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HomeMy WebLinkAbout06-12-06 (2) ~ 'Y ~'UN i il LOGo .j. <( \ In re: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Trust Under Will of Warren F. Coolidge for benefit of Julia E. Stolz, et a. : ORPHANS' COURT DIVISION : 21-01-0684 ANSWER OF JULIA E. COOLIDGE STOLZ TO PETITION FOR REFORMATION OF TRUST AND APPOINTMENT OF SUCESSOR TRUSTEE AND NOW, this 12th day of June, 2006, comes the Respondent Julia E. Coolidge Stolz, by and through her counsel, R. Mark Thomas, Esquire, and files this Answer in response to the rule issued by the Court in this matter, and in support thereof respectfully represents: 1. Admitted. 2. Admitted that Petitioner's Exhibit "A" is, in fact, the will of Warren F. Coolidge, deceased, which was probated in the Office of the Register of Wills of Cumberland County, Pennsylvania. 3. Admitted in part. Denied in part. It is admitted that Warren F. Coolidge did not appoint Julia E. Stolz as a trustee. However, it is denied that Eleanor U. Coolidge did not at any time in her life name Julia E. Stolz as a successor trustee. By way of further answer, Eleanor U. Coolidge did, by previous unprobated will, atterhpt to nominate Julia E. Stolz. ~) 4. Admitted. , ) 0' . 5. Admitted. f.) C) C) 6. Admitted. 7. Admitted in part. Denied in part. It is admitted that Respondent did, in fact, file petitions challenging the validity of the will based upon the undue influence of Petitioners. It is further admitted that Julia E. Stolz filed a petition seeking to obtain a partial autopsy of the body of Eleanor U. Coolidge. However, it is denied that the allegation of undue influence has been dismissed by the Court, rather the matter is on appeal and a decision is yet to be made by the Superior Court. It is also denied that the manner of service of summons on Thomas E. Coolidge was the cause of a criminal complaint being filed against Petitioner herein. Following a full hearing, Respondent was found "not guilty" of any wrongdoing. 8. Denied. As stated previously, one petition is on appeal and the other petition was dismissed only because the court did not allow expert testimony to be produced by telephone and, therefore, there was insufficient evidence to prove the need for the partial autopsy. 9. Admitted. 10. No answer required. 11. Admitted. 12. Admitted. 13. Admitted. 14. Admitted. However, by further answer, Respondent alleges that the letter from Manufacturers and Traders Trust Company, which is attached as Exhibit "C", sets forth a fee schedule which is much higher than the fee schedule required by Warren F. Coolidge, decedent. And further, the appointment of Manufacturers and Traders Trust Company as successor trustee is contingent upon their acceptance of the fee set forth by Warren F. Coolidge, deceased, in his testamentary trust. 15. Denied for the reasons set forth above. 16. Denied for the reasons set forth above. 17. Admitted. 18. Denied. Beneficiary should have power to appoint successor trustees subject to approval of the Court. 19. Denied. Such a reformation was never contemplated by the settlor, nor is such a reformation supportable in law or in fact. By way of further answer, Petitioners should be held to the same standards of fulfillment of their fiduciary duty as any other trustee would be subject in the handling of the trust affairs. And further, such a clause would serve to chill Respondent's ability to exercise her rights as a beneficiary under the laws of the Commonwealth of Pennsylvania. 20. Denied. Respondent herein has filed exceptions to the first and partial account and those exceptions must be dealt with before the Court can consider confirmation of the first and partial account. 21. Respondent has no objection to the appointment of a guardian ad litem for her son, Joseph Stolz, the minor beneficiary, but objects to the appointment of a guardian ad litem without first having had an opportunity to be heard on this matter. WHEREFORE, Respondent respectfully requests that the Court not grant the reformation of the trust as set forth by Petitioners and the Court not appoint Manufacturers and Traders Trust Company as the successor trustee for the reasons set forth above. However, Respondent does not have an objection to the appointment of a successor trustee so long as the successor trustee satisfies the conditions set forth in the trust of Warren F. Coolidge, deceased. NEW MATTER 22. The answers to paragraphs 1 through 21 are incorporated herein as if fully set forth. 23. Respondent has filed exceptions to the first and partial account filed by the Trustees of the Warren F. Coolidge Trust. A copy of those exceptions is attached hereto, incorporated herein and marked Exhibit "A". 24. Any Court approved reformation of the trust and appointment of successor trustee should be withheld until such time as the exceptions filed by Respondent have been decided by the Court. 25. As of the date of the filing ofthis Answer, Respondent does not have sufficient knowledge or information concerning the trust to determine if the balance held in trust as set forth in the first and partial account is accurate since Petitioners have failed to provide any information to the Respondent, despite requests from the Respondent, concerning the trust and/or its income since the death of Eleanor U. Coolidge, Respondent's mother. 26. Under paragraph 6 of the Last Will and Testament of Warren F. Coolidge, deceased, it states" . . . should Eleanor U. Coolidge and Philip W. Coolidge and Thomas E. Coolidge and the final survivor of them all cease serving as a trustee or trustees, then in such event I nominate, constitute and appoint Financial Trust Services Company and its successors, 1 West High Street, Carlisle, Pennsylvania, as alternate or successor trustee, provided that it shall accept such appointment and agree that compensation for its services shall not exceed one-half of one percent of the value of the corpus as its annual compensation. and that it shall receive no other compensation for its services. otherwise the successor trustee in place of Financial Trust Services Company shall be as nominated by the trustee or trustees desiring to cease serving as such or by the beneficiaries of the trust with the approval of the Orphans' Court Division of the Cumberland County Court of Common Pleas." 27. The proposed appointment of Manufacturers and Traders Trust Company as the successor trustee is specifically precluded by the terms of the will and trust of Warren F. Coolidge, deceased. 28. Due to the complete breakdown of any meaningful relationship between the Respondent and the Petitioners, it is unlikely that Petitioners will agree with Respondent herein on an appointment of a successor trustee. 29. Under the terms of the will as cited above, Respondent herein, as beneficiary of the trust, has the power to nominate a successor trustee subject to the approval of the Orphans' Court Division of the Cumberland County Court of Common Pleas. 30. Since the service ofthis petition on Respondent, which did not occur until May 27, 2006, Respondent has had insufficient time to investigate a possible successor trustee, but will be submitting the identity of a successor trustee to the Court for its consideration prior to a hearing in this matter. WHEREFORE, Respondent prays that this Honorable Court will deny the petition with respect to reformation of the trust and with respect to the appointment of Manufacturers and Traders Trust Company as a successor trustee, and further, prays that this Honorable Court would approve a successor trustee as nominated by Respondent, the beneficiary of the trust of Warren F. Coolidge, deceased. Respectfully submitted, ~~ R. Mark Thomas, Esquire AttomeyNo.41301 101 South Market Street Mechanicsburg, P A 17055 (717) 796-2100 In re: : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA Trust Under Will of Warren F. Coolidge for benefit of Julia E. Stolz, et a. : ORPHANS' COURT DIVISION : 21-01-0684 OBJECTIONS OF JULIA E. COOLIDGE STOLZ TO THE FIRST AND PARTIAL ACCOUNT OF THE WARREN F. COOLIDGE TRUST AS FILED BY THOMAS E. COOLIDGE AND PHILIP COOLIDGE. TRUSTEES To the Honorable Auditing Judge: AND NOW, this _ day of June, 2006, Julia E. Stolz, beneficiary under the testamentary trust of Warren F. Coolidge, deceased, objects to the First and Partial Account filed by Thomas E. Coolidge and Philip Coolidge, Trustees, under the testamentary trust of Warren F. Coolidge, deceased, filed with the Clerk of the Orphans' Court Division of Cumberland County, Pennsylvania, on May 19, 2006, for the following reasons: 1. The account as filed lacks sufficient information from which the objector can determine the accuracy of the total principal in the trust as of March 24,2004, the date Thomas E. Coolidge and Philip Coolidge took over as trustees of this trust. 2. Without knowledge ofthe total value of the trust as of March 24,2004, objectant can neither confirm nor deny the accuracy of the First and Partial Account filed by the Trustees. 3. Objection is made to Trustee fees totaling $40,000.00 over a two (2) year period which equals fees amounting to 17.5% of the total principal received. 1'/1 i{ ~ 'i l-h 131 or 11 4. The First and Partial Account, as filed, references a total principal received of $228,179.27 as of February 12,2002, but the separate trust of Julia E. Coolidge Stolz did not come into existence until March 24,2004, at the earliest. 5. The First and Partial Account, as filed, lacks sufficient information upon which Julia E. Coolidge Stolz can rely to make an informed judgment as to the accuracy of the account. 6. Julia E. Coolidge Stolz reserves the right to file additional objections upon receipt of a complete and accurate accounting of all trust assets. 7. The objectant requests that this Court: (a) direct the trustees, Thomas E. Coolidge and Phillip Coolidge, prepare an accounting setting forth the total value of the Warren F. Coolidge Trust as of March 24,2004, the date on which the trust was to be divided into three (3) equal shares; (b) direct the trustees to provide an itemized list of all the assets contained in the trust as of March 24, 2004, with an accounting for the income and losses generated by the assets since March 24, 2004; (c) direct the trustees to justify their fees totaling 17.5% of the trust corpus in light of the settlor's specific instruction that fees not exceed one-half of one (1 %) percent of the trust corpus; (d) appoint an auditor to conduct evidentiary hearings regarding the valuation of the trust as of March 24,2004, and the handling of trust assets by the trustees since March 24, 2004; (e) direct that trustee fees for 2004 and 2005 be reduced to one-half of one (1 %) percent of the value of the trust corpus for those years; (t) direct that trustees be individually responsible for additional legal fees and accounting fees, including legal and accounting fees of the objectant, which are necessitated by the inadequacy of the First and Partial Account filed by the trustees; and (g) appoint a successor trustee nominated by Julia E. Coolidge Stolz, the named beneficiary of the trust. Respectfully submitted, R. Mark Thomas, Esquire Attorney No. 41301 101 South Market Street Mechanicsburg, P A 17055 (717) 796-2100 . . CERTIFICATE OF SERVICE I, R. Mark Thomas, Esquire, hereby certify that I am this day serving a copy of the foregoing document upon the person and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by hand-delivering a copy of same to: Robert G. Frey, Esquire 5 South Hanover Street Carlisle, P A 17013 IJ~ ~~ Date: June 12, 2006 R. Mark Thomas, Esq. 101 South Market Street Mechanicsburg, P A 17055 (717) 796-2100