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HomeMy WebLinkAbout12-01-10•+ . ~ ~ NOTARIZED SUMMARY OF TRUST • THE MERVIN L. MYERS REVOCABLE LIVING TRUST AGREEMENT rya C? ~~ ~ i 1 _r ~7 ~;"') .,~~~~_ c r~ ~ ~~ rn~ r c ~~ t~ tv ~? ----~ N The undersigned hereby certifies that I created a Revocable Living Trus~ his Trust is known as THE MERVIN L. MYERS REVOCABLE LIVING TRUST, dated the 2-Z day of ~~~~, c! ,;~?l~. MERVIN L. MYERS, Settlor and Trustee, resides at 432 N. Pitt Street, Carlisle, County of Cumberland, Commonwealth of Pennsylvania. IT IS AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS: Description of Trust The party hereto desires to confirm the establishment of a Revocable Trust on this date for the benefit c-f the Settlor and containing herein the following provisions: 1. The Settlor is designated as the Trustee to serve until his death, resignation, or incompetence. 2. Upon the end of the terms of the original Trustee, CHARLES E. MYERS is designated a> First Successor Trustee and FRANCES D. GARMAN is designated as Second Successor Trustee. 3. Any Trustee/Settlor has the power and authority to manage and control, buy, sell, and transfer the Trust property in such manner as the Trustee may deem advisable, and shall have, enjoy and exercise • all powers and rights over the concerning said property and the proceeds thereof as fully and amply as though said Trustee were the absolute and qualified owner of same, including the power to grant, bargain, sell and convey, encumber and hypothecate, real and personal property, and the power to invest in corporate obligations of every kind, stocks, preferred or common, and to buy stocks, bonds and similar investments on margin or other leveraged accounts, except to the extent that. such management would cause includability of an irrevocable trust in the Estate of a Trustee. 4. Following the death of Trustee, the Trust will continue or be distributed in whole or in part for the benefit of other named Beneficiaries according to the terms of the Trust. 5. While Settlor is living and competent, except when there shall be a Corporate Trustee, Trustee may add money to or withdraw money from any bank or savings and loan or checking account owned by the Trust. 6. Unless otherwise indicated to a prospective transferee, the Trustee has full power to transfer assets held in the name of the Trust. Subsequent transferees are entitled to rely upon such transfers provided that the chain of title is not otherwise deficient. 7. The Trust Agreement also states that any bank, corporation, brokerage firm, or other entity or individual, may conclusively presume that the Trustee has full power and authority over the Trust Assets and such person or institution shall be held harmless and shall incur no liability by reason of so presuming. 8. The situs of the Trust is the COMMONWEALTH OF PENNSYLVANIA. • :',`:) ~;) ~ '~.' "~; t-c-~ :: ~~ 1 €_., `ti~f ~.~. ~` .. ~. ~ S,,,,j...1 - ' ~-., .. ~.~ t _~ ~ TRUST SUMMARY Page 1 9. The use of this Summary of Trust is for convenience only and the Trust solely controls as to • provisions and interpretations. Any conflict between this abstract and the Trust shall be decided in Favor of the Trust. IN WITNESS WHEREOF, the party has hereto executed this Summary of Trust this date. SETTLORITRUSTEE ,~~i~ a~ rYli~Sf ~c.~ MERVIN L. MYERS ~- STATE OF PENNSYLVANIA} COUNTY OF CUMN~`- AND} ss. On this, the ~~'' day of C~~~ ,"~ before me, a Notary Public, ,personally appeared MERVIN L. MYERS, personally known to me to be the person whose name is subscribed on this instrument, and acknowledged that he executed it for the purposes herein expressed. ~~ U Notarial Seal John N. Wight, Notary Public Upper Merion Twp., Montgomery County My Commission Expires Sept. 1, 2003 Member, Pennsylvania Association of Notaries • TRUST SUMMARY Page 2 TRUST BOOKLET SUMMARY • TRUST SUMMARY: This section explains the Trust documents in basic terms and gives a definition of the terms used in the Trust. THE REVOCABLE LIVING TRUST: This is the instrument which allows for the complete avoidance of Probate for all assets placed in the Trust. The Notarized Summary of Trust summarizes the provisions of the Trust. WILL: The "Pour-Over" Will contained in this binder will direct any assets left out of the Trust into the Trust. DIRECTIVE TO PHYSICIANS: The "Living Will" or Directive to Physicians states your wishes in regard to life support systems and other extraordinary medical measures in the event of alife-threatening condition. DURABLE GENERAL POWER OF ATTORNEY: This document gives a person you designate a Power of Attorney for dealing with banks, property, etc., in the event that you become disabled or incapacitated. DURABLE POWER OF ATTORNEY FOR HEALTH CARE: • This document allows a person you designate to make health care decisions for you in the event that you are not able. TRUST ASSETS; TRANSFER DOCUMENTS: This is a listing of the properties which have been transferred into the Trust Estate by transfer letter, declaration of intent, Quit Claim, deed, bill of sale, etc. Also provided are documents necessary to transfer real estate and investment accounts into the Trust. TRUSTEE INSTRUCTIONS; ESSENTIAL DOCUMENTS: This outlines in basic language how to hold title to your assets and the responsibilities ofthe Trustee and the subsequent Trustee. This section also includes a set of instructions for the Successor Trustee which are designed to assist him or her in carrying out your wishes for the final settlement of the Trust in the most efficient and expeditious manner. This section also enables you to organize all the documents that are required by various governmental entities upon your death. TRUST SUMMARY Page 3 SUMMARY OF ARTICLES OF INDIVIDUAL TRUST • ARTICLE ONE Your Trust is created to transfer your assets pursuant to your wishes upon your death. You are the "Settlor", which means that you are the "creator" of the Trust, the "Trustee," which means that you administer the Trust, and the "Beneficiary," which means that you benefit from the Trust. Article One establishes the terms of the Trust and appoints the initial Trustee. The Trustee (the persons with all the powers of the Trust) will remain the Trustee until the death or incapacity of the Settlor. Upon the death of the Settlor, the successor Trustees as listed in Section 8.01 will then administer the Trust. Article One also provides that you can amend or revoke this Trust at any time while you are still competent and living. ARTICLE TWO Article Two concerns Trust income and incapacity. If Settlor becomes disabled or incapacitated, then the Trust allows the Successor Trustee to provide for the needs of the Settlor. The determination of who is disabled or incapacitated may only be made by court order or by written certificates signed. by two physicians. As a protection, the Trust entitles the so-deemed incapacitated Settlor to challenge the doctors' determination with doctors of his or her own. • i rticle fives the Settlor all ri hts over his residence. It re uires the Trustee to a from the Th s A g g q P y Trust assets any expenses arising from the maintenance of the property and any taxes, liens, assessments, or insurance premiums. ARTICLE THREE Article Three defines what happens to the Trust assets after the Settlor dies. It provides for the distribution of assets to the Beneficiaries named in the Trust, and contains directions to the Trustee on how to provide for any minor children. ARTICLE FOUR Article Four details all the powers given to the Trustee over the Trust assets. Essentially, the Trustee has all of the rights and powers of an absolute owner of the Trust property. The Trustee must, of course, exercise this power on behalf of the Beneficiaries. By way of illustration, the powers granted to the Trustee include the power to invest and reinvest the Trust funds as the Trustee may deem advisable whether or not such investment is of a character specifically permitted by law; the power to pay any assessments or other charges levied on any stock or other security; the power to exercise any subscription, conversion, or other right or option pertaining to stocks, bonds, securities, or other instruments; the power to participate in corporate organizations, consolidations, mergers or liquidations; the power to invest in and guarantee a business venture; the power to borrow from any source and to encumber the Trust Estate or any property • TRUST SUMMARY Page 4 • therein as security for repayment; and the power to hold securities or other property in his own name, in nominee name, or unregistered. This Article also states that any bank, corporation, brokerage firm, or other entity or individual may conclusively presume that the Trustee has full power and authority over Trust assets and that such person or institution shall be held harmless and shall incur no liability by reason of so presuming. ARTICLE FIVE If there is a Probate Estate, Article Five allows the Trustee to provide assets from the Trust Estate to the Probate Estate for debts, taxes, or other obligations for the overall benefit of the Beneficiaries. Certain restrictions in this paragraph require the Trustee to be careful in administering pension and similar funds. Improper handling of these types of funds in either the Probate Estate or the Trust Estate could cause the otherwise non-taxable funds to become taxable. Legal assistance should be obtained if questions arise in this area. ARTICLE SIX In the event of a conflict between successor Trustees and/or Beneficiaries, conflicts will be resolved by arbitration. This is more swift and less expensive than the filing of a lawsuit. Since conflict is usually the result of an emotional approach to the problem, an arbitrator removes the emotion and helps provide a rational solution to the problem. • 'tr tin The Trust thus s ecifies that if an Generally, all conflicts can be resolved through arbi a o p .interested party were to sue the Trust or the Trustees and lose, that individual will forfeit all rights to the Trust. Even if a person sues the Trust and wins, that person will receive the sum of $1.00 for his or her efforts. ARTICLE SEVEN Article Seven contains several miscellaneous provisions. The Spendthrift Provision provides that a Beneficiary may not spend, encumber, or take a loan against sums due to that Beneficiary at a later date. For example, assume a Beneficiary, age 18, is due to receive substantial sums at age 25. He goes out and purchases a Mercedes from a friend, does not obtain automobile insurance, and two blocks from his friend's house, has an accident in which the automobile is destroyed. The friend then comes to the Trustee and demands payment for the Mercedes. The Trustee would simply deny such a claim. ARTICLE EIGHT Article Eight designates the Original and the Successor Trustees to the Trust. It also provides for the allocation and distribution of your Trust assets, particularly those personal assets listed in the section entitled "Special Directives" incorporated at the end of your Trust. One of the most important provisions that we provide in your Trust is to ensure that, if a Beneficiary • were to become handicapped and thus eligible for governmental benefits, then that individual would no TRUST SUMMARY Page 5 • longer be a Beneficiary of your Trust. The Beneficiary's governmental benefits would thus not be jeopardized nor would the government have the right to reach in and take the Beneficiary's share. At the same time, the Trustee is authorized, at the sole discretion of the Trustee, to continue to provide whatever indirect funds are needed for the care and maintenance of this Beneficiary. We further state that if the individual recovers from this handicap, then the individual will be reinstated as a Beneficiary. ARTICLE NINE An ancient legal principle called the "Rule Against Perpetuities" requires that a Trust must someday cease to exist. Presumably, your Trust will cease at a reasonable time following the death of both the husband and wife, usually after the assets are distributed to the surviving children or grandchildren. On the other hand, if one or both spouses live some 30 years, there could be children, grandchildren, and great- grandchildren, many of whom are minors and possible Beneficiaries of your Trust. In order to ensure that your Trust has a definite future termination date, your Trust Agreement states that upon the death of the first spouse, the Trust will cease to exist 21 years following the death of the last named Beneficiary living at the time of the death of that first spouse. ARTICLE TEN Article Ten provides that the law of the state where the Trust was signed governs the Trust, provides that a successor Trustee shall have the rights and powers of a prior Trustee, and provide for the definition of certain terms to comply with the Internal Revenue Code. • ~, • TRUST SUMMARY Page 6 • REVOCABLE LIVING TRUSTS GLOSSARY OF TERMS BENEFICIARY: One for whose benefit the living trust is created and funded. CONSERVATOR: A person who has the legal duty to care for and maintain the person and/or property of an incapacitated adult. DECEDENT: A deceased person. ESTATE TAXES: The death taxes imposed by the federal government on the transfer of assets at death. Estate taxes are generally paid by the executor of the probate estate or the trustee of a living trust. EXECUTOR: The person or institution who is appointed by the Testator or Testatrix in his or her will to take care of the funds and property after death (also referred to as the "Personal Representative" of the estate). The executor functions under the jurisdiction of the probate court. FIDUCIARY: The person or institution whose obligation is to manage assets in the same way a prudent person would manage his own assets. • GUARDIAN: The person who has the legal duty to care for and maintain the person and/or property of an unmarried minor child. HEIR: A person who inherits property (according to state law scheme of distribution) from a person who dies intestate. INTESTATE: A situation where a person dies without leaving a valid will. ISSUE: Lineal descendants of all degrees (e.g., children, grandchildren, great-grandchildren, etc.). JOINT TENANCY: A co-ownership of property by two or more parties in which each own. an undivided interest that passes to the other co-owners on his or her death (known as the "right of survivorship"). LIFE TENANT: A trust beneficiary whose interest consists solely for the use of and income flow from the trust funds during his lifetime. LIVING TRUST: A legal entity established by means of a written trust agreement during the lifetime of the creator of the trust. The terms of the trust agreement govern the operation of the trust funds. PROBATE: The legal proceeding by which the probate court is given full jurisdiction over the assets of the decedent. Probate starts with the filing of the decedent's will with the probate court and ends after all taxes and debts of the decedent have been paid and the assets accounted for have been distributed in accordance with the terms of the decedent's will. Probate usually lasts for at least nine months and can often • endure for two years or more. TRUST SUMMARY Page 7 QUALIFIED DOMESTIC TRUST: A trust that meets the conditions defined in Section 2056A of the • Internal Revenue Code as required to qualify a trust established for the benefit of a surviving spouse who is not a United States citizen for the federal estate tax marital deduction. REVOCABLE LIVING TRUST: A living trust governed by a trust agreement whose terms may be amended, modified, or otherwise revoked by the settler during his lifetime. STRICT PER STIRPES: Where a class or group of Distributees take the share which their deceased would have been entitled to. TESTATOR: A person who makes a will (if female, TESTATRIX). TRUSTEE: The person or institution who is responsible for holding, managing, and distributing money and other property contributed to the living trust for the exclusive use and benefit of the beneficiaries. TRUSTOR / SETTLOR /GRANTOR: Parties who establish a trust by transferring property to a trustee who manages the property for the benefit of another. C7 TRUST SUMMARY Page 8 ~f}j~_,~~~~~ • t•,~ ~ ~~_ LAST WILL AND TESTAMENT C '~ T (Pour-Over Will) ~ C7 ''r n , OF ~ m ~ :7 -- MERVIN L. MYERS :=~ r-n ~• ~ O -~~ 3 IDENTITY ~ ~ l'V` W I, MERVIN L. MYERS, residing in the County of Cumberland, Commonwealth of Pennsylvania, being of sound mind and memory, and not acting under duress or undue influence of any person whomsoever, hereby declare this to be my Last Will and Testament, and I do hereby revoke all other former Wills and Codicils to Wills heretofore made by me. My Social Security Number is 205-09-9177. I have the following children: CHARLES E. MYERS born September 25, 1957 and currently residing in Carlisle, PA 17013 and FRANCES D. GARMAN born February 9, 1948 and currently residing in Landisburg, PA. ...~, ~~`r c.. r =, ; `~:,, < _~.-~ ~:, ,:. M DEBTS, TAXES AND ADMINISTRATION EXPENSES • I have provided for the payment of all my debts, expenses of administration of property wherever situated passing under this Will or otherwise, and estate, inheritance, transfer, and succession taxes, other than any tax on ageneration-skipping transfer that is not a liability of my Estate (including interest and penalties, if any) that become due by reason of my death, under THE MERVIN L. MYERS REVOCABLE LIVING TRUST executed on even date herewith (the "Revocable Trust"). If the Revocable Trust assets should be insufficient for these purposes, my Executor shall pay any unpaid items from the residue of my Estate passing under this Will, without any apportionment or-reimbursement. In the alternative, my Executor may demand in a writing addressed to the Trustee of the Trust an amount necessary to pay all or part of these items, plus claims, pecuniary legacies, and family allowances by court order. PERSONAL AND HOUSEHOLD EFFECTS It is my intent that all my personal and household effects were transferred to the Revocable; Trust as a result of the Declaration of Intent signed this date. If there are any questions regarding the ownership or disposition of these assets, it is my desire that such assets pour into the Revocable Trust, signed by me this date in accordance with the provisions of the section titled "Residue of Estate." RESIDUE OF ESTATE r ~ U I give, devise and bequeath all the rest, residue and remainder of my property of every kind and description (including lapsed legacies and devices), wherever situated and whether acquired before or after the execution of this Will, to the Trustee under that certain Trust executed by me on the same date of the execution of this Will. The Trustee shall add the property bequeathed and devised by this item to the corpus of the above described Trust and shall hold, administer and distribute said property in accordance v~~ith the provisions of the said Trust, including any amendments thereto made before my death. POUR-OVER WILLS _~~ Page 1 (Testator) If for any reason the said Trust shall not be in existence at the time of death, or if for any reason a • court of competent jurisdiction shall declare the foregoing testamentary disposition to the Trustee under said Trust as it exists at the time of my death to be invalid, then I give all of my Estate including the residue and remainder thereof to that person who would have been the Trustee under the Trust, as Trustee, and to their substitutes and successors under the Trust, described herein above, to be held, managed, invested, reinvested and distributed by the Trustee upon the terms and conditions pertaining to the period beginning with the date of my death as are constituted in the Trust as at present constituted giving effect to amendments, if any, hereafter made and for that purpose I do hereby incorporate such Trust by reference into this my Will. EXECUTOR • I hereby nominate and appoint CHARLES E. MYERS to serve without bond as my Executor of this my Last Will and Testament. In the event the first named Executor shall predecease me or is unable or unwilling to act as my Executor for any reasons whatsoever, then and in that event, I hereby nominate and appoint :FRANCES D. GARMAN to serve without bond as my Independent Executor. Whenever the word "Executor" or any modifying or substituted pronoun therefore is used in this my Will, such words and respective pronouns shall be held and taken to include both the singular and the plural, the masculine, feminine and neuter gender thereof, and shall apply equally to the Executor named herein and to any successor to substitute Executor acting hereunder, and such successor or substitute Executor shall possess all the rights, powers, duties, authority, and responsibility conferred upon the Executor originally named herein. EXECUTOR POWERS • By way of Illustration and not of limitation and in addition to any inherent, implied or statutory powers granted to executors generally, my Executor is specifically authorized and empowered with respect to any property, real or personal, at any time held under any provision of this my Will: to allot, allocate between principal and income, assign, borrow, buy, care for, collect, compromise claims, contract with respect to, continue any business of mine, convert, deal with, dispose of, enter into, exchange, hold, improve, incorporate any business of mine, invest, lease, manage, mortgage, grant and exercise options with respect to, take possession of, pledge, receive, release, repair, sell, sue for, make distributions in cash or in kind of partly in each without regard to the income tax basis of such asset and in general, exercise all of the powers in the management of my Estate which any individual could exercise in the management of similar property owned in its own right upon such terms and conditions as to my Executor may seem best, and execute and deliver any and all instruments and do all acts which my Executor may deem proper or necessary to carry out the purpose of this my Will, without being limited in any way by the specific grants or power made, and without the necessity of a court order. My Executor shall have absolute discretion, but shall not be required, to make adjustments in the rights of any Beneficiaries, or among the principal and income accounts to compensate for the consequences of any tax decision or election, or of any investment or administrative decision, that my executor believes has had the effect, directly or indirectly, of preferring one Beneficiary or group of Beneficiaries over others. In determining the Federal Estate and Income Tax liabilities of my Estate, my Executor shall have discretion POUR-OVER WILLS Page 2 estat r to select the valuation date and to determine whether any or all of the allowable administration expenses in my Estate shall be used as Federal Estate Tax deductions or as Federal Income Tax deductions. SPECIFIC OMISSIONS I have intentionally omitted any and all persons and entities from this, my Last Will and Testament, except those persons and entities specifically named herein. If any person or entity shall challenge any term or condition of this Will, or of the Living Trust to which I have made reference in the sections "Household and Personal Effects" and "Residue of Estate," then, to that person or entity, I give and bequeath the sum of only one dollar ($1.00) only in lieu and in place of any other benefit, grant, bequest or interest which that person or interest may have in my Estate or the Living Trust and its Estate. SIMULTANEOUS DEATH If any other Beneficiary should not survive me for sixty (60) days, then it shall be conclusively presumed for the purpose of this my Will that said Beneficiary predeceased me. Xf ` ~ ~~ MERV L. MYERS Testator This instrument consists of 5 typewritten pages, including the Attestation Clause, Self-Proving Clause, signature of Witnesses, and acknowledgment of officer. I have signed my name at the botto of each of the pr ding pages. This instrument is being signed by me on this ,;~ ~_`~`~lay of t , ~~'-~, • POUR-OVER WILLS _ Page 3 estator) • ATTESTATION CLAUSE The Testator whose name appears above declared to us, the undersigned, that the foregoing instrument was his Last Will and Testament, and he requested us to act as witnesses to such instrument and to his signature thereon. The Testator thereupon signed such instrument in our presence. At the Testator's request, the undersigned then subscribed our names to the instrument in our own handwriting in the presence of the Testator. The undersigned hereby declare, in the presence of each of us, that we believe the Testator to be of sound and disposing mind and memory. Signed by us on the same day and year as this Last Will and Testament was signed by the Testator. • WITNESSES: r ~~' ~~~ S (Printed Name of Witness) (Printed Name of Witness) ADDRESSES: /~,~/b/c° ~/~ ~,e~i/s~~ l.`A /~Z~i3 /l8~kht~ ~ R~ ei~no a/t nai3 POUR-OVER WILLS Page 4 ~_ (Testator) COMMONWEALTH OF PENNSYLVANIA • COUNTY OF CUMBERLAND SELF-PROVING CLAUSE BEFORE ME, the undersigned authority, on this%~ personally appeared MERVIN L. MYERS, _~~~/~~' s .,5?~~,n~~znd /~iC/ST/ ~ ?> ~ ,known to me to be the Testator and the witnesses, respectively, whose names are subscribed to the foregoing instrument in their respective capacities, and all of them being by me duly sworn, MERVIN L. MYERS, Testator, declared to me and to the witnesses, in my presence, that the instrument is his Will and that he had willingly made and executed it as his free act and deed for the purposes therein expressed; and the Witnesses, each on his or her oath, stated to me in the presence and hearing of the Testator, that the Testator had declared to them that the instrument is his Will and that he executed the same as such and wanted each of them to sign it as a witness; and upon their oaths, each witness stated further that he did the same as a witness in the presence of the Testator, and at his request and that he was at that time eighteen (18) years of age or over and was of sound mind, and that each of the witnesses was then at least fourteen (14) years of age. M YE S Testator ~ ,~ ,Ti `L.~.~---~ '~` , . Witness ' (Printed Na e of Witness) Witness ~~ ~. l5T ` (Printed Name of Witness) SUBSCRIBED AND ACKNOWLEDGED before me by MERVIN L. MYERS, Testat r, and subscribed and sworn to before by _D S..S'' ~rtJt~d /~ S-' ~ ~ U~, witnesses, this the ~. ~_ of ~i(~ > . ~ , ?A~D ~~ . ~ n J 11 ~ ~ 1 / V ~ ~,. Public, Commonwealth of nnsylvania Notarial Seal John N. Wight, Notary Public . Upper Merion Twp., Montgomery County My Commission Expires Sept. t , 2003 (Member, Pennsylvania Association o Notaries POUR-OVER WILLS Page 5 (Testator)