Loading...
HomeMy WebLinkAbout03-16-10J 1505607120 REV-1500 EX (06-05) OFFICIAL USE ONLY PA Department of Revenue county coda veer Filo Number Bureau of Individual Taxes INHERITANCE TAX RETURN 2 1 0 9 0 0 8 5 6 PO 80X.280601 Harrisburg, PA 17128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 216 03 6821 08 03 2009 02 25 1915 Decedent's Last Name Suifix Decedent's First Name MI VARNHORN CATHERINE M (If Applicable) Enter Surviving Spouse's Inforrnatlon Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OPALS BELOW X^ 1. Original Return ~ 2. Supplemental Return ~ 3. Remainder Return (date of death poor to 12-13-82) 4. Limited Estate ~ 4a. Future Interest Compromise ~ 5. Federal Estate Tax Return Required (date of death after 12-12-92) ^ g Decedent Died Testate (Anach copy of wnq C~ ~. Decedent Maintained a Living Trust (Anau, copy or rtvaq 8. Total Numtler of Safe Deposit Boxes 9. Litigation Proceeds Received 1 p, Spousal Poverty Credit (tlale of death between 12-31-81 end i-1-95) ~ ~, Election to tax under Sec. 9113(A) (Attach Sch. O) CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED T0: Name Daytime Telephone Number RICHARD W. STEWART (717) 761 4540 Firm Name (If Applicable) J O H N S O N D U F F I E REGISTER O~ILLS USE t$~.Y First Ilne of address c~7 ° ' ~ i ~n Ate, 3 O 1 MARKET ST . ~: r-- aD ,:gym ,_ 1=? „ ''c~~? Qy ~` f .:,r "~ ~ ~ Second line of address ter-, - PO BOX 1 0 9 ~~ ~[' ' ~ ~~ `' ' City or Post Office State ZIP Code F LED DA rT- I LEMOYNE PA 17043-0109 ~ Correspondent's a-mail address: Un nattiea of perjury, I deals at I have examined this return ' , including arxbmpanying schedules and statements and to the beat of my knowledge and belief , I tru correct a com te. lion of preparer other than the personal representative Is based on all information of which preparer has any knowledge , SIGNAT RE 0 PE FOR FILING RE RN ^,, ~Q/Yl . DAT JOHN F. VARNHORN ,~l `/ ~~~ 991 COUNTRY CLUB ROAD, CAMP HILL, PA 17011 SIGNATURE OF PR~PARER OTHER THAN REPRESENTATIVE _ DATE ~~f~ %'~s RICHARD W. STEWART 301 Market St., Lemoyne, PA 17043-0109 Side 1 L 1505607120 1505607120 J ~,1'~ REV-1500 EX 1505607220 oeceaom•sNeme CATHERINE M. VARNHORN Decedent's Social Security Number 216 03 6821 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. 5• Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ............... . 5. 6. Jointy Owned Property (Schedule F) ~] Separate Billing Requested ............ . 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ~ Separate Billing Requested ............ . 7. 8. Totat Grosa Assets (total Lines 1-7) ...................................................................... . g. 9. Funeral Expenses & Administrative Costs (Schedule H) ........................................ . 9. 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) ............................... . 10. 11. Total Deductions (total Lines 9 & 10) .................................................................... .. 11. 12. Net Value of Estate (Line 8 minus Line 11) ........................................................... .. 12. 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. TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 0 . 0 0 (a>(1.z) x .oo 15. 16. Amount of Line 14 taxable 4 4 1, 1 3 1. 2 6 16 at lineal rate x .045 . 17. Amount of Line 14 taxable 0 . 0 0 at sibling rate X 12 17. 18. Amount of Line 14 taxable at collateral rate X .15 0 . 0 0 18. 19. Tax Due .................................................................................................................... . 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. 155,899.80 14,228.43 304,315.85 474,444.08 14,009.66 19,303.16 33,312.82 441,131.26 441,131.26 0.00 19,850.91 0.00 0.00 19,850.91 Side 2 1505607220 1505607220 REV-1500 EX Page 3 Decedent's Complete Address: File Number 21-09-00856 DECEDENT'S NAME CATHERINE M. VARNHORN STREET ADDRESS Messiah Village 222 Messiah Circle, Rm. 48D CITY STATE ZIP MECHANICSBURG PA 17055 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. CreditsfPayments A. Spousal Poverty Credit B. Prior Payments C. Discount 3. InteresUPenalty if applicable D. Interest E. Penalty 18,000.00 947.37 Total Credits (A + B + C) (1) 19,850.91 (2) 18,947.37 (3) (4) (5) 903.54 (5A) (5B) 903.54 Total InteresVPenalty (D + E) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check boz on Page 2 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. A. Enter the interest on the tax due. B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. Make Check Payable to: 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 usa or inwme of the property transferred :.................................................................................. ^ x b. retain the right to designate who shall usa the property transferred or its income :.................................... c. retain a reversionary interest; or .................................................................................................................. ^ ^ d. receive the promise for life of either payments, benefits or care? .............................................................. x 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate wnsideration? ....................................................................................................................... ^ 0 For dates of death on or after Juty 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 (0) percent [72 P.S. §9116 (a) (1.2)]. 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. §8116 (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)]. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. Rw-tsoz ex.Iffael SCHEDULE A REAL ESTATE COAegNWEALTM OF PENNSYLVANIA INHERRANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER VARNHORN, CATHERINE M. 21-09-00856 All roN progeny owrrod wbly or as ^ bnam In common mwt M ropOMtl K fair maAcet valve. Far markot valor I: defined as the price at whkh progeny woultl De exchengetl between a wlllkq buyer and a wNXng sNlsr, nedher Delnp compseed to Duy or sell, Doth having reasonable knowledge of the relevant fade. Real properly which b plydly-owned whh rlpM oT sunlvorohip mwl M disclosed on uhadula F. Attach a orgy or the aedlement sheet M the property has been sold. Indutle a copy M the deed showing decetlent's interest K owned es tenant in common. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Real Estate - No. 15 Fargreen, East Pennsboro Township, Cumberland -County, PA 155,899.60 - Book L, Volume 35, Page 172. (Copy of 2009 tax statement attached). Assessed value - 5123,730.00 x 1.26 Common Level Ration Factor = TOTAL (Also enter on Line 1, Recapitulation) I 155,899.80 (If more space is needed, additional pages o} the same size) Copyright (c) 2009 form software only The Lackner Group, Inc. Form PA-1500 Schedule A (Rev. 11-08) Rev16Da EXr (e•ab) SCHEDULE E CASH, BANK DEPOSITS, ~ MISC. PERSONAL PROPERTY COaNgNWEALTN OF PENNSYLVANIA INNERRANOE TAX RETURN RESIDENT DECEDENT ESTATE OF VARNHORN, CATHERINE M. LE NUMBER 21-08-00858 Include tM proceeds W utipatbn and the date the proessde were roceiwd by tM estate. !UI property Jo1Mlyowned vAth the ripM or survlvowhlp must bs tllselossd on schedule F. (rc more apace Ia nI)eded, additional pepea of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-7500 Schedule E (Rev. 6-98) Rw-Tajo ex+ (a-sat SCHEDULE 6 INTER-VIVOS TRANSFERS 8 MISC. NON-PROBATE PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAR RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER VARNHORN, CATHERINE M. 21-08-00866 Thie schedule must be comPleletl entl Oletl H the gnawer to any M questions 1 through 4 on the reverse aide of the REV-1500 COVER SHEET is yea. ITEM NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST EXCLUSION (IF APPLICABLE) TAXABLE VALUE 1 The Vamhorn Irrevocable Trust dated October 1, 608,631.70 50.000°/a 304,315.85 1881 -Catherine M. -Vamhorn and PNC Wealth Management (Un/a CCNB Bank, N.A.), Trustees. John F. Vamhorn, son, sole beneficiary. Date of death value -:608,631.70. Copy of Trust attached. Statement confirming date of death value. (John E. Vamhorn, husband, died April 5,1992 -Cumberland County Estate No. 21-93-0425) TOTAL (Also enter on Line 7, Recapitulation) I 304,315.85 (If more apace is needed, additional papas of the same size) Copyright (c) 2002 Torm software only The Lackner Group, Inc. Form PA-1500 Schedule G (Rev. 6-98) ~~~~ ,,, ~o~~~~,. ESTATE TAX SLCURYTSLS VALUATYON /'~ I~CCO})Nx: 3138206 Name of ea take: VAANIfORN BAMIS,X TRUST U Monday, 'mil -"'~'# IT@4 CUSIP NO. SHARES/ DESCRIPTION PRICE eYmB/ASK 1017/8YD 3~AN SECDRITY ACCROED DAR vA3.U8 PATE PRICE PAIGE AAYCc vAI.iD; D1V/~ 1) oo2o6A1O2 .DO •rcr YNC oe/o3 26.9000 zs 8BOO 26 39000 10 556 00 2) 049109501 3) 043118709 d) 23339@791 5) 2562061D3 6) 411511306 7) 064287698 B) 552983690 9) 5713O0AR0 10) 701479109 11) 779556109 32) 77957N3O8 13) 779578103 1a) 92309V106 15) 993077106 36) 999077100 PAGE N0. 1 COMHBNT9 NYSC__-_._ HUT FOND NVT R)NO MUT FONY1 MOI BUMP e51T PUND RACI9IC EX MOT PDND NASAAQ MUT FOND NUT FONh MOT FUND NdIT .-YDID NYSE COM 899 .8360 ARTISAti LDS INC OB/03 12.5600 12.56000 11,301.94 iF9. CAP VALOE 969,467D ARTYaAN FDa YNC DB/03 is.6S00 15.83000 13,763.66 HIDCP VALU INV 6,916. 9960 DN9 ADVISOR LDS OB/03 10.0900 iD.O9D00 69,792.49 SBTLM l4V8DFD 8 595. 9a B0 DDDmc t cDK fiDe 08/03 29.1300 29.13000 17,359.97 INTL STX FD SBd. B66D HARBOR @p 08/03 49.4500 Q9.Q5O0O 28,921.62 xxTL LD INaxs, 200 xS8na8s Tn YND9X OB/03 61.8200 60.8600 61.34000 12,266.00 ROSE 2000 GROW 5,832. 8220 MPS SEA TR I 06/03 19,1900 19.19000 111,991.85 va.I.Ua 6T1 r,Y. Y 5,000 NARXLANO sT TRANaN AUTR TRANaN OB/09 116.7330 116.6540 116.69350 5,831.68 DT 07/01/1978 6.8DOi 07/01/2016 Int, Lromi 07/01/2009 to 08/03/2009 ~ 31.17 5,956. 6B30pR)[CE T AO17c ccONTR eTX Yb IHC 09/03 24.1100 24.11000 143,615.63 COH 320. 5980 ROBE T PAICB NID-CAP GROWTH FD 08/03 a1,8aO0 a1,91O0O 13,413,82 COM 8,495. 1860 RO-iE t pRICC SV-aaiT NUN LDg Iii 09/03 10.0700 10.47000 88,944.60 NON YNCOFO! iD 2,0@9. 6590 coNC T PR3C8 VALUB HD IDTC OB/03 18.5600 18.56000 98,672.73 COM 400 VER12ON COb)0I9ICATION3 CON OB/0$ 32.5900 31.@000 92.1B50O 12,B7Q.O0 2a,5aa.95O0 PYDEY.YrY 1dDN9Y H[@1P 1N8T CLASS FD #059 2a,Sa0,35 0.99 NaNOnY. PRINCIPAL CA9R 1,800.0300 FIDELITY MONEY M33' INSx1xUTIONa3. CL FFD .d,8Dd.03 0.19 Hif?YOAL #059 - INCON9 GS9 Grand To tale ~ 608,599:95 32.35 Total prlecipal plus Accrued interest and dividehde 608,691.70 - This report was prepared using APDAAISIe Ver. 7.4,1 sefewaro, an LVALVATYON SERVICLa, INC. product. Phone 201 79l 8500. Visit our vaL sites ar NWW.APPFAIBENJ.COM and HWFi. COSTBASIS.INFO. ~~p~ T8E :, VARNAORN FAMILX IRREVOCABLE TR08T T8I8 TRUST AGREEMENT executed in triplicate on this ~'~ of ~~~~ ~ ~~ y..~.J 1991, by ,and between JOBN g. ~ day through his Attorney-in-Fact,. C7ITHDRINE M. VARNRO~ n~' fyignd. F'argreen Road, Camp Hill,, Pennsylvania (hereinafter called "Settlor"') and CATBFRINE M• VARNSORN, now of 15 Fargreen Road, Camp Hill, Pennsylvania and CCNB 8AN1C, N.A., Camp Hill, Pennsylvania (hereinafter called "Trustees" or "'Co-Trustees"). ARTICLE' I. TRUBT 88TATE 1.0i. Initial Priaaipal. Settlor, desiring to establish an irrevocable trust, does hereby irrevocably transfer, assign and deliver to the Trustees and their successors, and assigns the assets listed on Schedule A, attached hereto and made a part hereof. As further evidence of such assignment, the Settlor has executed or will execute or .cause to be executed such other instruments as may be required far the purposes of completing the assignment or transfer of title to such property to the Trustees. The Trustees accept such transfer and assignment to themselves as Trustees, and undertake to hold, manage, invest and reinvest the assets of this Trust,.and distribute the income and principal of the Trust in accordance with the provisions of this Agreement. l•dZ. Additional. PriAaipal. The Settlor and any other person or persons, w th the consent of the Trustees, shall have the right at any time to make additions to the corpus of this Trust or any shares. thereof hereby established. All such additions shall~be held, governed, and distributed by the Trustees in accordance with the terms and conditions of this Agreement. ARTICLE II. IRREVOCABILITY OF TRUST 2.01. Irrevocabilit Settlor has been advised of the consequences of an irrevocable trust and hereby declares that this Trust shall be irrevocable and shall not be altered, amended, revoked, or terminated by Settlor or any other person or persons. JUN-25-2~1~J1 1E~4.i PNL BANK 717 73© 2'254 P.J3i14 ARTICLE III. LIFE INS'Q~NCE POLICIEfi 3.01. General Provisions. If an insurance transferred into this Trust,~the-Trusteesyshall be vestedcwithare aJ.l right, title, and interest in and to the transferred policies of insurance, and is authorized and empowered to exercise and ' enjoy, for the purposes of the Trust herein created and as absolute owner of such policies. of insurance, all the options, benefits, rights and privileges under such policies, including the right to borrow upon and to pledge them for a loan or loans. The Trustees take alI rights, title, and interest in-and to the above stated insurance policies subject to any prior split-dollar life insurance agreement 'and assignments, which may be in effect at the time of the transfer. The insurance companies which have issued such policies are hereby authorized and directed to recognize the Trustees as absolute owners of such policies of insurance and as fully entitled to all options, rights, privileges, and interests under such policies, and any receipts, releases, and other instruments executed by the Trustees in connection with such policies shall be binding and conclusive upon the insurance companies and upon all pexsons interested in this Trust. The Settlor hereby relinquishes all rights, title,. interest and powers in such policies of insurance which Settlor may own and which rights, title, interest and powers are not assignable, and will, at the request of the Trustees, execute all other instruments reasonably required to effectuate this relinquishment. 3.02. Pa eat o! Premiums. The Trustees shall be under no obligation to pay the preen ums which may become due and payable under the provisions of any policy of insurance which may be transferred or assigned to this Trust, or to make certain that such premiums are paid by the transferor of such policy, or to notify any persons of the nonpayment of such premiums, and the Trustees shall be under no responsibility or liability of any kind in case such premiums are not paid, except the Trustees shall apply any dividends received on such policies to the payment of premiums thereon. Upon notice at any time during the continuance of this Trust that the premiums due upon such policies are in default, or that premiums which will become due will not be paid,~either by the transferor or by any other person, .the Trustees, within their sole discretion, may apply any cash values attributable to such policy to the purchase of paid- up insurance or of extended insurance, or may. borrow ugon such policy for the payment of premiums due thereon, or may accept the cash values of such policy upon the policy~s forfeiture. In the event that the Trustees receive the cash value of such policy upon its forfeiture for nonpayment of received shall be added to the corpus of ethissTrust,aandnshall be administered according to the terms of this Agreement. If the insured under such policies of insurance, becomes totally and -~- .JUN-25-2001 1645 PNr SANK 717 730 2254 P. 04!14 permanently disabled within the meaning of any policies and durin3etheereof the payment of premiums, or any of them, shall 9 pendency of such. disability, be waived, the Trustees, upon receipt of such knowledge, shall promptly notify the- insurance company which has issued such policies, and shall take any and all steps necessary to make suah waiver of premium provision effective. 3.03. Duti®s of Trustees With Re srd to Life =nsurano• Foliaiea. The Trustees shall be un er no obl gat on or duty whatever except with respect to the safekeeping of such policies of insurance and the duty to receive such sums as may be paid to it, in accordance with the- requirements of this Trust, by the companies issuing such policies, and to hold, manage and disburse such proceeds subject to the terms of this Agreement. Upon the death of the insured, the Trustees ahall make reasonable efforts to carry out the provisions of this Agreement, including the maintenance or defense of any suit, provided, however, the Trustees shall be under no duty to maintain or enter into any litigation unless its expenses, including counsel fees and costs, have been advanced or guaranteed in an amount and in a manner reasonably satisfactory to the Trustees. The Trustees may repay any advances made by it or reimburse itself for any such fees and costs from any corpus or income of this Trust. ARTICLE IO. TRQBT DISTRI$IITIONB 4.01. Trust prinoi alal. The entire corpus of this Trust including, the assets n ti ~ iallY transferred to this Trust,- subsequent additions to this Trust, and the proceeds of any sale, exchange or investment of such Trust assets, sha}.l be used for the following purposes: x•02• inooms Distribution. The Trustees shall CATHERINE M. pARHgoRM, for and during her lifetime; or applytfor her benefit, all of the net income of the Trust,' in .such periodic installmer-ts as the Trustees shall find convenient but at least monthly. The Trustees may apply the income for the benefit of the income beneficiary. X1.03. Distributions II on Termination of the Trust. upon the death of CATH8RIN8 M. DARNHORN, the `Trust shah. terminate. Upon termination the remaining Trust estate shall be distributed absolutely to Settlor's son, JOHN F. VARNHORN, per stirpes. 4 ~ 0! • Gleneral Poorer of A ointment. Settlor~s son,-JOHN F. VARNHORN, is hereby granted the general power to appoint some or all of the principal of this Trust to himself, his estate, his creditors, the creditors of his JIJN-25-2a~1 16~ a6 PF•!C BANK. 717 737 225A P. D5.i14 estate, or any other individual, in such proportions and upon such terms (intrust, outright gifts, or in any other manner) as he deems advisable. This power shall not be exercisable under his Will. If Settlor's son, JO$N F. VARNHORN, .fails, either in whole or in part, to exercise this general power of appointment herein granted, the unappointed principal shall continue in trust and shall be administered according to the terms of this Trust. 4.b5. Special Power .of Aptiointment. Settlor's spouse, CATBER=Ng M. DARNHORN is hereb the. special power to appoint, at any time and from time toatime, the principal of this Trust in whole or in part and in any manner and in such proportions as she deems advisable to any person,. persons or institutions. This power may be exercised under her will, if her will makes specific reference to this provision. This special power of appointment does not grant to Settlor's spouse the power to appoint the principal of this Trust to herself, her estate, her creditors, or the creditors of her estate. If Settlor's spouse fails, either in whole or in part, to exercise this special power of appointment herein granted, the unappointed principal shall continue in trust and shall be administered according to the terms of this Trust. ARTICLE O. POWERS OB TRIIBTEE$ S.oi. General posters. In addition to such other and duties as may have been granted5.elsewhere in this Trust4Wbut subject to any limitations.containe$ elsewhere in this Trust, the Trustees shall have the following powers and duties; A• In the management, care and disposition of this Trust, the Trustees shall have the power to do all things and to execute such instruments, .deeds and other documents as may be deemed necessary and proper, including the following powers, all of which may be exercised without order of or report to any court; (1) To sell, exchange, or otherwise dispose of any property, real, personal ar mixed, at any time held or acquired hereunder, at public or private sale, for cash or on terms, without advertisement, including the right to lease for any term notwithstanding the period: of the Trust,-and to grant options, including an option for a period beyond the duration of the Trust: -4- °JLIN-25-2001 16 47 PNC BANK 717 730 2254 P.06!14 (2) To invest all monies in such stocks, bonds., securities, investment companies or trust shares, mortgages, notes, chores in action, real estate, improvements thereon, and other property as the Trustees may dep~ best, without regard to any law now or hereafter in force limiting investments of fiduciaries; except that the Trustees may not invest in any stock or securities issued by the corporate Trustee or issued by a parent or affiliate company of such Trustee. - (3) To retain for investment any property deposited with the Trustees hereunder; except that the Trustees may not retain for investment any stock or securities in the corporate Trustee or in a parent or affiliate company of .such Trustee. (4) To vote in person or by proxy any corporate stock or other security and to agree to or take any other action in regard to any reorganization, merger, consolidation, liquidation, bankruptcy or other procedure or proceedings affecting any stock, bond, note, or other security held by this Trust. brokers accountants and other agents, if such employment is deemed necessary or desirable, and to pay reasonable compensation for their services. claim(or demand byoorsagainstltherTrustsandny to agree to .any rescission or modification of any contract or agreement affecting the Trust. (7) To renew any indebtedness, as. well as to borrow money, and to secure the same by mortgaging, pledging or conveying any property of the Trust, including the power to borrow-from the Trustees (in the Trustees individual capacity) at a reasonable rate of interest. (8) To retain and carry on any business in-which the Trust may acquire any interest, to acquire additional interests in any such business, to agree to the liquidation in kind _q_ ~ ~JUtJ=25-2001 1648 PNC BANK 717 730 2254 P.07~14 of any corporation in which the Trust may have any interest and to carry on the business thereof, to join with other owners in adopting any form of management for any business or property in which the Trust may have an interest, to become or remain a partner, general or limited, in regard to any such business or property and to hold the -stock or other securities as an investment, and to employ agents and confer on them authority to manage and operate the business, property or corporation, without liability far the acts of any such agent yr for any loss, liability or indebtedness of such business if the management is selected or retained with reasonable care. (9) To register any stock, bond or other security in the name of a nominee, without the addition of words indicating that such security is held in a fiduoiary capacity, but accurate records shall be maintained showing that the stock, bond or other security is .a trust asset and the Trustees shall be responsible for the acts of the no~ainee. trust(createdmingmytWillTorsotherwisey withr similar provisions and purposes and the same beneficiary or beneficiaries, but only to the extent that the merger of the trusts will not cause the imposition o= gift tax or generation-skipping tax, federal or otherwise. B• Whenever the Trustees are directed to distribute any trust principal in Pee simple to a person who is then under twenty-one (21) years of age, the Trustees shall be authorized to hold such property in trust for such person until he becomes twenty-one (21) Years of age, and in the meantime shall use. such part of the income and the principal of the trust as the Trustees may deem necessary to provide-for the proper support and education of such person in the standard of living to whiah he has become accustomed. If such person should die before becoming twenty-one. (21) years of age, the property then remaining in trust. shall be distributed to the personal representative of such personas estate. '6 '7UN-25-2001 15 49 PNC BANK 717 730 2254 P.08/14 C• In making distributions from the Trust to or for the benefit of any minor or other person under a legal disability, the Trustees need not require the appointment of a guardian, but shall be authorized to pay or deliver the distribution to the custodian of such person, to pay or deliver the distribution to such person without the intervention of a guardian, to pay or deliver the distribution to the legal guardian of such person if a. guardian has already been appointed, or to use the distribution for the benefit of such person. D. In the distribution of the Trust and any division into separate trusts and shares, the Trustees shall be authorized to make the distribution and division in money or in kind or in both,. regardless of the basis for income tax gurposes of any property distributed or divided in kind, and the distribution and division made and the values.established by the Trustees shall be binding and conclusive on all persons taking hereunder. The Trustees may in making such distribution or division allot undivided interests in the same property to several trusts or shares. E. If at any time after Settlor's death the total fair market value of the assets of any trust established or to be established hereunder is so small that the corporate Trustee's annual fee for administering the trust would be equal to or less than the minimum annual fee set forth in the Trustee's regularly published fee schedule then, in effect, the Trustee in its discretion shall be authorized to terminate such trust or to decide not to establish such trust, and in such event the property then held in or~ to be distributed to such trust shall be distributed to the persons who are then or a-ould be entitled to the income of such trust. If the amount of income to be received by such persons is to be determined in the discretion of the Trustees, then the Trustees shall distribute the property among such of the persons to whom the Trustees are authorized to distribute income, and in such proportions, as the Trustees. in their- discretion shall determine. F• The Trustees shall be authorized to lend or borrow, including the right to lend to or borrow from the Settlor's estate, at an adequate rate of interest and with adequate security and upon such terms and conditions as the Trustees shall deem fair and equitable. _ -7- JUf~-~5-2801 16 ~ 50 PNC BRhJK 717 73Et 254 P.~9/14 G• The Trustees shall be authorized to sell or purchase, at the fair market value as determined by the Trustees, any property to or from Settlor's estate, the estate of Settlor's spouse, or any trust created by Settlor or Settlor's spouse during life or by will, even though the same person or corporation may be acting as executor of Settlor's estate or the estate of Settlor's"spouse or as trustee of any of such other trusts and as the Trustee of this Trust. H. The Trustees shall have discretion to determine whether items should be charged or credited to income or principal or allocated between income and principal as Trustees may deem equitable and fair under all the circumstances, including the power to amortize or fail to amortize any part or all of any premium or discount, to treat any part or all of the profit resulting from the maturity or sale of any asset, whether purchased at a premium or at a discount, as income or principal or apportion the same between income and principal, to apportion the sales price of any asset between income and principal, to treat any dividend or other distribution on any investment as income or principal or to apportion the same between income and principal, to charge any expense against income or principal or apportion the same, and to provide or fail to provide a reasonable reserve against depreciation or obsolescence on any asset subject to depreciation or obsolescence,tiall as the Trustees may reasonably deem equitable and just under all of the circumstances. I. The Trustees are hereby authorized and empowered to purchase such insurance policies as they deem appropriate. 3.02• votia b Trust~ss. When the authorit and under this,Trust s vested~n two (2) or more Trustees or Coower Trustees, the authority and powers are to be held jointly by the Trustees or Co-Trustees. A majority of the Trustees or Co- Trustees may exercise any authority or power granted under this Trust or granted by law, and may act on behalf of the Trust. Any attempt by one such Trustee to act for the Trust on other than ministerial acts shall be void. The action of one such .Trustee on behalf of the Trust may be validated by a subsequent ratification of the act by a majority of the Trustees or Co- Trustees. -q- 7Ut~1-25-2p~~1 1E ~ 51 FNC BANK ARTICLE vI. 717 73L1 2254 P.10.~14 SPENDTHRIFT PROVISION 6.01. General Pronisioa. No beneficiary shall have the power to anticipate, encumber ar t.ransfer. his interest. in the Trust Estate in any manner othsr than by the valid exercise of a Power of Appointment. No part of the Trust Estate shall be liable for or charged with anY debts, contracts, liabilities or torts of a beneficiary or subject to seizure or other process by any creditor of a beneficiary: ARTICLE DII. CONBTRIICTION OF TRDBT 7.01. Choice of Law. This Trust. shall be administered and interpreted in accordance with the laws of the Commonwealth of Pennsylvania. 7.02. Code. Unless otherwise stated, all references fn this Trust to section and chapter numbers are to those of the provisionseof~anyCsubsequent6federaletaxdlaws applicablelto this Trust. 7.03. Other Terms. Unless the context otherwise requires, the use of one or more genders in the text includes all other genders, and the use of either the singular or the plural in the text includes both the singular and the plural. 7.04 Ca Lions. The captibns set forth in this Agreement at the beg~,nning of the various divisions hereof are for convenience of reference only and shall not be deemed to define or limit the provisions hereof or to affect in any way their construction and application. 7.05. Bites of Trust. The Trust shall have its legal sites in Cumberland County, Pennsylvania. ARTICLE VIII. COMPENSATION OF TRII8T3lEB AND APPOINTMENT OF BQCC$880R TRIISTE$ 8.01. Com enaction. The Trustees shall receive as their compensation for the sere ces performed hereunder that sum of money which .the Trustees normally and customarily. charge for performing similar services during the time which they perform these services. 8.02. Removal of Trustees. Settlor may. remove .the Trustees, or either of them, at any time or times, .with or without cause, upon thirty (30) da ~ i ys wr tten notice given to the JU~l-25-2~~1 1652 PNC HANK 717 7.3C~ 2254 P.11!1~1 current Trustees. Upon the death of Settlor, a majority of the currant income beneficiaries may remove the Trustees, or either of them, .at any time or times, with or without cause, upon thirty (30) days! written notice given to the Trustees. Upon the removal of the Trustees, or either of them, a successor Trustee shall be appointed in accordance with the terms set forth in Paragraph 8.03. 8.03.. Ap~ointm®nt of Suaaessor Trustas. The Trustees may resign at any time upon t ih rty (30) days' written notice given to the Settlor if Settlor is living, or in the event of Settlor s death, upon thirty (30) days' written notice given to the current income beneficiary or beneficiaries (including a beneficiary's natural or-legal guardian or legal representative), hereunder. Upon the death, resignation, removal or incapacity of all Trustees, then Settlor's son, JOHN F. DARNHORN, shall become successor trustee. Upon the death,. resignation, removal or incapacity of the successor trustee, then a successor trustee may be appointed by the Settlor during Settlor's lifetime, or, after Settlor's death, by a majority of the current income beneficiaries. Settlor prohibits the appointment of the beneficiary's or beneficiaries' natural ar legal guardian or legal representative as Trustee. and any attempt to do so shall be without authority under this Agreement. Any successor trustee thus appointed, or, if the Trustees shall merge with or be consolidated with another corporate fiduciary, then such corporate fiduciary, shall succeed to all the duties and to all the powers, including discretionary powers, herein granted to the Trustees. 9 ARTICLE I]C. PERPETUITIES CLAIIBE 9.01. General provision. Notwithstanding anything to the contrary in th s Trust, each disposition I have made here, legal or equitable, to the extent it can be referred in its postponement of becoming a vested interest to a duration measured by some life or lives in being at the time of my death is definitely to vest in interest, although not necessarily in possession,. not later than twenty-one (21) years after such lives (and any period of gestation involved); or, to the extent it cannot be referred in any such postponement to such lives, fs to so vest not later than twenty-one (21) years from the time of my death. ARTZCLB R. ACQUIBITIpN OF IINITED STATES TREA9DRY BONDS ELIGIBLE FOR TA$ PAYMENT= PAYMENT OF TA%E8, FUNl,"RAL ESPENSEe, AND EXpEN8E8 OF ADMTNIBTRATION -10- .. TUN-2~-2~t~1 16 53 PNC.BANk: 717 73~ 2254 P.12/14 10.01. !,c isitioa of Honds. The Trustees may, at any time, without 'the prior approval or d~reation of the Settlor and whether or not the Settlor is able to manage her own affairs,. acquire United States Treasury Bonds selling at a discount, which bonds are redeemable at .their par value plus accrued interest thereon for the purposes of applying the proceeds to-the payment of the United States estate tax on the Settlor's estate; and the Trustees may borrow from any lender, including themselves, with or without security, to so acquire these bonds. 10.OZ. Ba eat.o! IIaited Statoa 8state Tax b 8oad Red~atptioa. The Settlor directs that any Un ted States Treasury Bonds which may be redeemed at their par value plus accrued interest thereon for the purpose of applying the proceeds to the payment of the United States estate tax imposed on the Settlor's estate, and which are held by the Trustees, shall, to the extent of the amount determined to be required for payment of the estate tax, be distributed to the legal representative of the Settlor's estate to be used by the legal representative ahead of any other assets and to the fullest extent possible to pay the estate tax. 10.03. Payment of Death Tax®s and Other Estate 8ottluaeat Costs. After the Trustees have complie- dith paragraph 10.02, above, and ascertained from the legal representative that all such bonds have been redeemed in payment of the United States estate tax, the Trustees shall also ascertain from the legal representative whether the legal representative has sufficient assets to pay the remaining legacy, succession, inheritance, transfer, estate and other death ta~Ces or duties (except the additional estate tax imposed by Section 2032(c), or corresponding provisions of the Internal Revenue Code of 1986 applicable to the Settlor's estate and imposing the tax) levied or assessed against the Settlor's estate (including all interest and penalties thereon), all of which taxes, interest and penalties are hereinafter referred to as the death taxes, interest and penalties. If the legal representative advises the Trustees that insufficient funds exist to pay all.the death taxes,. interest and penalties, the Trustees shall then pay to the legal representative from the trust property, an amount equal to all the death taxes, interest and penalties in excess of the funds available to the legal representative for this purposes, which payments are to be made without apportionment. In making the payments, the Trustees shall use only those assets or their proceeds which are includable in the Settlor's gross estate for purposes of the United .States estate tax and shall -not impair the marital portion without first exhausting the entire non-marital portion. If the Executor of the Settlor's Estate, in such Executor's sole discretion, shall determine that appropriate assets of Settlor's estate are not available in sufficient amount to pay -1I- . 3 'JUN-25-?G~t~1 15 ~ 55 PNC BANK 717 739 2<<4 P.1311~ (1) the Settlor's funeral expenses, and (2) expenses of administering the Settlor's estate, the Trustees shall, upon the request of the Executor of the SeEtlor's estate, contribute from the principal of the trust estate the amount of such deficiency; and in connection with any such action the Trustees shall. rely upon the written statement of the Executor of the Settlor's estate. as to the validity and correctness of the amounts of any such expenses,-and shall furnish funds to such Executor so as to enable such Executor to discharge the same, or to discharge any part or all thereof itself by making payment directly to the person entitled or claiming to be entitled to receive payment thereof. No consideration need be required by the Trustees from the Executor of Settlor's estate for any disbursement made by the Trustees pursuant hereto,- nor shall there be any obligation upon such Executor to repay to the Trustees any of the funds disbursed by it hereunder, and all amounts disbursed by .the Trustees pursuant to the authority hereby conferred upon it shall be disbursed without any right in or duty upon the Trustees to seek or obtain contribution or reimbursement trom any person or property on account of such payment. The Trustees shall not be responsible for the application of any funds delivered by them to the Executor of the Settlor's estate pursuant to the authority herein granted, nor shall the Trustees be subject to liability to any beneficiary hereunder on account of any payment made by it pursuant to the provisions hereof. ' -12- ' JLRJ-~5-2~~11 165E PFIC. EtHhIK 71^ 7.3~ ?~54 P.14/1~1 IN WITNE88 WHEREOF,, the Settlor and Trustees have hereunto set their hands and seals as of the day and year first above written. WITNESBS ,, ~ ~ ~oHN E. ~`--~c~zc~c fu~c~(s~~~) WIRNHORN, 88TTLOA, _ by sad `through his ~~r- Attorney-ia-Pant, CATHERINE M. QARNHQRN COMMONWEALTH OF PENNSYLVANIA : COUNTY OF ~C<mE~E,~?~-~-~ SS: Ori ~ i`a ~, -~ of , 1991, before me, the undersigned notary public, personally appeared JOAN 8. VRNHp~~ by aad through his Attorney-in-Fact, CATHERINE iK. VARNHORN, and in due form of law acknowledged the foregoing instrument to be his act and deed and desired the same to be recorded as such. Witness my hand and notarial seal the day and year aforesaid. My Z~he foregoing Trust Agreement was delivered, an is hereby accepte at C »~i UGC 1991. , Pennsylvania, on oc~ca~c ~ ~~~ `~y~ tom/ ,j~,~, eyt CATHERIND UI. VARNHORN, CO-TRII8TE8 '~ ~~ Atte CCNB HANK, N.A., CO-TRIIBTEE .~ ey= 8 A B~dILEY, VICE PRESIDENT -13- REV•1161 EX+110.08) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES 8r ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER VARNHORN, CATHERINE M. 21-09-00856 Debts of decedent must be reported on Schedule I. ITEM DESCRIPTION AMOUNT NUMBER A. I FUNERAL EXPENSES: See continuation schedule(s) attached B. I ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name(s) of Personal Representative(s) r 6,051.00 Street Address City State Zip Year(s) Commission paid 2. Attorney's Fees Johnson Duffie 7,250.00 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 291.00 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 417.66 See continuation schedule(s) attached TOTAL (Also enter on line 8, Recapitulation) 14,009.66 Copyright (c) 2008 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 10-06) SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER VARNHORN, CATHERINE M. 21-09-00856 ITEM NUMBER DESCRIPTION AMOUNT Funeral Expenses 1 Neill Funeral Home -funeral expenses 6,057.00 H-A Subtotal 6,051.00 Other Administrative Costs 2 Cumberland Law Journal -legal advertisement 75.00 3 PNC Bank -Check Printing Fee -Estate Account 32.56 4 Register of Wills -file Inventory 8r Inheritance Tax Return 30.00 5 Reserve -close-out costs 125.00 6 The Patriot-News -legal advertisement 155.10 H-B7 Subtotal 417.66 Copyright (c) 2002 form software onty The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) Rev-1612 EX+ (12-06) SCHEDULE 1 DEBTS OF DECEDENT, MORTGAGE LIABILITIES, ~ LIENS CONMONWEALTH OF PENNSYLVANV. INNERRANCE TAX RETURN ' RESIDENT DECEDENT ESTATE OF FILE NUMBER VARNHORN, CATHERINE M. 27-09-00856 RspoN debts incumd by Me decetleM prior to death that romelnad unpaid et the dots of death, Inclutliny unnlmDunsd madlcal eXpeneee. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Blue Cross/Blue Shield -overpayment of prescription drug charges. 2,756.08 2 Messiah Village -balance due -decedent's account 16,471.90 3 Mobile X-ray -balance -decedent's account 75.18 TOTAL (Also enter on Llne 10, Recapitulation) I 19,303.16 (If more space is needeQ additional pages of the same size) Copyright (c) 2009 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 12-08) i . ~~ ~ Form P8-01 ~~~~ L~~r~.~ C 100 MOUNT ALLEN DRIVE, MECHANICSBURG, PA 17055 697-4666 040 D JOHN FREDERICK VARNHORN 991 COUNTRY CLUB RD. CAMP HILL, PA 17011 Mrs. CATHRINE M. VARNHORN 10/31/2009 "13A`T~' ; ,.. A ' b~y~ IF'`~r Ft ~ 3 ..„ ..5.2 .eL.. .n ~' . `~'~ r ri D ` . = ,CN~(3~~tt ~~u `~~~d~~'S , t1ALJ~IV`~[a.<.>: Balance Forward ~ 16,471.90 RESIDENT # 70102 CURRENT 0.00 OVER 30 532.80 OVER 60 8,277.20 OVER 90 7,661.90 OVER 120 0.00 TOTAL AMOUNT DUE $16,471.90 Kt51DENT NAME Mrs. CATHRINE M. VARNHORN Form PB-01 WA A 1 % finance charge may be assessed on accounts for which payment has not been received by the due date. Thank you! If you have any questions or concerns about your bill, please address them directly to Fiscal Services at 790-8220. Thank You! REV~161S E%t (11At) SCHEDULE J COMMONWEALTH OF PENNSYLVANIA N IN E BENEFICIARIES RESIDE T DECEDENT ESTATE OF FILE NUMBER VAKrvnVK1Y, VAIKCKIfVt M. 21-08-0 0858 NUMBER NAME AND ADDRESS OF RELATIONSHIP TO DECEDENT SHARE OF ESTATE AMOUNT OF ESTATE PERSON(S) RECEIVING PROPERTY (Words) ($$$) Do Not Utt T t I. TAXABLE DISTRIBUTIONS [include outright spousal distributions and transfers under Sec. ~116(a)(1.2)] 1 JOHN F. VARNHORN Son Residue 991 COUNTRY CLUB ROAD CAMP HILL, PA 17011 Total Enter dollar amounts for distributions shown above on lines 5 throu h 18 on Rev 150 0 cover sheet, as appro priate, [i~ NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET Q,QQ Copyright (c) 2009 form software only The Lackner Group, Inc. Form PA•1600 Schedule J (Rev. 11-08)