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HomeMy WebLinkAbout04-08-09 F:\FILES\ClientslM & T 7259\Trust\7259.S.petl.wpd Created: 9/20/04 0:06PM Revised: 4/8!09 8:17am 7259.8 No V. Otto III, Esquire I.D. No. 27763 Seth T. Mosebey, Esquire I.D. No. 203046 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 r~a ~~ ~ /~ l ! ~.5~ T5 -" ' T } T t , 1" l ~ - ~`i ' f ._I- ~ ~ _ '~_...~ I _ 11 ~ ~ ~1 n 11 4 } c.~ ~, IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS OF SARAH McCREA CHAPMAN JONES :CUMBERLAND COUNTY, PENNSYLVANIA LATE OF LOWER MIFFLIN TWP., :ORPHANS' COURT DIVISION CUMBERLAND COUNTY, PA., DECEASED, NO. ~~ . ()~ -- (.~3a,~ PETITION TO TERMINATE TRUST AND NOW, comes Manufacturers and Traders Trust Company by and through its attorneys, MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, and hereby petitions for the termination of a trust as follows: 1. The Petitioner is Manufacturers and Traders Trust Company ("M&T"), a New York corporation with a local office at One West High Street, Carlisle, Pennsylvania. 2. M&T is the successor to Farmers Trust Company. 3. The above-named decedent, Sarah McCrea Chapman Jones ("Decedent"), died on July 28, 1978. 4. The Register of Wills admitted to probate as the last will and testament of Decedent a writing dated September 8, 1976 ("Will"). A copy of the Will is attached hereto and incorporated as Exhibit "A." 5. Decedent's Will established numerous trusts. 6. Paragraph Nineteenth of the Will devised the "Chapman Lodge and its contents, together with the land adjacent thereto" to Farmers Trust Company and John McCrea III in trust ("Chapman Lodge Trust"). 7. Initially, the Chapman Lodge was to be held in trust for the benefit of Decedent's son, Alfred McCrea Chapman, for "as long as he lives or as long as he has any need for it." 8. Thereafter, the Chapman Lodge and the land adjacent thereto would be held for the use and benefit of the children of Alfred McCrea Chapman, John McCrea and Katherine Jane .~; ;`--~ McCrea Morns, until the youngest child of Alfred McCrea Chapman reached the age oftwenty-one, at which time the Chapman Lodge would be conveyed to Alfred McCrea Chapman's children as joint life tenants. 9. At the termination of the life estates of the joint tenants, or after renunciation of the life estates, the Chapman Lodge and the adjacent land would be distributed to St. John's Episcopal Church in Carlisle, Pennsylvania, free of trust. 10. Paragraph Twentieth devised $35,000 to the same trustees in trust for the maintenance and upkeep of the "Chapman Lodge and its adj acent acreage" during the term of the Chapman Lodge Trust. 11. The funds provided for in Decedent's Will for the upkeep of the Chapman Lodge have been exhausted. 12. The current annual fixed expenses, including utilities, taxes and insurance, for the Chapman Lodge and the adjacent land is approximately $5,300.00. 13. Alfred McCrea Chapman no longer has any need for the Chapman Lodge and the adjacent land. 14. Specifically, Alfred McCrea Chapman suffers from chronic serious mental illness and therefore, has no need for the Chapman Lodge and the adjacent land. 15. Additionally, Alfred Chapman definitively expressly stated that he had no desire to continue with his interest in the Chapman Lodge. A copy of correspondence from Friends Hospital dated July 26, 1988, confirming this fact is attached hereto and incorporated as Exhibit "B." 16. Because Alfred McCrea Chapman no longer has any need for the property, his children became joint life tenants in the Chapman Lodge and its adjacent land. 17. The names and last known addresses of Alfred McCrea Chapman's children are as follows: a. Henry L. Chapman, 355 Lonely Goose Circle, Harleysville, Pennsylvania 19438; b. Karen E. Chapman, 1858 San Lorenzo Avenue, Berkley, California 94707; and c. Katherine Chapman Michalka, 250 Loche Lloyd Parkway, Belton, Missouri 64042. 18. On February 16, 2007, the co-trustees of the Chapman Lodge Trust wrote to the children of Alfred McCrea Chapman to inquire whether any of them desired to maintain their life tenancy in the Chapman Lodge and assume financial responsibility for maintaining the property. A copy of this correspondence is attached hereto and incorporated as Exhibit "C." 19. The only response to the February 16, 2007, correspondence was from Katherine Chapman Michalka who affirmed that she no longer had any interest in her life tenancy of the Chapman Lodge and that she agreed to formally terminate her interest in the trust. A copy of Katherine Chapman Michalka's response is attached hereto and incorporated as Exhibit "D." 20. Neither Henry L. Chapman nor Karen E. Chapman responded to the correspondence of February 16, 2007. 21. Co-trustee M&T now wishes to terminate the trust so as to make an immediate distribution of the Chapman Lodge and its adjacent property to St. John's Episcopal Church in Carlisle, Pennsylvania. 22. Continuance of the Chapman Lodge Trust is no longer necessary to achieve any material purpose of the trust and in fact, interferes with the purpose of the trust. WHEREFORE, Manufacturers and Traders Trust Company requests that this Honorable Court terminate the Chapman Lodge Trust and permit the immediate distribution of the Chapman Lodge and its adjacent property to St. John's Episcopal Church in Carlisle, Pennsylvania. MARTSON LAW OFFICES By: ,.~ ~ No V. Otto III, Esqu e I.D. No. 27763 Seth T. Mosebey, Esquire I.D. No. 203046 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: !f/~ D9 Attorneys for Manufacturers and Traders Trust Company EXHIBIT "A" - ~{~~r 3~~ LAST WILL AND TESTAMENT . OF Sr1RAH MC CRFA CNAPMAN JONES I, Sarah hfcCrza Ch2pman .Tones, a resident of Lo-~~er Mifflin Township, Cumberland County, Pennsylvania, do make, publish and declare. this to ~e my Last Will and Test_nent and do hereby revoke_.arid cancel all"Wills: and Codicils heretofore made by-me. _. -FIRST: I direct that all my just debts and funeral .expenses be paid by my Executors, hereinafter named, as soon after my .death as may be .convenient. - SECOND: I~direet that all-legacy, inheritance, succession, transfer-and estate taxes-levied or lawful y assessed.-upon or. - with respect to any property or any intezest ir. property,-legal or equitable, which is iiicluded.as part of my gross estate for ~ the purpose of any such tax,-shall be paid by my Facecutors out. of my estate in the same manner as an expense of administration and shall not be pro-rated or apportioned among or'charged against the respective devisees, legatees, beneficiaries, transferees or other recipients of .any such: property,. nor - charged against my property passing or which may have passed _ to them or any .of them, .other than such property that would , __ otherwise consti•,:ute a part of my residuary estate, and that L my Executors shall not be entitled to contribution or reim- bursement for any portion of any such tax from any`such person, any statute or rile of law to the contrary notwithstanding. THIRD: I-gave, devise and bequeath Five Thousand ($5,000.00)_ Dollars to the Farmers Trust company and John McCrea.IiI, in trust nevertheless, to pay the net income therefrom to Elizabeth Norcross 1~IcCrea during her fife and upon her `death to treat the principal of said trust as other residue of the estate page one of 12 panes FOURTH: I give, devise and bequeath Twenty Thousand ($20,000,00) Dollars to the Fartt-~rs Trust Company and John McCrea III,~in trust nevertheless, to pay the net income there- from and so much of the principal as they, in their- sole _ discretion, deem .necessary for the-care, maintenance and support of Katherine Jane- McCrea. Morris,. for life, and thereafter, to pay, upon the same terms, to her husband; John Morris, Jr., for his life, i.f she should predecease him. Upon termination of this trust, 'he residue therefrom is~to be paid to the then - surviving children of Katherine Jane rlcCrea Morris, in equa l shares, and, if there are at that event no surviving children, then the residue of said trust is to be treated as other residue of this estate. ~ ~ - ' FIFTH: I give, devise and bequeath Ten Thousand ($10,000.00) Dollars to each of the following persons: John E, Morris IZI, Jane .McCrea Morris, Margaret Catherine McCrea ;Blaze,-Jean Shannon ~_ McCrea Heckman, Rebecca Saeichter McCrea Smi th, and John McCrea III. Members of the family who are not mentioned in this instrument have 'received gifts during my lifetime. _ .: ._ _. SIXTH: I give, devise and 'bequeath One Thousand ($1,000,00) Dollars to each of the children of the persons-named in paragraph FIFTH of this instrument. - -~ SEVENTH: I cancel the note and loan of $800.00 secured • -~ c~ thereby which was made in 1938 to John McCrea and W,k. McCrea, Jr., _. at the time-of their purchase of. the OId Stone Huntaberger Hotel in Newville, Pennsylvania, plus any interest due therefrom. EIGHTH: Igive,-devise-and bequeath my inheritance from my Mothers estate (deceased 1961) to the children of John McCrea, share. and share alike. • NINTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to Miss Dora David, formerly President of Sarah Tucker College, India. - page twu of 1? pages TENTH: I give, devise and. bequeath One Thousand ($1,000,00) Dollars to Doctor Anna Zechariah, formerly President of Madras Women's Christain Ccllege, India. ELEVENTH: I give, devise and bequeath One Thousand {$1,000..00) Dollars to Mark Heberlig and Margaret Heberlig, or the survivor of them. TWELFTH: I give, devise-and bequeath One Thousand ($1,000.00) Dollars to Fred Heckman. THIRTEENTH_• I give, devise and beq~.eath One Thousand ($1,000.00) Dollars to Alberta Boldosser, FOURTEENTH: I give, devise and bequeath One Thousand ($.1,000.00) Dollars to my niece, Hazel M, Chapman. FIFTEENTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to The Reverend Doctor Ronald Wiley and Alberta Wiley,. his wife, or the survivor of them. SIXTEENTH: I give, devise and bequeath to my grandson, Henry Lewis Chapman, the Chapman Grandfathers Clock, Chapman large carved oak cabinet, Goddard-type desk, all now located in Chapman Lodge,"and one of my silver services, SEVEIv'TEENTH: I give, devise and bequeath to my granddaughter, Ratherine Stacy Chapman,. the. Powell Grandfathers Clock, now located in the home of Alfred M, Chapman, Ardmore, Pennsylvania, and Qne of m_y silver services. -- a EIGHTEENTH: I give, devise and bequeath to my granddaughter, Karen Elizabeth Chapman, the Grandfathers Clock, now located at Ziegler~s Storage Warehouse, the antique walnut tiptop table, which was a wedding gift from my parents, and one of my silver services NINETEENTH: I give, devise and bequeath to the Farmers ~--" .Trust Company and John McCrea III, in .trust nevertheless, my country house known as Chapman Lodge and its contents, together page three of 132 pages - with the land adjacent thereto, Lower Mifflin Township, Cumber- land County, Pennsylvania, containing 19 acres, more or less, for the benefit and use of my son, Alfred McCrea Chapman, as-long as he lives or as long as he has any need for it. At his death or whenever the benefit to him ends, then my Trustees herein shall continue to hold the property for the. use and benef it of the children of Alfred McCrea Chapman, and for the use and benefit of the children of John McCrea and the children of Katherine Jane McCrea Morris, until the youngest child of Alfred McCrea Chapman reaches: the age of Twenty-one years, at which time my Trustees are to convey said property for life to the children of Alfred McCrea Chapman, as joint life tenants. At the termination of the-.life estates, or aftez renunciation thereof, or if there are no children of Alfred McCrea-Chapman living at the termination of this trust,-then said property shall pass in remainder to St.Johns Episcopal Church, Carlisle, Pennsylvania. TWENTIETH: I give, devise and bequeath to the r^armers Trust Company and John McCrea III, Thirty-five Thousand ($35,000.00) Dollars, in trust nevertheless, to-use the income and so much of the principal as they in their discretion deem necessary for the upkeep, maintenance, repair, and taxes of Chapman Lodge and ~ its. adjacent acreage, during the term of the trust created in paragraph NINETEENTH. When that trust terminates, then the residue of this trust shall be treated as other residue of this estate. TWENTY-FIRST: I give, devise and bequeath to Brown University Ten Thousand ($10,000.00) Dollars, to expend the income therefrom for scholarships and to be known as the Alfred McCrea Chapman scholarships. - TWENTY-SECOND: I give, devise and bequeath to Lawrenceville School, Lawrenceville, New Jersey, Five Thousand ($5,000.00) -.page four of pages Dollars, to expend the income therefrorn for scholarships, and to be known as the Alfred McCrea Chapman scholarships. TWENTY-THIRD: I give, devise and bequeath to St. Thomas Episcopal Choir School, West Fifty-fifth Street, PJew -York City, Five Thousand ($5,000,00) Dollars, to expend the income there- from for scholarships and to be known as the Alfred McCrea Chapman scholarships. TWENTY-FOURTH: I give, devise and bequeath to St. pukes Episcopal Churct, Newton, Bucks County, :'ennsylvania, Five Thousand ($5,000,00) Dollars, to expend the income therefrom for general church purposes and to be known as the Alfred_Madison Chapman Fund. TWENTY-FIFTH: I give, devise and bequeath to the Trinity Episcopal Church, Wilmington, Delaware, One Thousand ($1,000.00) Dollars to expend the income therefrom for flowers during the month of January in memory of Joseph Holton Jones. TWENTY-SIXTH: I give, devise and bequeath to the Domestic ~ and Foreign Missionary Society of the Episcopal Church at 815 .Second Avenue, New York City, for the benefit of the Sarah Tucker. College of Palayamkottai, Madra State, South India, One Thousand ($1,000.00) Dollars. ~ TWENTY-SEVENTH: I give, devise and bequeath to the Natio`nai Trust of Scotland One Thousand ($1,000.00) Dollars, to pay the income therefrom for the upkeep and maintenance of the Kintail Trust Property and to be known as the Sarah McIlvaine McCrea Jones Fund. TWENTY-EIGHTH: I give, devise and bequeath One Thousand ($1,000,00) Dollars to the Direc*_ors of the John Graham Library Association, Newville, Pennsylvania, and to be known as the Sarah McCrea Chapman Jones Fund. TWENTY-NINTH: I give, devise-and bequeath One Thousand ($1,000,00) Dollars to the Hamilton Library and Cumberland. page five of 12 pages County Historical Association, Carlisle, Pennsylvania, .for ' general purposes, to be known as the John McCrea Fnnd, THIRTIETH: I give, devise and bequeath to St. Johns Episcopal Church, Carlisle, Pennsylvania, One Thousand ($1,,000.00) Dollars. ' THIP.TY-FIRST: I give, devise and bequeath to the First United Presbyterian Church; Newville, Pennsylvania, One-Thousand ($1,000,00) Dollars. THIRTY-SECOND: I give, devise and bequeath to the Holy Trinity Bpiscopal Church, Philadelphia,.Pennsylvania, One Thousand ($1,000,00) Dollars, THIRTY-THIRD: I give, devise and bequeath to St. Andrews Episcopal Church, Yardley, Pennsylvania, One Thousand ($1,000,00) Dollars. THIRTY-FOURTH: I give, devise and bequeath *_o the Episcopal. Diocese of Cent~_al Pennsylvania Five Thousand ($5,000,00) Dollars for the Endowment Fund, to be known as the Sarah McCrea Chapman Jones Fund. THIRTY-FIFTH: I give, devise and bequeath to Villore Medical College and. Hospital in India One Thousand ($1,000,00) Dollars. ., ~ THIRTY-SIXTH: I give, devise and bequeath to Nepal Hospital Fund, Kathmandu, One Thousand ($1,000.00) Dollars. THIRTY-SEVENTH: I give, devise and bequeath to the Episcopal Home for the Aged, Shippensburg, Pennsylvania, One Thousand ($1,000.00) Dollars. THIRTY-EIGHTH: I give, devise and bequeath to Dickinson College, Carlisle, Pennsylvania, Five Thousand ($5,000.00) Dollars, to expend the income therefrom =or scholarships and to be known as the Barbara Snyder McCrea scholarships. page-six of 12 pages THIRTY-NINTH: I give, devise and bequeath to the Dickinson School of Law, Carlisle, Pennsylvania, One Thousand ($1,000.00) Dollars. FORTIETH: Twenty per cent (207) of the rest, residue and remainder of my estate, be it real, personal or mixed, I give, devise and bequeath to the Farmers Trust Company and John McCrea III, in trust nevertheless, to-pay out of the income and so much- . of the principal as they,. in their sole and absolute discretion, deem necessary, for the care, maintenance and support of my son, Alfred McCrea Chapman, for life;:and, in addition, to pay out of the income and so much of-the principal as their absolute dis- cretion deems necessary, for the care, maintenance, support and education (secondary, college, and graduate) of the children of Alfred McCrea Chapman, until all the children have either attained the age of twenty-one years, or completed their education, which- ever later occurs. My trustees are to have the broadest discretionary powers with regard to the distribution of income and principal without need for equality of amount between or among beneficiaries and without recognition of intestacy proportions. My trustees may convert any and. all of T_he trust assets at either public or private ~, sale and reinvest the same in whatever securities or real estate ~~., they in their sole discretion, deem advantageous to the trust. Said investments may include the stock of the Farmers Trust Company. Upon the termination of this trust I give, devise and be- queath to each of my grandchildren, Henry Lewis Chapman, Katherine Stacy Chapman, snd Karen Elizabeth Chapman, one third of the then balance, If any or all grandchildren are deceased at the payment of this bequest, and leave issue them surviving, then each page seven of 12 pages deceased grandchild~s share is to be paid to his issue, share snd share alike. If any deceased grandchild does not leave issue him or her surviving, then his or her share is to be paid to my grandchildren who survive him or her, or their issue,the grandchildren to take equal shares, and the issue to take, per stirpes, the share their deceased parent would have taken had he or she survived. -If no grandchildren, and no issue of grand- children, survive at the time of the payment of this bequeath, then it shall c~ treated as part of the residue of this estate. FORTY-FIRST: All the rest, residue and remainder of my estate, be it real, personal or mixed, I give,_devise and be- queath to Farmers Trust Company and John McCrea III in Trust and confidence. This Trust shall be kno•,nm as the "Charitable Remainder Trust" and the net income, principal .thereof shall be disposed of as hereinafter provided: (A) My Trustees shall pay to my son Alfred McCrea Chapman for life, in each taxable year of the trust, in '~ such installments as may be convenient, but not less often than annually a sum equal to S.per cent of the net fair market value of the trust assets determined annually. On my son Alfredts death, my Trusteees shall transfer the then principal of thQ trust (including all =• accumulated income) in the following proportions: (1) To Dickinson College, three-tenths (3/10) for the same purposes and on the same conditions set forth in Paragraph Thirty-eight. (2) To Brown University, three-tenths (3/10) for the same purposes and on the same conditions set forth in Paragraph Twenty-.First. (3) To The National Trust for Scotland, one-tenth (]/10) for the same purposes and on page eight of 12 pages the same conditions set forth in Paragraph Twenty-Seventh, (4) To the Episcopal Diocese of Central Pennsylvania, three-tenths (3/10) far t'ne same purposes and on the same conditions set forth in Paragraph Thirty-Fourth, (B) In case the net fair market-value of the assets t of this trust is incorrectly determined, my trustees shall pay to my son Alfred, in case of any undervalua- tion, or be repaid by him, in the case of an overvaluation, an amount equal to the difference between the amount which my trustees should have paid if the correct value were used and the amount which my trustees actually paid within a reasonable period after the final determination of such. value, (C) If my Trustees accept additional contributions, for purposes of the taxable year in which the additional con- tribution is made and where no valuation date occurs after the time of the contribution in the taxable year when the contribution is made, the additional property shall be valued at the time of the contribution and~the amount described in (1) above computed by multiplying Se by the sum of the net fair market value of the tn:st assets (excluding the additional contribution and any apprecia- tion or earned income attributable thereto) and that pro- portion of the additional contribution plus earned income and appreciation, which the number of days, including the day of transfer., remaining .in the taxable year bears to the total number of days in that taxable year. (D) If at .the time any interest is to be irrevocably transferred to a Charity under (A) above, that Charity is not an organization described in 170 (G) I.R.C,, then in lieu of transferring such interest to said Charity my page nine of 12 pages Trustees shall transfer it.to an organization described in 170 (C). (E) This trust is intended to qualify as a charitable remainder unitrust as defined in Section 664(4) (1) and to ' be administered so that the trust shall qualify for the tax exemption provided under that section of the Internal Revenue Code. (F) My Trustees shall rot engage in any act of self dealing as defined in Section 4941(4) of the 'Internal RevenuF Code of 1954, or corresponding provisions of any subsequent Federal tax laws, and shall not make any taxable expenditures as defined in Section 4945 (d) of the Internal Revenue Code of 1954, or corresponding provisions of any subsequent Federal tax laws. After the death of my son Alfred-and until the actual termination of this trust, my Zrustees shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1954, or corresponding provisions of any subsequent Federal tax laws; shall not make any invest- - ments in such manner as to subject the trust to tax under Section 4944 of the Internal Revenue Code of 1954, .or ~corre- " sporidirig~'provisio'ns "of any subsequent Federal tax' laws; and ~, shall distribute income and if necessary principal, at such time and in such manner as may be required so that the trust shale not become subject to the tax on undistributed income imposed by Section 4942 of the Internal Revenue Code of 1954, or corresponding provision~a of any subsequent Federal tai: laws. The purpose of this paragraph (6) is to comply with the provisions of Section 508(e) of the Internal Revenue Code, to the extent applicable to this trust. (G) In the case of a taxable year which is for a period of less than 12 months (other than the taxable year in which Alfred dies) the amount to be distributed under (1) above shall be that amount multiplied by a fraction, the page ten of 12 pages ,, numerator of which is the number of days in the tax- able year ~f the trust and the denominator of which is 365 (366 if February 29th is a day included in the numerator), If no valuation date occurs before the end of the taxable year of the trust, the trust assets shall be valued on the last day of the taxable year of the trust. {H) In the case of the taxable year in which Alfred dies, the amount to be distributed under (1) above shall be that amount multiplied by a frac':ion, the numberator of may want, with the provision that said items shall be taken at ' ~ ` ~their`appra,ided value and,'charged against grandchild ~ s bequest; ~~ FORTY-THIRD: I direct that all advancements of money or ` property made by me in my lifetime to specific legatees, both individual and charitable, and charged or noted by me hereon, or of this period, the trust assets shall be valued on the last day of such period. .FORTY-SECOND: I direct that my grandchildren named as bene- ficiaries of my Last Will and Testament be permitted, insofar as they may unanimously agree, to select in kind from my personal property not specifically devised such items as each .of them which is the number of days between the beginning of such taxable year and the end of such period and the denominator of which is 365 (366 if February 29th is a day included in the numerator). If no valuation date occurs before-the end on my books of account or cancelled checks and check-registers as such advancements, shall be taken and counted as part of such legacies in this estate under this instrument. FORTY-FOURTH: In the event my estate shall be insufficient to pay in full all my specific bequests, then, in that event, my bequests set forth in paragraphs TWENTY-FIRST through THIRTY-NINTH, inclusive, which are to charitable, historical and educational institutions shall abate first. In the event there are not suffi- cient funds in my estate to pay such charitable, historical and educational page eleven of pages bequests in part, then, said bequests shall share proportionately. FORTY-FIFTH: I nominate the Farmers Trust Company and John McCrea III as the Executors of this my Last Will and Testament. IN WITNESS GIHEREOF, I, the said Sarah McCrea Chapman Jones, have hereunto set my hand and seal to this my Last ~nTill and _. . Testament, written on twelve sheets of paper, each of which is- signed by me on the bottom margin, this d"'"~'day of September, 197b. r ----~ arah c rea Chapman J nes This instrument was by the Testatrix, Sarah McCrea Chapman Jones, on the date hereof, signed, published and declared by her to be her Last Will and Testament, in our presence, who, at her request, and in her presence and in the presence of .each other, we believing her to be of sound ar_d disposing mind and memory have hereunto sub- scribed our names as witnesses. ,. pale twelve of 12 pages e e M:CR~A 6 DAYIS ATia~N[rs .r Lew Ntwvuis 2 SNiPPCNSeues PLMN~. FIRST CODICIL TO LAST WILL AND TESTAMEDIT OF SARAH McCREA CHAP. AN JONES RNOW ALL MEN BY THESE PRESENTS THAT I, SARAH McCREA CHAPMAN JONES, of Lower Mifflin Township, Cumberland County, Pennsylvania, do make, publish and declare this as a Codicil to my Last Will and Testament dated September 1476. FIRST: I revoke paragraph FOURTEENTH of my said will, as that bequest has been paid during my lifetime. SECOND: I revoke paragraph FIFTH of my said will. In lieu thereof and as paragraph FIFTH I substitute the following: FIFTH: I give, devise and bequeath Twenty Thousand ($20,000.00) Dollars to each of the following persons: John E. Morris, III, Jane McCrea Morris, Margaret Catherine McCrea Blaze, Jean Shannon McCrea Heckman, Rebecca Sleichter McCrea Smith, and John McCrea ll III. MembeY•s o£ the family who are not mentioned in this instrument received v `~' gifts during my lifetime. THIRD: The silver tea service devised to Henry Lewis Chapman in para- graph SIXTEENTH of my Last Will is the flat tea service, being a service for twelve. The silver tea service devised to Kathryn Stacy Chapman in paragraph SEVENTEENTH of my said will is the service now in the possession of Betty Lou Leedom Chapman. The silver tea service devised to Karen Elizabeth Chapman in paragraph EI%HTEF.NTH of my said will is the table service for eight•having a lily of the valley pattern. !~ FOURTH: I revoke paragraph FORTY-FIP.ST of my said will. In lieu thereof, and as paragraph FORTY-FIRST, I substitute the following: FORTY-FIRST: AY1 the rest, residue and remainder of my estate, be it real, personal or mixed, I give, devise and bequeath to Farmers Trust Company and John McCrea III in Trust and confidence. This Trust shall be known as the "Charitable Remainder Tzust" and the net income, principal thereof shall be disposed of as herein- after provided: (A) My Trustees shall pay to my son Alfred McCrea Chapman for life, in each taxable year of the trust, in such installments as may b? convenient, but not less often than annually a sum equal to five percent of the net fair market value of the trust assets determined _. i annually. On my son Alfred's death, my Trustees shall transfer the - ther. principal of the trust (including all accumulated income) ir. the following proportions: (1) To Dickinson College, one-tenth (1/10) for the same purposes and on the same conditions set forth in Paragraph Thirty-eight. (Z) To Brown University, three-tenths (3/10) for the same purposes and on .*_he same conditions set forth in Paragraph Twenty-first. (3) To The National Trust for Scotland, one-tenth (1/10) for the same purposes and on the same conditions set f forth in Paragraph Twenty-seventh. U (4) To the Episcopal Diocese of Central Pennsylvania, 1 ~ three-tenths (3/?0) for the .same purposes and on the same s' conditions set forth in Paragraph Thirty-fourth. (5) To the Dickinson School of Law, Carlisle, Pennsylvania,. two-tenths (2/10) for the same purposes and on the same conditions set forth in Paragraph Thirty-ninth. (B) In case the net fair market value of .the assets of this trust is incorrectly determined, my trustees shall pay to my son Alfred, in r case of any undervaluation, or be repaid by him, in the case of an over- valuation, an amount equal to the difference between the amount which my trustees should have paid if the correct value were used and the McCREA 8 OAVIS ATTONNEYS AT LAW McvnutE 6 SNiPreNeeuNE PCNNA. amount which my trustees actually paid within a reasonable period after the final determination of such value. (C) If my Trustees accept additional contributions, for purposes of the taxable year in which the additional contribution is made and where no valuation date occurs after the time of the contribution in the taxable year when the contribution is made, the additional property shall be valued at the time of the cnn.tribution and the amount described i.n (1) above computed by multiplying 5Y by [he sum of the net fair market value of the trust .assets.. (excluding the additional contribution ~ and any appreciation or earned income attributable thereto) and that pro- ~ -2- portion of the additional contribution plus earned income and appreciation which she number o.f days, including the day of i:ransf=r, remaining in the taxable year bears to the total number of days in that taxable year. (U) If at the time any interest is to he irrevocably transferred to a Charity under (A) above, that Charity is not an organization described in I?0 (C) I.R.C., then in lieu of transferring such interest to said Charity my Trustees shall transfer it to an organization de- i s scribed in 1?0 (C). i (E) This trust is intended to qualify as a charitable remainder un.itrust as defined in Section 664 (d) (1) and to be administered so that the trust shall qualify for the tax exemption provided under that section of the Internal Revenue Code. (F) My Trustees shall not engage in any act cf self dealing as defined in Section 4941(d) of the Internal Revenue Cede of 1954, or corresponding provisions of any subsequent Federal tax laws, and shall ,, not make ary taxable expenditures as defined in Section 4945(d) of the Internal Reve.n~ie Code of 195/x, or corresponding previsions of any stib- Sequent Federal tax laws. After the death of my son Alfred a.nd un*_il ~~ the actual termination of this trust, my Trustees shall not retain any ~ exr_ess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1954, or corresponding provisions of any subsequuent Federal tax laws; shall not make any investments in such manner as to subject the trust to tax. under Section 4944 of the Internal P.evenue Code ' I of 1954, or correspending provisions of any subsequen*_ Federal tax laws; and shall distribute income and if necessary principal, a*_ such time and in such manner as may be required so that the trust shall not become subject to the tax on undistributed income imposed by Section 4942 of the Internal Revenue Code. of 1954, or corresponding provisions e£ any subsequent Federal tax laws. The purpose of this paragraph (6) is to comply with the provisions of Section 508(e) of the Internal Revenue ..^.ode, to the extent applicable to this trust. McCREA 3 DAVIs AT[O ANCTi .T u. (G) In the case of a taxable year which is for a period of less f!swiu[ t Sxvr[w[[u[o v[+^~- than 12 months (other than the taxable year in which Alfred dies) the _ I -g EXHIBIT "B" America's First Private Nonprofit Psychiatric Hospital Founded 1813 FRIENDS HOSPITAL Mr. Dennis C. Caverly Executive Uice President Farmers Trust One West High Street P.0. Box 220 Carlisle, PA 17013 Dear Mr. Caverly: July 26, 1988 Roosevelt Boulevard and Adams Avenue Philadelphia. Pennsylvania 19124 215-831-4600 RE: Alfred Chapman In response to your letter of April 1, 1988, I have finally been able to talk to Mr. Alfred Chapman about the Chapman Lodge. This conversation took place today, July 26, 1988, and Mr. Chapman was aware of his interest in the lodge and when it was built and that he still maintained that interest financially. When asked whether he wanted to continue an interest in it, he said very definitely that he has no desire to continue his interest and would be very willing to sign his interest over to his three children. Therefore, you can have the required papers either brought.to him yourself, or sent to Greystone or myself, and we will insure that it be signed by A1, as long as he doesn't change his mind. Respectfully, YRB:pk .,r~~a HO`SE' a/~ tj~x ~r'f/R~f~ ,~„/i{7~', ~ 1~ t i t~ f 8l 3 -1`~~ Yal Bo rin, DO Seni Psychiatrist Friends Hospital EXHIBIT "C" ,. February 16, 2007 Henry L. Chapman 355 Lonely Goose Circle Harleysville, PA 19438 Karen E. Chapman 1858 San Lorenzo Avenue Berkley, CA 94707 Dear Folks: Katherine Chapman Michalka 250 Loche Lloyd Parkway Belton, MO 64042 RE: TUW Sarah McCrea Chapman Jones FBO Chapman Lodge You may recall that your grandmother, Sarah McCrea Chapman Jones, provided for the maintenance of her property known as Chapman Lodge for the life of your father. Her intention being to provide a home for your father should he have need of it. She also made provision for your use of the property during your lifetimes. Unfortunately the costs of maintaining the property have out stripped the funds, which your grandmother provided under the terms of her Will. Your grandmotheils Will also provides that when your father is no longer living, or has no need for Chapman Lodge that we can transfer the property to the three of you as joint life tenants. This would mean that you would become responsible for the care and maintenance of the Lodge. We estimate that the annual fixed expenses for the Lodge are approximately $5,300.00. These expenses include the utilities, taxes and insurance. The purpose of this letter is to determine if you are willing to assume the responsibility for the Lodge. If so, please acknowledge your willingness by returning the enclosed form designating that you are so willing. Should you not wish to take on this responsibility, please indicate on the form that you do not wish to assume the responsibility. Your grandmother§ Will provides for the ultimate distribution of the Lodge to St. John's Episcopal Church upon the termination of your life interests as well as your fathers. Should you choose not to assume the responsibility for the Lodge, it would be our intention to make distribution to the church immediately. Should you have any questions, please feel free to call. Thank you. Very truly yours, Manufacturers and Traders Trust Company Co-Trustee John McCrea III, Co-Trustee Private Client Services One West High Street, P.O. Box 220, Carlisle, Pennsylvania 17013 (717)240-4505 or1-800-822-2155 t ~ +, TUW Sarah McCrea Chapman Jones FBO Chapman Lodge Manufacturers and Traders Trust Company, Successors to Farmers Trust Company and John McCrea III, Co-Trustees Current Fixed Annual Costs: Utilities $ 738.00 Real Estate Taxes $3,185.00 Insurance $1,377.00 Total .................. $5,300.00 [ ] I would like to continue my life tenancy in the use of Chapman Lodge and agree to assume the financial responsibility for maintaining the property. [ ] I am not interested in maintaining my life tenancy in the use of Chapman Lodge and would agree to formally terminate my interest so that the trust can be distributed. Henry L. Chapman Katherine Chapman Michalka Karen E. Chapman Plcasereturn your election form in the self addressedpostage paid envelope. EXHIBIT "D" ., .~ ©M~cT Investment Group TUW Sarah McCrea Chapman Jones FBO Chapman Lodge Manufacturers and Traders Trust Company, Successors to Farmers Trust Company and John McCrea III, Co-Trustees Current Fixed Annual Costs: Utilities $ 738.00 Real Estate Taxes $3,185.00 Insurance $1,377.00 Total .................. $5,300.00 [ ] I would like to continue my life tenancy in the use of Chapman Lodge and agree to assume the financial responsibility for maintaining the property. r~~I am not interested in maintaining my life tenancy in the use of Chapman Lodge an ould agree to formally terminate my interest so that the trust can be distributed. Henry L. Chapman ~/~ ~ C~ - Zl z3 0 ~~ a~~ atherine Chapman Michalka Karen E. Chapman Please return your election form in the self addressed postage paid envelope. ~r-~ ~~'y a t ~~`~R ~ ~ 2007 ?'' s VERIFICATION I, David C. Gority, Vice President of Manufacturers and Traders Trust Company, acknowledge I have the authority to execute this Verification on behalf of Manufacturers and Traders Trust Company and certify the foregoing Petition is based upon information which has been gathered by my counsel in the preparation of the Petition. The language of this Petition is that of counsel and not my own. I have read the document and to the extent the Petition is based upon information which I have given to my counsel, it is true and correct to the best of my knowledge, information and belief. To the extent the content of the Petition is that of counsel, I have relied upon counsel in making this Verification. This statement and Verification are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities, which provides that if I knowingly make false averments, I maybe subject to criminal penalties. Manufacturers and Traders Trust Company By ~.c~~I avid C. Gority ice P esident Dated: AUG 1 4 2008 f CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent for Martson Deardorff Williams Otto Gilroy & Faller, hereby certify that a copy of the foregoing Petition to Terminate Trust was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Henry L. Chapman 355 Lonely Goose Circle Harleysville, Pennsylvania 19438 Karen E. Chapman 1858 San Lorenzo Avenue Berkley, California 94707 Katherine Chapman Michalka 250 Loche Lloyd Parkway Belton, Missouri 64042 John McCrea, III P.O. Box 341 Newville, PA 17241 MARTSON LAW OFFICES By: , Ma Price Ten E t High Street Carlisle, PA 17013 (717) 243-3341 Dated: Lf ~' Q9