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F:AFILES\Clients\M & T 7259\Trust\7259.8.pet2.wpd
Created- 9/20/04 tr.06PM
Revised: 5/12/09 8_ I Sam
7259.8
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No V. Otto III, Esquire ~ ; ~~ __:
LD. No. 27763 - ~ '' ;-.,,,
Seth T. Mosebey, Esquire -~;'",=; r-~
LD. No. 203046 - "
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MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER `
MARTSON LAW OFFICES ~ ~',
10 East High Street
Carlisle, PA 17013
(717) 243-3341
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. 2009 - 329
AMENDED 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."
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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 suffers from chronic serious mental illness and therefore,
has no need for the Chapman Lodge and the adjacent land.
14. 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."
15. Upon information and belief, Alfred Chapman has not visited the Chapman Lodge
for approximately twenty years.
16. Alfred McCrea Chapman no longer has any need for the Chapman Lodge and the
adjacent land.
17. Because Alfred McCrea Chapman no longer has any need for the property and
because the youngest of his children have reached the age oftwenty-one, his children are to become
joint life tenants in the Chapman Lodge and its adjacent land.
18. 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.
19. 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."
20. 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."
21. Neither Henry L. Chapman nor Karen E. Chapman responded to the correspondence
of February 16, 2007.
22. Upon information and belief, none of the joint life tenants have visited the Chapman
Lodge for several years.
23. 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.
24. 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.
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: ~.~~~C~'I J ,
No V. Otto III, Esquirb/
I.D. No. 27763
Seth T. Mosebey, Esquire
I.D. No. 203046
10 East High Street
Carlisle, PA 17013
(717) 243-3341
Date: ~ l f L, f D ~ Attorneys for Manufacturers and Traders
Trust Company
~~~ 3 ~
LAST WILL AND TESTAMENT
OF
L.{ ~ / r
SARAH MC CRF_4 CPAPP~fAN JONES
I, Sarah P4cCr=_~ Ct~a.pman Jones, a resident of Lo<-per Mifflin
Tow-nship, Cunberlard County, Pennsylvania, do make, publish and
declare this to ~e my Last Will and Test:nent and do hereby
revoke_alid cancel all Wii1s and Codicils heretofore made by-me.
FIRST: I direct that all my just debts-and funeral-expenses
be paid by my E;czcu*ors, hereinafter named, as soon after eIy
death as may; be .convenient. -
SECOND: I direct that all legacy, inheritance, succession,
r transfer and estate taxes 1ev~ed or lawful y assessed.-upon or
with respect to any property or ally interest ir, property, legal
-~ or equitable, which is included.as part of my gross estate f.or
~ the purpose of any such tax, shall be paid by r_+y Executors out.
of my estate in the same manner as an expense of administration
and shall not be oro-rated or apportioned among or charged
a~ainsC 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
c~ otherwise consti~~ute a part of my .residuary estate, and that
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my Executors shall-not be entitled to contribution or reim-.
a bursement for any portion of any-such tic from any such person,
~~? any statute or rile of law to the contrary notwithstanding.
THIRDc I glue, devise and bequeath rive Thousand ($5,000.00)
Dollars to the Farmers Trust Company and John 'ucCrea III, in
trust nevertheless, to pay the-net incoIe therefrom to Elizabeth
Norcross McCrea during, her lifA 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 Farmers 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~ 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 equal
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 III, Jane
.McCrea Morris, Nfargaret Catherine McCrea ,Blaze,-Jean Shannon
McCrea Hececman, Rebecca Sleichter McCrea-Smith, and John McCrea III.
Members of the fsmily 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 cannel-the note and loan of $800.00 sec+.ared
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: I give, devise and bequeath my inheritance from
my Mother's estate (deceased 1961) to the children of John McCrea,
share. and share alike.
NINTH: I give, devise and bequeath One Thousand ($1,000.OG)
Dollars to Miss Dora David, formerly President of Sarah Tucker
College, India.
page two of 12 pages
TENTH: !. give, devise and bequeath One Thousand ($1,000,00)
Dollars to Doctor Anna Zachariah, formerly President of I'4adras
Women's Christain Ccllege, India.
ELEVENTH: I give, devise and bequeath One Thousand {$1,000.00)
Dollars to Mark Heberlfg and Margaret Heberlig, or the survivor
of them.
TWELFTH: I give, devise-and bequeath One Thousand ($1,000.00)
Dollars to Fred Heckman.
T HIRTEENTH• I give, devise and bequeath 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 `!'housand ($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 cane of my silver services.-
- d 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 ?t2 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 Izold the property for the, use and benefit 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 ~aoungest 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 after renunciation
thereof, or if there are no children of Alfred McCrea Chapman
living at the termination of this trust, then said propert y
shall pass in remainder to St.Johns Episcopal Church, Carlisle,
Pennsylvania.
TWENTIETH: I give, devise and bequeath to the Farmers
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 therefrom) for scholarships, and
to be known as the A1•fred 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. '-.ukes
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 hfadison
Chapman Fund,
TWENTY-FIFTH: I give, devise and bequeath to the Trinity
Episcopal C'nurch, Wilmington, Delaware, One Thousand ($1,000.00)
Dollars to expend the income therefrom for flowers during the
month of January in memory of 3aseph 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 SaraYi Tucker
College of Palayamkottai, P~'fadra State, South India, One Thousand
($1,000,00) Dollars..
~' TWENTY-SEVEI3TH: I give, devise and bequeath to the National
Trust of Scotland One Thousand ($1,000.00) Dollars, to pay the
income therefrom fcr the upkeep and maintenance of the Kintail
Trust Property and to be known as the Sarah McIlvaine McCrea
Junes Fund,
TWENTY-EIGk"rH: 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 Sohn McCrea Fund.
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, PennsVlva nia, One Thousand
($1,000,00) Dollars.
THIRTY-SECOND: I give, devise and bequeath to the Holy
Trinity Episcopal Chur~.h, 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 to the Episcopal
Diocese of Central Pennsylvania Five Thousand ($5,000.00) Dollars
for the Endowment Fund, to be known as the Sarah McCrea Chapman
Jones F~.uZd.
THIRTY-FIFTH: I give, devise and bequeath to ~lillore
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, Shippersburg, 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 a.nd 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 t*aenty-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 the trust assets at either public or private
c, 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, Y.atherin~
Stacy Chapman, 4nd 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
~2.
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7
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deceased grandchild's share is to be paid to his issue, share
and 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 hay-e 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: A11 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•,~m as the "Charitable
Remainder Trust" and the riot income, principal thereof shall be
disposed of as hereinafter .provided:
(A) My Trustees shall pay to my sor. Al=red 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 L-o 5.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 the 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 Bro-,an i3niversity, 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 (1/10) for the same purposes and on
page eight of 12 pages
the same conditions sit forth in Paragraph
Twenty-Seventh.
(4) To the Episcopal Diocese of Central
Pennsylvania, three-tenths (3/10) for the
same purposes and on the same conditions set
forth in Paragraph Thirty-Fourth.
(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 case of any undervalua-
tion, or be repaid by him, in the case of an overvaluation,
an amount equal to the difference 'oetween 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 5o by
the sum of the net fair market value of the trust assets
c
(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 interesC 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 rct 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 Trustees 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 a:ty invest-
ments in such manner as to subject the trust to tax under
Section 4944 of the Internal Revenue Code of 1954, or corre-
spondirig'provisions 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 shah not become subject to the tax on undistributed
income imposed by Section 4942 of the Internal Revenue Code
of 1954, or corresponding provisions, 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 of the trust and the dencminator 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 Iast 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 amc urt multiplied by a frac':ion, the numberator of
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
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.
may want, with the provision that said items shall be taken at
- ~ -their appraised value and.'charged~against grandchild?s be'q.uest: -
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
on my books of account ar 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 TWEPITY-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 12 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 WTTNESS 4IHEREOF, I, the said Sarah McCrea Chapman Jones,
have hereunto set my hand and seal to this my Last ~iJill and
Testament, written on twelve sheets of paper, each of which is
signed by me on the bottom margin, this d~V~'day of September, 1976.
r ---~
n
arah Mc 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 2nd 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 and disposing mind and memory have herein*_o sub-
scribed our names as witnesses.
page twelve of 12 pages
_._ _._ .. , ,.__....~._.._.~.. ___.__ ..._.__..__.._.--.. -----. ... .___._ i
i
FIRST CODICIL TO LAST WIhT_. AND TESTAMENT
OF SARAH MCCREA CHAP. AN JONES
KNOW ALL hIEN BY THESE PRESEIQTS THAT I, SARAH MCCREA CHAPMAN JONES, of
Lower Mifflin Township, Cumberland Coun*_y, Pennsylvania, do make, publish
and declare this as a Codicil to my Last Will and Testament dated September
,~
1976.
FIRST: I revoke paragraph FOURTEENTH of my said will, as that bequest
has been paid during my lifetime. 1
SECOND: I revoke paragraph FIFTH of my said will. In lieu thereof and
as paragraph FIFTH Z 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, Sane McCrea Morris, Margaret Catherine McCrea Blaze,
Jean Shannon McCrea Heckman, Rebecca Sleichter McCrea Smith, and John McCrea
1 III. Member's of the family who are not mentioned in this instrument received
v
`~' gifts during my lifetime.
THIRD: The silver Y.ea 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
1 I
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 F02TY-FIF.ST of my said will. In lieu thereof ,I
and as paragraph FO'ZTY-FIRST, I substitute the following: FORTY-FIRST: All
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
Trust" and the net income, principal thereof shall be disposed of as herein-
after provided:
IACCREA 6 OAVIS
ATTORWCYS AT LAW
N [rn u4 t SNivv[eseue7
p4MN A.
(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
annually. On my son Alfred's death, my Trustees shall transfer the
ther, p.incipal of the trust (includiig all accumulated income) ir. the
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following proportions:
(1) To Dickinson College, one-tenth (l/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 *_he same conditions sa_t 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
forth in Paragraph Twenty-seventh.
(4) To the Episcopal Diocese of Central Pennsylvania,
three-tenths (3/10) for the .same purposes and on the same
conditions set forth in Paragraph Thirty-fourth.
(5) To the Dickinson School of Law, Carlisle,
Pennsylvania, two-tenths (2J10) 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
{ ~ 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 shculd 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.
MCCREA 6 QAVIS
ATTORNCT! AT LAW
M [Wl~t~c 6 uNIPPCN laURt
PINNA.
(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 contributiun is made, the additional property
shall be valued at the time of the contribution and the amount described
i_n (1) above computed by multiplying 5% by the sum of the net fair
market value of the trust assets (excluding the additional contribution
and any appreciation or earned income attributabJ.e thereto) and that pro-
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portion of the addi[ional contribution plus eazned inceme and appreciation.
which the number of days, including the day of transfer, remai-ning in the
taxable year bears to the total number of days in that taxable year.
(D) If at the time .any interest is to he irrevocably transferred
to a Charity under (A) above, that Charity is nut an organization
described in I;0 (C} I.R.C., then in lieu of transferring sn:h interest
to said Charity my Trustees shall transfer it to an organizaticn de-
scribed in 1?0 (C).
(E) This trust is iuteaded to qualify as a charitable remainder
uni*_rust as defined in Section 6b4(d) (Ij and to be administered so that
MCCREA S DAVIS
Anoeu Ert et 4w
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[he 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 µ941(d) of the Internal P,evenue Cade of 1954, or
corresponding provisions of any subsoquent Federal tax laws, and shall
not make a.ry taxable expenditures as defined in Section µ945(d) of the
Internal Reven~.ie Code of 1954, or corresponding previsions of any sub-
sequent Federal tax laws. After the death of my son Alfred a.nd until
the actual Germination of this trust, my Trustees shall not retain any
excess business holdings as defined in Section 49µ3(c) of the Internal
Revenue Code of 1954, or corresponding provisions of any subsegquent
Federal tax laws; shall not make any investmenrs in such manner as to
subject the trust to tax under Section 4944 of the Internal P.evenue Code
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 t.o the tax on undistributed income imposed by Section 4942 of
the Internal Revenue Code. of 1954, or corresponding provisions of any
subsequent Federal tax laws. The purpose of this paragraph (b) 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
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i
amount to be distributed under (1) obove shall be that aainunt mnl'aplied
by a fraction, the numerator of which is the number of days in the taxable
year of the trust and the denominator of which is 365 (366 if February
29th is a day included iu the numerator). Zf no valuation date occurs
before the end of the taxable year of the trust, the trust assets shall
be valued vn the lass: da}; of the ta::able year of the trust.
(Y.) In the case of the taxable year in which Alfred dies, the
I
amount to be distributed under (1) s5ore shall he that amount mul~.iplied
by a fraction, the numerator of which is the cumber 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
i
the numerator). If no valuation date occurs before the end of this `
period, tae trust assets shall be valued oa the last day of such period.
P'TFTH: In all other respects I reaffirm and republish my said will of
September _ ~~~V 1976.
IPZ WITNESS WHEREOF, I have executed this first Codicil to m-, Last. Will
and Testament r_onsisting of °our (4} typewritten pages by affixi,rg my 4
5
signat~.~re and seal to each page and to the bottom of this last page this ~
_~y~`-~day of October, 1977. ~
c~.~h yE ~. }~'~ ~;~ ~.:<._ ~~ / {_.s~ri..{.; c «s.~ "/C'`~SE4if','-~
1 SARAH McCREP_ CH.APNu1fi Jui7ES
1 The writing contained on these sheets were signed and sealed by thr ,
above-named Sarah 'icCrea Chapman. 3ones and by her published and declared as
and for a first Codicil to bar Last Will and Testament dated September
1976, in the presence of us who hereunto subscribed ou-r names as witnesses
at her request, in her presence and in the presence of each other the ~ t f
day of October, 1977.
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Amerca's ~i~st P,~~~rate
Nonprofit Psychiatric Hosprta~
Founded 1813
FRIENDS HOSPITAL
Roosevelt Bcu:e~~ard and madams Avenue
Philadelphia. Pennsylvania 19124
215-831-4606
July 26, 1988
Mr. Dennis C. Caverly
Executive Vice President
Farmers Trus t
One kfest Nigh Street
P.O. Box 220
Carlisle, PA 17013
RE: Alfred Chapman
Dear Mr. Caverly:
In response to your letter of April
talk to Mr. Alfred Chapman about th
place today, July 26, 1988, and Mr.
lodge and when it was built and tha
financially. When asked whether he
said very definitely that he has no
be very willing to sign his interes
1, 1988, I have finally been able to
e Chapman Lodge. This conversation took
Chapman was aware of his interest in the
t he still maintained that interest
wanted to continue an interest in it, he
desire to continue his interest and would
t over to his three children.
Therefore, you can have the required papers either brought to him yourself,
or sent to Greystone or rgyself, and we will insure that it be signed by A1,
as long as he doesn't change his mind.
Respectfully,
YRB:pk
.,a IiO,S`
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Yal Bo rin, DO
Seni Psychiatrist
Friends Hospital
February 16, 200?
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 grandmothers 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 or 1-800-822-2155
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 $ 73 8.00
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
Please return your election form in the self addressed postage paid envelope.
® Ma~T 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.
~~~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
. ~~~ 212 3 0
a~~
atherine Chapman Michalka
Karen E. Chapman
Please return your election form in the self addressed postage paid envelope.
~~JR f L 2007
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 ~1~~~ ~ .~t.
avid C. Gority ice P esident
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 Amended 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
Alfred McCrea Chapman
Friends Hospital
4641 Roosevelt Boulevard
Philadelphia, PA 19124-2399
James D. Flower, Jr., Esquire
26 West High Street
Carlisle, PA 17013
MARTSON LAW OFFICES
By:
a 1\ Price
Te E t High Street
Carlisle, PA 17013
(717) 243-3341
Dated: ~ ~~ ® 9