Loading...
HomeMy WebLinkAbout07-21-09Neil Warner Yahn, Esquire Attorney LD. No. 82278 James Smith Dietterick & Connelly, LLP P.O. Box 650 ~.., Hershey, PA 17033 n Attorneys for Petitioner ~ ~ c~ ' Daniel P. Johnson ~ ~~ f ' -,- ~ .. ~_/ ~f i r-' t~~ Attorney LD. No. 50930 ~~= ~y ~? - Williams Coulson Johnson Lloyd Parker & Tedesco, LLC ~__! ~-;; _~ r One Uateway Center, 16`'' Floor ~ ~ ''-J ~` ~s , Pittsburgh, PA 15222 ~-~~ ~a ~' (412) 454-0224 ~ t..~ Attorneys for Respondent ~ IN RE: IN THE COURT OF COMMON PLEAS ESTATE OF ELEANOR HASELHUHN, :CUMBERLAND COUNTY, PENNSYLVANIA A/K/A HELEN ELEANOR HASELHUHN DEVON HASELHUHN, Petitioner v. MARY ANN MOHR Respondent ORPHANS' COURT DIVISION NO. 1126 Year 2008 JOINT MOTION FOR APPROVAL OF SETTLEMENT Petitioner, DEVON HASELHUHN, by and through her attorneys, JAMES, SMITH, DIETTERICK AND CONNELLY, LLP (the "Petitioner"), and the Respondent, MARY ANN MOHR, by and through her attorneys, WILLIAMS COULSON JOHNSON LLOYD PARKER & TEDESCO, LLC, (herein the "Respondent" if not referenced by name) file this Joint Motion for Approval of Settlement. Procedural and Factual Background Eleanor Haselhuhn (herein "Decedent") died on October 13, 2008, a resident of Cumberland County, Pennsylvania. 2. The Decedent's husband, Donald H. Haselhuhn, predeceased her. 3. The Decedent had two children, namely a son, Michael Haselhuhn, and a daughter, your Respondent, Mary Ann Haselhuhn Mohr. 4. The Decedent's son, Michael Haselhuhn predeceased the Decedent in March of 2005 survived by a daughter, your Petitioner herewith. Decedent's Last Will and Testament dated July 11, 1991 and Codicil thereto dated August 19, 2006 were admitted to probate by the Register of Wills of Cumberland County, Pennsylvania. 6. On November 26, 2008 Gary E. French, Wachovia Bank, N.A. and Alan Kotz were appointed co-administrators, d.b.n.c.t.a. of the Estate by the Register of Wills of Cumberland County, Pennsylvania. ~ 7. Pursuant to the terms of Decedent's Last Will and Testament, the residue of the Decedent's Estate passes in equal shares into testamentary trusts for Mary Ann and Devon, which trusts, by their terms, now provide for outright distributions to the Petitioner and the Respondent. 8. During her lifetime, the Decedent placed assets into joint ownership with right of survivorship between Decedent and Respondent and named the Respondent as beneficiary of certain life insurance, retirement and annuity contracts and as successor owner of certain life insurance policies on Respondent's life. 9. The result of the creation of the transfers into joint property with right of survivorship and the beneficiary and successor owner designations is that Respondent will receive assets of approximately $3,272,677 as of the date of the Decedent's death. 1. Alan Kotz was discharged as a co-administrator by Court Order dated March 15, 2009, leaving Gary E. French and Wachovia Bank, N.A. as the two co-administrators of the Estate. -2- 10. Article Fifteen of Decedent's Last Will and Testament provides that all estate, inheritance, and other death taxes on the entire taxable estate, including the transfers of the joint property and by beneficiary and successor owner designation, which amounts to approximately $3,000,000, will be paid from the residue of the Estate, such that Petitioner and Respondent will have their share of probate assets reduced equally. ll . Petitioner filed a Petition Citing Undue Influence on Joint Property Transfers and Amendments to Annuity Beneficiary Forms on May 15, 2009 before this Honorable Court (the "Petition") 12. Respondent filed Preliminary Objections to the Petition on the basis that the Estate, and not Petitioner was the proper party to initiate the Petition. 13. The Estate did not initiate nor join in the Petition. 14. Petitioner and Respondent wish to avoid the expense and uncertainty associated with litigation by entering into the Settlement Agreement of which a copy is attached hereto as Exhibit "A". 15. The Estate does not object and is a party to the Settlement Agreement. -3- WHEREFORE, THE PETITIONER AND RESPONDENT REQUEST THE FOLLOWING JOINT RELIEF: The Settlement Agreement is approved in the form as so presented. Respectfully submitted, JAM;-SMITH, DIETTERICK & COP~NELLpY, LLP Date: ~ ~z ~ , 2009 By: U/~ N it Warne • Yahn A torney I. No. 82278 13~Sipe Av nue Hum wn, PA 17036 (717) 533-3280 Attorney for Petitioner WILLIAMS COULSON JOHNSON LLOYD PARKER & TELESCO, LLC t //. ~"~ \ _~ z ~ 2009 B ~,, J Date: ~ y D iel P. J hnson ttorney I. . No. 50930 '"' Williams oulson Johnson Lloyd Parker & Tedesco, LLC One Gateway Center, 16t" Floor Pittsburgh, PA 15222 (412) 454-0224 Attorney for Respondent -4- CERTIFICATE OF SERVICE I, NEIL WARNER YARN, Esquire, do hereby certify that I served a true and correct copy of the foregoing Joint Motion for Approval of Settlement upon the following below-named individuals by depositing it in the U.S. Mail at Hershey, Pennsylvania this Z ~~"' day of July 2009. SERVED UPON: Stephanie Kleinfelter, Esq. Keefer Wood Allen & Rahal, LLP 635 North 12t" Street, Suite 400 Lemoyne, PA 17043 Attorneys for Respondent ZNER YARN, ESQUIRE D.#82278 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION IN RE: ESTATE OF ELEANOR No. 1126 of 2008 HASELHUHN, a/k/a HELEN ELEANOR HASELHUHN, deceased DEVON HASELHUHN, Petitioner v. MARY ANN MOHR, Respondent SETTLEMENT AGREEMENT This SETTLEMENT AGREEMENT ("Agreement") is made and entered into this day of , 2009, by and among Devon Haselhuhn, individually and as a beneficiary of the Estate of Eleanor Haselhuhn, deceased ("Devon"); Mary Ann Mohr, individually and as a beneficiary of the Estate of Eleanor Haselhuhn, deceased ("Mary Ann"); and Gary E. French and Wachovia Bank, N.A. ("Co-Administrators") of the Estate of Eleanor Haselhuhn, deceased (the "Estate"). WITNESSETH: WHEREAS, Eleanor Haselhuhn ("Decedent") died on October 13, 2008, a resident of Cumberland County, Pennsylvania; WHEREAS, the Decedent's husband, Donald H. Haselhuhn, predeceased her; WHEREAS, the Decedent had two children, namely a son, Michael Haselhuhn, and a daughter, Mary Ann (a party to this Agreement); WHEREAS, the Decedent's son, Michael Haselhuhn predeceased the Decedent in March of 2005 survived by a daughter, Devon (a party to this Agreement); {WC3740833 , WHEREAS, Decedent's Last Will and Testament dated July 11, 1991 and Codicil thereto dated August 19, 2006 were admitted to probate by the Register of Wills of Cumberland County, Pennsylvania; WHEREAS, on November 26, 2008 Gary E. French, Wachovia Bank, N.A. and Alan Kotz were appointed co-administrators, d.b.n.c.t.a. of the Estate by the Register of Wills of Cumberland County, Pennsylvania; WHEREAS, by Court Order dated March 15, 2009, Alan Kotz was discharged as a co-administrator leaving Gary E. French and Wachovia Bank, N.A., as the two co- administrators of the Estate (the Co-Administrators herein); WHEREAS, pursuant to the terms of Decedent's Last Will and Testament the residue of Decedent's Estate passes in equal shares into testamentary trusts for Mary Ann and Devon, which trusts, by their terms, now provide for outright distributions to Mary Ann and Devon; WHEREAS, during her lifetime, Decedent placed assets into joint ownership with right of survivorship between Decedent and Mary Ann; WHEREAS, during her lifetime, Decedent named Mary Ann as beneficiary of certain life insurance, retirement and annuity contracts and as successor owner of certain life insurance policies on Mary Ann's life; WHEREAS, the result of the creation of the transfers into joint property with right of survivorship and the beneficiary and successor owner designations is that Mary Ann will receive significantly more assets than Devon such that the value of the assets which are to pass by Mary Ann by right of survivorship or by beneficiary or successor owner designation possess a cumulative value of approximately $3,272,677 as of the date of the Decedent's death; WHEREAS, Article Fifteenth of Decedent's Last Will and Testament provides that all estate, inheritance, and other death taxes on the entire taxable estate, including the transfers of the joint property and by beneficiary and successor owner designation, which amount to approximately $3,000,000, will be paid from the residue of the Estate, such that Mary Ann and Devon's share will contribute equally to such taxes; WHEREAS, Devon filed a Petition Citing Undue Influence on Joint Property Transfers and Amendments to Annuity Beneficiary Forms (the "Action"); WHEREAS, Mary Ann filed Preliminary Objections to the Action on the basis that the Estate, and not Devon, was the proper party to initiate the Action; WHEREAS, the Estate did not initiate nor join in the Action; WHEREAS, Mary Ann and Devon wish to avoid the expense and uncertainty associated with litigation by entering into the settlement as set forth herein; and {WC3740833) 2 WHEREAS, the Co-Administrators and the Estate wish to acknowledge and join in the settlement reached. NOW THEREFORE, in consideration of the mutual promises herein contained and intending to be legally bound hereby, the parties hereby agree as follows: 1. Recitals. The foregoing recitals are hereby incorporated by this reference and made a part of this Agreement. 2. Payment to Devon -Release of Mares. In exchange for a payment from Mary Ann to Devon in the amount of Two Hundred and Eighty Thousand Dollars ($280,000) to be paid in cash upon Court approval of this Settlement, Devon on behalf of herself, her agents, heirs, personal representatives, successors and assigns hereby: (a) agrees to withdraw the Action; (b) renounces any right to make any further claim against Mary Ann with respect to any of the non-probate assets that inured to her or that she received from the Decedent at her death, including, but not necessarily limited to, the assets identified on Schedule "A" attached hereto and hereby made a part hereof (the "Non-Probate Assets"). (c) unconditionally releases, remises, and waives all rights of recovery against Mary Ann and her agents, heirs, personal representatives, successors and assigns from any and all claims, demands, complaints, lawsuits, damages and causes of action (whether in her individual capacity or in any representative or fiduciary capacity) arising out of any matter whatsoever connected with the Non-Probate Assets except as necessary to enforce this Agreement. 3. Release of Devon. Mary Ann on behalf of herself, her agents, heirs, personal representatives, successors and assigns hereby unconditionally releases, remises, and waives all rights of recovery against Devon and her agents, heirs, personal representatives, successors and assigns from any and all claims, demands, complaints, lawsuits, damages and causes of action (whether in her individual capacity or in any representative or fiduciary capacity) arising out of any matter whatsoever connected with the Non-Probate Assets except as necessary to enforce this Agreement. 4. Waiver of Claims -Release of Co-Administrators and the Estate. The Co- Administrators acknowledge and approve the settlement reached by Devon and Mary Ann and further acknowledge that Devon and Mary Ann have requested that the Co-Administrator s waive any and all claims relative to the passing of the Non-Probate Assets to Mary Ann. Accordingly, the Co-Administrators hereby agree, on behalf of the Estate, to waive all rights of recovery against Mary Ann and her agents, heirs, personal representatives, successors and assigns from any and all claims and causes of action arising out of any matter whatsoever connected with the Non-Probate Assets. (WC3740833 } (a) Mary Ann on behalf of herself, her agents, heirs, personal representatives, successors and assigns hereby releases the Estate, the Co-Administrators, and their successors and assigns from any and all claims and causes of action arising out of the Co- Administrators and Estate's waiver of all rights of recovery in connection with the Non- Probate Assets. (b) Devon on behalf of herself, her agents, heirs, personal representatives, successors and assigns hereby agrees that the Non-Probate Assets, other than the settlement payment provided for above, will pass to Mary Ann. Accordingly, Devon releases the Estate, the Co-Administrators, and their successors and assigns from any and all claims and causes of action arising out of the Co-Administrators and Estate's waiver of all rights of recovery in connection with the Non-Probate Assets. 5. Tax Payment Clause. The parties are familiar with Article Fifteenth of the Decedent's Last Will and Testament which provides that all estate, inheritance, succession and other death taxes will be paid by the Co-Administrators from the residue of the Estate. The parties hereby agree that the Non-Probate Assets shall not be the source of payment of any estate, inheritance, succession or other death tax owed as a result of the Decedent's death. 6. No Disclosure. Except as otherwise required by law or to enforce this Agreement, Mary Ann and Devon agree that each will take all action necessary to maintain the confidentiality of this Agreement. Mary Ann and Devon further agree not to make disparaging remarks or negative comments about the other in regard to the settlement reached herein. 7. Miscellaneous Provisions. The other terms of this Settlement and Release Agreement are as follows: A. Entire Agreement. This Agreement is the entire agreement among the parties with respect to the subject matter hereof and shall be fully enforceable as such. B. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and shall be duly binding and shall have the same force and effect as though all signers had signed a single page. C. Amendment of Agreement. Except as otherwise expressly provided for in this Agreement, this Agreement may be modified or amended only by a writing signed by all of the parties hereto. D. Retention of Jurisdiction. The parties agree that the Orphans' Court Division of the Court of Common Pleas of Cumberland County shall have jurisdiction over this Agreement. Accordingly, the parties may petition said Court to seek enforcement of any provisions of this Agreement. E. Governing Law. This Agreement and the rights of the parties hereunder shall be governed by and interpreted in accordance with the laws of the {WC3740833 } Commonwealth of Pennsylvania. F. Bindin Effect. Except as herein otherwise specifically provided, this Agreement shall be binding upon and inure to the benefit of the parties and their legal representatives, heirs, administrators, executors, successors and assigns. IN WITNESS WHEREOF the undersigned parties have executed this Agreement as of the day and year first above written, with the intent to be legally bound hereby. WITNESS: WITNESS: WITNESS: ATTEST: Devon Haselhuhn, individually and as a beneficiary of the Estate Mary Ann Mohr, individually and as a beneficiary of the Estate ESTATE OF ELEANOR HASELHUHN By: Gary E. French, Co-Administrator WACHOVIA BANK, N.A. By: of Wachovia Bank, N.A., Co-Administrator {WC3740833 } SCHEDULE "A" NON-PROBATE ASS Joint Assets Citizen's Bank $484,638.11 Manufacturers & Trust Bank 367,562.29 Sovereign Bank -checking 40,347.29 Sovereign Bank -Money Market 690,677.83 1368 SHs Sovereign Bancorp. Inc. 5,348.88 Smith Barney- Acct # xxxxxxxx17600 711,680.96 Fidelity Preferred Retirement Services 105,155.72 Beneficiary Designation Assets Union Central Deferred Annuity 114,590.62 AMEX Life Insurance 114,915.06 Prudential Annuity 231,660.22 Met Life -IRA - 50% Mary Ann 32,489.04 Other Assets Investors Life Insurance Company of 176,854.66 North America - Policy of insurance on life of Mary Ann -per Owner's designation, Mary Ann became owner upon Decedent's death The Guardian Life Insurance Company of 196,756.79 America -Policy of insurance on life of Mary Ann -per Owner's designation, Mary Ann became owner upon Decedent's death $3,272,677.47 (WC3740833 } Commonwealth of Pennsylvania. F. Binding_Effect. Except as herein otherwise specifically provided, this Agreement shall be binding upon and inure to the benefit of the parties and their legal representatives, heirs, administrators, executors, successors and assigns. IN WITNESS WHEREOF the undersigned parties have executed this Agreement as of the day and year first above written, with the intent to be legally bound hereby. WITNESS: WITNESS: WITNESS: ~ ~ < ~' ~ ~e~ ATTEST: Devon Haselhuhn, individually and as a beneficiary of the Estate Mary Ann Mohr, individually and as a beneficiary of the Estate ESTATE OF ELEANO SELHUHN Gary E. nch, o-Administrator WACHOVIA BANK, N.A. By: ,a of Wachovia Bank, N.A., Co-Administrator {WC3740833 } 5 Commonwealth of Pennsylvania. F. Binding Effect. Except as herein otherwise specifically provided, this Agreement shall be binding upon and inure to the benefit of the parties and their legal representatives, heirs, administrators, executors, successors and assigns. IN WITNESS WHEREOF the undersigned parties have executed this Agreement as of the day and year first above written, with the intent to be legally bound hereby. 'pVITNESS: Devon Haselhuhn, individually and as a beneficiary of the Estate WIT'NES S: Mary Ann Mohr, individually and as a beneficiary of the Estate WITNESS: ATTEST: ESTATE OF ELEANOR HASELHUHN By: Gary E. French, Co-Administrator WACHOVIA BANK, N.A. (~p-r 2 , . _ ~ a Q . "'SA r.K SD N , a U:aG PY'GS:~a~t of Wachovia Bank, N.A., Co-Administrator (WC37408~3 }