HomeMy WebLinkAbout9-11-09 (2)1505607121
REV-1500 EX (06-05) OFFICIAL USE ONLY
PA Department of Revenue
di
id
l T
fl
B
County Code Year
File Number~~~
axes
v
ua
ureau o
n INHERITANCE TAX RETURN
Poeox28osof 2 1 0 9 ~l-~- 1
jL
Harrisburg PA 17128-0601 RESIDENT DECEDENT ...
ENTER DECEDENT INFORMATION BELOW
Social Security Number Date of Death Date of Birth
1 7 7 1 0 D 4 5 1 0 6 1 2 2 0 0 9 0 8 2 9 1 9 1 8
Decedent's Last Name Suffix Decedent's First Name MI
B A I L E Y W I L D A H
(If Applicable) Enter Surviving Spouse's Information Below
Spouse's Last Name Suffix Spouse's First Name
Spouse's Social Security Number
FILL IN APPROPRIATE OVALS BELOW
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
MI
^X 1. Original Return ~ 2. Supplemental Return ~ 3. Remainder Return (date of death
prior to 12-13-82)
4. Limited Estate ~ 4a. Future Interest Compromise (date of ~ 5. Federal Estate Tax Return Required
death after 12-12-82)
0 6. Decedent Died Testate ~ 7. Decedent Maintained a Living Trust 0 8. Total Number of Safe Deposit Boxes
(Attach Copy of Will) (Attach Copy of Trust)
9. Litigation Proceeds Received ~ 10. Spousal Poverty Credit (date of death ~ 11. Election to tax under Sec. 9113(A)
between 12-31-91 and 1-1-95) (Attach Sch. O)
CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCEAND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED 70:
Name Daytime Telephone Number
H U B E R T X G I L R O Y 7 1 7 2 4 3 3 3 4 1
Firm Name (If Applicable)
M A R T S O N
First line of address
1 0 E A S T
Second line of address
City or Post Office
C A R L I S L E
REGISTER OF WILLS USE ONLY
L A W O F F I C E S
n ca
c'- ~ ..c~
. ~3 C/2
H I G H S T R E E T r~-~n~O,
-ern -
-V-~
~~ ~D ~
State ZIP Code ~- --
~ tV
P A 1? 0 1 3 a ~' ,,,_
r
_~1
,-
C~ '
i_, ~ 'iJi
_~ ~ ~=7
~_ ~C'J
- [~
~` _' i r')
~~">
-,
correspondent's a-mail address: H G I L R O Y a M A R T S O N L A W• C O M
Under penalties of perjury, 1 declare that 1 have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief,
it is true, correct and complete. Declaration of preparer other than the persona! representative is based on all information o(which preparer has any knowledge.
SIG~AjU~RE OF ,SON RESPL~BL~E P.O FILING RETURN DATE Q
~ ,/, ~ 9/ ii/Q J
ADDRESS d
4 V LLA E RO MECHANICSBURG PA 17050
SI A F~2PIQR OJHER THAN REPRESENTATIVE ~ A~j/~ ~
10 EAST HIGH/STREET
1505607121
CARLISL
PLEASE USE ORIGINAL FORM ONLY
Side 1
PA 17013
1505607121
J
1505607221
REV-1500 EX
Decedent's Social Security Number
Decedents Name: W I L D A H• BAILEY 1 7 7 1 0 0 4 5 1
RECAPITULATION
1.
........................................
Real estate (Schedule A) 1
2. Stocks and Bonds (Schedule B) .................................. 2•
3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ..... 3.
4. Mortgages & Notes Receivable (Schedule D) ........................ 4.
1 1 6 8 6 . 3 4
5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ....... 5.
6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested ....... 6•
7. Inter-Vivos Transfers & Miscellaneous N n-Probate Property
arate Billin
uested
Re
~ Se
h
d
l
G
S
7
0 .
0
D
.......
g
q
p
u
e
)
(
c
e .
8. Total Gross Assets (total Lines 1-7) ........................... 8. 1 1 6 8 6. 3 4
9. Funeral Ex enses & Administrative Costs Schedule H
P ( ) ...... 9.
.......... 2 5 9 8 . 5 4
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) . 10. 4 0 8 4 . 7 3
11. Total Deductions (total Lines 9 & 10) ................. .......... 11. 6 6 8 3 . 2 7
12. Net Value of Estate (Line 8 minus Line 11) ............... .......... 12. 5 D 0 3 • D 7
13. Charitable and Governmental Bequests/Sec 9113 Trusts for which
an election to tax has not been made (Schedule J) ........ .......... 13.
14. Net Value Subject to Tax (Line 12 minus Line 13) ........ .......... 14. 5 D 0 3 • D 7
TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES
15. Amount of Line 14 taxable
at the spousal tax rate, or
transfers under Sec. 9116
(a)(1.2) X.0 _ 0 D D 15.
16. Amount of Line 14 taxable
5 0 0 3
0
7
at lineal rate X .045 . 16.
17. Amount of Line 14 taxable
D
0
0
at sibling rate X .12 17.
18. Amount of Line 14 taxable
D
0
D
at collateral rate X .15 18.
19. Tax Due ............... ....................... ... ..... ..19.
20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT
0. D 0
2 2 5. 1 4
D. 0 0
0. D 0
2 2 5. 1 4
Side 2
1505607221 1505607221 J
REV-1500 EX Page 3
Decedent's Complete Address:
File Number
21 09 0451
DECEDENT'S NAME
WILDA H BAILEY
STREETADDRESS
770 SOUTH HANOVER STREET
CITY STATE ZIP
CARLISLE PA 17013
Tax Payments and Credits:
1. Tax Due (Page 2 Line 19) (1) 225.14
2. Credits/Payments
A. Spousal Poverty Credit
B. Prior Payments
C. Discount 11.26
Total Credits (A + B + C) (2) 11.26
3. InteresbPenalty if applicable
D. Interest
E. Penalty
Total Interest/Penalty (D + E) (3) 0.00
4. If Line 2 is greater than Line i + Line 3, enter the difference. This is the OVERPAYMENT.
Fill in oval on Page 2, Line 20 b request a refund. (4) 0.00
5 If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 213.88
.
Enter the interest on the tax due
A (5A)
.
.
Enter the total of Line 5 + 5A. This is the BALANCE DUE.
B (58) 213.88
.
Make Check Payable fo: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS
1. Did decedent make a transfer and: Yes No
a, retain the use or income of the property transferred : ................................................................. ..... ^
b. retain the dght to designate who shall use the property transferred or its income; .......................... ..... ^
X
^
c. retain a reversionary interest; or ........................................................................................... ..... ^
^ ^X
d. receive the promise for life of either payments, benefits or care? .................................................. .....
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death
without receiving adequate consideration? ..................................................................................
"
" ..... ^
^ X^
X^
or payable upon death bank account or security at his or her death? ....
in trust for
3. Did decedent own an .....
4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ............................................................................................. ..... ^
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse
is three (3) percent (72 P.S. §9116 (a) (1.1) (i)J.
For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (O) percent
(72 P.S. §9116 (a) (1.1) (ii)J. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and
filing a tax return are still applicable even if the surviving spouse is the only beneficiary.
For dates of death on or after July 1, 2000:
The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an
adoptive parent, or a stepparent of the child is zero (O) percent (12 P.S. §9116(a)(1.2)J.
The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent, except as noted in
72 P.S. §9116(1.2) (72 P.S. §9116(a)(1)].
The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent (72 P. S, §9116(a)(1.3)]. Asibling is defined, under
Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption,
REV-1508 EX + (6-98)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
SCHEDULE E
CASH, BANK DEPOSITS, 8 MISC.
PERSONAL PROPERTY
ESTATE OF FILE NUMBER
WILDA H. BAILEY 21 09 0451
Include the proceeds of Irtigation and the date the proceeds were received by the estate.
All property jointty-owned with right of survivorship must 6e disclosed on Schedule F.
ITEM VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1. Members 1st savings 227913-00 105.99
2. Members 1st checking 227913-11 11,580.35
TOTAL (Also enter on line 5, Recapitulation) I $ 11,686.34
(If more space is needed, insert additional sheets o(the same size)
REV-1510 EX + (6-98)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
SCHEDULE G
INTER-V1VOS TRANSFERS 8
MISC. NON-PROBATE PROPERTY
FILE NUMBER
WILDA H. BAILEY 21 09 0451
This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes.
ITEM
NUMBER DESCRIPTION OF PROPERTY
INCLUDE THE NAME OF THE7RANSFEREE,THEIRRELATIONSHIPTODECEDENTAND
THE DATE OF TRANSFER. ATTACHACOPYOFTHEDEEDFORREALESTATE.
DATE OF DEATH
VALUE OF ASSET
%OFDECD'S
INTEREST
EXCLUSION
(IFAPPLICABLEJ
TAXABLE
VALUE
1. Bailey Income Only Irrevocable Trust dated 4/11/03, Wilda H. 122,205.57 0. 100.00 0
Bailey, Settlor and Keith E. Bailey Trustee. See attached copy of
Trust.
TOTAL (Also enter on tine 7 Recapitulation) $ 0.00
(If more space is needed, insert adddional sheets of the same size)
REV-t 511 EX + (10-06)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
WILDA H. BAILEY
SCHEDULE H
FUNERAL EXPENSES &
ADMINISTRATIVE COSTS
FILE NUMBER
21 09 0451
Debts oidecedentmustbe reported on Schedule I.
1 TEM
NUMBER DESCRIPTION AMOUNT
A. FUNERAL EXPENSES:
1. Hollinger Funeral Home, Mt. Holly Springs, PA 175.00
2. The Monument Company, Lewistown, PA, marker engraving 125.00
3. Church Hill Cemetary 175.00
B. ADMINISTRATIVE COSTS:
1. Personal Representative's Commissions
Name of Personal Representative (s) -
StreetAddress
City State Zip
Year(s) Commission Paid:
p. Attorney Fees Martson Law Offices (estimated) 2,000.00
3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
Claimant
Street Address
City State Zip
Relationship of Claimant to Decedent
4. Probate Fees Cumberland County Register of Wills 88.00
5 Accountant's Fees
6. Tax Retum Preparer's Fees
7. Certified mailing, Department of Public Welfare
8. Filing fee, Inheritance Tax Return
9. Additional probate fee
5.54
15.00
15.00
TOTAL (Also enter on line 9, Recapitulation) I $ 2.598.54
(lf more space is needed, insert addrfional sheets of the same size)
REV-1512 EX + (12-03)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE I
DEBTS OF DECEDENT,
MORTGAGE LIABILITIES, 8 LIENS
ESTATE OF FILE NUMBER
WILDA H. BAILEY ___ __ ______ _ 21 09 0451
Report debts incurred by the decedent prior to death which remained unpaid as of the date of death, including unreim6ursed medical expenses.
ITEM VALUE A T DA TE
NUMBER DESCRIPTION OF DEATH
1. Chapel Pointe of Carlisle, account payable 3,257.32
2. Millennium Drugs, account payable 638.22
3. West Shore EMS 169.19
4. Spring Road Family Practice, account payable 20.00
TOTAL (Also enter online 10, Recapitulation) I $ 4,084.73
(If more space is needed, insert additional sheets o(the same size)
REV•1513 EX + (9-00)
SCHEDULE J
COMMONWEALTH OF PENNSYLVANIA BENEF/CIARIES
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
FILE NUMBER
WILDA H . BAILEY 21 09 0451
RELATIONSHIP TO DECEDENT AMOUNT OR SHARE
NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE
I TAXABLE DISTRIBUTIONS (include outright spousal distributions, and transfers under
Sec. 9116 (a) (1.2))
1. Keith E. Bailey Lineal 2,501.54
4 Village Road
Mechanicsburg, PA 17050
2. Janet L. Bailey Lineal 2,501.53
3553 Royal STewart Court
Cincinnati, OH 05245
ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET
II. NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE
1.
8. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
1.
TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ONLINE 13 OF REV-1500 COVER SHEET $
(If more space is needed, insert additional sheets of the same size)
~ J
SAVINGS ACCOUNT:
Account Number/Suffix
Date Account Established
Principal Balance at Date of Death
Accrued Interest to Date of Death
Total Principal and Accrued Interest
Name of Joint Owner
CHECKING ACCOUNT:
Account Number/Suffix
Date Account Established
Principal Balance at Date of Death
Accrued Interest to Date of Death
Total Principal and Accrued Interest
Name of Joint Owner
MEMBERS 1st
FEDERAL CREDIT UNION
227913-00
03/15/2003
$105.97
$.02
$105.99
None
227913-11
03/15/2003
$11,579.84
$.51
$11,580.35
None
~:
ME ERS 1ST FED RAL REDIT UNION
'~-~`s
Danielle A. Kline
Insurance Services Specialist
July 28, 2009
Estate of: WILDA H. BAILEY
Date of Death: 06/12/2009
Social Security Number: 177-10-0451
X000 Louise Drive P.O. Box 40 Mechanicsburg, Pennsylvania 17055 (800) 283-2328 www.inemberslst.org
Jul. 1. 2009 S:~~AM
~Thriventlnvest-»entlWona emen~•
9
P.O. Bon 219348, Kansas City, MO 64121-3343
Phoru: 8D0-THInVEM (80A-E144f~se36y
6~lnalk ma~thmrentcom • www tl~rtvarteem
MernpR Fl1VRA Member SIPC.
July 6, zoo9
Peter Krum
717-245-1042
~: OOSb1218
Tfi1tIV8'N~ MUIJICO?AI BONA FUI~-A
ACCOUNTNUMSER: ~CXXXJCX9687
KEITH E BAILEY TfEE
BAILEY INCOME ONI.YTRUSI'
DTD O~k/11/2003
Dear Sir ar Madam:
Na.7895 P. 1/~4
A subsirlEary of lllrlwne ~inanciaE for Lutherans°
App4ton, WI . Mirt~ayoli; MN
We have received your request for information sad in the table below we have listed khe date of death
value for the above•xefere>~ted individual(s). We ltawe also iacluded statements As m~uested.
Aay slates and bsla>stes of the mutual furrda listed reflect values as of th,e date quoted. A mutual fulzd
account lxiance is baued oa the niet asseE value shave prices as of spedt[c dates; values may IIuctuate on a
dally b~uic.
Please note we are only providing the raeques~ irxfaamatiorl.
As aef 06Ii2~~mo
end Name
Iunid Bo
d F
d ~ t Nt~mbe~t Qf Ptlce Per
Si>~ Slyar~ g,~~ae
n
un
A
IcomeFu
dA 7609687 7
043.753 x10.$1 576143.2
n 7609867 6275.315 _ 57.34 !as_rK2 ~
If you have anq Qvestiorts,please tal! us at800-547-4836. Busiaess ha~urs aze Monday through Fr;day
from 7 a.m. to 9 p.m, and Saturday $om 9 a.m. to 1 p.m. Central time.
Sincerely,
~~~
Arleen Russell-Am,os
Semiar Mutual Fund Reptreserxtetiv
Enclaatue(s). Account statements
0 Z />r0 3Jdd ~tiI~Nt/NId 1N3I1I21H1 Zb0 T8bZL ZL 50 ~ Z Z 6007. /I A II a
,OO p~(
LAST WILL AND TESTAMENT
OF
WILDA H. BAILEY
Elder Law Firm of
MARSHALL 6i ASSOCIATES
Williamsport, Jersey Shore, and Wilkes-Barre, Pennsylvania
Administrative Office
303 Allegheny Street
Jersey Shore, Pennsylvania 17740-1405
570-398-7603
LAST WILL AND TESTAMENT
OF
WILDA H. BAILEY
I, WILDA H. BAILEY, currently residing at 770 South Hanover Street, Apartment 226 N, Carlisle,
Cumberland County, Pennsylvania, declare that this is my Will and I revoke all other Wills and Codicils
which I have made.
ARTICLE 1
FAMILY
1.01. IDENTIFICATION OF MY FAMILY. I declare that I am a widow and that I have two
children: KEITH E. BAILEY and JANET L. ZEIGLER.
1.02. DEFINITION OF FAMILY TERMS. As used in this Will, the term "my children" refers only
to the above-referenced children set forth in Paragraph 1.01. The term "my children" excludes all other
persons. For purposes of inheritance from me, the "children" of an individual shall be interpreted to
include persons who have been legally adopted by the individual but shall exclude stepchildren who have
not been legally adopted.
ARTICLE 2
PAYMENT OF DEBTS AND TAXES
2.01. PAYMENT OF DEBTS. I direct my Executor to pay all of my debts that my Executor in my
Executor's sole discretion may allow as claims against my estate.
2.02. PAYMENT OF TAXES. I direct my Executor to pay out of the principal of my residuary
estate all inheritance, transfer, estate, and similar taxes (including interest and penalties), assessed or
payable by reason of my death, on any property or interest in property which is included in my estate for
the purpose of computing such taxes. My Executor shall not require any recipient of such property or
interest in such property to reimburse my estate for taxes paid under this paragraph.
ARTICLE 3
DISTRIBUTION OF ESTATE TO BENEFICIARIES
3.01. SPECIFIC BEQUESTS AND PERSONAL EFFECTS.
a. I give all of my jewelry, clothing, household furniture and furnishings, personal
automobiles, books, and other tangible articles of a household or personal nature, not otherwise
specifically disposed of by this Will or in any other manner to mythen-living children. The recipients shall
divide these items among themselves in substantially equal shares as they shall agree. If no such
agreement is reached within ninety (90) days after my death, then such personal effects shall be divided
or sold in such manner as my Executor shall direct. If none of my children are then living, these gifts
shall lapse and pass as part of the residue of my estate.
b. I request, but do not direct, that the recipients of my personal items distribute them
in accordance with any letter or other instructions which I may leave at my death. Any such instructions
shall not have the effect of modifying or revoking this Will.
3.02. DISPOSITION OF RESIDUARY ESTATE. I give all of the rest, residue, and remainder of
the property that I own at the time of my death, both real and personal, of every kind and description,
wherever situated, to which I may be legally or equitably entitled at the time of my death (my "residuary
estate"), in equal shares to my children, KEITH E. BAILEY and JANET L. ZEIGLER. In the event that
either of my children should fait to survive me, I direct that his or her share of my estate shall be paid in
equal shares to those of his or her children who do survive me. In the event that either of my children
should fail to survive me and leave no children who so survive me, then I direct that his or her share shall
be paid as an addition to the shares of other beneficiaries of my residuary estate in proportion to their
interests in my residuary estate.
ARTICLE 4
FIDUCIARIES
4.01. EXECUTOR. I appoint my children, KEITH E. BAILEY and JANET L. ZEIGLER, to be co-
Executors of my estate. In the event that either of the persons named as co-Executor is unable or
unwilling to act or continue as such, for any reason whatsoever, I direct that no successor need be
appointed and that the remaining person named as co-Executor shall have full power to act as sole
Executor of my estate.
4.02. WAIVER OF BOND. None ofthe Executors, Guardians, or other Fiduciaries named in this
Will shall be required to furnish bond for the faithful performance of his or her duties.
ARTICLE 5
POWERS OF FIDUCIARIES AND MISCELLANEOUS PROVISIONS
5.01. POWERS OF FIDUCIARIES. My Executors, Trustees, Guardians and their successors
(hereafter sometimes referred to in the singular as the "Fiduciary"), shall have the following powers in
addition to those vested in them by law and by other provisions of my Will, applicable to all property,
whether principal or income, including property held for minors, exercisable without court approval, and
effective until actual distribution of all property:
a. To retain and continue to hold any or all of the assets of my estate, real or personal,
including any shares of stock or other securities I may own without restrictions to investments authorized
for Fiduciaries, as they deem proper, without regard to any principle of diversification or risk.
b. To invest in all forms of real and personal property (including, without limitation,
stocks, bonds, and mutual funds), without restriction to investments authorized for Fiduciaries, as the
Fiduciary shall deem proper, without regard to any principle of diversification or risk.
c. To sell at public or private sale, to exchange, or to lease for any period of time, any
real or personal property with such prices and upon such terms or conditions as the Fiduciary deems
proper.
d. To allocate receipts and expenses to principal or income or partly to each as the
Fiduciary from time to time thinks proper.
e. To borrow from, or to sell to, any of my Fiduciaries even though the Fiduciary is a
Trustee, Executor, or Guardian.
2
f. To continue and operate, to sell or to liquidate, as the Fiduciary deems advisable,
at the risk of the estate, any business or partnership interests received by my estate or any trust or
guardianship estate.
g. On any division of an estate into separate shares or trusts, to apportion and allocate
the assets of the estate in cash or in kind, or partly in cash and partly in kind, or in undivided interests
in the manner deemed advisable in the discretion of the Fiduciary; after any division of the estate, the
Fiduciary may make joint investments with funds from some or all of the several other shares or trusts,
but the Fiduciary shall keep separate accounts for each share or trust.
h. To abandon any asset or interest therein in the discretion of the Fiduciary.
To manage, control, improve, and repair real and personal property belonging to any
estate
j. To employ attorneys, investment advisers, accountants, brokers, tax specialists, and
any other agents deemed appropriate in the discretion of the Fiduciary, including persons associated with
or employed by any Fiduciary, and to pay from the estate such compensation as the Fiduciary deems
reasonable for all services performed by any of them.
k. To procure and carry at the expense of the estate or trust insurance of the kinds,
forms, and amounts deemed advisable by the Fiduciary against any hazard.
I. To compromise, submit to arbitration, release with or without consideration, or
otherwise adjust claims in favor of or against any estate; to commence or defend litigation affecting the
estate or any property thereof as deemed advisable by the Fiduciary.
m. To pay all taxes, assessments, compensation of the Fiduciary, and all other
expenses incurred in the collection, care, administration, and protection of the estate.
5.02. MISCELLANEOUS PROVISIONS.
a. As long as any income or principal to which any beneficiary under my Will may be
entitled remains in the possession of the Fiduciary and is not actually distributed to the beneficiary, such
income or principal shall not be subject to anticipation or alienation by the beneficiary, by assignment,
or by any other means (except as specifically authorized herein), and it shall be free and clear of the
beneficiary's debts and obligations and shall not be taken, seized, or attached by any process
whatsoever.
b. No person dealing with the Fiduciary shall be bound to see to the application of any
purchase money or.other consideration or to inquire into the validity, necessity, or propriety of any
transaction to which the Fiduciary may be a party.
c. My Executor shall have the power, without court approval, to disclaim, in whole or
in part, any interest in property or right or power in which my estate may have any interest, and to
execute all documents which may be appropriate to any such disclaimer.
3
d. If a Fiduciary is at any time required to make payments of principal or income to or
for the benefit of any beneficiary who is a minor, or is an incompetent or incapacitated person, or is a
person whom the Fiduciary in his or her sole discretion deems unable to handle funds properly or wisely
if paid directly to the beneficiary, the Fiduciary in his or her sole discretion and without court approval
may make payments in any one or more of the following ways:
(1) Directly to the beneficiary;
(2) To the natural Guardian or legally appointed Guardian of the Person or Estate
of the beneficiary;
(3) By making expenditures directly for the care, support, maintenance, or
education of the beneficiary;
(4) To any person or organization furnishing care, support, maintenance, or
education for the beneficiary;
(5) To any custodial parent of a minor beneficiary;
(6) Directly to creditors in payment of the debts and expenses of the beneficiary;
(7) To an Agent authorized to act for the beneficiary pursuant to a Power of
Attorney.
The Fiduciary shall not be required to see to the application of any funds paid or
applied in any of the aforementioned ways and the receipt of the payee shall be full acquittance. The
decision of the Fiduciary with regard to the selection of which of the aforementioned methods should be
used in making payments shall be conclusive and binding on all parties concerned.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 11th day of April, 2003.
WILDA H. BAILEY
Signed, sealed, published, and declared bytheabove-named, WILDA H. BAILEY (the "Testator"),
as and for the Testator's Last Will in the presence of us and each of us, who, at the Testator's request
and in the Testator's presence and in the presence of each other, have hereunto subscribed our names
as witnesses thereto the day and year last above written.
residing at
residing at
PO Box 257
Montandon PA 17850
PO Box 108
Beech Creek. PA 16822
4
M
COMMONWEALTH OF PENNSYLVANIA ; SS
COUNTY OF LYCOMING
We, WILDA H. BAILEY, KATHY A. KRON, and MICHAEL F. RENTKO, the Testator and
witnesses, respectively, whose names are signed to the foregoing instrument, being first duly sworn, do
hereby declare that the Testator signed and executed the instrument as the Testator's Last Will and
Testament, and that the Testator signed willingly and executed the instrument as the Testator's free and
voluntary act for the purposes therein expressed, and that each of the witnesses in the Bearing and
presence of the Testator signed the Will as witnesses, and that to the best of the witnesses knowledge
the Testator was at that time 18 or more years of age, of sound mind and under no constraint or undue
influence.
WILDA H. BAILEY, Testator
F(A Y A. R ,witness
j~/'Jl~'
MICHAEL F. RENTKO, witness
ON THIS, the 11'h day of April, 2003, before me, JOETTA A. LOSE, the undersigned officer,
personally appeared KATHY A. KRON, kno ert'~ed that she' was personally present whenthe foreg B g
of the Supreme Court of Pennsylvania, and
acknowledgment and affidavit were signed by the Testator and witnesses.
IN WITNESS WHEREOF,
have hereunto set my hand and official seal.
5
My Commission Expires
IRREVOCABLE TRUST AGREEMENT
BAILEY INCOME ONLY TRUST
WILDA H. BAILEY,
Settlor
and
KEITH E. BAILEY
Trustee
ELDER LAW FIRM OF
MARSHALL & ASSOCIATES
WILLIAMSPORT, JERSEY SHORE, AND WILKES-BARRE, PENNSYLVANIA
Main Administrative Office:
303 Allegheny Street
Jersey Shore, Pennsylvania 17740-1405
570-398-7603
IRREVOCABLE TRUST AGREEMENT
This Trust Agreement is entered into this 11th day of April,
currently resides at 770 South Hanover Street, Apartment 226 N
Settlor of the Trust, hereafter referred to as "Settlor,"
A
N
D
2003, by WILDA H. BAILEY, who
Carlisle, Pennsylvania 17013, as
KEITH E. BAILEY, who currently resides at 4 Village Road, Mechanicsburg, Pennsylvania 17050, as
Trustee of the Trust, hereafter referred to as "Trustee."
ARTICLE 1
CREATION OF TRUST ESTATE
1.01. NAME OF TRUST. The name of the Trust will be the BAILEY INCOME ONLY TRUST.
1.02. TRANSFER IN TRUST. The Settlor hereby transfers the property listed in Schedule A of
this Trust Agreement to the Trustee and acceptance of this property is hereby acknowledged by the
Trustee. The Settlor intends to transfer additional property to the Trust over time. Said property and all
other property transferred to and received by the Trustee to be held pursuant to this Trust shall constitute
the "Trust Estate" and shall be held, administered, and distributed bythe Trustee as hereinafter provided.
1.03. ADDITIONS TO THE TRUST ESTATE. The Settlor, either during life or by Will, or any
other person shall have the right at any time to add property acceptable to the Trustee to this Trust.
Such property, when received by the Trustee, shall become part of the Trust Estate.
1.04. MANAGEMENT OF TRUST INVESTMENTS. The person or persons serving in the
capacity of Trustee may in writing designate one of said persons or a third person of his or her or their
choosing to act as the authorized agent of the Trustee for purposes of performing investment and other
property management decision making and services and exercising the powers specified in this Trust
Agreement.
ARTICLE 2
IRREVOCABILITY OF TRUST
2.01. IRREVOCABILITY OF TRUST. This is an Irrevocable Trust. This Trust cannot in any way
be revoked by the Settlor. The Settlor hereby expressly acknowledges that the Settlor shall not have any
right or power, either alone or in conjunction with others, or in any capacity whatsoever, to alter, amend,
modify, revoke, or terminate this Trust or any of the terms of this Trust Agreement in whole or in part, or
otherwise to cause any of the principal of the Trust to be paid to or otherwise revert to the Settlor or to
any spouse of the Settlor or to the Settlor's estate or to the estate of any spouse of the Settlor, or to the
creditors of the Settlor or any spouse of the Settlor or the creditors of their estates.
ARTICLE 3
DISTRIBUTIONS BY THE TRUSTEE
WHILE SETTLOR IS LIVING
3.01. NET INCOME TO SETTLOR. While the Settlor is living, the Trustee shall pay to or apply
for the benefit of the Settlor, in quarterly or such other convenient and reasonable installments as the
Settlor shall require, all of the net income from the Trust Estate, unless otherwise directed by the Settlor.
Capital gains shall not be treated as income for purposes of distribution and are not distributable to the
Settlor and must be retained by the Trust.
3.02. INVASION OF TRUST FOR THE CHILDREN AND GRANDCHILDREN OF THE
SETTLOR. While the Settlor is living, the Trustee, if so directed by the Distribution Committee as
specified hereinafter, shall make such distributions of such amounts from the Trust Estate, up to the
whole thereof, as the Distribution Committee in its sole discretion may from time to time determine and
direct; provided, however, that any such distributions may be made only to KEITH E. BAILEY and
JANET L. ZEIGLER, who are the children of the Settlor, and the children of the aforesaid children of the
Settlor (i.e. the grandchildren of the Settlor) and to no other persons. The Distribution Committee may
authorize the Trustee to make distributions to one or more of the said children of the Settlor and the
children of the aforesaid children of the Settlor in unequal amounts and to exclude one or more of the
others of them from such distributions. In no event may any distributions of principal be made to or for
the benefit of either the Settlor or any spouse of the Settlor or to the Settlor's estate or to the estate of
any spouse of the Settlor or to the creditors of the Settlor or any spouse of the Settlor or the creditors
of their estates.
ARTICLE 4
MANAGEMENT OF TRUST
UPON DEATH OF SETTLOR
4.01. DISPOSITION OF TRUST ESTATE UPON THE DEATH OF THE SETTLOR. Upon the
death of the Settlor, the Trustee shall pay all debts and expenses applicable to the Trust Estate including
Trust income tax liabilities, state and federal death taxes applicable to the Trust's assets, Trustee and
attorney's fees, and all appropriate Trust administration expenses. The Trustee is not authorized and
shall not pay any of the Settlor's debts, and specifically shall not make payment or repayment to any
person or entity or government body in regard to any debt or claim arising from Medicaid, Medical
Assistance, SSI, or in regard to any other public or governmental benefits paid to or on behalf of Settlor.
After payment of the Trust expenses allowed under this Article, and subject to the provisions of Article
4.02 of this Agreement, the Trustee shall thereupon distribute all of the remaining principal and
accumulated income of the Trust in equal shares to the Settlor's children, KEITH E. BAILEY and JANET
L. ZEIGLER. In the event that either of the Settlor's said children are not living at the time of distribution,
then his or her share of the Trust Estate shall be paid to those of his or her children who are living at the
time of distribution.
4.02. SPECIAL POWER OF APPOINTMENT. The provisions of Article 4.01 hereinabove
notwithstanding, the Settlor reserves the power, exercisable at any time or from time to time, by written
instrument delivered to the Trustee during the Settlor's lifetime or by a provision in the Settlor's Will or
any Codicil thereto making express reference to this power, to appoint any part or all of the principal or
income of the Trust fund, outright or upon trusts, conditions or limitations among the following persons:
2
KEITH E. BAILEY and JANET L. ZEIGLER, the children of the Settlor, and the children of the aforesaid
children of the Settlor (i.e. the grandchildren of the Settlor. The power specified in this Article 4.02 shall
not be exercised in a manner that would permit any distribution of Trust principal be made to or for the
Settlor or any spouse of the Settlor, or to the Settlor's estate or the estate of any spouse of the Settlor,
or to the creditors of the Settlor or of any spouse of the Settlor, or the creditors of the Settlor's estate or
of the estate of any spouse of the Settlor. Unless within thirty (30) days after the death of the Settlor,
the Trustee has actual notice of the existence of a Will or other writing wherein this special power of
appointment was exercised, it shall be deemed for all purposes hereunder that such power of
appointment was not exercised.
ARTICLE 5
GENERAL ADMINISTRATIVE DIRECTIONS
5.01. PAYMENTS FOR THE BENEFIT OF A BENEFICIARY. If at any time any beneficiary
entitled to receive income or principal from the Trust Estate is a minor or an incompetent or a person
whom the Trustee in the Trustee's discretion deems unable to handle funds properly or wisely if paid
directly to the beneficiary, the Trustee in the Trustee's sole discretion may make payments in any one
or more of the following ways:
a. Directly to the beneficiary;
b. To the natural Guardian or legally appointed Guardian of the Person or Estate of the
beneficiary;
c. By making expenditures directly for the care, support, maintenance, or education
of the beneficiary; or
d. To any person or organization furnishing care, support, maintenance, or education
for the beneficiary;
e. To a Custodian for the beneficiary under any law related to gifts or transfers to
minors, including to the Trustee in that capacity;
f. To a duly appointed Agent of the beneficiary authorized to receive such payments
pursuant to a Durable Power of Attorney.
The Trustee shall not be required to see to the application of any funds paid or applied in
any of the aforementioned ways and the receipt of the payee shall be full acquittance of the Trustee.
The decision of the Trustee with regard to the selection of which of the aforementioned methods should
be used in making payments shall be conclusive and binding on all parties concerned.
5.02. CONFLICTING CLAIMS. Whenever there are conflicting claims as to the person entitled
to any payment or distribution from the Trust Estate, the Trustee may in the Trustee's discretion withhold,
without the payment of interest, all or any part of any disputed payment or distribution until the matter
has been adjudicated and final judgment entered by an appropriate court.
3
5.03. SPENDTHRIFT PROVISIONS. No beneficiary or remainderman of any interest in anytrust
created by this instrument shall have any right to alienate, encumber, or hypothecate his or her interest
in the principal or income of the Trust in any manner, nor shall any interest of any beneficiary or
remainderman be subject to claims of his or her creditors or liable to attachment, execution, or other
process of law. This article shall not restrict the exercise of any power of appointment specified in this
Trust Agreement.
5.04. PHOTOCOPIES. Photocopies of this Trust Agreement shall have the same force and
effect as the original and shall be accepted by any party as being of the same force and effect as the
original.
5.05. GRANTOR TRUST. It is the Settlor's intention that this trust be construed as a "grantor
trust" under the Internal Revenue Code § 677(a). All income shall be taxable to the Settlor, whether
distributed or accumulated by the trust.
5.06. TRUSTEE'S CONTINGENT POWERS. If there is a change in relevant federal or state
laws, rules, or policies concerning Income-Only Trusts, then the Trustee is instructed to administer and
distribute the Trust assets and income according to such revised laws, rules, and policies, unless such
change is more restrictive than current law and if this Trust Agreement would be exempt from such
change. The Trustee is authorized to amend this Trust document to conform with changes made,
subsequent to the execution of this Trust, in federal or states laws, rules, regulations, or policies, to effect
the purpose of this Trust, if this Trust is not grandfathered from such changes, or to make the Trust
comply with interpretations of federal or state law so that Settlor's eligibility for Medicaid benefits is
preserved. However, in no event may any payment of the principal of the trust be made to or for the
benefit of either the Settlor or any spouse of the Se#tlor or to the Settlor's estate or to the estate of any
spouse of the Settlor or to the creditors of the Settlor or any spouse of the Settlor or the creditors of their
estates. If Settlor is denied Medicaid, the Trustee may take such legal action by way of Fair Hearing or
filing an action with or appealing to any court of competent jurisdiction to enforce Settlor's rights.
5.07. NO PAYMENT OF PRINCIPAL TO SETTLOR PERMITTED. Any other provision of this
Trust Agreement or of the laws of the Commonwealth of Pennsylvania or any other jurisdiction
notwithstanding, there shall be no circumstances under which any payment from the principal (corpus)
of the trust could be made to or for the benefit of the Settlor or to or for the benefit of any spouse of the
Settlor.
ARTICLE 6
POWERS OF FIDUCIARIES
6.01. POWERS OF FIDUCIARIES. The Trustee, and any successor Trustee, shall have the
following powers in addition to those vested in them by law and by other provisions of this Trust
Agreement, applicable to all property whether principal or income, including property held for minors or
incompetents, which powers shall be exercisable without court approval, and shall be effective until
actual distribution of all property:
a. To invest in all forms of real and personal property (including, without limitation,
stock, option, or other securities, common trust funds, and mortgage investment funds), without
4
restriction to investments authorized for Fiduciaries, as the Trustee shall deem proper, without regard
to any principle of diversification or risk.
b. To pay all taxes, assessments, compensation of the Trustee, and all other expenses
incurred in the collection, care, administration, and protection of any Trust Estate.
c. To sell at public or private sale, to exchange, or to lease for any period of time, any
real or personal property and to give options for sales, exchanges or leases, with such prices and upon
such terms or conditions as the Trustee deems proper.
d. To allocate receipts and expenses to principal or income or partly to each as the
Trustee from time to time thinks proper.
e. To borrow from, or to sell to, any Fiduciary even though the Fiduciary is the Trustee,
Agent, Guardian, or Executor.
f. To hold property in the Trustee's name without designation of any Fiduciary capacity
or in the name of a nominee or unregistered.
g. To enter into transactions with other Fiduciaries including the Trustees or Executors
of other trusts and estates in which any beneficiary under this instrument has any interest, and including
themselves as Fiduciaries for other estates and trusts, and in such transactions to purchase property,
or make loans or notes secured by property, even though similar property constitutes a large portion of
the Trust property, and to retain any such property or notes as if they had been an original part of the
estate or trust.
h. To exercise, respecting securities held by the Trust Estate, all the rights, powers,
and privileges of an owner, including, without limitation, the power to vote, give proxies, and to pay
assessments and other sums deemed by the Trustee to be necessary for the protection of the Trust
Estate.
i. To continue and operate, to sell or to liquidate, as the Trustee deems advisable, at
the risk of the Trust Estate, any business or partnership interests received by the Trust Estate.
j. To sell for cash or on deferred payments at public or private sale, to exchange and
to convey any property of the Trust Estate.
k. On any division of the Trust Estate into separate shares or trusts, to apportion and
allocate the assets of the Trust Estate in cash or in kind, or partly in cash and partly in kind, or in
undivided interests in the manner deemed advisable in the discretion of the Trustee. After any division
of the Trust Estate, the Trustee may make joint investments with funds from some or all of the several
shares or Trusts, but the Trustee shall keep separate accounts for each share or trust.
To abandon any Trust asset or interest therein in the discretion of the Trustee.
m. To grant an option involving disposition of a Trust asset and to take an option for the
acquisition of any asset by the Trust Estate.
5
n. To lease any real or personal property of the Trust for any purpose for terms within
or extending beyond the duration of the Trust.
o. To manage, control, improve, and repair real and personal property belonging to the
Trust Estate.
p. To employ attorneys, investment advisers, accountants, brokers, tax specialists, and
any other Agent deemed appropriate in the discretion of the Trustee, including persons associated with
or employed by any Trustee, and to pay from the Trust Estate reasonable compensation for all services
performed by any of them.
q. To borrow money for any Trust purpose from any person, firm, or corporation,
including one acting as a Trustee hereunder, on the terms and conditions deemed appropriate by the
Trustee and to obligate Trust assets for repayment; to encumber the Trust or any property thereof by
mortgage, deed of trust or otherwise, using whatever procedures to consummate the transaction deemed
advisable by the Trustee; and to replace, renew, and extend any encumbrance and to pay any loans or
other obligations of the Trust deemed advisable by the Trustee.
r. To procure and carry at the expense of the Trust insurance of the kinds, forms, and
amounts deemed advisable by the Trustee against any hazard.
s. To compromise, submit to arbitration, release with or without consideration, or
otherwise adjust claims in favor of or against trust; to commence or defend litigation affecting the Trust
or any property thereof as deemed advisable by the Trustee.
t. To do all the acts, to take all the proceedings, and to exercise all the rights, powers
and privileges which an absolute owner or the property would have, subject always to the discharge of
Fiduciary obligations; the enumeration of certain powers in this Trust Agreement shall not limit the
general or implied powers of the Trustee. The Trustee shall have all additional powers that may now or
hereafter be conferred on the Trustee by law or that may be necessary to enable the Trustee to
administer the Trust in accordance with the provisions of this Trust Agreement, subject to any limitations
specified in this Trust Agreement.
u. To pay all taxes, assessments, compensatior, of the Trustee, and all other expenses
incurred in the collection, care, administration, and protection of any Trust Estate.
v. To retain in the Trust for such time as the Trustee may deem advisable any property,
including shares of the Trustee's own stock, notes, accounts, certificates, or other investments in which
the Trustee has an interest, received by the Trustee from the Settlor, whether or not such property is of
the character permitted by law for the investment of Trust funds, and to operate at the risk of the Trust
Estate any business or property received by the Trustee from the Settlor.
ARTICLE 7
DISTRIBUTION COMMITTEE
7.01. DISTRIBUTIONS OF PRINCIPAL DURING LIFETIME OF SETTLOR BY DISTRIBUTION
COMMITTEE. Settlor hereby nominates, constitutes, and appoints the following individuals as a
6
"Committee", (sometimes hereafter referred to as "the Distribution Committee" or"the Committee"), with
the powers and authorities hereinafter set forth:
a. The initial members of the Committee shall be the children of the Settlor, KEITH E.
BAILEY and JANET L. ZEIGLER.
b. Whenever in the sole judgment of a majority of the members of the Distribution
Committee it is determined to be appropriate to make a distribution from the Trust Estate to one or more
of the following persons: KEITH E. BAILEY and JANET L. ZEIGLER, the children of the Settlor, and the
children of the aforesaid children of the Settlor (i.e. the grandchildren of the Settlor), the Committee is
authorized to require the Trustee to make such distributions to any one or more of the said persons as
the Distribution Committee shall direct. Distributions from the Trust may not be made to or for the
benefit of any persons other than those listed in this paragraph. Distributions need not be equal among
the persons listed as potential distributees, and one or more of potential distributees may receive more
or less in distributions than other potential distributees, as the Distribution Committee shall determine.
7.02. ADDITIONAL PROVISIONS RELATED TO THE DISTRIBUTION COMMITTEE.
a. Any member of the Committee may resign in the manner provided hereinafter.
b. There shall be two members of the Committee. In the event that any member of the
Committee becomes incapacitated or resigns, or fails or ceases to act or continue as member of the
Committee for any reason whatsoever, the following persons shall succeed to the position of member
of the Committee, in the order of priority set forth below, with full power to act as set forth in this
document
First Alternate Member:
JILL S. MILLER
Second Alternate Member:
BARBARA L. ORWAN
c. A resignation of a member of the Committee or appointment of member to the
Committee shall be by instrument in writing and such instrument shall be delivered to the Trustee and
the successor Trustee provided that the failure to file or deliver such instrument shall not make it
ineffective.
d. The incapacity, failure to act, resignation, or cessation of action of any person named
herein as a member of the Committee shall be conclusively presumed by all persons upon presentation
of a written statement executed by any two of the following persons, KEITH E. BAILEY and JANET L.
ZEIGLER (all of whom are issue of the Settlor), which certifies the said incapacity, resignation, failure,
or cessation of action by the member. All persons shall rely upon such a certification and are hereby
released from any and all liability of any nature in regard to the Trust Estate and the beneficiaries of the
Trust resulting from the reliance on said certification.
7
ARTICLE 8
MISCELLANEOUS PROVISIONS
8.01. MISCELLANEOUS PROVISIONS.
a. Neither the Trustee nor any other person acting hereunder shall be required to give
bond for the faithful performance of his duties in any jurisdiction.
b. No person dealing with the Trustee, or the Trustee's successors or survivors, shall
be bound to see to the application of any purchase money or other consideration or to inquire into the
validity, necessity, or propriety of any transaction to which such Fiduciaries may be parties.
c. Any Trustee shall be entitled at any time to seek a judicial settlement of accounts
in any court of competent jurisdiction selected by my Trustee. As an alternative, the Trustee may at any
time settle the account of the Trust or Trust share hereunder by agreement with the income beneficiary
or beneficiaries of that Trust or Trust share who are not under any legal disability; and such agreement
shall bind all persons whether or not then in being or sui juris, or then or thereafter entitled to any portion
of the Trust or Trust share, and shall effectively release and discharge the Trustee for the acts and
proceedings so accounted for.
d. The Trustee shall be entitled to receive reasonable compensation. Any Trustee shall
be entitled to be reimbursed for reasonable expenses it incurs which are necessary to carry out its duties
as Trustee hereunder.
e. Whenever appropriate in this Trust Agreement, the singular shall be deemed to
include the plural and vice versa; and the masculine shall be deemed to include the feminine, and vice
versa, and each of them to include the neuter, and vice versa.
f. For all purposes hereunder, the word "property" shall be deemed to include real and
personal property and any interest of any kind in any real or personal property; and the word "give" shall
be taken to include the words "devise" and "bequeath" wherever appropriate in order to effectuate the
transfer of real or personal property.
~~ ~~ g. For all purposes hereunder, the terms "Personal Representatives," "Committee
Members, Trustees, Guardians, Agents, and Fiduciaries, and the singulars thereof, shall apply,
respectively, to those who are then entitled and qualified to act as such, whether originally appointed,
remaining, substituted, or succeeding. The term "corporate Trustee," if used herein, shall mean a
corporation which is in the business of acting as a Fiduciary and is duly authorized under the law of the
situs of the Trust to serve as Trustee.
h. The Trustee shall have the power, in the Trustee's discretion, to select assets to be
sold by the Trust Estate for the payment of debts, and taxes in a manner that will minimize the
recognition of gain for federal income tax purposes. The Trustee shall have the right to exercise any
options and elections under the tax laws applicable to the Trust Estate as the Trustee determines should
be made. No compensation adjustments between income and principal shall be made even though the
elections may affect the interests of the beneficiaries. The action of the Trustee with respect to options
and elections made shall be conclusive and binding upon all beneficiaries.
8
i. There shall be no duty on the Trustee to pay or see to the payment of any premiums
on any policies of life insurance or to take any steps to keep them in force, until such time as the Trustee
holds title to any insurance policies hereunder as a part of the corpus of any Trust Estate. The Trustee
furthermore assumes no responsibility with respect to the validity or enforceability of said policies.
However, as soon as practicable after receiving notice of the death of the insured under any of such
policies, the Trustee shall proceed to collect all amounts payable thereunder. The Trustee shall have
full and complete authority to collect and receive any and all such amounts and its receipt therefor shall
be a full and complete acquittance to any insurer or payor, who shall be under no obligation to see to the
proper application thereof by the Trustee.
j. While Settlor is living, the Settlor shall be entitled to occupy any real estate held by
the Trust.
k. Notwithstanding anything to the contrary, no Trust hereunder shall extend beyond
twenty-one (21) years after the death of the last survivor of the Settlor and the descendants of the Settlor
who are living at the date of the Settlor's death. At the expiration of that period, the Trustee shall
distribute the remaining portion of any Trust property to the beneficiaries entitled to income at that time,
provided, however, that in no event may any distributions of principal be made to or for the benefit of
either the Settlor or any spouse of the Settlor or to the Settlor's estate or to the estate of any spouse of
the Settlor or to the creditors of the Settlor or any spouse of the Settlor or the creditors of their estates.
I. The Trustee shall render an account of the administration of the trust to the then-
living adult income beneficiaries and adult remainderman on request by any adult income beneficiary or
adult remainderman, and the approval thereof by the living adult beneficiaries and remainderman shall
be conclusively binding on all parties in interest under this Agreement. The aforementioned adult
beneficiaries or adult remainderman, as the case may be, shall be conclusively presumed to have
approved each such account unless he, she, or they file written exceptions thereto with the Trustee
withing thirty (30) days after the receipt of each account. Nothing herein shall limit the right of the
Trustee to file an accounting in a court of competent jurisdiction at appropriate times. The records of the
Trust shall be opened at all reasonable times to the inspection of the beneficiaries of the Trust and their
appointed representatives.
ARTICLE 9
ALTERNATE FIDUCIARIES
9.01. SUCCESSOR TRUSTEES. If KEITH E. BAILEY should be unable or unwilling to act or
continue as Trustee for any reason whatsoever, JANET L. ZEIGLER shall be the successor Trustee with
full power and authority as specified herein. If JANET L. ZEIGLER should be unable or unwilling to act
or continue as Trustee for any reason whatsoever, JILL S. MILLER shall be the successor Trustee with
full power and authority as specified herein. If JILL S. MILLER shall be unable or unwilling to act or
continue as Trustee for any reason whatsoever, BARBARA L. ORWAN shall be the successor Trustee
with full power and authority as specified herein.
9.02. DETERMINATION OF INCAPACITY, RESIGNATION, OR OTHER INABILITY OR
UNWILLINGNESS TO ACT BY PERSON SERVING AS TRUSTEE.
9
a. The inability or unwillingness of any person to act or continue as Trustee or co-
Trustee shall be conclusively presumed for all purposes upon execution by the Settlor of a written
statement certifying the existence of said incapacity or unwillingness. All persons shall rely upon such
a certification and are hereby released from any and all liability of any nature in regard to the Trust Estate
and the beneficiaries of the Trust resulting from the reliance on said certification.
b. In the alternative, the inability or unwillingness of any person to act or continue as
Trustee or co-Trustee shall be conclusively presumed for all purposes upon execution by any two of the
following persons of a written statement certifying the existence of said incapacity or unwillingness:
KEITH E. BAILEY and JANET L. ZEIGLER (all of whom are issue of the Settlor). All persons shall rely
upon such a certification and are hereby released from any and all liability of any nature in regard to the
Trust Estate and the beneficiaries of the Trust resulting from the reliance on said certification.
c. In the alternative, the inability of any person to act or continue as Trustee shall be
conclusively presumed by all persons if a physician, duly licensed to practice in the Commonwealth or
Pennsylvania or another of the United States, shall by written statement declare that in the physician's
opinion the person is unable to serve as Trustee due to ill health, disability, incapacity, death, or for any
other reason. All persons shall rely upon such a statement by said physician and the Settlor hereby
releases all persons acting in reliance thereupon and any said physician from any and all liability of any
nature in regard to the making or relying upon such a statement
ARTICLE 10
REALTY TRANSFER TAX
10.01. REALTY TRANSFER TAX EXCLUSION. Other provisions of this Trust Agreement
notwithstanding, in the event that real estate is transferred to the Trust by the Settlor, no distributions of
the principal, income, or other assets of this Trust shall be ever be made from the Trust to any persons
who would fail to meet the requirements necessary to exclude the transfer of real estate to this Trust from
realty transfer taxation under the Section 8102-C.3 of the Pennsylvania Realty Transfer Tax Act (72 P.S.
Section 8102-C.3) as that law is in effect at the time of the transfer of the real estate interest to the Trust.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 11'h day of April, 2003.
WITNESSED BY:
a
KA Y A. O SQUIRE
WILDA H. BAILEY
10
COMMONWEALTH OF PENNSYLVANIA
SS
COUNTY OF LYCOMING
ON THIS, the 11th day of April, 2003, before me, JOETTA A. LOSE, the undersigned officer,
personally appeared, KATHY A. KRON, known to me or satisfactorily proven to be a member of the bar
of the highest court of said state and a subscribing witness to the within instrument, and certified that she
was personally present when WILDA H. BAILEY whose name is subscribed to the within instrument
executed the same, and the said person acknowledged that she executed the same for the purposes
therein contained.
IN WITNESS WHEREOF, I have hereunto set my hand and seal.
Notary ~plic
My Commission
NOTARY PUBLIC
t0.. LYCOMING CO.
11
SCHEDULE A
BAILEY INCOME ONLY TRUST
The following assets have been conveyed to the Trust this 11th day of April, 2003.
1. Ten Dollars ($10.00).
WILDA H. BAILEY
By executing this Schedule A of the BAILEY INCOME ONLY TRUST AGREEMENT, the person named
below agrees to accept the position of Trustee and further accepts the Trust assets hereby conveyed.
ACCEPTED BY:
KEITH E. BAILEY
12