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HomeMy WebLinkAbout03-20-09 (2)Stanley A. Smith, Esquire Attorney I.D. 33782 Jill E. Newry, Esquire Attorney I.D. No. 20805 RHOAL)S & SINON LLP One South Market Square PO Box 1 146 Harrisburg, AA 17108-f 146 (717)233-731 Attornevs for Co-'Trustees IN RE: QTIP TRUST U/A GEORGE E. DIXON, JR No V. Otto, III, Esquire Attorney l.D. 27763 Katie J. Maxwell, Esquire Attorney 1.D. No. 206015 MARTSON LAW OF1=ICES 10 East High Street Carlisle, PA 17013 Attorneys for [2ichard E. Dixon and George F. Dixon, Ili 1N THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPI-TANS' COURT DIVISION NO. 2 I - 1994-0754 NOTICE TO PLEAD TO: Daniel L. Sullivan, Esquire Saidis Flower & Lindsay 2109 Market Street Camp Hill, PA 1701 1 YOU ARE I-IEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY (20) DAYS FROM SERVICI!: HEREOF' OR A JUDGMENT MAY BE ENTEREll A(YAINST YOU. Respectfi zl l y s u bmitted, ~ - ~~ -~` ' ~ RHO DS & SII~ O A A N LLP ~~ ~., O `° Stan A, ith ~`? ~ „~, One Sauth Market Square == i-~ rti.: P. O. Box 1146 - -= ° Harrisburg, PA 17108-1 146 ~ -, ; `a {717) 233-5731 -'~ „~ attorneys for Co-T~~uslees _U _-, ~ - ~ N 7.15950_ I MAIZTSON LAW OFFICES ~~ ~y: -- Ivo V. Ott II Katie J. Maxwell 10 1/ast High Street Carlisle, I'A 17013 {717) 243-3341 Attorneys for Richard E. Dixon and George F Dixon, III 2 //(~`,t i7' I I~~st4 ®~ #ti' i„7~ ~~1 ~ ®1 ~ ~1J~ Stanley A. Smith ph (717) ?3/-6628 fs (717) 231-6676 ssmith c,rhoads-sinon.com FILE T:O: 1 O~c~~~~~ March. 20, 2009 RE: TRUST UNDER AGREEMF,NT (QTIP} DATED MAY 16, 1985 AMENDED AUGUST 16, 1985 WITH GEORGE F. DIXON, ~R. No. 21-1994-0754 Ms. Glenda Farner-Strasbaugh Register of Wills CUMBERLAND COUNTY COURTHOUSE 1 Courthouse Square Carlisle, PA 17013 Dear Ms. Farner-Strasbaugh: Enclosed for filing please find an original Answer to Objections of Marshall L. Dixon to First and Final Account of Manufacturers and Traders Tntst Company in the above-referenced matter. Also enclosed is a check in the amount of $5.00 to cover the filing fee. Please time stamp the enclosed page and return it to the courier. If you have any questions or comments regarding the enclosed filing, please contact the undersigned. Very truly yours, BROADS & STNON I,LP r_~ ,- n v ,~~ -- _cs By: G=am' ,,~ 'o cJ' "' Staple ~mith - ~ rr; r`" Y -- c~ _ Enclosure _- ' - _ -,-~ ~`~'-~~1 ..- cc: No V. Otto, III, Esquire (w/encl} ~'~ r.~a ~ _~ Mr. Joseph A. Macri, M&T (w/encl) ~ r. Wayne F. Shade, Esquire (w/encl) tv Daniel L. Sullivan, Esquire (w/encl) Elizabeth P. Mullaugh, Esquire (w/encl) Thomas P. Gacki, Esquire (w/encl) 7~ba4'- i Rhoads 6r 5iuon LLP Attorneys at Law Twelfth Floor One South Market Square P.O. Box 1146 Harrisburg, PA 1710$-]l46 p1i (717) 233-5731 fx (717) 232-1459 «~ww.rhoads-sinon.com Stanley A. Smith, Esquire No V. Otto, I11, lquire Attorney LD. 33782 Attorney I.D. 27763 Jill E. Neary, Esquire Katie J. Maxwell, Esquire Attorney LD. No. 208055 Attorney LD. No. 206018 BROADS & SINON LLP MARTSON LAW OFFICES One South Market Square 10 East High Street PO Box i 146 Carlisle, PA 17013 Harrisburg, PA 17108-1146 Attorneys for Richard E. Dixon (717) 233-5731 and George F. Dixon, III Attorneys for Co-Trustees as Co-Trustees IN THE COURT OF COMMON PLEAS CUMBF,RLAND COUNTY, PENNSYLVANIA 1N RE: Q"I'IY TRUST U/A GEORGE F. DIXON, JR. = ORPHANS' COURT DIVISIQN NO.21-1994-0754 ``-a . --_.'~ _~~ _ _~-, , :; ~ ~ ,3 - _r~ ~ ANSWER AND NEW MATTER OF CO-TRUSTEES AND _ ' ~~ BENEFICIARIES OF THE QTIP TRUST TO OBJECTIONS OF J = ~'~ MARSHALL L. DIXON, INDIVIDUALLY, TO THE ~~-~ _~~ r*~ -, :~~' ACCOUNT AND STATEMENT OF PROPOSED DISTRIBUTION -y"-` ,.- _ N NOW COME, Manufacturers & Traders Trust Company, Richard E. Dixon, and George F. Dixon, III, as Ca-Trustees of the QTIP Trust under the George F. Dixon, Jr. Revocable Trust dated May 16, 19$5 {the "QTIP Trust"), by and through their attorneys, Rhoads & Sinon LLP, and Richard E. Dixon and George F. Dixon, III, as Co-Trustees of the QTIP Trust, by and through their attorneys, Martson Law Offices, and file the following Answer to Objections of Marshall I,. Dixon, individually, as beneficiary of the QTIP Trust: 1. Admitted. 2_ Admitted. 735769.1 3. Denied as stated. It is admitted that Marshall, Richard, George, and Charlotte Dixon are beneficiaries of the QTIP Tntst. It is denied as a conclusion of law that they are "the four equal beneficiaries" of the QTIP "I'nist. The QTIP Trust is a writing that speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied, 4. Admitted. 5. Article XVII of the QTIP Trust, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. 6. Admitted. 7. Article VI (B} of the QTIP Trust, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. 8. It is admitted that Lottie I. Dixon died on June 28, 2007. The QTIP 'Trust, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. 9. Admitted. By way of further answer, the Petition for Adjudication and Statement of Proposed Distribution, being writings, speak for themselves and require no paraphrasing or mischaracterizations by the Objector, which are denied. 10. The first statement regarding M&T's withdrawal as Co-Trustee is admitted. The Petition for Adjudication, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. By way of further answer, the assets which are proposed to be retained far further administration are primarily illiquid interests in real estate that would be administered more efficiently by the non-corporate Co-Trustees. 2 l 1, Denied in part and admitted in part. The Account, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. By way of further answer, the Account reveals that all of the Settlor's children, inc]uding the Objector, Marshall Dixon, borrowed from the QT1P T'nist, All such loans were approved in advance in writing by all parties in interest. 12. The Account, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. It is specifically denied that Richard has not met his payment obligations. By way of further answer, all of Richard's loans were paid in full and his debt the Trust fully satisfied as of June 27, 2006. The proposed distributions and satisfaction of George's notes would constitute payment in full of all interest, principal, and late fees owed by George. This paragraph also contains conclusions of law to which no response is required. In the event and to the extent that an answer is deemed to be required, the averments are denied. 13. The Account, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. 14. 'fo the extent Marshall objects to the Account and Statement of Proposed Distributions, Co-Trustees respond as follows: A. Denied as stated. The QTIP Tn~st, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. Byway of fi~rther answer, the Co- Trustees were required to make and have made reasonable efforts to maintain, liquidate, and distribute trust assets following death of Lottie 1. Dixon but have not been able to liquidate the real estate due to the existing economic conditions. The Co-Trustees are 3 entitled to a reasonable period of time in which to appropriately liquidate the real property held by the QTIP Trust and subsequently distribute the proceeds to the beneficiaries of the QTIP Trust. To the extent this paragraph contains conclusions of law, the same are denied. B. This paragraph contains a statement to which no responsive pleading is required. In the event and to the extent a pleading is deemed to be required, the same is denied. (i) This statement contains a factual and legal conclusion to which no response is required. In the event and to the extent that an answer is deemed to be required, the averment is denied. By way of further answer, the QTIP '1 rust does not state that a corporate Co-Tnistee is required in all events. (ii) This statement is a legal conclusion to which no response is required. In the event and to the extent that an answer is deemed to be required, the avernent is denied. (iii} This statement is a legal conclusion to which no response is required. In the event and to the extent that an answer is deemed to be required, the averment is denied. By way of further answer, the interests of George and Richard are fully aligned with those of the other beneficiaries of the QTIP Tntst as to the liquidation and distribution of the remaining assets. 4 (iv) Admitted in part and denied in part. It is admitted that both Richard and George Dixon reside out of state. It is specifically denied that this fact renders them unable to serve as Co-Tn~stees for the administration of properties located in Cumberland County, Pennsylvania. To the extent this paragraph contains conclusions of law, the same are denied. {v) Denied. By way of fi-rther answer, the QTIP Trust is being made whole through the proposed distribution. This paragraph contains conclusions of law to which no response is required. In the event and to the extent that an answer is deemed to be required, the averments are denied. (vi) This statement is a legal conclusion to which no response is required. In the event and to the extent that an answer is deemed to be required, the same is denied. C. The Account, being a writing, speaks for itself, and requires no paraphrasing or mischaracterizations by the Objector, which are denied. It is denied that the Account does not identify the loan documents and all other information pertaining to the loans in order to enable Marshall to determine the payment histories and calculations. It is admitted that George Dixon ceased repayment of his loan in 2002. By way of further answer, all arrearages were paid by George as part of the QTIP Trust distribution on October 11, 2007, and the remaining balance will be paid in full as part of 5 the proposed distribution of assets. The statement regarding surcharge of the Co-Trustees is a conclusion of law to which no response is required. In the event and to the extent a response is deemed to be required, the same is denied. D. Denied as stated. The Account is "Final" only with respect to M&T Trust Company in its role as a Co-Trustee. The proposed remaining Co-Trustees, Richard and George, acknowledge their continuing duty to account to QT1P Tnist beneficiaries in the future. WHEREFORE, Co-Trustees of the QTIP Trust, Manufacturers & Traders Trust Company, Richard E. Dixon, and George F. Dixon III respectfully request the following relief: (1) that Marshall L. Dixon's Objections are denied in their entirety; and (2) that the Statement of Proposed Distribution for the assets of the QTIP Trust is confirmed and that the Account submitted is deemed the "First and Final Accotult." NEW MATTER 15. Paragraphs 1 through 14 above are incorporated by reference as if set forth in full. The Co-Trustees therefore re-allege and incorporate by reference its responses to paragraphs 1 through 14 of Marshall Dixon's Objections. To the extent a responsive pleading is required, the same is denied. 16. Any objections to the loans made to Richard and George Dixon from the QTIP Tnist are barred by the Consents executed by Marshall Dixon approving such loans. All of the Consents signed by Marshall Dixon contain the following language: The undersigned intend to be legally bound by this Consent. They acknowledge that their binding consent is given after full knowledge and 6 disclosure of all relevant facts and after discussion and negotiation of the same. The undersigned, each for themselves, their heirs and assigns, agree to indemnify and save the Co-Trustees of the George F. Dixon Jr. 1'nist Under Agreement and QTIP Trust harmless from and against any and all claims, losses, liabilities or damages which the Co-Trustees incur in connection with any actions previously taken or hereafter taken which are consistent with the Consent herein provided and waive any claims against the Co-Trustees for actions previously taken or hereafter taken which are consistent with the Consent herein provided. WHEREFORE, Co-Trustees of the QTIP Tnist, Manufacturers & Traders Trust Company, Richard E. Dixon, and George F. Dixon TIi respectfully request the following relief: (1) that Marshall L. Dixon's Objections are denied in their entirety; and (2) that the Statement of Proposed Distribution for the assets of the QTIP Trust is confirmed and that the Account is deemed the "First and Final Account." Respectfully submitted, By: BROADS & SINON Sidi-Ii e"y A.-Smith Jill E. Neary One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 (717)233-5731 Attorneys for Co-Tnsstees MARTSON LAW OFFICES By: No V. Otto 1rI _-- Katie J. Maxwell l0 East High Street Carlisle, PA 17013 (717)243-3341 Attorneys for Richard E, Dixon and George F. Dixon, III as Co-Trustees 7 VERIFICATION Ruth Ann McMillen, deposes and says, subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities, that she is an Officer of Manufacturers and Traders 'Ernst Company that she makes this verification by its authority and that the facts set forth in the foregoing Answer and New Matter are true and correct to the best of her knowledge, information and belief. `7 , ~ C-. Date .-/ ^~ Rut~i Ann McMillen S TRUST OFFICE +~ ~Y~cA~rzoN Gearge Dixoxr, deposes and says, subject to the penalties o~ l8 Pa. C.S. §4904 relating to unsworn falsification to authoritiesy that he is a Co-Trustcc of. the t7'xlT' Trust u~dpr the George ~. Dixon, Jr. Re~voeahle Trust, that he ~mak~ triis verification by its authority a»c1 that the facts set Earth in the tAziswcx grad N'e~ar Matter are true and correct to the ~egt of h.is 'knowXedge, ixiformarion and bplYtlt: '~ Z ca 0 `~ Date Creorgo l~' on CERTIFICATE OF SERVICE I hereby certify that on this 20th day of March, 2009, a tnie and correct copy of the foregoing Answer and New Matter to Marshall L. Dixon's Objections to Acco~mt and Statement of Distribution was served by means of United States mail, first class, postage prepaid, upon the following: Daniel L. Sullivan, Esquire SATDIS, FLOweR & LINDSAY 2109 Market Street Camp Hill, PA 17011 Elizabeth P. 1VIulIaugh, Esquire MCNEES, WALLACE c~ NiTR1CK LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1160 K~ Stanley A. Smith, Esquire Attorney J.D. 33782 Jill E. Neary, Esquire Attorney LD. No. 208055 RHOADS & STNON LLP One South Market Square PO Box 1 146 Harrisburg, PA 17108-1 146 (717)233-5731 Attorneys for Co-Trustees IN RE: QTIP TRUST U/A GEORGE F. DIXON, ~R. No V. Otto, II1, Esquire Attorney I.D. 27763 Katie J. Maxwell, Esquire Attorney I.D. No. 206018 MARTSON LAW OFFLCES 10 East High Street Carlisle, PA 17013 Attorneys for Richard f. Dixon and George F. Dixon, III IN TIIE COURT OP COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DTViSION NO. 21-1994-0754 NOTICE TO PLEAD To: Elizabeth P. Mullaugh, Esquire McNees Wallace & Nurick LI_,C ] 00 Pine Street PO Box 1166 Harrisburg, PA 171 Q$-1166 YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY {20) DAYS FROM SERVICE HEREOF OR A JUUGMEN"t MAY BE ENTERED AGAINST YOU. Respectfitlly submitted, RI-!(}AI7x5--~z~S ON .,I,P ;' ~`~ /~ By: __ Stanley A. mtth One South Market Square P. O. Box 1146 n Harrisburg, PA 17108-1146 ~r0 (717) 233-5731 '~ Altor•neys for Co-Trustees c7 ?:> ~~ ~'~~ ,- ~ =` - :: _: -~ :-; _, MARTSON LAW OF'I:IC~sS -~~; ~~ rv ,; n„ tV j. 0 N .~- 735450 1 ~~~y \\ Ry: .~ Iva V. Otto, III Katie J. Maxwell 10 bast High Street Carlisle, PA I7p13 (7I7) 243-3341 Attorneys for Richard F. Dixon and George F. Dixon, III 2