's Prosy Transferred to the Survivor's Share The Survivor's Share shall consist o£ a. The surviving Settlor's one-half (1/2) of all assets representing the joint marital property of the Settlors held by our Trustee. b. All assets theretofore declared to be or specifically designated upon transfer to our Trustee to be the separate property of the surviving Settlor as held by our Trustee. c. In the event the entire trust estate is equal to or less than the amount of the total Federal Estate Tax credits, including the unified credit, available to the surviving Settlor, the Survivor's Trust shall also include the balance of the trust estate. 2. Survivor's Share to be Administered as Survivor's Trust. The Survivor's Share shall be held, administered and distributed according to the provisions of the Survivor's Trust as set forth in Article Fourth of this trust agreement. 5 3. Property Transferred to the Famil Share The Family Share shall consist of all - assets not distributed to the Survivor's Share. 4. Family Share to be Administered as Family Trust. The Family Share shall be held, administered and distributed according to the provisions of the Family Trust as set forth in Article Fifth of this trust agreement. C. Allocation and Valuation of Assets. hl allocating assets between the Survivor's Share and the Family Share, our Trustee shall allocate the trust assets that qualify for the marital deduction between the Survivor's Share and the Family Share in cash or in kind, or partly in each, on a pro rata or non pro rata basis, and in undivided interests or not; subject, however, t:o the following: 1. hltention that Survivor's Share pualify for Marital Deduction We intend that the Survivor's Share qualify for the federal estate tax marital deduction and this agreement shall be construed accordingly. All other provisions of this trust agreement shall be subordinate to that intent. If the granting of any right, power, privilege, authority, or immunity to our Trustee or another person and the imposition of any duty upon our Trustee or another person by any provision of this trust agreement, would disqualify any share or interest of a beneficiary hereunder from qualifying for the federal estate tax marital deduction provided by Section 2056 of the Code, such provision shall be ineffective if and to the extent that the same, if effective, would so disqualify such share or interest. The provisions of this Section shall also apply to the deceased Settlor's probate estate, personal representative and all beneficiaries, devisees and legatees. Notwithstanding any other provision in this trust agreement to the contrary, the surviving Settlor at any time shall have the right to direct our Tnistee, in writing, to convert, within a reasonable time, any unproductive trust property to income producing property. 2. 'Valuations of Allocations in Kind. Assets allocated in kind shall be deemed to satisfy the marital deduction amount on the basis of their values as finally determined for federal estate tax purposes; provided, however, that our Trustee shall act impartially, consistent with equitable principles, requiring impartiality among beneficiaries, in allocating assets in satisfaction of the marital deduction share, so that any distribution of assets in satisfaction of the marital deduction share shall be made of assets, including cash, fairly representative of appreciation or depreciation in the value of all property thus available for distribution. 3. Income. The Survivor's Share shall be entitled to a pro rata share of the income earned on deceased Settlor's residuary probate and trust assets from the date of deceased Settlor's death, including a share of income earned on assets used to discharge liabilities. D. Disclaimer of Property. Any property or portion of property that is disclaimed by the surviving; Settlor shall be held, administered, or distributed according to the following ternls: 6 1. Property Disclaimed. The surviving Settlor may disclaim any property held or • - distributed to or for the benefit of the surviving Settlor under this trust agreement. 2. Time to Disclaim. The surviving Settlor may disclaim within the time limits and under the conditions permitted by the laws regulating disclaimers. 3. Delivery of Disclaimer to Our Trustee. A disclaimer by the surviving Settlor may be ea:ercised by the delivery to our Trustee of an irrevocable and unconditional refusal to accept any or all property interests passing to the surviving Settlor or the Survivor's Share. 4. Disclaimer of Survivor's Share. If the surviving Settlor exercises a disclaimer with respect to any or all property set aside as the Survivor's Share, such disclaimed interest shall be added to the Family Share. 5. Disclaimer of Famil Share. If the surviving Settlor exercises a disclaimer with respect to .any or all property set aside as the Family Share, such disclaimed interest shall be distributed under the relevant terms of this agreement as though the surviving Settlor had predeceased the deceased Settlor. ARTICLE FOURTH SURVIVOR'S TRUST A. R:iahts of Surviving Settlor in the Survivor's Trust. Our Trustee shall hold, administer and distribute the assets of the Survivor's Trust as follows: ] . Payment of Income. Our Trustee shall pay to or apply for the benefit of the surviving Settlor, so long as the surviving Settlor lives, the entire net income of the Survivor's "Trust in monthly or other convenient installments agreed upon by the surviving Settlor and our Trustee, but not less often than annually. 2. ]Discretionary Payment of Principal. At any time or times during the trust tern, our Trustee' shall pay to or apply for the benefit of the surviving Settlor so much of the principal of the Survivor's Trust as our Trustee deems proper for the surviving Settlor's comfort, welfare and happiness. In exercising discretion, our Trustee shall give the consideration that our Trustee deems proper to all other income and resources then readily available to the surviving Settlor for use for these purposes that are then ]crown to our Trustee. 3. Right of Surviving Settlor to Withdraw Principal. Our Trustee shall pay to the surviving Settlor as much of the trust principal of the Survivor's Trust as the surviving Settlor may from time to time demand in a signed writing delivered to our Trustee. 4. General Power of Appointment. Upon the death of the surviving Settlor, our Trustee shah distribute all of the trust property, including the bust principal and accrued and undistributed income, to any person or entity, person or persons, and upon any trust, terms 7 and conditions, or to or in favor of the estate of the surviving Settlor, as the surviving Settlor may direc~[ by his or her last will or living trust agreement. No exercise of this general power of appointment shall be effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general power of appointment. Our Trustee may rely upon any instrument admitted to probate as the last will of the surviving Settlor in carrying out the terms of the power of appointment and shall not be liable for any good-faith act in reliance upon that will, even if for any reason it is later determined to be invalid with respect to its purported exercise of this power of appointment. B. Tn-ustee's Discretion to Pay Debts and Taxes. The Survivor's Trust shall ternlinate upon the death of the surviving Settlor. Our Trustee, shall hold, and administer the unappointf:d balance or remainder of the Survivor's Trust as follows: l . Surviving Settlor's Debts and Taxes. Our Trustee in its sole discretion may pay all or any part of the surviving Settlor's following expenses, debts, claims and taxes becoming due or payable by reason of the surviving Settlor's death in accordance with Article Ninth, Section A, below. C. Payment by Our Trustee or Personal Representative. Our Trustee in its sole discretion may make distributions authorized under this Article either directly to the person or entities to whom payment is owed or to the personal representative of the surviving Settlor's probate estate. Written statements by the surviving Settlor's personal representative that such sums are due and payable by the estate shall be sufficient evidence of their amount and propriety for the protection of our Trustee. Our Trustee shall be under no duty to see to the application of any such payments made to the surviving Settlor's personal representative. D. Tax Elections. With regard to the payment of any income tax, gift tax, estate tax, inheritance tax or any other tax required because of the death of the surviving Settlor, our Trustee shall have the right to make any available elections allowed under the law. Our Trustee is authorized to sign and file any tax return required because of the death of the surviving Settlor. E. Administration of Survivor's Trust Remainder. After payment of debts, expenses and taxes, our Trustee shall hold and administer the unappointed balance or remainder of the Survivor's Trust as provided in Article Sixth for the beneficiaries of the surviving Settlor. ARTICLE FIFTH FAMILY TRUST A. Ri.;hts of Surviving Settlor in the Famil Trust. Our Trustee shall hold, administer and distribute the assets of the Family Trust as follows: l . ]Payment of Income. Our Trustee shall pay to or apply for the benefit of the surviving Settlor, so long as the surviving Settlor lives, the entire net income of the Family 8 Trust in monthly or other convenient installments agreed upon by the surviving Settlor and - our Trustee, but not less often than annually. 2. Discretionary Payment of Principal. At any time or times dw-ing the trust term, our Trustee shall pay to or apply for the benefit of the surviving Settlor so muc11 of the principal of the Family Trust as our Trustee in its discretion deems proper for their health, maintenance, support and education. 3. Guidelines for Trustee's Discretion.. In exercising discretion our Trustee shall give the consideration that our Trustee deems proper to all other income and resources that are known to our Trustee and that are readily available to the surviving Settlor for use for these purposes. Our Trustee shall accumulate and add to principal any net income not distributed. 4. Limitation on Discretionary Payment of Principal by Trustee. We recommend, but it is not mandatory, that our Trustee shall first exhaust the principal from the Survivor's Trust before making discretionary payments of principal to the surviving Settlor from the Family Trust. 5. Restriction on Surviving Settlor's Right to Receive Principal. Notwithstanding any other provision in this agreement, if the surviving Settlor has the power to remove a Trustee of the Family Trust our Trustee shall not distribute any of the principal of the Family Trust that would, in any manner, discharge the surviving Settlor's legal obligation of support to a beneficiary of the Family Trust. In the event the surviving Settlor is mentally disabled and without the power to remove a Trustee of the Family Trust, our Trustee shall disregard this restriction during such period of mental disability. B. Limited Power of AppoinUnent. By either a last will or by a living trust agreement, the surviving Settlor shall have the limited testamentary power to appoint to or for the benefit of the deceased Settlors descendants some or all of the principal and any accrued but undistributed net income of the Family Trust as it exists at the death of the surviving Settlor. The surviving Settlor may appoint trust assets under this limited testamentary power among our joint descendants in equal or unequal amounts, either directly or in trust, as the surviving Settlor directs. This limited testamentary power of appointment shall not be exercised in favor of the Surviving Settlor's estate, the creditors of the surviving Settlor, the creditors of the surviving Settlor's esfiate, or in any way which would result in any economic benefit to the surviving Settlor. C. Te:nnination of the Famil Trust. On the death of the surviving Settlor, the Family Trust shall terminate. All unappointed and undistributed trust assets, including any accrued and undistributed net income, shall be held, administered and distributed according to Article Six for the beneficiaries of the first Settlor to die. (The following section is Article Sixth - Dispositive Provisions) 9 ARTICLE SIXTH DISPOSITIVE PROVISIONS A. Division and Distribution of the Trust Estate Upon the death of the surviving Settlor, our Trustee shall divide and distribute the balance of our trust estate as follows: 1. Division of Trust Property. Our Trustee shall divide all trust property not previously distributed into separate shares of equal market value being one share for each of our children, MARION J. NESBIT a~ld DAVID D. NESBIT as follows: 2. Distributions of Tangible Personal Property We direct our Trustee to make the following specific distributions of tangible personal property: a. To our daughter, MARION J. NESBIT, the small secretary desk that had previously belonged to Bertha Nesbit Marquis; and b. To our son, DAVID D. NESBIT, the grandfather clock. c. We may each leave a Memorandum listing some of the items of our tangible personal property which we wish certain persons to have and request that our wishes as set forth in the memorandum(s) be observed by our Personal Representative. d. Any items of tangible personal property not so designated shall be divided and distributed among my children as follows: (I) All items of tangible personal property shall be inventoried and a valued at a fair market value. (2) Each of my children may select one item, in rotation, in order determined by lot, until such time at which the items chosen by that child reach such child's proportionate share of the total value of our estate under paragraph A.1 of this Article Sixth or wail such time as the child wishes to make no further selections. (3) Any items not selected shall be sold and the net proceeds used to equalize the shares. (4) To the extent that my children are unable to agree, the decision as to what may constitute "one item" for purposes of this selection shall be made by the Trustee. (5) Any disputes concerning this method of allocation shall be resolved by the Trustee in the Trustee's discretion. 3. Distribution for MARION J. NESBIT. Our Trustee shall promptly distribute, free of the trust, all accumulated net income and principal of the trust share to our daughter, MARION J. NESBIT. h~ the event our daughter, MARION J. NESBIT should predecease us or should she die before the complete distribution of her trust share, her trust share shall terminate and 10 our Trustee shall distribute the balance of the trust property to the then-living descendants ~• of MARION J. NESBIT, per stirpes. If MARION J. NESBIT has no then living descendants, our Trustee shall distribute the balance of the trust property to our son, DAVID D. NESBIT, or in the event he fails to so survive, to his then-living descendants, per stirpes. 4. Distribution for DAVID D. NESBIT. Our Trustee shall promptly distribute, free of the trust, all accumulated net income and principal of the trust share to our son, DAVID I). NESBIT. In the event our son, DAVID D. NESBIT, should predecease us or should he die before the: complete distribution of his trust share, his trust share shall ternlinate and our Trustee shall distribute the balance of the trust property to the then-living descendants of DAVID L). NESBIT, per stirpes. If DAVID D. NESBIT has no then living descendants, our Trustee shall distribute the balance of the trust property to our daughter, MARION J. NESBIT, or in the event she fails to so survive, to her then-living descendants, per stirpes. 5. Distributions to Underage or Disabled Beneficiaries. Notwithstanding any other provision in this trust agreement, if any person otherwise entitled to receive a distribution of trust property is under the age of twenty-five (25) years of age or is mentally disabled or legally incompetent as defined in Article Two, the Trustee shall retain and administer that person's trust property for his or her benefit as follows: (a) The Trustee may pay to or apply for the benefit of such beneficiary so much of the net income and principal of the trust as my Trustee in its discretion deems advisable for such beneficiary's education, health, maintenance and support, considering all other sources of income and resources available to such beneficiary and known to my Trustee. (b) The Trustee is authorized to make payments under this Section either directly to the beneficiary, to the beneficiary's personal representative or to any other person the Trustee may deem proper to be used for the benefit of the beneficiary. (c) All decisions by the Trustee as to those it makes payments to, the purpose for which these payments are made, and the amounts to be paid out of the trust are within the Trustee"s sole but reasonable discretion. (d) All undistributed net income shall be accumulated and added to the principal of the trust. (e) The Trustee shall distribute the trust property to a beneficiary under this Section when such beneficiary reaches are twenty-five (25), or when he or she is no longer disabled as determined be a court of competent jurisdiction, or upon the certification by two licensed physicians that such beneficiary is able to properly care for J • his or hear property and person, or at a later date if other trust provisions in this Article direct. (i) Upon the death of a beneficiary under this Section, our Trustee shall distribute all of such beneficiary's remaining trust share, including the trust principal and accrued and und:ish-ibuted income, to any person or entity and upon any trust, terms and conditions, or to or in favor of the estate of such deceased beneficiary, as he or she may direct by his or her last Will or living trust agreement. No exercise of this general power of appointment shall be effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general power of appointment. (The following section is Article Seventh -Trustees) 12 ARTICLE SEVENTH TRUSTEES A. Settlors appoint themselves, DAUN W. NESBIT and RUTH D. NESBIT as the initial Trustees on the trust creation date. B. In 1:he event RUTH D. NESBIT is unable or unwilling to serve as Trustee, DAUN W. NESBIT shall act as the sole Trustee. In the event DAUN W. NESBIT is unable or unwilling to serve as Trustee, RUTH D. NESBIT shall act as the sole Trustee. In the event both, DAUN W. NESBIT and RUTH D. NESBIT are unable or unwilling to serve as Trustee, we appoint our son, DAVID D. NESBIT, as successor Trustee. In the event DAVID L). NESBIT is unable or unwilling to serve as Trustee, we appoint our daughter, MARION J. NESBIT as successor Trustee. C. Unless otherwise provided for under this Article Seventh, in the event the named successor Trustee should cease to act as Trustee without having designated a successor, then a majority of the beneficiaries then-eligible to receive distributions of income or principal under this agreement or their legal representatives shall appoint a successor Trustee. If any trust existing under this agreement lacks a Trustee and no successor Trustee has been appointed pursuant to this Section, the vacancy shall be filled by a court of competent jurisdiction. D. Notwithstanding Section B of this Article, if at any time there are two or more Trustees serving under this agreement, none of whom are a Settlor, they shall act by majority vote and any exercise of a power or discretion by a majority of the Trustees shall have the same effect as an exercise by all of them. E. Notwithstanding any other provision of this agreement, any one or more of the co- Trustees serving under this agreement may from time to time delegate to another co- Trustee or co-Trustees routine acts of trust administration. F. No Trustee under this agreement shall be required to post any bond for the faithful perfonnanc;e of its responsibilities. G. The Trustee under this agreement shall be entitled to reasonable compensation for the perforniance of its functions hereunder payable without a court order. In calculating the amour.~t of compensation customary charges for similar services in the same geographic area for the same time period shall be used as guidelines. Should a corporate trustee be acting, compensation shall be in accordance with its standard schedule of fees in effect from time to time during the period over which its services are performed. H. Any corporate successor to the trust business of any corporate Trustee named under this agreement or acting hereunder shall succeed to the capacity of its predecessor without rec~onveyance or transfer of trust property. 13 I. Notwithstanding any language purporting to confer absolute, sole or unrestricted discretion. on the Trustee in exercising any discretionary power with respect to this trust, my trustee shall at all times act in accordance with fiduciary principals and shall not act in bad fai~[h or in disregard of the purposes of this trust. J. Notwithstanding any other provision in this trust agreement, no individual Trustee who is also a beneficiary hereunder shall have any right, power, duty or discretion concerning this trust if such right, power, duty or discretion conferred upon such Trustee under this; trust agreement is deternlined to be a general power of appointment under I.R.C. Section 2041 or 2514 which would cause any assets of the Trust to be included in the estate of such Trustee-beneficiary. Any such right, power, duty or discretion with such effect shall be null and void with respect to such Trustee-beneficiary. No Trustee who is under a legal obligation to any beneficiary of this trust or other person shall under any circurnstance partake in any decisions relating to any discretionary distributions of income or principal of this trust which can be used for any such legal obligation to any such beneficiary or other person. ARTICLE EIGHTH TRUSTEE POWERS Trustee shall have the following powers in addition to those vested in it by law and by other provisions of this trust, applicable to all property, whether principal or income, exercisable without court approval, and effective until actual distribution of all property: A. To retain any or all of the assets of the trust, real or personal, including any shares of stock or other securities Settlor may own of the corporate Trustee or its successor, or of a holding company controlling Trustee or its successor, without restriction to investments authorized for Pennsylvania fiduciaries, as it deems proper, without ref;ard to any principal of diversification of risk. B. Toy invest in all forms of property (including stock or other securities of Trustee or its successor, or of a holding company controlling Trustee or its successor, and common trust funds and mortgage investment funds whether maintained by the corporate Trustee or its successor or others), without restriction to investments authorized for Pennsylvania fiduciaries, as they deem proper, without regard to any principal of diversification or risk. C. To borrow funds from any person including my Trustee, guarantee indebtedness or indemnify others in the name of the trust and to secure any such obligation by mortgage, Fledge, security interest or other encumbrance and to renew, extend or modify any such obligation for a term within or extending beyond the administration of the term of the trust. No lender shall be bound to see to or be liable for the application of the proceeds of any obligation and my Trustee shall not be personally liable for any obligation. 14 D. ~['o sell at public or private sale, to exchange, or to lease for any period of time, any real or personal property and to give options for sales, exchanges or leases, at such prices and upon such terms or conditions as it deems proper. E. To allocate receipts and expenses to principal or income or partly to each as Trustees iFrom time to time think proper in their sole discretion but in no event shall the income of the marital deduction trust under Article Third be reduced by the exercise of this power. F. To lend to, or purchase from, Settlor's executor, even though any Trustee is also such executor. G. To hold property in the name of Settlor, or in its name without designation of any fiduciary capacity, or in the name of a nominee, or unregistered. H. To compensate any guardian of the person of Settlor's minor children as directed by Settlor in his last Will or by Settlor's wife in her last Will. I. Settlor specifically authorizes Trustee to transfer assets to itself as Trustee by exercise of any power of attorney granted by Settlor to Trustee, such assets so transferred to be held IN TRUST under the terms of this trust. J. Trustee is authorized to invest in U.S. Treasury Bonds redeemable at par in payment of Federal estate tax and Trustee is directed either to use all such bonds held by the trust at Settlor's death to pay Federal estate tax in Settlor's estate to the fullest extent possible oi- to deliver to the personal representative of Settlor's estate after Settlor's death all such bonds held by this trust at Settlor's death for use by the personal representative to the fullest extent possible in payment of the Federal estate tax in Settlor's estate. No reimbursement shall be due from Settlor's estate to this trust for the bonds so used or distributed and provided herein. Trustee is further authorized to borrow monies to acquire such bonds. K. To contract with and arrange for Settlor's entrance to any hospital, nursing home, health center, convalescent home, residential care facility, or similar institution, to authorize medical, therapeutical and surgical procedures for Settlor, and to pay all bills in connection therewith. L. Should the principal of any trust herein provided for be or become too small in the discretion of the Trustees other than Settlor's wife so as to make establishment or continuancf; of the trust inadvisable, the Trustees other than Settlor's wife may make immediate distribution of the then-remaining principal and any accumulated or undistributed income outright to the person or persons and in the proportions they are then entitled to income. Upon such termination, the rights of all persons who might otherwise have an interest as succeeding income beneficiary or in remainder shall cease. is ARTICLE NINTH MISCELLANEOUS A. Estate Expenses. Trustee shall have the power, but not the duty, to make such expenditures out of this trust as they, in their uncontrolled discretion, may consider desirable in order to facilitate the settlement of Settlor's estate. In exercising such power, Trustees nnay pay, in whole or in part, any or all of the following items: The expenses of Settlor's last illness and burial, including cost of gravemarker: his debts; his income taxes; the death taxes on any and all property included in his gross estate for tax purposes; and all other items in connection with the settlement of his estate. Any such items may be paid directly by Trustees, or the funds for their payment may be transferred to Settlor's executor or administrator; and neither such executor or administrator nor any beneficiary of Settlor's estate shall be required to reimburse Trustees for any funds so paid. B. Spendthrift Protection. Neither the principal nor the income of any trust created or contained under this agreement shall be liable for the debts of a beneficiary nor shall the same be subject to seizure by any creditor of any beneficiary under any lien or proceeding at law or equity. Except to the extent otherwise expressly provided in this agreement, no beneficiary shall have authority or power to sell, assign, transfer, encumber or in any manner to anticipate or dispose of a beneficial interest whether income or principal. The limitations herein shall not restrict the exercise of any power of appointment or the right to disclaim by any beneficiary. C. No-Contest Clause. If any person or entity, other than the Settlor, or in conjunction with any other person or entity, directly or indirectly, contests in any court the validity of this trust agreement, including any amendments thereto, then the right of that persor.~ or entity to take any interest in the trust property shall cease, and that person (and his or her descendants) or entity shall be deemed to have predeceased me. D. Income and Principal Pa. Tents. All payments of income or principal shall be made in such of the following ways as my Trustee deternlines appropriate: (1) To each respective beneficiary in person upon his or her personal receipt; (2) Deposited in any bank to the credit of such beneficiary in any amount carried in his or her name jointly with another or others; (3) To the parent or legal representative of the beneficiary; (4) To a Custodian under a Uniform Transfers to Minors Act .selected by the Trustee for such period of time under applicable law as our Trustee determines appropriate; (5) To some near relative, friend or institution having primary responsibility for the care and custody of the beneficiary; (6) By the Trustee using such payment directly for the benefit of such beneficiary; or (7) To the Trustee of any revocable trust of which the beneficiary is the Settlor. 16 E. Severability. Should any of the provisions of this agreement be for any reason declared :invalid, such invalidity shall not affect any of the other provisions of this agreement and all invalid provisions shall be wholly disregarded in interpreting this agreement. F. Perpetuities Clause. Unless sooner tern~inated or vested in accordance with other provisions~~ of this agreement, all interests not otherwise vested including but not limited to all trusts and powers of appointment created hereunder shall terminate twenty-one (21) years after the death of the last survivor of the group composed of me and my lineal descendants living on the date of my death. At that time distribution of all principal and all accrued, accumulated and undistributed income shall be made to the persons then entitled to distributions of income in the manner and proportions herein stated or if not stated, equally irrespective of their then attained ages. G. Trust Situs and Applicable Law. The situs of this trust for administrative and accounting; purposes shall be in the County of Lancaster, Commonwealth of Pennsylvania. The laws of the Commonwealth of Pennsylvania shall at all times govern the construction, validity, and effect of this Trust Agreement and the administration of the trust hereby created. H. Binding Effect. This Trust Agreement extends to and is binding upon the personal representatives, successors and assigns of the Trustee and Settlor. IN WITNESS WHEREOF, Settlors and Trustees have hereunto signed and sealed this Trust Agreement as of the day and year first above written. DAUN W. NESBIT, Settlor ~/ 4T/ ~~ /~ I . V RUTH D. NESBIT, Settlor DAUN W. 1\fESBIT, Trustee RUTH D. NESBIT, Trustee ACKNOWLEDGEMENT COMMONWEALTH OF PENNSYLVANIA COUNTY' OF LANCASTER ss: On ~e.c/r'.~f~_' 3~ /h'~`~ ,before me, a Notary Public personally appeared ROBERT P. GRUBB, (PA Supreme Court I.D. No 76057) known to me to be a member of the bar of the highest court of said commonwealth and certified that he was personally present when DAUN W . NESBIT and RUTH D. NESBIT, as Settlors and as Trustees, executed the same, and that said persons acknowledged that they executed the same for the purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. ~~'i1L.t~ I v Notary Public Notariat Seal Glenna R. Hallsm, idotary Public ;, {`,~P.I R-pf~i~late~r Tuvp., Lancaster County P ,: `~~ri~~jaa ~,~ipFE t):~c. 18, 2000 m~o,.,!J.,, Pu.': :'giVBflid ~ J:SCi ";IOfI Of 1~Oru~ f?c ~8