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HomeMy WebLinkAbout03-0036January 13, 2003 Register of Wills Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 RE: WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. SOCIAL SECURITY NO. 716-09-7301 Dear Sir or Madam: Enclosed for filing with your office is one (1) completed Form REV-1500, in duplicate, together with the following attachments for the above decedent: 1. FilingFee ($10.00) 2. Death Certificate for William H. Lotz; 3. Estate Information Sheet for William H. Lotz; 4. Copy of the Living Trust of William H. Lotz; 5. Date of Death Valuation Letters; 6. Deed for Real Estate; and 7. Photocopy of the Federal Estate Tax Return (Form 706) for the Trust Estate of William H. Lotz One (1) additional photocopy of the completed form REV-1500 (page 1) has been provided. Please time/date stamp these copies as received and return it to me in the envelope provided. In addition, if it is still your policy not to retain the Federal Estate Tax Return photocopy at the Register of Wills office, please return it to my office. If there are any questions or further requirements regarding this return, please do not hesitate to contact me. Sincerely, Susan E. Lederer, Esquire Enclosure: as stated 4811Jonestown Road · Suite226 · Harrisburg, PA 17109 ° Phone 717.652.7323 ° Fax 717.652.7340 ° susan@ledererlaw.com www.ledererlaw.com his is to certify that the information here given is correctly copied from an original certificate of death duly filed with me as Local Registrar. The original certificate will be forwarded to the State Vital Records Office for permanent filing. WARNING: It is illegal to duplicate this copy by photostat or photograph. Fee for this certificate, $2.00 APR 8 2002 Local Registrar No. Date 143 Rev 2/87 COMMONWEALTH OF PENNSYLVANIA ,, DEPARTMENT OF HEALTH · VITAL RECORDS CERTIFICATE OF DEATH .,. William H. 83 v,,.[ , Cumberland ,,,Passenger Conductor 301 Fifteenth Street ,t New Cumberland, PA 17070 ISEX I~C~IAL SECURIT~ NUMBER Lotz, Jr. 2. male ~,. 716 -- 09 -- 7301 I I April 29, I s~,~,,, F~C~,,) tH~S~W.: ; ~ 1918 ,.Harrisburg, AIL% New Cumberland ~. 301 Fifteenth Street . Married ,,. J ~,u~ ,,,.~ Pennsylvania [~ ,m.~ Cumberland raiding in aeMq LAST ,,. white Betty M. Cober New C,]mherland ,,. William H. Lotz, Sr. ,,. Blanche C. Wilton I~t~C~ '--~' %~, 'S NAME O' I~';~,,i~ ]INFanT'S ~ ~ (~. ~. ~, Z~ ~) ~ Bett~ M. Cober Lotz I~ 301 Fifteenth Street, New Cumberland, PA 17070 ~.0 ~.o ,~.~.-, ~~-~-,~.,.c,~, j~.~.~.~.~ Ol,,~ April 24, 2002 ]~dianto~ Gap National Ceml2,~anover ~p., PA 17003 ~n n~ql L Parthemore FH & CS, Inc. --~.d~k~ ~~,~ ~0 I~.0. BOXtm[N~NO~,431. New Cumberland, PA 17070-0431 ID~E ~0 ~M~. : ~ ' I I ~AC~SE~ ~: /~ / OMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 INHERITANCE TAX RETURN -- · 2] RESIDENT DECEDENT COUNTY CODEYEAR0"~ "~ ~I~IINUMBER DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) Lotz, William H. 04/21/2002 04/29/1918 SOCIAL SECURITY NUMBER 716-09-7301 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS IF APPLICABLE) SURVIVING SPOUSE'S NAME ( LAST, FIRST AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER Lotz, Betty M. 206-10-9335 [] 1. Original Return [] 2. Supplemental Return [] 3. Remainder Retum (date et death prior to 12-13-82) [] 4. Limited Estate [] 6, Decedent Died Testate (Attach copy of Will) [] 9. Litigation Proceeds Received ] 4a. Future Interest Compromise (date of death after 12-12-82) [] 7. Decedent Maintained a Living Trust (Attach copy of Trust) [] 10. Spousal Poverty Credit (date of death between [] 5. Federal Estate Tax Return Required ] 8. Total Number of Safe Deposit Boxes [] 11.Election to tax under Sec. 9113(A) (Attach Sch O) ',lAME Susan E. Lederer :IRM NAME (If applicable) Law Offices of Susan E. Lederer FELEPHONE NUMBER 717/652-7323 COMPLETE MAILING ADDRESS 4811 Jonestown Rd. Suite 226 Harrisburg, PA 17109, - 1. Real Estate (Schedule A) (1) 2. Stocks and Bonds (Schedule B) (2) 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) 4. Mortgages & Notes Receivable (Schedule D) (4) 5. Cash, Bank Deposits & Miscellaneous Personal Properly (5) (Schedule E) 6. Jointly Owned Property (Schedule F) (6) [] Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) 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) None None None None 1,430.00 None 1,027,345.88 22,764.04 12. Net Value of Estate (Line 8 minus Line 11) 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) 14. Net Value Subject to Tax (Line 12 minus Line 13) ()FFiC~AL LIS'::! (8) 1,028,775.88 22,764.04 1,006,011.84 1,004,581.84 1,430.00 (11) (12) (13) (14) SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, x .00 or transfers under Sec. 9116(a)(1.2) 16.Amount of Line 14 taxable at lineal rate x .045 17. Amount of Line 14 taxable at sibling rate x .12 18. Amount of Line 14 taxable at collateral rate x .15 19. Tax Due 20. 1,430.00 (15) 0.00 (16) (17) (18) (19) 0.00 Copyright 2000 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00) Decedent's Complete Address: STRLI~ l ADDRESS CITY STATE PA 301 Fifteenth Street New Cumberland, ZIP 17070 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount Total Credits (A + B + C) (2) (1) 0.00 0.00 3. Interest/Penalty if applicable D. Interest E. Penalty Total Interest/Penalty (D + E) (3) 0.00 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. (4) Check box on Page 1 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. (5) 0.00 A. Enter the interest on the tax due. (5A) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B) 0.00 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 use or income of the property transferred; .................................................................................. ~ J~ b. retain the right to designate who shall use the property transferred or its income; .................................... c. retain a reversionary interest; or .......................................................................................................... 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? ....................................................................................................................... [] [] 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? ......... [] [] 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. Under penalties of perjuw, I declare that I 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 personal representative is based on ali information of which preparer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN William Ant~y Lotz / /~ SIGNATURE OF PREPARER OTHEfi THAN REPRESENTATIVE Susan E. Lederer ADDRESS DATE Box 6953 Warwick, RI 02887-6953 ADDRESS ADDRESS 4811 Jonestown Rd. ~ ~ DATE Suk¢ Ha~isbur~, PA 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 3% [72 P.S. §9116 (a) (1.1) (i)]. 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 0% [72 P.S. §9116 (a) (1.1) (ii)]. 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 0% [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 4.5%, 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 12% [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. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on schedule F. ITEM · NUMBER DESCRIPTION VALUE AT DATE OF DEATH 1 1989 Chevrolet Caprice Sedan 4D 1,430.00 TOTAL (Also enter on Line 5, Recapitulation) 1,430.00 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions 1 throuql' 4 on page 2 ' ~es. DESCRIPTION OF PROPERTY % OF ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH NUMBER EXCLUSION TAXABLE VALUE Attach a copy ot the deed for real estate. VALUE OF ASSET DECD'S 0F APPLICABLE) INTEREST 1 2530.780 shares Vanguard Group High-Yield Tax-Exempt 26,704.95 100% 26,704.95 Fund #: 09894878180, titled to the William H. Lotz aJk/a William H. Lotz, Jr. Living Trust ($10.52/sh) (accrued dividend: $81.14 2 3590.164 shares USAA Tax Exempt Long-Term Fund #: 47,711.16 100% 47,711.16 43900007360, titled to the William H. Lotz adk/a William H. Lotz, Jr. Living Trust ($13,25/sh) (accrued dividend: $141.49) 3 House and Lot, located at 301 Fifteenth Street, New 104,000.00 50% 52,000.00 Cumberland, PA, Tax Parcel Number: 26-23-0541-141, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust and the Betty M. Lotz Living Trust, as Tenants in Common (based on Sale Price) 4 Waypoint Bank Checking Account #: 4100031344, titled to 128,935.42 100% 128,935.42 the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust (accured interest: $91.21) 5 Waypoint Bank Checking Account #: 700026588, titled to 23,849.46 100% 23,849.46 the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust (accrued interest: $9.34) 6 Waypoint Bank Certificate of Deposit #: 7100023551, 10,088.54 100% 10,088.54 titled to the William H. Lotz a/k/a William H. Lotz, Jr. 7 Waypoint Bank Certificate of Deposit #: 7100023578, 10,088.54 100% 10,088.54 titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust (accrued interest: $24.92) 8 1570 shares Managed Municipals Fund Class A, held in 24,317.92 100% 24,317.92 PFPC account #: 005-9078531812, titled to the William H. Lotz aJk/a William H. Lotz, Jr. Living Trust ($15.48/sh) 9 Cash Balance First Union Securities Money Market Account 23,663.35 100% 23,663.35 #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust Total of Continuation Schedule(s) 679,986.54 TOTAL (Also enter on line 7, Recapitulation) 1,027,345.88 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF FILE NUMBER Lotz, William H. 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throuql' 4 on page 2 ' ,es. DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE (IF APPLICABLE) INTEREST l0 200 shares AT&T Corp, Cusip #: 76182K105 held in First 2,814.0f2 100% 2,814.00 Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($14.07/sh) 11 1912.184 shares AIM High Yield FD CL A, Cusip #: 8,404.05 ' 100% 8,404.05 863345104, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($4.395/sh) 12 64 shares AT&T Wireless Services, Cusip #: 879278208, 546.56 100% 546.56 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($8.54/sh) 13 200 shares Atlantic Cap 8.25% Quips, Cusip #: 893349837 5,015.00 100% 5,015.00 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($25.075/sh) 14 1100 shares Colonial Muni Inc Tr, Cusip #: 920929106. 6,190.25 100% 6,19(~.25 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($5.6275/sh) 15 1773.672 shares Fidelity Spartan Mun Inc, Cusip #: 22,667.53 100% 22,667.53 9293 lB 106, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($12.78/sh) 16 1966.342 shares Franklin Hi Yld Tf CI A, Cusip #: 20,597.43 100% 20,597.43 047081AB0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($10.475/sh) 17 153.36 Liberty II Grtr China - A, Cusip #: 04785TAV1, 2,552.68 100% 2,552.68 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz aJk/a William H. Lotz, Jr. Living Trust ($16.645/sh) Page 2 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throu¢ DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE INTEREST 0F APPMCABLE) 18 1442.732 shares Lord Abbett Tax Fr PA A, Cusip #: 7,357.93 100% 7,357.93 060158AN2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($5.10/sh) 19 1500 shares MBNK Capital Tr 9.625%29, Cusip #: 15,225.013 100% 15,225.00 067271AC0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($10.15/sh) 20 200 shares Norfolk Southern Corp, Cusip #: 084522EN7, 4,618.00 100% 4,618.00 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($23.09/sh) 21 100 shares Rite Aid Corporation, Cusip #: 084538FA0, 393.25 100% 393.25 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($3.9325/sh) 22 33 shares RJ Reynolds Tobacco, Cusip #: 76182K105, held 2,218.92 100% 2,218.92 in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($67.24/sh) 23 2373.899 shares Strong High Yld Muni BD, Cusip #: 17,685.55 100% 17,685.55 863345104, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($ 7.45/sh) 24 400 shares Telecom Corp NZ Spon ADR, Cusip #: 7,000.00 100% 7,000.00 879278208, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($17.50/sh) 25 300 shares Trans World Airls Inc, Cusip #: 893349837, 2.55 100% 2.55 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($0.0085/sh) Page 3 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throucjit 4 on page 2 ' ~es. DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE (IF APPLICABLE INTEREST 26 1900 Van Kampen Tr Invst Grad, Cusip #: 920929106, 28,229.25 100% 28,229.25 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($14.8575/sh) 27 180 shares WPS Resources Corp, Cusip #: 92931B106, 7,398.90 100% 7,398.90 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($41.105/sh) 28 5000 shares Athens-Cnty 7.50%28, Cusip #: 047081AB0, 4,611.13 100% 4,611.13 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($91.181/sh) (accrued dividend: $52.08) 29 5000 shares Atlanta GA Urban 8.5%26, Cusip #: 4,755.71 100% 4,755.71 04785TAV1, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($94.642/sh) (accured dividend: $23.61) 30 5000 shares Bangor Mi 7.5% 5/1/2028, Cusip #: 1,300.0C 100% 1,300.00 060158AN2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($26.00/sh) 31 5000 shares Brbrsvll WV 7.5% 4/1/2029, Cusip #: 4,719.53 100% 4,719.53 067271AC0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust, ($93.974/sh) (accrued dividend: $20.83) 32 5000 shares Berks PA 6.875% 1/1/2023, Cusip #: 5,263.09 100% 5,263.09 084522EN7, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($103.161/sh) (accrued dividend: $105.04) Page 4 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throuqt 4 on page: res. ITEM DESCRIPTION OF PROPERTY Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE Attach a copy of the deed for real estate. (IF APPLICABLE) INTEREST 33 10000 shares Berks Cnty 5.75% 5/15/2022, Cusip #: 9,108.97 100% 9,108.97 084538FA0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($88.598/sh) (accrued dividend: $249.17) 34 5000 shares Bibb Cnty 8.75% 3/1/2030, Cusip #: 5,097.3{ 100% 5,097.36 08869FCQ0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($100.732/sh) (accrued dividend: $60.76) 35 5000 shares Butler OH 7.125% 1/1/2029, Cusip #: 1,000.0C 100% 1,000.00 123558BA5, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($20.00/sh) 36 5000 shares Cambria 7.5% 5/1/2021, Cusip #: 132047AF8, 4,668.78 100% 4,668.78 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($89.834/sh) (accrued dividend: $177.08) 37 5000 shares Charlotte, NC 7% 12012028, Cusip #: 4,898.96 100% 4,898.96 161038AM6, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($95.257/sh) (accrued dividend: $136.11) 38 5000 shares Chattanooga 7% 12/1/2028, Cusip #: 4,742.06 100% 4,742.06 162410BL7, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz aJk/a William H. Lotz, Jr. Living Trust ($92.119/sh) (accrued dividend: $136.11) 39 15000 shares Chester PA 6% 11/1/2029, Cusip #: 14,697.5E 100% 14,697.50 165579CP6, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz aJk/a William H. Lotz, Jr. Living Trust ($95.15/sh) (accrued dividend: $425.00) Page 5 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throuc 4 on page 2 ITEM DESCRIPTION OF PROPERTY Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE INTEREST 0F APPLICABLE) 40 5000 shares Cumberland 6.8% 11/15/2023, Cusip #: 5,729.18 100% 5,729.18 230614AL3, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($111.637/sh) (accrued dividend: $147.33) 41 20000 shares Cumberland 6% 12/1/2026, Cusip #: 19,620.67 100% 19,620.67 230614BA6, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($95.77/sh) (accrued dividend: $466.67) 42 5000 shares Dauphin PA 7% 1/1/2014, Cusip #: 5,128.49 100% 5,128.49 23825CBB3, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($100.431/sh) (accrued dividend: $106.94) 43 5000 shares Denver Co 6.75% 11/15/2022, Cusip #: 5,381.15 100% 5,381.15 249181TT5, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($104.698/sh) (accrued dividend: $146.25) 44 10000 shares Doylestown PA 5% 7/1/2028, Cusip #: 9,602.08 100% 9,602.08 261333DD7, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($94.493/sh) (accrued dividend: $152.78) 45 15000 shares FHR 1669L 6.5% 02/15/24, Cusip #: 15,000.00 100% 15,000.00 3133T34Q8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($100/sh) 46 95000 shares FHR 2322B 6.5% 6/15/31, Cusip #: 89,706.53 100% 89,706.53 3133TUJM1, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($94.4,279/sh) Page 6 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02- This schedule must be completed and filed if the answer to any of questions I throuql' 4 on page 2 ' ,es. ,~ -' -'1 ................ ~ ...... I"'--~ .... ,~' ITEM DESCRIPTION OF PROPERTY Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE (IF APPLICABLE) INTEREST 47 5000 shares Fulco GA 6.375% 9/1/2022, Cusip #: 5,225.22 100% 5,225.22 359597DE8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz aYk/a William H. Lotz, Jr. Living Trust ($103.619/sh) (accrued dividend: $44.27) 48 10000 shares Gettysbg PA Area 8.75% 26, Cusip #: 4,000.013 100% 4,000.00 374305AM2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($40.00/sh) 49 5000 shares Horsham Indl 8.375% 24, Cusip #: 4,878.81 100% 4,878.81 440757AM4, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($96.413/sh) (accrued dividend: $58.16) 50 5000 shares Interboro 5.3% 8/15/2017, Cusip #: 5,196.18 100% 5,196.18 458436GM8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($102.952/sh) (accrued dividend: $48.58) 51 5000 shares Jeannette 6% 11/1/2018, Cusip #: 5,484.92 100% 5,484.92 472259AW0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($106.865/sh) (accrued dividend: $141.67) 52 5000 shares Lancaster PA 5.75% 9/1/23, Cusip #: 4,207.63 100% 4,207.63 514045UT8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($83.354/sh) (accrued dividend: $39.93) 53 10000 shares Lancaster PA 6.625% 4/1/28, Cusip #: 9,671.21 100% 9,671.21 514045VM2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($96.344/sh) (accrued dividend: $36.81) Page 7 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throuqh DESCRIPTION OF PROPERTY ; ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE INTEREST 0F APPLICABLE 54 5000 shares Lebanon PA 5.75% 12/15/24, Cusip #: 4,167.93 100% 4,167.93 522454BM8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($81.346/sh) (accrued dividend: $100.63) 55 20000 shares Lebanon PA 6.625% 12/15/29, Cusip #: 19,540.95 100% 19,540.95 522454CS4, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($95.386/sh) (accrued dividend: $463.75) 56 10000 shares Lehigh PA 8% 8/1/2012, Cusip #: 10,356.58 100% 10,356.58 524807BQ6, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($101.788/sh) (accrued dividend: $177.78) 57 5000 shares Ligonier PA 6% 3/1/2023, Cusip #: 5,055.27 100% 5,055.27 532343DU1, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($100.272/sh) (accrued dividend: $41.67) 58 10000 shares Mass St 0.100% 6/1/2012, Cusip #: 6,462.19 100% 6,462.19 575861AZ2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($64.583/sh) (accrued dividend: $3.89) 59 5000 shares New York St 7.15% 2/1/2022, Cusip #: 5,216.99 100% 5,216.99 649841DQ3, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($102.751/sh) (accrued dividend: $79.44) 60 20000 shares MTHGHUDU 6.375% 01/01/2026, Cusip #: 19,172.18 100% 19,172.18 613603KP3. held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($93.913/sh) (accrued dividend: $389.58) Page 8 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throuql~ 4 on page 2 is 'es. DESCRIPTION OF PROPERTY DATE OF DEATH % OF ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE NUMBER Attach a copy of the deed for real estate. (IF APPLICABLE INTEREST 61 10000 shares MTGRyCrI'¥ 6.15% 09/01/2022, Cusip #: 8,981.72 100% 8,981.72 613603ME6, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($88.963/sh) (accrued dividend: $85.42) 62 5000 shares New Jersey 8.25% 8/1/2022, Cusip#: 5,194.32 100% 5,194.32 645905V98, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($102.053/sh) (accrued dividend: $91.67) 63 10000 shares NY Hsg Middle 3.5% 06, Cusip #: 10,129.12 100% 10,129.12 649785EJ7, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($100.212/sh) (accrued dividend: $107.92) 64 5000 shares NY St Hsg 6.4% 11/1/201 I, Cusip #: 5,207.71 100% 5,207.71 649858A98, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($101.132/sh) (accrued dividend: $151.11 65 25000 shares Puerto Rico 5% 7/1/2022, Cusip #: 24,581.19 100% 24,581.19 745181CF2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($96.797/sh) (accrued dividend: $381.94) 66 5000 shares Perry PA 9% 10/1/2022, Cusip #: 714599AB3 5,120.70 100% 5,120.70 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($101.914/sh) (accured dividend: $25.00) 67 10000 shares Phila PA 5.25% 2/15/2014, Cusip #: 10,772.25 100% 10,772.25 717903TP3, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($106.76/sh) (accrued dividend: $96.25) Page 9 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF FILE NUMBER Lotz, William H. 21 - 02 - This schedule must be completed and filed if the answer to any of questions 1 throuql' 4 on page 2 ' ,es. DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S (IEXCLUSIONF APPLICABLE) TAXABLE VALUE INTEREST 68 10000 shares Phila Hsp 6.5% 7/1/2023, Cusip #: 9,381.81 100% 9,381.81 717825FY4, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($91.832/sh) (accrued dividend: $198.61) 69 5000 shares Phila PA 6.8% 4/1/2005, Cusip #: 717818PC6 5,335.64 100% 5,335.64 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($106.335/sh) (accrued dividend: $18.89) 70 5000 shares Phila PA 10.75% 10/1/2002, Cusip #: 550.0C 100% 550.00 717900DF8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust, ($11.00/sh) 71 15000 shares Phila 6.625% 11/15/2023, Cusip #: 15,873.43 100% 15,873.43 717903RS9, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz affda William H. Lotz, Jr. Living Trust ($102.952/sh) (accrued dividend: $430.63) 72 5000 shares Phila Hosps 6% 6/1/2023, Cusip #: 5,381.97 100% 5,381.97 717903RX8, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz affda William H. Lotz, Jr. Living Trust ($105.306/sh) (accrued dividend: $116.67) 73 5000 shares Phila Ida 5.7% 4/1/2015, Cusip #: 4,689.33 100% 4,689.33 717818WX2, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($93.47/sh) (accrued dividend: $15.83) 74 5000 shares Ridley Park Hsp 6.125% 20, Cusip #: 5,822.95 100% 5,822.95 766370CJ7, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($114.077/sh) (accrued dividend: $119.10) Page 10 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I through 4 on page 2 ' 'es. ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF Include the name of the transferee, their relationship to decedent and the date of transfer.DECD'S EXCLUSION TAXABLE VALUE NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET (IF APPLICABLE) INTEREST 75 10000 shares Sam Rbrn TX 5.5% 10/1/2020, Cusip #: 8,574.76 100% 8,574.76 795869DM5, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($85.442/sh) (accrued dividend: $30.56) 76 4000 shares Ssota F1 6.5% 1/1/2023, Cusip #: 80329LAT6, 3,494.92 100% 3,494.92 held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($85.387/sh) (accrued dividend: $79.44) 77 5000 shares Sikeston 6.25% 6/1/2008, Cusip #: 5,144.08 100% 5,144.08 826775BD9, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($100.451/sh) (accrued dividend: $121.53) 78 5000 shares Somerset 6.75% 11/15/2021, Cusip #: 4,830.10 100% 4,830.10 834684BV3, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($93.677/sh) (accrued dividend: $146.25) 79 5000 shares Somerset PA 5.7% 11152022, Cusip #: 4,210.20 100% 4,210.20 834684CN0, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($81.734/sh) (accrued interest: $123.50) 80 5000 shares Stephens GA 7% 5/1/2029, Cusip #: 4,978.02 100% 4,978.03 858752AF5, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($96.255/sh) (accrued dividend: $165.28) 81 10000 shares Texoma Hsg 7.5% 3/1/2022, Cusip #: 8,584.77 100% 8,584.77 88305PAE1, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($84.806/sh) (accrued dividend: $104.17) Page 11 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 - This schedule must be completed and filed if the answer to any of questions I throuql~ 4 on page 2 ' 'es. ITEM DESCRIPTION OF PROPERTY Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER EXCLUSION TAXABLE VALUE Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S (IF APPLICABLE) INTEREST 82 10000 shares Union PA 6.5% 4/1/2022, Cusip #: 8,990.61 100% 8,990.61 906460BY5, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($89.545/sh) (accrued dividend: $36.11) 83 10000 shares Yrk Cnty Hsp 6.4% 4/1/2015, Cusip #: 9,686.26 100% 9,686.26 986392LG1, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($96.507/sh) (accrued dividend: $35.56) 84 10000 shares Yrk Cnty Nsp 6.5% 4/1/2022, Cusip #: 9,543.61 100% 9,543.61 986392LH9, held in First Union Securities Account #: 5165-7106, titled to 'the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust, ($95.075/sh) (accrued dividend: $36.11) 85 4424 shares Hutton Tele 1 Tx Fr Xchg, Cusip #: 12,342.96 100% 12,342.96 447900101, held in First Union Securities Account #: 5165-7106, titled to the William H. Lotz a/k/a William H. Lotz, Jr. Living Trust ($2.79/sh) Page 12 of Schedule G COMMONWEALTH OF PENNSYLVANIA tNH ERrTANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF Lotz, William H. FILE NUMBER 21 - 02 ~ Debts of decedent must be reported on Schedule I. ITEM NUMBER DESCRIPTION AMOUNT 1 2 3 FUNERAL EXPENSES: Parthemore Funeral Home and Cremation Services, Inc. St. Paul's Lutheran Church St. Theresa Mercy Service ADMINISTRATIVE COSTS: Personal Representative's Commissions Social Security Number(s) / EIN Number of Personal Representative(s): Street Address City State Zip Year(s) Commission paid Attorney's Fees Law Offices of Susan E. Lederer Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State Relationship of Claimant to Decedent Probate Fees Pennsylvania Inheritance Tax Return Filing Fee Zip Accountant's Fees Tax Return Preparer's Fees Other Administrative Costs Real Estate Settlement Fees (per Seller's Estimated Closing Costs) Broker's Fee Total of Continuation Schedule(s) TOTAL (Also enter on line 9, Recapitulation) 7,638.04 100.00 150.00 3,000.00 10.00 6,012.00 5,854.00 22,764.04 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Schedule H Funeral Expenses & Administrative Costs continued ESTATE OF Lotz, William H. FILE NUMBER 21 02 - 3 Deed Preparation 75.00 4 5 6 7 8 9 10 11 Transfer Tax Seller's Assist to Buyer Settlement Fee Notary Fee Tax Certification Domestic Lien Search Transaction Fee Miscellaneous Adjustments 1,040.00 3,800.00 190.00 10.00 4.00 35.00 100.00 600.00 Page 2 of Schedule H *REV-1513 EX~+ (9-00)ae, ~' ,~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lotz, William H. SCHEDULE J BENEFICIARIES FILE NUMBER 21 - 02 - RELATIONSHIP TO AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY DECEDENT OF ESTATE L TAXABLE DISTRIBUTIONS (include outright spousal distributions) 1 Betty M. Lotz Spouse Chevrolet Caprice D-309 Granite Farms Estates Sedan 1343 West Baltimore Pike Media, PA 19063-5531 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 Survivor's Trust (Marital Trust) under Article Eight of the William H. Lotz affJa William H. Lotz, 52,000.00 Jr. Living Trust dated May 1, 1995 and any amendments thereto 2 Family Trust (Credit Shelter Trust) under Article Nine of the William H. Lotz a/k/a William H. 952,581.84 Lotz, Jr. Living Trust dated May 1, 1995 and any amendments thereto B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II - ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 1,004,581.84 FIRST AMENDMENT TO THE WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. LMNG TRUST On May 1, 1995, I, WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR. signed the WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR. LIVING TRUST, as Tmstor, more formally known as WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR. and BETTY M. LOTZ, Trustees, or their successors in trust, tinder the WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR. LB;lNG TRUST dated May 1, 1995, and any amendments thereto Pursuant to the right reserved to me under Article Four of the original trust agreement referred to above which allows me to amend my Living Trust in writing at any time, I hereby amend that trust agreement in the following respects: 1. Article Three, Section 4 of my orig-inal Living Trust Ageement is hereby revoked in its entirety and amended as follows: Section 4. Designated Successor Trustees Whenever a Trustee is removed, dies, resigns, becomes legally incapacitated, or is otherwise unable or unwilling to serve, that Trustee shall be replaced as follows: He The Death or Disability of a Trustee While I am Serving as Trustee I may serve as the only Trustee or I may name any number of Trustees to serve with me. If any of these Trustees subsequently die, resign, become legally incapacitated or are otherwise unable or tinwilling to serve as a Trustee, I may or may not fill the vacancy. I name WILLIAM AxNTHONY LOTZ and SUZANNE LOTZ MCKEOUGH to serve as Trustees along with me. be Disability Trustees of WILLIAM H. LOTZ a/k/a WILLIAM H. L OTZ, JR. Upon the disability of WILLIA2Vi H. LOTZ Mc/a WILLIAM H. LOTZ, JR., if he is then serving as an initial Trustee, he shall be replaced by the following Disability Trustee(s): BETTY M. LOTZ AND WILLIAM ANTHONY LOTZ AND SUZANNE LOTZ MCKEOUGH, OR THE SURVIVOR OF THEM If, for any reason, any of the Disability Trustee(s) named above are unable or unwilling to serve, the remaining Disability Tmsee(s) shall continue to serve. Death Trustees of WILLIAM H. LOTZ a/k/a 'WILLIAM H. LOTZ, JR. Upon the death of WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR., if he is then serving as an initial Trustee, he shall be replaced by the following Death Trustee(s): BETTY M. LOTZ AND WILLIAM ANTHONY LOTZ A_ND SUZANNE LOTZ MCKEOUGH, OR THE SURVIVOR OF THEM If, for any reason, any of the Death Trustee(s) named above are unable or unwilling to serve, the remaining Death Trusee(s) shall continue to serve. 2 I confirm and readopt the remaining provisions of my original trust agreement reserving to myself the right to amend further that tntst agreement and this amendment thereto. Dated: ~-'~r, zxTZ~q ~:f), 2001. WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR., Trustor and Trustee The undersigned Trustee aclmowledges receipt of and consents to the foregoing amendment as of the day and year last above written. BETTY M. I~TZ, Trustee COMMONWEALTH OF PENNSYLVANIA) COUNTY OF the witnesses whose names are signed to the attached or foregoing instrument, being duly qualified according to law do depose and say that we were present and saw the trustor sign and execute the instntment as the First Amendment to his Revocable Trust; that the trustor signed willingly and executed it as his free and voluntary act for the purposes therein expressed; that each subscribing witness in the hearing and sight of the trustor signed the instrument as a witness; and that to the best of our knowledge the trustor was at that time ei*~hteen or more years of age, of sound mind and under no constraint or undue infiuence. I I, WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR., tmstor, whose name is signed to the attached or foregoing instmrnent, having been duly qualified according to law, do hereby aclmowledge that I signed and executed the instrument as the First Amendment to my Revocable Trust; that I signed it willingly; and that I signed it as my fi'ee and voluntary act for the purposes therein expressed. WI-r,LIAM H. LOTZ a/k/a / WILLIAM H. LOTZ, JR. Subscribed and sworn to and acknowledged before me by WILLIAM H. LOTZ aYk/a WILLIAJVI II. LOTZ, YR., the trieste)r, and subscribed and sworn to before me by ~?¢t~x!-~ (~',r¢((~l and,~)043C~t. wimesses, on ,~a~rC~A R~, 2001. Notary Public Notarial Seal Susan E. Lsderer, Notary Public Harrisburg, Dauphin County My Commission Expires May 3, 2004 The WILLIAM H. LOTZ AJK/A WILLIAM H. LOTZ, JR. LIVING TRUST prepared £or WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. JAMES, SMITH & DURKIN Attorneys-at-Law 134 Sipe Avenue Hummelstown, Pennsylvania 17036 (717) 533-3280 FAX (717) 533-2795 © James, Smith & Durkin All Rights Reserved WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. LIVING TRUST Table of Contents Article One Article 'Two Article Three Article Four Article Five Article Six Article Seven Article Eight Article Nine Article Ten Article Eleven Article Twelve Article Thirteen Article Fourteen Article Fifteen Trust Creation ...................................... 1-1 The Trust Estate ..................................... 2-1 Appointment of Trustees ................................ 3-1 Trustor' s Lifetime Rights ............................... 4-1 Trust Administration Upon My Death ...................... 5-1 Specific Distributions of Trust Property ..................... 6-1 Division into Survivor's Trust and Family Trust ................ 7-1 The Survivor's Trust .................................. The Family Trust .................................... 9-1 Common Pot Trust .................................. 10-1 Division and Distribution of Trust Property .............. i . . .11-1 Distribution If No Designated Beneficiaries .................. 12-1 Trustee Administration ............................... 13-1 Trustee Investment Powers ............................. 14-1 General Provisions ................................... 15-1 WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. LIVING TRUST Article One Trust Creation Section 1. Parties to My Trust This trust agreement dated ~A¥ 0 1 ]995 is made between WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., the Tmstor, also known as WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., and the following initial Trustee: WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. BETTY M. LOTZ Section 2. Name of My Trust This trust may be referred to as the: WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. LIVING TRUST, dated The formal name of my mast and the designation to be used for the transfer of title to the name of my mast is: WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. and BETTY M. LOTZ, Trustees, or their successors in trust, under the WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. LIVING TRUST dated ~]~¥ 0 i ~995 and any amendments thereto Section 3. Revocable Living Trust My trust is a revocable living mast. Section 4. Trustor as Trustee Notwithstanding any other provisions in this mast agreement, when I am serving as Trustee under this mast, I may conduct business and act on behalf of the trust without the consent of any other Trustee. 1-1 Section 5. My Family a. Marital Status I am currently married and my spouse's name is BETTY M. LOTZ. All references to my spouse in this trust agreement are to her. The name(s) and birth date(s) of the children of WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. are: Name Birth date WILLIAM ANTHONY LOTZ SUZANNE LOTZ MCKEOUGH September 9, 1943 July 1, 1946 All references to the children of WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. in this instrument are to these children and' any children subsequently bom to or adopted by him. 1-2 Article Two The Trust Estate Section 1. Initial Transfer of Property I hereby assign, convey, transfer and deliver to my Trustee all trust property set forth on Schedule "A" attached hereto and made part of this trust agreement. My Trustee acknowledges receipi without consideration of all assets listed on Schedule "A". Ail assets titled in the name of my trust or in the name of my Trustee, but not listed on Schedule "A" shall be considered a part of my trust estate to the same extent as if set forth on Schedule Section 2. Additional Transfer of Property My Trustee is authorized to accept additional transfers of property interests of all kinds, at any time in any manner by me or any other person or entity. All property interests received by transfer, assignment, gift, bequest, devise or beneficiary designation shall become a part of my trust estate unless disclaimed by my Trustee. Section 3. Composition of Trust Property In addition to the property described in the previous Sections, my trust estate shall include the following: All insurance policies transferred to my trust or policies in which my trust is named as beneficiary plus the proceeds of those policies; Any interest in any pension, retirement or death benefit, bonus, profit-sharing or employee's savings plan or any similar contract created or entered into by an employer for the benefit of some or all employees which is transferred to my trust or in which my trust is named as beneficiary and all proceeds of any such benefit, bonus, plan or contract; and Any other property or interest in property which becomes subject to my trust. 2-1 Section 4. Acceptance of Trust Property All property transferred to my trust and not disclaimed by my Trustee shall be held, administered and distributed according to the terms of this agreement. 2-2 Article Three Appointment of Trustees Section 1. Definition of Trustee All references in this agreement to "Trustee" shall be deemed a reference to the person or entity who is then serving as Trustee and shall include alternate or successor Trustees or Co-Trustees unless' the context requires otherwise. Section 2. Resignation of a Trustee Any Trustee may resign at any time without court approval by giving written notice to me or to my personal representative. If I am not living, written notice shall be given to the successor Trustee or if there is no successor, to the beneficiaries then entitled to receive income or principal distributions under this agreement, to their personal representatives or to the persons having the care or custody of minor beneficiaries. Section 3. Removal of a Trustee Any Trustee may be removed under this agreement as follows: ae While I am Both Alive and Competent While I am both alive and legally competent, I shall have the right to remove any Trustee appointed under this agreement at any time with no requirement that the removed Trustee receive any reason for such termination. Removal by Others After my death or legal incompetency, any Trustee may be removed by a majority vote of the beneficiaries then entitled to receive income or principal distributions under this agreement or their personal representatives. These beneficiaries or their personal representatives shall not be required to give any reason for such Trustee's termination. 3-1 Notice to Removed Trustee Written notice of removal under this agreement shall be effective immediately when signed by the person or persons authorized to make the removal and delivered to the Trustee personally or deposit by United States certified mail, return receipt requested. The written notice removing a Trustee shall designate a successor Trustee. Transfer of Trust Property The Trustee so removed shall promptly transfer and deliver to the successor Trustee all property of the trust under its possession and control. Section 4. Designated Successor Trustees Whenever a Trustee is removed, dies, resigns, becomes legally incapacitated or is otherwise unable or unwilling to serve, that Trustee shall be replaced as follows: The Death or Disability of a Trustee While I am Serving as Trustee I may serve as the only Trustee or I may name any number of Trustees to serve with me. If any of these other Trustees subsequently die, resign, become legally incapacitated or are otherwise unable or unwilling to serve as a Trustee, I may or may not fill the vacancy. be Disability Trustees of WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. Upon the disability of WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., if he is then serving as an initial Trustee he shall be replaced by the following Disability Trustee(s): BETI'Y M. LOTZ If, for any reason, the Disability Trustee(s) named above are unable or unwilling to serve, the following successor Disability Trustee(s) shall serve until the successor Disability Trustee(s) on the list have been exhausted. Unless otherwise specified, if Co-Disability Trustees are serving, the next following named successor Disability Trustee shall serve only after all of the Co-Disability Trustees cease to act as Trustees. (1) WILLIAM ANTHONY LOTZ AND (2) SUZANNE LOTZ MCKEOUGH, OR THE SURVIVOR OF THEM 3-2 Death Trustees of WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR. Upon the death of WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., if he is then serving as an initial Trustee he shall be replaced by the following Death Trustee(s): BETTY M. LOTZ If, for any reason, the Death Trustee(s) named above are unable or unwilling to serve the following successor Death Trustee(s) shall serve until the successor Death Trustee(s) on the list have been exhausted. Unless otherwise specified, if Co-Death Trustees are serving the next following named successor Death Trustee shall serve only after all of the Co-Death Trustees cease to act as Trustees. (1) WILLIAM ANTHONY LOTZ AND (2) SUZANNE LOTZ MCKEOUGH,. OR THE SURVIVOR OF THEM Section 5. No Designated Successor Trustees If at any time there is no Trustee acting under this agreement and there is no person or institution designated and qualified as a successor Trustee, a majority of the beneficiaries then eligible to receive distributions of income or principal under this agreement or their personal representatives shall appoint a successor Trustee. If any trust existing under this agreement lacks a Trustee and no successor is appointed pursuant to this Section, the vacancy shall be filled by a court of competent jurisdiction. Section 6. Responsibility of Successor Trustees A successor Trustee shall have the same rights, powers, duties, discretions and immunities as if it had been named as initial Trustee under this agreement. No successor Trustee shall be personally liable for any act or failure to act of any predecessor Trustee or shall have any duty to examine the records of any earlier Trustee. A successor Trustee may accept the account rendered and the property delivered by or on behalf of a predecessor Trustee as a full and complete discharge of the duties of the predecessor Trustee without incurring any responsibility or liability for so doing. 3-3 Article Four Trustor's Lifetime Rights Section 1. Rights While I am Alive and Legally Competent During my lifetime while I am legally competent, I shall have the following powers over the trust property and my Trustee: Right to Trust Income My Trustee shall pay to me or apply for my benefit all the net income from this trust monthly or in other convenient installments as I may direct. Right to Trust Principal My Trustee shall pay to me or apply for my benefit such sums from the principal of this trust as I may direct. I may not, however, direct my Trustee to make gifts from trust property to third parties. If my Trustee inadvertently makes a distribution I intended as a gift directly from the trust to a third party, that distribution shall be construed as a distribution to me first then a gift to the third party from me. Right to Add and Remove Property By written direction delivered to my Trustee, I may add other property to my trust or withdraw property in any amount and at any time. de Right to Amend or Revoke My Trust I shall have the right to amend, modify, alter, revoke or terminate my trust or any separate trusts created under this agreement at any time in whole or in part. Any amendment or revocation of this trust agreement must be delivered to my Trustee in writing. The power to amend, revoke or terminate this trust is personal to me and may not be exercised by any other person or entity. After my death, this trust or any trust created by this agreement shall be irrevocable and not subject to amendment. 4-1 Delivery of Property After Revocation After any revocation or termination of any trust created by this agreement my Trustee shall promptly deliver the designated trust property to me. Trustee's Retention of Assets Upon Revocation In the event of any revocation of all or part of my trust, my Trustee shall be entitled to retain sufficient assets to reasonably secure the payment of liabilities my Trustee has lawfully incurred in administering the trust and any fees that have been earned by my Trustee until such time as those liabilities have been discharged and fees paid, unless I indemnify my Trustee against loss or expense. Section 2. Power to Direct Investments I shall have the right to direct investments of trust property as follows: a. Invest trust funds in specified securities, properties or other forms of investment; Retain as part of the trust estate for specified periods of time securities, properties or other forms of investment held in trust under this instrument; and Sell, encumber, lease, abandon or dispose of any trust property. My Trustee shall not be liable for any losses sustained as a direct or indirect result of any action taken in accordance with the terms of the written direction. Ail directions shall be in a writing signed by me, specifying, if applicable the period of time during which the instructions shall remain in effect and describing any other conditions affecting the directions. 4-2 Section 3. Trustor's Rights During Disability Disability Defined I shall be considered disabled in the event a court of competent jurisdiction determines that I am legally incompetent or, in the event that I am not adjudicated incompetent but by reason of illness or mental disability, I am in the opinion of two licensed physicians unable to properly handle my own affairs. .b. Income and Principal Distributions My Trustee during the period of my disability shall pay to me or apply for my benefit as much of the principal and net income of this trust as my Trustee, in its sole discretion shall deem necessary or advisable. Payment of Obligations My Trustee during the period of my disability shall from time to. time, pay my valid obligations, my medical expenses and provide for my comfortable maintenance and welfare taking into consideration my other income or resources. de Income and Principal Distributions for Spouse My Trustee shall pay to or apply for the benefit of my spouse as much of the principal and net income of my trust estate as my Trustee in its sole discretion shall deem necessary or advisable from time to time for my spouse's health, maintenance, support and education, taking into consideration her other income or resources. e. Trustee Guidelines In making distributions under this Section my Trustee shall give primary consideration to my needs and secondary consideration to the needs of my spouse. 4-3 f. Tax Planning During my life if I should become disabled, my Trustee may exercise the following powers as attorney in fact on my behalf, either alone or in conjunction with any other attorney in fact under a durable power of attorney, but the primary concern of my Trustee shall be for my welfare and secondarily for the welfare of my lineal descendants for tax planning: My Trustee may make additional distributions to my lineal descendants equally by class for the purpose of continuing any gift program initiated by me which my Trustee reasonably determines will achieve beneficial results for estate and/or income tax planning purposes. My Trustee may initiate .a gift program on my behalf which my Trustee reasonably determines will achieve beneficial results for estate and/or income tax planning purposes by making distributions to my lineal descendants equally by class so long as such distributions are made in the form which qualify for and are limited to the annual exclusion for federal gift tax purposes. During any period when I am disabled, my Trustee shall be under no obligation to initiate, recommend or consider any tax planning objective or program for me and any exercise of its discretion in this regard when conducted in good faith shall not subject it to liability to any person affected thereby. 4-4 Section 4. Exercise of Trustor's Rights and Powers by Others Any right or power that I could exercise personally under the terms of this agreement except the power to amend, revoke or terminate any trust created by this agreement may be exercised for and on behalf of me by any attorney in fact who, at the time of the exercise, is duly appointed and acting for me under a valid and enforceable durable power of attorney executed by me or, if there is no such attorney in fact, by my duly appointed and acting conservator after petition to a court of competent jurisdiction. The power to amend, revoke or terminate any trust created by this agreement is personal to me and may not be exercised by any other person or entity. Section 5. Rights Concerning Standby Property It is contemplated that certain assets may be added to the trust estate from time to time with the possession and control thereof retained by or redelivered to me. If I execute and deliver to my Trustee an instrument effectively transferring such assets to my Trustee together with any further documentation necessary to effect the record transfer thereof, in the event of my death or incapacity the assets shall be deemed to be assets of the trust estate and held by me as the nominee of my Trustee. During the period such assets are in my possession they shall be subject to the following terms and conditions: I may receive directly and devote to my own use and benefit any dividends, interest, income or distributions from or upon such assets and neither I nor my Trustee shall have any duty of accounting to the other or to any other person with regard thereto. bo Any sale, exchange or other transfer of such assets by me shall constitute a withdrawal of such assets from the trust estate and my Trustee shall have no further interest therein or duties with regard thereto. Though not a condition precedent to any such withdrawal, I agree to notify my Trustee of all such withdrawals. 4-5 Co do I shall be responsible for the reporting of the income from such assets to the appropriate taxing authorities and my Trustee shall have no responsibility for including such income on any fiduciary returns prepared by it or for the preparation of any other income tax return with respect thereto unless I duly notify my Trustee of such income items and a full and adequate accounting thereof is made and presented to my Trustee. I shall protect and indemnify my Trustee against all losses, liabilities and expenses which may result directly or indirectly from my use, possession, management or control of such assets. eo Upon my death or incapacity, my Trustee shall be entitled to the possession thereof and thereafter shall have all the rights, powers and duties with respect to such assets which are otherwise granted to my Trustee herein. It is understood that my Trustee shall be responsible only for the assets which actually come into its possession and control. However, it is also understood that my Trustee shall use any reasonable and prudent means to secure possession of any trust assets of which it has knowledge. My Trustee shall have no duty, accountability or responsibility to me or to any other person with respect to any assets of which it has no knowledge or of which it is unable to obtain possession and control. Section 6. Trustorfrrustee Bank Accounts It is contemplated that I may establish a joint bank account or accounts with my Trustee and create powers of attorney in respect thereof in other persons. Deposits from time to time made by me or other authorized persons into such an account shall constitute transfers to the trust estate and withdrawals therefrom which may be made without the co-signature of my Trustee shall constitute withdrawals from the trust estate. However, my capacity and other authorized persons with respect to any such account shall be that of nominee of my Trustee not co-owner. At any given time the trust estate shall include the then balance of any such account. 4-6 Section 7. Life Insurance Premiums and Retirement Plans During my lifetime I shall have all powers over life insurance policies and retirement benefits owned by or made payable to my trust, including the following: Payment of Premiums I shall be responsible for the payment of premiums and other charges on each policy or insurance owned by or made payable to my trust. My Trustee shall have no duty to make any payment or be responsible to determine whether such payments have been made. be Custody of Policies My Trustee shall not be responsible for the custody or safekeeping of any life insurance policy before its actual delivery to my Trustee nor after its withdrawal by its owner. Change Beneficiaries I shall have the right to change the beneficiary and to receive any dividends or other earnings of such policies or plans without accountability therefor to my Trustee or any beneficiary in this agreement. d. Assignment I may assign any policy or plan benefits to any lender to the extent allowed by law including my Trustee as security for any loan to me or any other person. ee Surrendered Policies If any life insurance policy is surrendered or if the beneficiary of any policy is changed, this trust agreement shall be revoked with respect to such policy. However, no revocation of the trust with respect to any policy whether pursuant to the provisions of the preceding sentence or otherwise shall be effective unless the surrender or change in beneficiary of the policy is accepted by the insurance company. Section 8. Undistributed Net Income Any net income not distributed under the provisions of this Article shall be added to the trust principal. 4-7 Article Five Trust Administration Upon My Death Section 1. Trustees Discretion to Pay My Debts and Taxes After my death my Trustee in its sole discretion may pay all or any part of my following expenses, debts, claims and taxes becoming due or payable by reason of my death: a. My final medical expenses and ail funeral costs; b. Legally enforceable claims against me or my estate; c. Reasonable expenses of administration of th.is trust and my probate estate, if any; d. Any allowances mandated by a court of competent jurisdiction to those dependent upon me; e. Any estate, inheritance, succession, death or similar taxes payable by reason of my death; and f. Any penalties or interest on any of the above claims, debts or taxes owed by me or my estate. Section 2. Payment by My Trustee or by My Personal Representative My Trustee in its sole discretion may make distributions authorized under this Article either directly to the person or entities to whom payment is owed or to the personal representative of my probate estate. Written statements by my personal representative that such sums are due and payable by my estate shall be sufficient evidence of their amount and propriety for the protection of my Trustee. My Trustee shall be under no duty to see to the application of any such payments made to my personal representative. Section 3. Tax Elections With regard to the payment of any income tax, gift tax, estate tax, inheritance tax or any other tax required because of my death, my Trustee shall have the right to make any available elections allowed under the law. My Trustee is authorized to sign and file any tax return required because of my death. 5-1 Section 4. Payment of Death Taxes, Claims and Expenses Payment out of Trust Property All death taxes, claims and expenses payable under the provisions of this Article shall be paid by my Trustee out of the trust estate except as specifically provided for elsewhere in this agreement. be Exception for Property Passing Outside of Trust Notwithstanding any other provision in my trust all death taxes, claims and expenses incurred by reason of assets passing outside of my trust or probate estate shall be assessed against those persons receiving such property. No Payment from Survivor's Share Notwithstanding any other provision in my trust unless all other assets available to my Trustee have been exhausted, all death taxes, claims and expenses payable under the provisions of this Article shall not be paid from the Survivor's Trust as del'reed in Article Eight or from any property passing to my surviving spouse that qualifies for the federal estate tax marital deduction. 5-2 Article Six Specific Distributions of Trust Property Section 1. No Specific Distributions My Trustee shall make no specific distributions of trust property to any beneficiaries under this trust agreement upon my death. All distributions of trust property shall be made in the Articles that follow. 6-1 Division into Article Seven Survivor's Trust and Family Trust Section 1. Division of the Trust Estate Upon my death my Trustee shall allocate and distribute the remaining trust estate including any property that becomes distributable or payable to my Trustee at my death into two separate shares to be identified as the Survivor's Share and the Family Share. Property Transferred to the Survivor's Share The Survivor's Share shall consist of assets having a value equal to the minimum amount necessary to eliminate or to reduce to the maximum extent possible any federal estate tax at my death, taking into account the following: The net value for federal estate tax purposes of all other property that passes or has passed to my surviving spouse under this trust agreement, my probate estate or otherwise that qualifies for the federal estate tax marital deduction; 2. All federal estate tax deductions actually allowed other than the marital deduction; 3. The unified credit available to my estate; The credit for state death taxes available to my estate, to the extent that the use of that credit does not result in or increase any death tax payable to any state; and o Any other allowable credits available to my estate, except the credit for tax on prior transfers from a "transferor", as defined in Internal Revenue Code Section 2013, who dies within two years after the date of my death but only to the extent that those credits do not disqualify this gift from receiving the marital deduction. 7-1 b. Survivor's Share to be Administered as Survivor's Trust The Survivor's Share shall be held, administered and distributed according to the provisions of the Survivor's Trust as set forth in Article Eight of this trust agreement. c. Property Transferred to the Family Share The Family Share shall consist of all assets not distributed to the Survivor's Share. e. Family Share to be Administered as Family Trust The Family Share shall be held, administered and distributed according to the provisions of the Family Trust as set forth in Article Nine of this trust agreement. Section 2. Allocation and Valuation of Assets In allocating assets between the Survivor's Share and the Family Share, my Trustee shall allocate the trust assets that qualify, for the marital deduction between the Survivor's Share and the Family Share in cash or in kind or partly in each on a pro rata or non pro rata basis and in undivided interests or not; subject, however, to the following: ae Qualification for Marital Deduction Only assets that qualify for the marital deduction shall be allocated to the Survivor's Share. be Valuations of Allocations in Kind Assets allocated in kind shall be deemed to satisfy the marital deduction amount on the basis of their values as £mally determined for federal estate tax purposes provided, however, that my Trustee shall act impartially, consistent with equitable principles requiring impartiality among beneficiaries in allocating assets in satisfaction of the marital deduction share so that any distribution of assets in satisfaction of the marital deduction share shall be made of assets including cash fairly representative of appreciation or depreciation in the value of all property thus available for distribution. c. Income The Survivor's Share shall be entitled to a pro rata share of the income earned 7-2 on deceased Trustor's residuary probate and trust assets from the date of deceased Trustor's death including a share of income earned on assets used to discharge liabilities. Foreign Death Tax Credit My Trustee shall not allocate assets that qualify for the foreign death tax credit to the Survivor's Share unless all other assets or interests available for allocation have been so allocated. e. Insurance on the Life of My Surviving Spouse My Trustee shall not allocate any policy of insurance on the life of my surviving spouse to the Survivor's Share that is my separate property. f. Insurance on the Lives of Others Any incidents of ownership to a policy of insurance on the life of a person other than me shall be allocated to the Family Share. g. Lack of Property to Fully Fund the Survivor's Share If there is insufficient property qualifying for the federal estate tax marital deduction to fully fund the Survivor's Share, the funding to the Survivor's Share shall be reduced accordingly. Section 3. Intention that Survivor's Share Qualify for Marital Deduction I intend that the Survivor's Share qualify for the federal estate tax marital deduction and this agreement shall be construed accordingly. All other provisions of this trust agreement shall be subordinate to that intent. If the granting of any right, power, privilege, authority, or immunity to my Trustee or another person and the imposition of any duty upon my Trustee or another person by any provision of this trust agreement would disqualify any share or interest of a beneficiary hereunder from qualifying for the federal estate tax marital deduction provided by Section 2056 of the Code, such provision shall be ineffective if and to the extent that the same if effective would so disqualify such share or interest. The provisions of this Section shall also apply to my probate estate, personal representative and all beneficiaries, devisees and legatees. Notwithstanding any other provision in this trust agreement to the contrary, my surviving spouse at any time shall have the right to direct my Trustee in writing to convert within a reasonable time any unproductive trust property to income producing property. Section 4. Disclaimer of Property 7-3 Any property or portion of property that is disclaimed by my surviving spouse shall be held, administered or distributed according to the following terms: a. Property Disclaimed My surviving spouse may disclaim any property held or distributed to or for the benefit of my surviving spouse under this trust agreement. b. Time to Disclaim My surviving spouse may disclaim within the time limits and under the conditions permitted by the laws regulating disclaimers. c. Delivery of Disclaimer to My Trustee A disclaimer by my surviving spouse may be exercised by the delivery to my Trustee of an irrevocable and unconditional refusal to accept any or all property interests passing to my surviving spouse or the Survivor's Share. d. Disclaimer of Survivor's Share If my surviving spouse exercises a disclaimer with respect to any or all property set aside as the Survivor's Share, such disclaimed interest shall be added to the Family Share. e. Disclaimer of Family Share If my surviving spouse exercises a disclaimer with respect to any or all property set aside as the Family Share, such disclaimed interest shall be distributed under the relevant terms of this agreement as though my surviving spouse had predeceased me. 7-4 Article Eight Survivor's Trust Section 1. Rights of Surviving Spouse in the Survivor's Trust My Trustee shall hold, administer and distribute the assets of Survivor's Trust as follows: Payment of Income My Trustee shall pay to or apply for the benefit of the surviving spouse so long as the surviving spouse lives the entire net income of the Survivor's Trust in monthly or other convenient installments agreed upon by the surviving spouse and my Trustee, but not less often than annually. General Power of Appointment Over Undistributed Net Income Upon the death of the surviving spouse my Trustee shall distribute all of the accrued but undistributed net income to any person or entity and upon any trust, terms and conditions or to or in favor of the estate of the surviving spouse as the surviving spouse may direct by his or her last will or living trust agreement. No exercise of this general power of appointment shall be effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general power of appointment. My Trustee may rely upon any instrument admitted to probate as the last will of the surviving spouse in carrying out the terms of the power of appointment and shall not be liable for any good-faith act in reliance upon that will, even if for any reason it is later determined to be invalid with respect to its purported exercise of this power of appointment. Discretionary Payment of Principal At any time or times during the mast term my Trustee shall pay to or apply for the benefit of the surviving spouse so much of the principal of the Survivor's Trust as my Trustee deems proper for the surviving spouse's health, maintenance, support and education. In exercising discretion my Trustee shall give the consideration that my Trustee deems proper to all other income and resources then readily available to the surviving spouse for use for these purposes that are then known to my Trustee. 8-1 Limited Power of Appointment By either a last will or by a living trust agreement the surviving spouse shall have the limited testamentary power to appoint to or for the benefit of my descendants some or all of the principal and any accrued but undistributed net income of Survivor's Trust as it exists at the death of the surviving spouse. The surviving spouse may appoint trust assets under this limited testamentary power among my descendants in equal or unequal amounts, either directly or in trust as the surviving spouse directs. This limited testamentary power of appointment shall not be exercised in favor of the surviving spouse's estate, the creditors of the surviving spouse, the creditors of the surviving spouse's estate or in any way which would result in any economic benefit to the surviving spouse. Section 2. Trustee's Discretion to Pay Debts and Taxes The Survivor's Trust shall terminate upon the death of the surviving spouse. My Trustee, shall hold and administer the unappointed balance or remainder of the Survivor's Trust as follows: a. Surviving Spouse's Debts and Taxes My Trustee, in its sole discretion, may pay all or any part of the surviving spouse's following expenses, debts, claims and taxes becoming due or payable by reason of the surviving spouse's death: 1. Final medical expenses and all funeral costs; 2. Legally enforceable claims against the surviving spouse or the surviving spouse's estate; 3. Reasonable expenses of administration of this trust and the surviving spouse's probate estate if any; 4. Any allowances mandated by a court of competent jurisdiction to those dependent upon the surviving spouse; 5. Any estate, inheritance, succession, death or similar taxes payable by reason of the death of the surviving spouse; and 6. Any penalties or interest on any of the above claims, 8-2 debts or taxes owed by the surviving spouse or the surviving spouse's estate. Section 3. Payment by My Trustee or Personal Representative My Trustee in its sole discretion may make distributions authorized under this Article either directly to the person or entities to whom payment is owed or to the personal representative of the surviving spouse's probate estate. Written statements by the surviving spouse's personal representative that such sums are due and payable by the estate shall be sufficient evidence of their amount and propriety for the protection of my Trustee. My Trustee shall be under no dutv to see to the application of any such payments made to the surviving spouse's personal representative. Section 4. Tax Elections With regard to the payment of any income tax, gift tax, estate tax, inheritance tax or any other tax required because of the death of the surviving spouse, my Trustee shall have the right to make any available elections allowed under the law. My Trustee is authorized to sign and file any tax return required because of the death of the surviving spouse. Section 5. Administration of Survivor's Trust Remainder After payment of debts, expenses and taxes, my Trustee shall hold and administer the unappointed balance or remainder of the Survivor's Trust as provided in the Articles that follow. 8-3 Article Nine Family Trust Section 1. Rights of Surviving Spouse in the Family Trust My Trustee shall hold, administer and distribute the assets of the Family Trust as follows: ae Payment of Income My Trustee shall pay to or apply for the benefit of my surviving spouse so long as my surviving spouse lives the entire net income of the Family Trust in monthly or other convenient installments agreed upon by my surviving spouse and my Trustee but not less often than annually. be Discretionary Payment of Principal At any time or times during the trust term my Trustee shall pay to or apply for the benefit of my surviving spouse and my descendants so much of the principal of the Family Trust as my Trustee in its discretion deems proper for their health, maintenance, support and education. Guidelines for Trustee's Discretion In exercising discretion my Trustee may pay to or apply more for some beneficiaries than for others and may make payments to or for one or more beneficiaries to the exclusion of others. However, my Trustee shall at all times give primary consideration to my surviving spouse's needs and only thereafter to my descendants. No amount paid or applied need thereafter be repaid to my Trustee or restored to my trust. In exercising discretion my Trustee shall give the consideration that my Trustee deems proper to all other income and resources that are known to my Trustee and that are readily available to the beneficiaries for use for these purposes. My Trustee shall accumulate and add to principal any net income not distributed. Restriction on Surviving Spouse's Right to Receive Principal Notwithstanding any other provision in this agreement if my surviving spouse has the power to remove a Trustee of the Family Trust, my Trustee shall not distribute any of the principal of the Family Trust that would in any manner discharge my surviving spouse's legal obligation of support to a beneficiary of the Family Trust. In the event my surviving spouse is mentally disabled and 9-1 without the power to remove a Trustee of the Family Trust, my Trustee shall disregard this restriction during such period of mental disability. Surviving Spouse's Right to Withdraw Principal My surviving spouse shall have the power to withdraw from the Family Trust principal each calendar year those amounts that shall not exceed the greater of five thousand dollars ($5,000) or five (5) percent of the assets valued as of the end of the preceding calendar year. My surviving spouse shall exercise this power by a written instrument signed by him or her and delivered to my Trustee. This power is noncumulative and to the extent it is not exercised by the end of January of each calendar year it shall lapse. This power shall exist each year until the death of my surviving spouse. Section 2. Limited Power of Appointment By either a last will or by a living trust agreement my surviving spouse shall have the limited testamentary power to appoint to or for the benefit of my descendants some or all of the principal and any accrued but undistributed net income of the Family Trust as it exists at the death of my surviving spouse. My surviving spouse may appoint trust assets under this limited testamentary power among my descendants in equal or unequal amounts either directly or in trust as my surviving spouse directs. This limited testamentary power of appointment shall not be exercised in favor of my surviving spouse's estate, the creditors of my surviving spouse, the creditors of my surviving spouse's estate or in any way which would result in any economic benefit to my surviving spouse. Section 3. Termination of the Family Trust On the death of my surviving spouse, the Family Trust shall terminate. All unappointed and undistributed trust assets including any accrued and undistributed net income, shall be held, administered and distributed in the Articles that follow. 9-2 Article Ten Common Pot Trust After the death of the Trustor my Trustee shall not create a Common Pot Trust. All trust property that has not been distributed under prior Articles of this trust agreement shall be held, administered, divided and distributed according to the provisions of the Articles that follow. 10-1 Article Eleven Division and Distribution of Trust Property Section 1. Division of Trust Property Into Shares My Trustee shall divide all trust property not previously distributed into separate shares as follows: Beneficiary Name WILLIAM ANTHONY LOTZ SUZANNE LOTZ MCKEOUGH Share 50% 50% Section 2. Distribution of Trust Shares for My Beneficiaries The trust share of each beneficiary named in Section 1. of this Article who survives me shall be held, administered and distributed as follows: a. Distribution of Trust Share for WILLIAM AlVrltO~ LOTZ The trust share set aside for WILLIAM ANTHONY LOTZ shall be held, administered and distributed as follows: 1. Distributions of Net Income My Trustee shall immediately pay to, or apply for the benefit of such beneficiary all accumulated net income, free of the trust. 2. Distributions of Principal My Trustee shall immediately pay to, or apply for the benefit of, WILLIAM ANTHONY LOTZ all accumulated net income and principal, free of the trust. 11-1 3. Distribution on Death of Beneficiary If such beneficiary should predecease me or die before the complete distribution of the trust share, the trust share set aside for such beneficiary shall terminate and my Trustee shall distribute the balance of the trust property equally to SUZANNE LOTZ MCKEOUGH or her issue, per stirpes. b. Distribution of Trust Share for SUZANNE LOTZ MCKEOUGH The trust share set aside for SUZANNE LOTZ MCKEOUGH shall bc held, administered and distributed as follows: 1. Distributions of Net Income My Trustee shall immediately pay to, or apply for the benefit of such beneficiary all accumulated net income, free of the trust. 2. Distributions of Principal My Trustee shall immediately pay to, or apply for the benefit of, SUZANNE LOTZ MCKEOUGH all accumulated net income and principal, free of the trust. 3. Distribution on Death of Beneficiary. If such beneficiary should die before the complete distribution of the trust share, such trust shall terminate and my Trustee shall distribute the balance of the trust property to such beneficiary's then living descendants per stirpes. If such beneficiary has no then living descendants, my Trustee shall distribute the balance of the trust property to my then living descen~ dants per stirpes. If I have no then living descendants, my Trustee shall distribute the balance of the trust property as provided for in the Articles that follow. 11-2 Section 3. Distribution of Trust Share for Descendant of Deceased Child My Trustee shall promptly distribute, free of the trust, all accumulated net income and principal of the trust share set aside for each of my deceased children to their descendants, if any, per stirpes. Section 4. Distributions to Underage or Disabled Beneficiaries Notwithstanding any other provision in this trust agreement, if any person otherwise entitled to receive a distribution of trust property is under 25 years of age or is mentally disabled or legally incompetent as defined in Article Twelve, my Trustee shall retain and administer that person's trust property for his or her benefit as follows: My Trustee's Discretion My Trustee may pay to or apply for the benefit of such beneficiary so much of the net income and principal of the trust as my Trustee, in its discretion, deems proper considering all other sources of income and resources available to such beneficiary and known to my Trustee. be Payments Made to Beneficiary or Personal Representative My Trustee is authorized to make payments under this Section either directly to the beneficiary, to the beneficiary's personal representative or to any other person my Trustee may deem proper to be used for the benefit of the beneficiary. Ce Trustee's Decisions are Final All decisions by my Trustee as to those it makes payment to, the purposes for which these payments are made, and the amounts to be paid out of the trust are within my Trustee's sole and absolute discretion. de Undistributed Net Income All undistributed net income shall be accumulated and added to the principal of the trust. 11-3 Termination and Distribution My Trustee shall distribute the trust property to a beneficiary under this Section when such beneficiary reaches age 25, or when he or she is no longer disabled as determined by a court of competent jurisdiction, or upon certification by two licensed physicians that such beneficiary is able to properly care for his or her property and person. Death of Disabled or Underage Beneficiary Upon the death of a beneficiary under this Section, my Trustee shall distribute all of such beneficiary's remaining trust share, including the trust principal and accrued and undistributed income, to any person or entity, and upon any trust, terms, and conditions, or to or in favor of the estate of such deceased beneficiary, as he or she may direct by his or her last will or living trust agreement. No exercise of this general power of appointment shall be effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general power of appointment. 11-4 Article Twelve Distribution if No Designated Beneficiaries NONE 12-1 Article Thirteen Trustee Administration Section 1. Co-Trustees to Act by Majority Vote At any time that there are two or more Trustees serving under this agreement they shall act by majority vote and any exercise of a power or discretion by a majority of the Trustees shall have the same effect as an exercise by all of them. If the Trustees are not able to reach agreement on any decision as set forth in this Section they shall petition a court of competent jurisdiction for instructions and shall take no action on the disputed matter until a court order deciding the issue has been rendered. Section 2. Power to Delegate Notwithstanding any other provision of this agreement, any one or more of the Co-Trustees serving under this agreement may from time to time delegate to another Co-Trustee or Co- Trustees routine acts of trust administration. Section 3. No Bond Required No Trustee under this agreement shall be required to post any bond for the faithful performance of its responsibilities. Section 4. Trustee Compensation My Trustee shall, be entitled to reasonable compensation for services rendered payable without the need for a court order. In calculating the amount of compensation customary charges for similar services in the same geographic area for the same time period shall be used as guidelines. My Trustee shall also be entitled to reimbursement for reasonable costs and expenses incurred during the exercise of its duties under this agreement. 13-1 Section 5. Change in Corporate Trustee Any corporate successor to the trust business, of any corporate Trustee named under this agreement or acting hereunder shall succeed to the capacity of its predecessor without re- conveyance or transfer of trust property. Section 6. Power to Divide or Combine Trusts My Trustee shall have the power to divide a single trust into separate shares each to be administered in accordance with the terms and conditions of the single trust from which they were created when my Trustee in its discretion determines that division is desirable or advisable in view of tax considerations, including considerations related to the income tax, the gift tax, the estate tax or the generation-skipping transfer tax or other objectives of the trusts and their beneficiaries. My Trustee shall not be required to make a physical segregation or division of the various trust shares created under this trust agreement except as segregation or division may be required by reason of the termination and distribution of any of the trusts, but my Trustee shall keep separate accounts and records for different undivided interests. My Trustee in its discretion shall have the further power to combine two or more trusts having substantially the same terms into a single trust for purposes of administration when tax or other factors indicate that such combination would be desirable or advisable. In deciding whether to combine trusts, my Trustee should consider the generation-skipping "inclusion ratio" of the trusts to be combined. Trusts having the same inclusion ratios may be combined. Trusts having different inclusion ratios should generally not be combined unless their inclusion ratios are maintained unchanged through substantially separate and independent shares of different beneficiaries within the meaning of I.R.C. Section 2654(b), and the applicable regulations thereunder. Section 7. Termination of Small Trust My Trustee shall have the power in its discretion to terminate any trust created under this trust agreement whenever it becomes so small in relation to the costs of administration as to make continuing administration uneconomical. Upon termination my Trustee shall distribute the principal and any accrued or undistributed net income to the income beneficiaries in proportion to their shares of the income. If no fixed amount of income is payable to specific beneficiaries, my Trustee shall disn'ibute the principal and any accrued or undistributed net income in equal shares to those beneficiaries who would then be entitled to income payments from the trust. 13-2 Section 8. Limit on Trustee's Discretion Notwithstanding any language purporting to confer absolute, sole or unrestricted discretion on my Trustee in exercising any discretionary power with respect to this trust, my Trustee shall at all times act in accordance with fiduciary principles and shall not act in bad faith or in disregard of the purposes of my trust. Section 9. Written Notice to Trustee Until my Trustee receives written notice of any death or other event which triggers the right to payments from any trust created under this agreement it shall incur no liability for distributions made in good faith to persons whose interests may have been affected by such event. Section 10. Duty to Account My Trustee shall render accounts to the income beneficiaries under this trust agreemem at least annually, at the termination of a trust created hereunder and upon a change in the Trustees in the manner required by law. Section 11. No Court Supervision No trust created under this agreement shall require the active supervision of any state or federal court. Article Fourteen Trustee Investment Powers Section 1. Trustee's Powers To carry out the purposes of the trusts created under this agreement and subject to any limitations stated elsewhere in this instrument my Trustee shall have all of the following powers, in addition to all Of the powers now or hereafter conferred on Trustees by law: ae Retention of Property My Trustee shall have the power to retain any property received into the trust at its inception or later added to the trust without regard to whether the trust investments are diversified as long as my Trustee considers that retention is in the best interests of the trust or in furtherance of my goals in creating the trust. b. Additions My Trustee shall have the power to receive additions to the assets of the various trusts created under this agreement from any source. Business Participation My Trustee shall have the power to terminate, to continue or to participate in the operation of any business enterprise including a corporation a sole proprietorship or a general or limited partnership and to effect any form of incorporation, dissolution, liquidation, reorganization including but not limited to recapitalization and reallocation of classes of shares or other change in the form of the business enterprise or to lend money or make a capital contribution to any such business enterprise. Permissible Investments My Trustee shall have the power to invest and reinvest the assets of the trust as my Trustee may determine to be in the best interests of the trust without limitation by any law applicable to investments by fiduciaries. The permitted investments and reinvestrnents may include securities such as common or preferred stock, mortgages, notes, subordinated debentures and wan'ants of any corporation and any common trust fund administered by a corporate fiduciary or other property, real or personal, including savings accounts and deposits and interests in mutual or money market funds or investment masts, annuities and 14-1 insurance whether or not such investments are unsecured or of a wasting nature. Dealing with Property My Trustee shall have the power to acquire, grant or dispose of property, including puts, calls and options (including options on stock owned by the estate), for cash or on credit including maintaining margin accounts with brokers at public or private sale upon such terms and conditions as the fiduciary may deem advisable and to manage, develop, improve, exchange, partition, change the character of, abandon property or any interest therein or otherwise deal with property. Borrowing Authority My Trustee shall have the power to borrow funds from any person including my Trustee guarantee indebtedness or indemnify others in the name of the trust and to secure any such obligation by mortgage, pledge, security interest or other encumbrance and to renew, extend or modify any such obligation for a term within or extending beyond the administration of the term of the trust. No lender shall be bound to see to or be liable for the application of the proceeds of any obligation and my Trustee shall not be personally liable for any obligation. ge Leasing Authority My Trustee shall have the power to make, renew or amend for any purpose a lease as lessor or lessee for a term within or beyond the term of the trust with or without option to purchase. Natural Resources My Trustee shall have the power to enter into any arrangement or agreement including a lease, pooling or unitization agreement, for exploration, development, operation, conservation and removal of minerals or other natural resources. i. Voting Rights My Trustee shall have the power to vote a security in person or by general or limited proxy, to participate in or consent to any voting trust, reorganization, dissolution, liquidation or other action affecting any securities and to deposit securities with and transfer title to a protective or other committee. j. Title to Assets 14-2 My Trustee shall have the power to hold securities and other property in negotiable form or in the name of a nominee (including "street name" of a broker) or by deposit to a clearing corporation with or without disclosure of the Trustee relationship, but my Trustee shall be responsible for the acts of any nominee or clearing corporation in connection with the property. k. Insurance My Trustee shall have the power to insure the assets of the trust against any risk and my Trustee against liability with respect to third persons. 1. Settlement of Disputes My Trustee shall have the power to pay or contest any debt or claim and to compromise, release and adjust any debt or claim and to submit any matter to arbitration. mo Payment of Expenses My Trustee shall have the power to pay any taxes, assessments, reasonable compensation of my Trustee and other expenses incurred in the collection, management, care, protection and conservation of the trust property. Principal and Income My Trustee shall have the power to allocate items of income or expenditure to either income or principal and to create reserves out of the income all as provided by law and to the extent not so provided to allocate or create reserves as my Trustee in its discretion deems appropriate and my Trustee's decision made in good faith with respect thereto shall be binding and conclusive on all persons. Oe Division of Trust My Trustee shall have the power to make any distribution or payment in kind or in cash or partly in kind and partly in cash and to cause any share to be composed of cash, property or undivided interests in property different in k/nd from any other share either pro rata or non pro rata without regard to differences in the tax basis of such property and without the requirement of making any adjustment of the shares by reason of any action taken pursuant hereto. Any division, allocation, apportionment or valuation of the property to distribute the assets to or among any of the trusts or beneficiaries shall be made by my Trustee and the good faith determination of my Trustee shall be binding and 14-3 conclusive on all parties. p. Litigation My Trustee shall have the power to prosecute or defend actions, suits, claims or proceedings for the protection or benefit of the trust and my Trustee in the performance of my Trustee's duties. qe Employment of Agents My Trustee shall have the power to employ agents including attorneys, accountants, investment advisors, custodians, appraisers or others to advise or assist my Trustee and to delegate to them fiduciary powers and to indemnify them against liability for positions taken in good faith and with reasonable basis. re Corporate Fiduciary If any stock of a corporate Trustee or of any affiliate or successor of a corporate Trustee shall be included in the assets of the trust, the Trustee shall have full authority in the Trustee's sole discretion and notwithstanding any regulation or rule of law to the contrary to retain the stock and any increases resulting from stock dividends and stock splits and from the exercise of purchase rights and the purchase of fractional shares needed to round out fractional share holdings that may arise concerning the stock. The Trustee shall vote the stock either directly or by proxy except to the extent the Trustee is prohibited by law from voting the stock in accordance with the written instructions of a majority of the living beneficiaries then entitled to current distributions of income or their personal representatives. In the event there are no eligible beneficiaries to give instructions, the Trustee is authorized to vote the stock in the best interests of the beneficiaries in view of the purposes for which the trust was created. Se Investment Transactions With regard to record keeping for investment transactions, my Trustee need not provide copies of confn'rnations or similar notifications each time a trade or investment transaction occurs, but investment transactions shall be set forth in my Trustee's periodic accounting. te Repairs and Improvements My Trustee shall have the power to make ordinary or extraordinary repairs or alterations in buildings or other structures, to demolish any improvements, to raze existing or erect new party walls or buildings. 14-4 Business Personnel My Trustee shall have the power to elect or employ directors, officers, employees, partners or agents of any business and to compensate such persons whether or not any such person is a Trustee, director, officer, partner or agent of a Trustee or a beneficiary of the trust. Ve Farm or Ranch Property . With respect to farm or ranch property, my Trustee shall have the power to participate in and operate any farming (including tree farming) or ranch operation personally or with hired labor, tenants or sharecroppers to lease any farm for cash or a share of crops under a lease which permits or precludes the material participation of my Trustee, to fertilize and improve the soil, to employ conservation practices, and to participate in government programs and to perform any other acts deemed necessary or desirable to operate the property. In making a decision whether to materially participate in farming or ranch operations, my Trustee shall consider whether an election should be made or has been made under IRC § 2032A to qualify for special farm-use valuation. Ancillary Trustees If for any reason my Trustee deems it advantageous to act through an ancillary Trustee, my Trustee may designate an ancillary personal representative or Trustee qualified to serve in the jurisdiction where such ancillary Trustee is to act and may delegate to such ancillary Trustee such of the powers granted under this agreement as my Trustee deems advisable without being chargeable with loss if any arising out of such designation or delegation. My Trustee may specify whether any corporate Trustee or any person or persons acting in an ancillary capacity hereunder shall serve with or without bond. Except as may be otherwise specifically provided, no ancillary Trustee need comply with the provisions of any Uniform Trustee's Accounting Act, the Uniform Trust Act or similar acts in force in any state where the Trustee may be acting. Retention of Closely Held Interest My Trustee shall have the power to retain any real estate interests, closely held securities or affiliated companies or business interests and to sell or dispose of such interests only after careful consideration and after determining that sale or disposition is in the existing circumstances in the best interests of the trust or its beneficiaries. Exercise of Authority 14-5 Except as otherwise provided in this agreement, my Trustee shall have the power to do all acts that might legally be done by an individual in absolute ownership and control of property. Ze Powers of an Interested Trustee Any Trustee who has an interest as a beneficiary in this trust agreement or any trust created by it shall be an interested Trustee. In all instances where an interested Trustee distributes or participates in the distribution of trust income or principal to or for the benefit of such Trustee which is limited by any standard other than the standards of education, health, malmenance and support, the distribution shall be limited by the ascertainable standards of education, health, maimenance and support. No individual Trustee shall exercise or participate in the exercise of any discretionary power regarding distributions to any person or persons such Trustee is legally obligated to support as to that support obligation. 14-6 Article Fifteen General Provisions Section 1. Spendthrift Protection Neither the principal nor the income of any trust created or contained under this agreement shall be liable for the debts of a beneficiary nor shall the same be subject to seizure by any creditor of any' beneficiary under any lien or proceeding at law or equity. Except to the extent otherwise expressly provided in this agreement, no beneficiary shall have authority or power to sell, assign, transfer, encumber or in any manner to anticipate or dispose of a beneficial interest whether income or principal. The limitations herein shall not restrict the exercise of any power of appointment or the right to disclaim by any beneficiary. Section 2. The Rule Against Perpetuities Unless sooner terminated or vested in accordance with other provisions of this agreement, all interests not otherwise vested including but not limited to all trusts and powers of appointment created hereunder shall terminate twenty-one (21) years after the death of the last survivor of the group composed of me and my lineal descendants living on the date of my death. At that time distribution of all principal and all accrued, accumulated and undistributed income shall be made to the persons then entitled to distributions of income and in the manner and proportions herein stated or if not stated equally irrespective of their then attained ages. Section 3. Incompetency and Disability For all purposes under this agreement a person shall be deemed disabled, incompetent or legally incapacitated if and so long as a guardian or conservator of his or her person or estate duly appointed by a court of competent jurisdiction continues to serve, or upon certification by two licensed physicians that such person is unable properly to care for his or her person or property. Section 4. Income and Principal Payments All payments of income or principal shall be made in such of the following ways as my Trustee determines appropriate: 15-1 ao bo go To each respective beneficiary in person upon his or her personal receipt; Deposited in any bank to the credit of such beneficiary in any account carried in his or her name or jointly with another or others; To the parem or legal represemative of the beneficiary; To a Custodian under a Uniform Transfers to Minors Act selected by my Trustee for such period of time under applicable law as our Trustee determines appropriate; To some near relative, friend or institution having pmary responsibility for the care and custody of the beneficiary; By my Trustee using such payment directly for the benefit of such beneficiary; or To my Trustee of any revocable trust of which the beneficiary is the Tmstor. Section 5. Education For all purposes under this agreement the term "education" shall be given broad interpretation and may include but not be limited to: a. High School Education at public or private elementary or high schools including boarding schools. b. College Undergraduate and graduate study in any and all fields whatsoever whether of a professional character in colleges or other institutions of higher learning. c. Specialized Training Specialized formal or informal training in music, the stage, the handicrafts, the arts or vocational or trade schools whether by private instruction or otherwise. Other Educational Activities 15-2 Any other activity including foreign or domestic travel which shall tend to develop fully the talents and potentialities of each beneficiary regardless of age. Section 6. No-Contest Clause If any person or entity other than me singularly or in conjunction with any other person or entity directly or indirectly contests in any court the validity of this agreement including any amendments thereto the right of that person or entity to take any interest in the trust property shall cease and that person or entity shall be deemed to have predeceased me. Section 7. Disclaimer by Beneficiary No beneficiary shall be entitled to accelerate any distribution to the beneficiary or to terminate his or her trust interest and thereafter receive outright distribution by use of a disclaimer. Section 8. Simultaneous Death If any beneficiary under this agreement and I die under circumstances in which the order of their deaths cannot be established, I shall be deemed to have predeceased the beneficiary and this agreement shall be construed accordingly. Section 9. Children and Issue For purposes of this agreement "children" means the lawful blood descendants in the first degree of the parent designated and "issue" and "descendants" mean the lawful blood descendants in any degree of the ancestor designated provided, however, that if a person has been adopted that person shall be considered a child of such adopting parent and such adopted child and his or her issue shall be considered as issue of the adopting parent or parents and of anyone who is by blood or adoption an ancestor of the adopting parent or either of the adopting parents. The terms "child," "children," "issue," "descendant" and "descendants" or those terms preceded by the terms "living" or "then-living" shall include the lawful blood descendant in the first degree of the parent designated even though such descendant is bom after the death of such parent. 15-3 Section 10. Definition of Death Taxes The term "death taxes" as used in this agreement shall mean all inheritance, estate, succession and other similar taxes that are payable by any person on account of that person's interest in the estate of the decedent or by reason of the decedent's death including penalties and interest but excluding the following: ao Any addition to the federal estate tax for any "excess retirement accumulation" under Internal Revenue Code Section 4980A. Any additional tax that may be assessed under Internal Revenue Code Section 2032A. Co Any federal or state tax imposed on a generation-skipping transfer as that term is def'med in the federal tax laws unless that generation- skipping transfer tax is payable directly out of the assets of a trust created by this instrument. Section 11. Words Relating to the Internal Revenue Code As used in this agreement the words "gross estate," "adjusted gross estate," "taxable estate," "unified credit," "state death tax credit," "maximum marital deduction," "marital deduction," "pass" and any other word or words which fi.om the context in which it or they are used refer to the Internal Revenue Code shall have the same meaning as such words have for the purposes of applying the Internal Revenue Code to my estate. For purposes of this agreement my "available generation-skipping transfer exemption" means the generation-skipping transfer tax exemption provided in section 2631 of the Internal Revenue Code of 1986 as amended in effect at the time of my death reduced by the aggregate of(I) the amount if any of my exemption allocated to my lifetime transfers by me or by operation of law, and (2) the amount, if any, I have specifically allocated to other property of my gross estate for federal estate tax purposes. For purposes of this trust agreement if at the time of my death I have made gifts with an inclusion ratio of greater than zero for which the gift tax return due date has not expired including extensions and I have not yet filed a return, it shall be deemed that my generation- skipping transfer exemption has been allocated to these transfers to the extent necessary and possible to exempt the transfers fi.om generation-skipping transfer tax. Reference to Sections of the Internal Revenue Code and to the Internal Revenue Code shall refer to the Internal Revenue Code amended to the date of my death. 15-4 Section 12. Personal Representative For purposes of this agreement the term "personal representative" shall mean Trustee, executor, executrix, administrator, administratrix, conservator, guardian, custodian or any other type of personal representation. Section 13. Gender and Number In this-agreement where appropriate except where the context otherwise requires, the singular includes the plural and words of any gender shall not be limited to that gender. Section 14. Definition of Per Stirpes As used in this agreement when a distribution to.beneficiaries is "per stirpes" it shall mean that the distributions are to be divided into as many equal shares as there are then-living children of such beneficiaries and deceased children of such beneficiaries who left then-living descendants. Each then-living child of the beneficiary shall receive one share and the share that is allocated to each deceased child of the beneficiary shall be divided equally among such deceased child's then-living descendants. Section 15. Captions The captions of Articles, Sections and Paragraphs used in this agreement are for convenience of reference only and shall have no significance in the construction or interpretation of this' agreement. Section 16. Severability Should any of the provisions of this agreement be for any reason declared invalid, such invalidity shall not affect any of the other provisions of this agreement and all invalid provisions shall be wholly disregarded in interpreting this agreement. 15-5 Section 17. Statutory References Unless the context clearly requires another construction each statutory reference in this agreement shall be construed to refer to the statutory section mentioned, related successor sections and corresponding provisions of any subsequent law including all amendments. Section 18. Governing State Law This agreement and. the trusts created under it shall be construed, regulated and governed by and in accordance w/th the laws of the State of Pennsylvania. I have executed this agreement on the date set forth on the first page of this agreement. I certify that I have read the foregoing revocable living mast agreement and that it correctly states the terms and conditions under which my mast property is to be held, managed and disposed of by my Trustee(s). I approve this revocable living mast in all particulars and request my Trustee(s) to execute it. WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., Trustor WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., Trustee 15-6 STATE OF PENNSYLVANIA COUNTY OF DAUPHIN SS On this the i--~' day of ~f)~cV , 19 Ct~, before me, the undersigned officer, personally° appeared WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., Tmstor, known to me (or satisfactorily proven).to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained. In witness whereof I hereunto set my hand and official seal. Title of Officer ~'iOTARIAL SF_AL JENNIFER D, MILLER, Notary Public Hershey, PA Dauphin County My Commission Ex,hires June 2,1§97 STATE OF PENNSYLVANIA ) SS COUNTY OF DAUPHIN ) On ~s the /~- day of ~fl~4.1 , 19 q~, before me, ~ ~3(VWCZS/ P ~ %~¢- the undersigned officer, personally tappeared WILLIAM H. LOTZ A/K/A WILLIAM H. LOTZ, JR., and BETTY M. LOTZ, Trustees, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within insm~nent and acknowledged that they executed the same for the purposes therein contained. In witness whereof I hereunto set my hand and official seal. Title of Officer JENNIFER D. MILLER, Notary Public Hershey, PA Dauphin County My Commission Expires June 2,1997 15-7 Kelley Blue Book Used Car Values Blue Book New Car Pricing Build a Car Incentives My Car's Val~ ~d Car Retail .uy~7 Buy a Used C~r ~11 YGur Car Hotor~es ~mncing Want to know if you're buying a bad car? Page 1 of I Click on the image above to visit this advertiser Private Party · 1989 · Chevrolet ° Caprice Sedan 4D Select your Engine, Transmission, Drivetrain, Mileage & ZIP Code (5-digit). Then select the e on the vehicle, rate its condition and click Get Pricing Report. Engine II Transmission ~ V6 4.3 Liter O V8 5.0 Liter Automatic Drive II Mileage II ziP Code II II lnsuran~ Warrafl~es Acc~orie~ Car Re~ewa Car Preview~ D~ Gui~s A~ce ~ut kb~ Home Air Conditioning Power Steering Power Windows Power Door Locks Tilt Wheel Cruise Control AM/FM Stereo Cassette Compact Disc CD Changer/Stacker Premium Sound ABS (4-Wheel) Leather Dual Power Seats Flip-Up Roof Sliding Sun Roof Moon Roof Alloy Wheels Premium Wheels Select Vehicle Condition 0 Poor C~ Fair ~ Good O Excellent © Rate It Mechanical Some mechanical No major Excellent Our Virtual Walkaround can problems or defects, visual mechanical mechanical help you estimate your visual defects ... blemishes ... defects or visual condition, glossy vehicle condition. ~(~.r~ roc~re blemishes ... paint, perfect more interior ... more http://www.kbb.com/kb/ki.dll/kw.kc.ue?kbb;876383 &;p&721 & 14;CH;R5& 6/4/02 r,,euey roue t~ooK Usect Uar Values Page 1 of 2 Kelley Blue Book The Trusted Resource New Car Pricing Build a Car Md Car Retail Buy a New ~rr Buy a Used Car ~11 Your HOtar~/~leS Fiflanciflg~ Insura~ ~mon ~eck W~ ~ories C~ Re~s C~ Previe~ D~on Gui~s A~iCe ~ut kbb Home AutoNatlon.como. Click on the image above to visit this advertiser Blue Book Private Party Report Pennsylvania · June 4, 2002 1989 Chevrolet Caprice Sedan 4D Engine: V6 4.3 Liter Trans: Automatic Drive: Rear Wheel Drive Mileage: 52,000 Equipment Air Conditioning Power Steering Power Windows Power Door Locks Buy a New Car Buy a Used Car List Your Car For Sale Q_n_l.!_n__e_ Financing Quote Warranty Quote Payment Calculator Tilt Wheel Cruise Control AM/FM Stereo Consumer Rated Condition: Good "Good" condition means that the vehicle is free of any major defects. The paint, body and interior have only minor (if any) blemishes, and there are no major mechanical problems. In states where rust is a problem, this should be very minimal, and a deduction should be made to correct it. The tires match and have substantial tread wear left. A clean ti~.!_~his_t_0__ry is assumed. A "good" vehicle will need some reconditioning to be sold at retail; however major reconditioning should be deducted from the value. Host recent model cars owned by consumers fall into this category. Private Party Value $1,430 Private Party value represents what you might expect to pay for a used car when purchasing from a private party, It may also represent the value you might expect to receive when selling your own used car to another private party. Get a Used Car Trade-In ValuP Get Invoice & MSRP on New Car_s http://www.kbb.com/kb/ki.dll/kw.kc.ur?kbb;215807& ;p&723 ;Chevrolet; 1989%20Caprice& 14;C 6/4/02 Kelley Blue Book Used Car Values Page 2 of 2 Copyright © 2002 by Kelley Blue Book Co., All Rights Reserved. May-Jun 2002 Edition. The information in this report was printed from the Kelley Blue Book Web site (www.kbb.com) and is intended for the personal use of the customer only and may not be sold or transmitted to another party. We assume no responsibility for errors or omissions.(v.02051) http://www.kbb.com/kb/ki.dll/kw.kc.ur?kbb;215807&p&723;Chevrolet; 1989%20Caprice& 14;~... 6/4/02 THEVall~~ROUP~ SUSAN E. LEDERER LAW OFFICES 4811 JONESTOWN RD SUTIE 226 HARRISBURG, PA 17109 June 12,2002 High-Yield Tax-Exempt Fund 09894878180 WILLIAM H LOTZ TRUST Dear Ms. Lederer: We received your letter requesting information on William H. Lotz's above-referenced account as of April 21, 2002. Since that date was on a non-business day, we are providing the values for April 19, 2002. On that date, the number of shares, price per share, and the value of the account were as follows: Fund Name Shares Price Value High Yield Tax Exempt Fund 2,530.780 Accrued Dividends (through the date of death): $81.14 $10.52 $26,623.81 Note: As of April 22, 2002 (the business day following the date of death), the account's share balance and share price remained the same. Vanguard's funds are only prices once a day. Therefore, there were no high and low prices for the day. Our records show the account was established on May 22, 1995 as a trust account and was registered as follows: William H. Lotz TR UA 05-01-95 William H. Lotz Trust 301 15th St. New Cumberland, PA 17070-1312 Post O~-~ce Box 260o, Valley Forge, Pennsylvania I9482-26OO There have been no changes made to the registration during the time the account has been opened. To transfer the account, the successor trustees need to complete the enclosed Change of Ownership of Nonretirement Shares Form. This Form will provide the new registration information and certify the taxpayer identification number for the new account. This form will also let the successor trustees choose options for the new account. The successor trustees need to sign the Form in section three and section nine. If the account will be transferred to a registration other than the trust, then the successor trustees must have their signatures guaranteed in section three. A signature guarantee can be obtained from an officer of a bank or trust company, or a member firm of a United States stock exchange. A notary public cannot provide a signature guarantee. In order for a signature guarantee to be valid, it must state the words "Signature Guaranteed", be signed by the guarantor, and indicate his or her position and title. It must also indicate the name of the institution issuing the guarantee. When we receive the completed transfer form, with the guaranteed signatures (if applicable) we will transfer the account. The new account owner(s) will receive a statement confirming the new account number and new registration under separate cover. For your convenience, we have enclosed a postage-paid envelope. If you have any questions or need further assistance, please contact a member of our Transition Specialist Team at 1-888-237-9045. A dedicated Transition Specialist will be pleased to assist you. Sincerely, Client Services Department clem Enclosure(s): Vanguard Change-of-Ownership Vanguard Return Envelope 50133318 USAA® 9800 Fredericksburg Road San Antonio, Texas 78288 EST OF WILLIAM H LOTZ JR MAJ AUS RET 301 15TH ST NEW CUMBERLAND PA 17070-1312 May 14, 2002 USAA # 132 96 53 Tax Exempt Long-Term Fund CUSIP # 903289-10-6 Account ~ 43900007360 Dear Ms. Lederer: As you requested, I am providing the following information for the account of the late William H Lotz Jr registered as follows: WILLIAM E LOTZ TRST WILLIAM H LOTZ TRUST 301 15TH ST NEW CUMBERLAND PA 17070 The account value on April 21, 2002 was: Share Accrued Account Shares Price DividendS Value 3,590.164 $13.25 $141.49 $47,711.16 If you have questions, please call a'member se~ice representative at 1-800-531-8448 (in San Antonio, 456-7202). Sincerely, Santiago Saldivar Account Analyst Investment Operations Enclosure 132 96 53-5!057-42819-SAS.SAS45 uss SHAREHOLDER ACCOUNT SERVICES ~2 SELLER'S ESTIMATED CLOSING COSTS This foml r¢comme, ndcd and approved (or. but iiot restricted m us*: by. lilt: members of Ibc Pennsylvania Association of REALTORS,~ IPAR). PROPERTY .~ 'O, ~ - ~ {'T'_- ~'r~ _? . ~ _ SETTLEMENT DATE ,a..j -'SY_o ,- i ~, ? PURCHASE PRI~E'$' SEC 1. Broker's Fee ~.~- '~ ~. ~ /: '~ .;% ? .; .,._..~ $ 2. Preparation of Deed $ 3. Transfer Tax $ 4. Seller's Assist to Buyer $ 5. Home Warranty $ 6. Municipal Certification 7. Settlement Fee $ 8. Notary Fees $ 9. Survey. $ 10. Il. 12. 13. 14. Charges Tax Certifications $ .~, Overnight/Express Mail Charges Domestic Lien Search Other '-'Ti,--'--. .... c: ."~ ...1~-' Other ~-'-~ Estimated Costs Adjustments (+/-) (e.g., real estate taxes, refund of escrow $ $ $ Purchase Price Total Costs/Adjustments TOTAL ESTIMATED COSTS/ADJUSTMENTS Estimated Proceeds $ Seller's Estimate of Mortgages, Equity, and Other Loan balances, liens, assessments, etc. ESTIMATED NET PROCEEDS TO SELLER $ The estimated proceeds do not take into account any other mortgages, liens, assessments against the Property or the Seller. or other obligations which may be The above figures are approximated closing costs and will be adjusted as of date of final settlement, if necessary. I/We understand and have received a copy of these estimated closing costs bdbre signing the agreement of sale. SELLER SELLER DATE DATE DATE DATE ,// / ~ ~ ; ~ '~ntu~e made the / ~ , day of May, in the year of our Lord one thousand nine hundred and ninety-five (1995), WILLIAM H. LOTZ, JR. and BETTY M. LOTZ, husband and wife, of Cumberland County, Pennsylvania, Grantors WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR. and BETTY M. LOTZ, Trustees, or their successors in trust, under the WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR. LIVING TRUST DATED MAY 1, 1995 and any amendments thereto and BETTY M. LOTZ and WILLIAM H. LOTZ a/k/a WILLIAM H. LOTZ, JR., Trustees, or their successors in trust, under the BETTY M. LOTZ LIVING TRUST DATED MAY 1, 1995, and any amendments thereto, as Tenants in Common, Grantees ~L~J~eL~, That the said Grantors, for and in consideration of the sum of One and No/100 ($1.00) Dollars, lawful money of the United States of America, unto them well and truly paid by the said Grantees at or before the sealing and delivery hereof, the receipt whereof is hereby acknowledged, have granted, bargained and sold, released and confirmed, and by these presents do grant, bargain and sell, release and confirm unto the said Grantees, their heirs, personal representatives and assigns. ALL THAT CERTAIN lot of piece of land situate in the Borough of New Cumberland, County of Cumberland, and State of Pennsylvania, more particularly bounded and described on Exhibit "A" attached hereto: BEING the same premises which William H. Lotz, Jr. and Betty M. Lotz, husband and wife, by Deed dated January 8, 1969 and recorded January 10, 1969 in Deed Book B, Vol. 23, Page 304, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, granted and conveyed unto William H. Lotz, Jr. and Betty M. Lotz, husband and wife, Grantors herein. UNDER AND SUBJECT to all restrictions, easements, covenants, conditions and agreements of record. TOGETHER with all and singular the buildings and improvements, ways, streets, alleys, passages, waters, water- courses, rights, liberties, privileges, hereditaments and appurtenances, whatsoever unto the hereby granted premises belonging, or in any wise appertaining, and the reversions and remainders, rents, issues and profits thereof; and all the estate, right, title interest, property, claim and demand whatsoever of them, the said Grantors, as well at law as in equity, of, in and to the same. TO HAVE AND TO HOLD the said lot or piece of ground above described, with the messuage or tenement thereon erected, hereditaments and premises hereby granted, or mentioned and intended so to be, with the appurtenances, unto the said Grantees, their heirs, personal representatives assigns, to and for the only proper use and behoof of the said Grantees, their heirs, personal representatives and assigns, forever. AND the said Grantors, for themselves, their heirs, personal representatives and assigns, do covenant, promise and agree, to and with the said Grantees, their heirs, personal representatives and assigns, by these presents, that they, the said Grantors, their heirs, personal representatives and assigns, all and singular the hereditaments and premises hereby granted or mentioned and intended so to be, with the appurtenances, unto the said Grantees, their heirs, personal representatives and assigns, against them, the said Grantors, their heirs, personal representatives and assigns, and against all and every person and persons whomsoever lawfully claiming or to claim the same or any part thereof, by, from or under him, her, them or any of them, shall and will, Subject as aforesaid, WARRANT and forever DEFEND. ~iLr~ ~reo;, the Grantors have hereunto set their hands and seals. Dated the day and year first above written. Sealed and Delivered in the Presence of: WILLIAM H. LOTZ, JRf ~- BETTY M~LOTZ BOOK :t.22 P c[ :LBS -2- I hereby certify that the precise residence of the Grantees herein is as follows: c/o WILLIAM H. LOTZ, JR. and BETTY M. LOTZ, Trustees 301 15th Street, New Cumberland, PA 17070 Attorney for Grantees COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND COMMONWEALTH OF PENNSYLVANIA : : SS COUNTY OF DAUPHIN : On this, the _. ~ day of May, 1995, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared WILLIAM H. LOTZ, JR. and BETTY M. LOTZ, husband and wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument and acknowledged that they executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and officia]~.~""~'_'~.-~'~!]~ Hershey, PA Dauphin County [ '~..-:~'~L ~ /'~, ~~: ~Commissioo~iresJune2.1997 ! ~? / Notary ~u~ic ) ) Ssl ) RECORDED in the Office of the Recorder of Deedsoin and for Cumberland County, in Record Book t©.~ Page WITNESS my hand and official seal this r- day of '- . RECOrDeR OF DEEDs -3- EXHIBIT ~ that certain lot or. piece of land situate i~ the Borough New Cumberland, County of Cumberland, and State of PennsylYmn~.=,. more particularly designated and 'described as follows: BEGINNING at a point on the northerly line of Fifteenth Street at the westerly line'of a sixteen (16') foot alley, thence along said line of Fifteenth Street in a westerly' tion seventy-seven and eighty-one one-hundredths (77.81) to a point; thence at right angles to Fifteenth Str=e~ and other lands of the Grantors in a northerly direction one ten (110) feet to a point; thence at right angles in a 1y direction sixty-nine and fifty-seven on=-hundreth~ (69.57) to a point~-- thence along the westerly line-of said sixteen alley in a southeasterly direction one hund£ed ten and hundredths (110.31) feet. to the Place of Beginning. BEING a part of Lot. No. 37, Block "E" on the Plan o~ said Plan being recorded in the Cumberland County Recordeu'~ in Plan Book 1, page 75, and having thereon erected a stone and frame dwelling house, No. 301 Fifteenth ~tueet, Cumberland, Pennsylvania. LOOK FOR US. WE?LL GET YOU THEREL 05/14/2002 SUSAN LEDERER 4811 JONESTOWN RD SUITE 226 HARRISBURG PA 17109 The information which you requested on the account(s) of WILLIAM LOTZ JR (Social Security Number 716-09-7301 ) is/are as follows: Account Number 4100031344 700026588 7100023551 7100023578 Class of Account CHECKING CHECY3'NG CERTIFICATE CERTIFICATE Date Opened 03/05/01 08/07/96 01/28/02 01/28/02 Principal Balance 128844.21 23840.12 10063.62 10063.62 Accrued Interest 91.21 9.34 24.92 24.92 Balance at Date of 128935.42 23849.46 10088.54 10088.54 Death Account Ownership TRUST Name of Joint BETTY LOTZ Owner, if any TRUSTEE Date Ownership 03/05/01 Was Established TRUST TRUST TRUST BETTY LOTZ BETTY LOTZ BETTY LOTZ TRUSTEE TRUSTEE TRUSTEE 08/07/96 01~8/02 01~8/02 Account Number Class of Account Date Opened Principal Balance Accrued Interest Balance at Date of Death Account Ownership Name of Joint Owner, if any Date Ownership Was Established Additional Information Requested PLEASE COMPLETE W-9 S,i;9cerely . KATRY ~fOUI$G SENIOR SERVICES REP. P.O. Box 171 I, HARRISBURG. PENNSYLVANIA 17105-1711 -r.~ll i:::;.c~ I_~IC;~-WAypOINT 11-866-9;=9-7646) · IN YORK AREA 717/815-4500 · vvvvw, wagpointbank.com ;PFPC Global Fund Services June 17,2002 Law Office of Susan E. Lederer 4811 Jonestown Road, Suite 226 Hamsburg, PA 17109 ACCOUNT #: REGISTRATION: REFERENCE #: MANAGED MUNICIPALS FUND CLASS A 005-9078531812 WILLIAM H LOTZ AKA W H LOTZ JR LIV TR WILLIAM H LOTZ AKA WILLIAM H JR & BETTY M LOTZ TTEES U/A/D 5/1/95 061102054131 Dear Ms. Lederer: We are writing in regard to your recent inquiry. We would like to provide you with the requested balances of the above referenced account. Please review the following information: Date: April 19, 2002 Date: April 22, 2002 Shares: 1,570.000 Shares Shares: 1,570.000 Shares Net Asset Value: $15.48 Net Asset Value: $15.48 Dollar Value: $24,317.92 Dollar Value: $24,317.92 We hope that you find this information helpful. If you have any questions or require additional assistance, please do not hesitate to contact one of our Investor Services Associates toll-free at 1-800-451-2010. They are available to assist you Monday through Friday, from 8:30 AM'to 5:00 PM Eastern Standard Time. Sincerely, Amy MacDonald Investor Services Specialist SUB TRANSFER AGENT FOR SMITH BARNEY MUTUAL FUNDS POST OFFICE BOX 9699 PROVIDENCE, RI 02940-9699 $ecuHtles First Union Securities Lancaster Branch 120 North Pointe Boulevard, Suite 100 PO Box 10965 Lancaster, PA 17605-0965 Te1717 560-1800 800 560-3650 Fax 717 560-0160 May 20, 2002 Susan E. Lederer 4811 Jonestown Road Suite 226 Harrisburg, PA 17109 Dear Ms. Lederer: Per your request, please find the date of death values for the Trust Estate of William H. Lotz, a/k/a William H. Lotz, Jr. for Account #5165-7106 for the date of 4/21/02. Please let me kmow if we can be of any further assistance. Thank you, Lois T. DeRosa Account Administrator for Tim Hogentogler - LC06 First Union Securities, inc. Member NYSE/SIPC Account # 5165-7106 Trust Estate of William H. Lotz a/k/a William H. Lotz, Jr. LCO6-Tim Hogentogler Quantity Security Symbol !Cusip !Hi L°14/ Hi Lo IValue Total !Accr. _lTotal , 4/19/02 9/02 4/22/02 4/22/02 'Interest'4/21/02- 14.75 $ 23,663.35 CASH - Money Market I ' j 200 AT&T CORP ! T 76182K105 14.17 13.9 13.46 m~-¢ V4, e'l , ~ ~.~.oo 1912.184 AIM HIGH YIELD FD Cl A AMHYX 863345104 4.4 4.39 ,~, 64 AT&T W RELESS SERVICES ' AWE 879278208 8.97 8.67 8.5 8.02 200 ATLANTIC CAP 8.25% QUIPS CIV'B 893349837 25.081 , 25.07 ,~. o'1.5 I ~0 tS, cc 1100 COLONIAL MUNI INC TR CMU I 920929106 5.63 5.59 5.681 5.61 1773.672 F DEL TYSPARTAN MUN INC ! FHIGX 92931B106 12.78 12.78: i~,,"~' 1966.342 FRANKLIN HI YLD TF CL A iFRHIX 047081AB0 10.48 10.47 153.36 !L BERTY GRTR CHINA-A |NGCAX 04785TAV1 16.64 16.65 1442.732 LORD ABBETT TAX FR PA A LAPAX 060158AN2 5.1 5.1 5, 1500 MBNK CAPITAL TR 9.625%29 MST' 067271AC0, 10.15 10.15 200 !NORFOLK SOUTHERN CORP ' NSC '084522EN7 23.49 23 23.26 22.61 .~,5,oc~ I i -'-:tL~.~. oo 100 !RITE AID CORPORATION , PAD 084538FA0 4.02 3.9 3.95 - 3.86 33 ! RJ REYNOLDS TOBACCO RJR 76182K105 67.49 66.62 67.851 67 L~"/, 2~ i ~,~,~%,~, 2373.899 STRONG HIGH YLD MUNI BD SHYLX 863345104i 7.45 7.45 400 TELECOM CORP NZ SPON ADR [ NZT 879278208 17.58 17.32 17.751 17.35i I"/. ~O I qoco, co 300 I TRANS WORLD AIRLS INC ! TWAIQ ~893349837 0.01 0.008 0.008 0.008 1900 VAN KAMPEN TR INVST GRAD VGM 920929106 14.89 14.81 14.93 14.8 180 WPS RESOURCES CORP WPS 92931B106 41.2 40.74 41.39 41.09 5000 I ATHENS-CNTY 7.50%28 [ 1047081AB0 91.181 4559.050 52.08[ $ 4,611.13 5000 [ ATLANTA GA URBAN 8.5%26 ! 04785TAV1 I 94.642, 4732.100 23.61J $ 4,755.71 5000 i BANGOR MI 7.5% 5/1/2028 _ 060158AN2 I i 26.000 1300.000 0.00i $ 1,300.00 5000 I BRBRSVLL WV 7.5%4/1/2029 . 067271AC0 I / 93.974 4698.700 20.83i $ 4,719.53 5000 ! BERKS PA 6.875%1/1/2023 ~- i084522EN7' 103.161 5158.050 105.041 $ 5,263.09 10000 I BERKS CNTY5.75%5/15/2022 ! 1084538FA0 i 88.598 8859.800 249.17i $ 9,108.97 5000 i BIBB CNTY 8.75% 3/1/2030 108869FCQ0 ! ! 100.732 5036.600 60.76 $ 5,097.36 5000 I BUTLER OH 7.125%1/1/2029 . 123558BA5 " r 20 1000.000 0.00. $ 1,000.00 5000 ! CAMBRIA7.5% 5/1/2021 I 132047AF8 ~ 89.834 4491.700 177.08i $ 4,668.78 5000 CHARLOTTE NC 7% 12012028 161038AM6 ~ 95.257 4762.850 136.11! $ 4,898.96 5000 CHATTANOOGA7% 12/1/2028 i 162410BL7 92.119 4605.950 136.11i $ 4,742.06 15000 CHESTER PA 6% 11/1/2029 I 165579CP6 95.15 14272.500 425.001 $14,697.50 5000 CUMBERLAND6.8%11/15/2023 ! 230614AL3 I 111.637 5581.850 147.331 $ 5,729.18 20000 i i230614BA6 ~ CUMBERLAND 6% 12/1/2026 95.7.7 19154.000 466.67' $19,620.67 5000 DAUPHIN PA 7%1/1/2014 i23825CBB3 I I i 100.431 5021.550 --106.94 $ 5,128.49 5000 DENVER CO6.75%11/15/2022 ! 249181TT5 I i I .... ] 104 698 5234.900 146.25 $ 5,381.15 10000 DOYLESTOWN PA 5%7/1/2028 i 261333DD7 i i I 94.493 9449.300 152.78 $ 9,602.08 15000 i FHR 1669L 6.5 02/15/24 i 13133T34Q8 I~ 95000 IFHR 2322 B 6 5%06/15/31 ' i .... i 100 15000.0001 ! $15,000.00 13133TUJM1 ~' i i 94.427.9[ 89706.534i __.i $89,706.53 5000 IFULCO GA 6.375% 9/1/2022 i !359597DE8. ---r i i~ 103.6191 5180.950i 44.271 $ 5,225.22 Account # 5165-7106 Trust Estate of William H. Lotz LC06-Tim Hogentogler ~ a/k/a William H. Lotz, ,Ir. 5000 HORSHAMINDL8.375%24 440757AM4 4820.650 58.16 $ 4,8;~8.81 5000 INTERBORO5.3%8/15/2017 I i458436GM8 102.952 5147.600 48.58 $ 5,196.18 5000 I JEANNETTE6% 11/1/2018 i 472259AW0 I 1106.865 5343.250 141.67 $ 5,484.92 5000 !LANCASTER PA 5.75%9/1/23 514045UT8 I ~ 83.354 4167.700 39.93 $ 4,207.63 10000 LANCASTER PA6.625%4/1/28 514045VM2i 96.344 9634.400 36.81 $ 9,671.21 000 , lJ?6' 40 . 00 20000 LEBANON PA6.625%12/15/29 522454CS4 - 19077.200i 463.75 $19,540.95 _ 10000 LEHIGH PA 8% 8/1/2012 !524807BQ6 J 101.788 10178.800 177.78 $10,356.58 5000 LIGONIER PA6% 3/1/2023 532343DU1 I 100.272 5013.600 41.67 $ 5,055.27 10000 MASS ST 0.100% 6/1/2012 575861AZ2 -- I i 64.583 6458.300 3.89 $ 6,462.19 5000 NEW YORK ST7.15%2/1/2022 ~ 649841DQ3 i 102.751 5137.550 79.44 $ 5,216.99 20000 IMTHGHEDU6.375%01/01/2026 J 613603KP3 I I 93.913 18782.600 10000 MTGRYCTY6.15%09/01/2022 i 613603ME6 ~ 389.58 $19,172.18 88.963 8896.300 85.42 $ 8,981.72 5000 !NEW JERSEY 8.25%8/1/2022 645905V98 102.053 5102.650 91.67 $ 5,194.32 10000 INYHSG MIDDLE 3.5%06 649785EJ7 . 100.212 10021.200 107.92 $10,129.12 5000 N LEBANON TWP8%1/01/2014 ! 660446AP0 ! 0; 0.000 0.00J $ - . 101.132 5056.600, 151.11 $ 5,207.71 5000 INY ST HSG 6.4%11/1/2011 ~ 649858A98 i I __ 96.797 24199.250i 381.94 $ 24,581.19 25000 PUERTO RICO 5% 7/1/2022 745181 CF2 5000 PERRY PA 9% 10/1/2022 L 714599AB3 ! ' 101.914' 5095.7001 25.00 $ 5,120.70 10000 PHILA PA 5.25% 2/15/2014 J ,717903TP3 - 106.76 10676.000 96.25 $ 10,772.25 10000 PHILA HSP 6.5% 7/1/2023 717825FY4 J 91.832 9183.200 198.61 $ 9,381.81 5000 ~ PHILA PA 6.8% 4/1/2005 . 717818PC6 I _ 106.335 5316.7501 18.89 $ 5,335.64 5000 PHILA PA 10.75%10/1/2002 I 717900DF8 ! i 11 550.000 0.00 $ 550.00 _ 15000 PHILA 6.625% 11/15/2023 i 717903RS9 I 102.952 15442.8001 430.63 $15,873.43 5000 PHILA HOSPS 6% 6/1/2023 I 717903RX8 I '~ 105.306 5265.300 116.671 $ 5,381.97 5000 PHILA IDA5.7% 4/1/2015 ~ 717818WX2 [ I i _ , 93.47 4673.500 15.83 $ 4,689.33 5000 RIDLEY PARK HSP 6.125%20 766370CJ7 I ~ / 114.077 5703.850 119.10 $ 5,822.95 10000 SAM RBRN TX5.5%10/1/2020 ,795869DM5 85.442 8544.200 30.56/ $ 8,574.76 _ 4000~ISSOTA FL 6.5%ol/1/2023 ~ 80329LAT6 i i 85.387 3415.480 79.441 $ 3,494.92 5000 SIKESTON 6.25~6/1/2008 I 826775BD9 J i 100.451~ 5022.550 121.53! $ 5,144.08 5000 iSOMERSET 6.75%11/15/2021 834684BV3 t I 93.677 4683.850 146.25 $ 4,830.10 5000 !SOMERSET PA 5.7%11152022 --2. 834684CN0 J i - 81.734 4086.700 -123.50 $ 4,210.20 5000 ~STEPHENS GA 7% 5/1/2029,I 858752AF5 i . T! 96.255' 4812.750 165.28i $ 4,978.03 10000 TEXOMA HSG 7.5% 3/1/2022 J 88305PAE1 I ' '~ - - I 84.806 8480.600[ 104.171 $ 8,584.77 -- i --- I i ____ J 89.545 8954.500 _ 36.11/ $ 8,990.61 10000 UNION PA 6.5% 4/1/2022 I 906460BY5 _ · 96.507 9650.700 35.561 $ 9,686.26 10000 YRK CNTY HSP6.4%4/1/2015 i 986392LG1 I 95.075 9507.500 $ 9,543.61 _ 10000 YRK CNTY HSP6.5%4/1/2022 7-- 986392LH9 36.1 I 2.79 12342.961 0.00 $12,342.96 4424 IHUTTON TELE 1 TX ER XCHG !- I 4479001011 . The above summary of prices/quotes/statistics has been obtained from sources - believed to be reliable, but is not necessarily complete and cannot be guaranteed. Prices may not reflect the value at which securities could be sold. This summary is fbr intbm~ational pm'poses only. This is not a substitute for a Verification of Deposit (or similar form) or the official statement of account holdings at the firm. Past results do not indicate future pertbrmance. BUREAU OF ZNDZVZDUAL TAXES TNHERTTANCE TAX DTVTS*rON DEPT. 280601 HARRISBURG., PA ].7128-0601 CONHON#EALTH OF PENNSYLVANZA DEPARTHENT OF REVENUE ZNHERZTANCE TAX STATEHENT OF ACCOUNT REV-IG07 EX AFP (01-05) SUSAN E LEDERER S E LEDERER LAN OFCS 4811JONESTONN RD 226 HBG DATE 02-17-2004 ESTATE OF LOTZ DATE OF DEATH 04-21-2002 F'rLE NUNBER 21 05-0056 :4~OUNTY CUHBERLAND ACN 101 J Amoun~ R~mi~d I NZLLZAH H HAKE CHECK PAYABLE AND REN/T PAYNENT TO: CU'~ RE REGZSTER OF NZLLS CUHBERLAND CO COURT HOUSE CARLZSLE, PA 17015 account, subel~ ~he upper pore/on of ~h/s fore wi~h your ~ax payment. ~' -~o YOUR RECORDS ~ DA PR First Class Mail 48 ! 1 Jonestown Road Suite 226 Harrisburg, PA 17109 TO' Register of Wills Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 IF TOTAL DUE 'rs REFLECTED AS A 'CREDIT" (CR), YOU HAY BE DUE A REFUND. SEE REVERSE S'rDE OF TH*rS FORH FOR TNSTRUCTZONS. ) PAYNENT: Detach the top portion of this gotice and submit with your payment mede payable to the name and address printed on ~he reverse side. -- If RESIDENT DECEDENT make check or money order payable to: REGTSTER OF N/LLS, AGENT. -- If NON-RESIDENT DECEDENT make check or money order payable to: COHHONNEALTH OF PENNSYLVAN/A. REFUND (CR): A refund of a tax credit, which sas not requested on the Tax Return, may be requested by completing an "Application For Refund of Pennsylvania Inheritance and Estate Tax" (REV-IS15). Applications are available at the Office of the Register of gills, any of the Z5 Revenue District Offices or from the Department's Z4-hour answering service for forms ordering: 1-800-56Z-ZO50; services for taxpayers with special hearing and / or speaking needs: 1-80g-447-50ZO (TT only}. REPLY TO: Questions regarding errors contained on this notice should be addressed to: PA Department of Revenue, Bureau of IndividuaZ Taxes, ATTN: Post Assessment Reviem Unit, Dept. Z80601, Harrisburg, PA 17128-0601, phone (717) 787-6505. DISCOUNT: If any tax due is paid within three (5) calendar months after the decedent's death, a five percent (SI) discount of the tax paid is allomad. PENALTY: The 15Z tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and nat paid before January 18, 1996, the first day after the and of the tax amnesty period. INTEREST: Interest is charged beginning with first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. Taxes which became delinquent before January 1, 198Z bear interest at the rate of six (6Z) percent per annum calculated at a daily rate of .000164. A11 taxes which became delinquent on and after January 1, 198Z will bear interest at a rate which will vary from calendar year to calendar year with that rate announced by the PA Department of Revenue. The applicable interest rates For 1982 through 2005 are: Interest Daily Interest Daily Interest Daily Year Rate Factor Year Rate Factor Year Rate Factor 1982 ZOZ .0005~8 1987 92 .000247 1999 7Z .000191 1985 16Z .0004~8 1988-1991 X1Z .000501 ZOO0 8Z .000219 1984 XXZ .O0050X 1992 9Z .000247 ZOOX 9Z .000247 1985 XSZ .000556 1995-1994 7Z .OO0191 ZOOZ 6Z .00016~ 1986 IOZ .00027~ 1995-1998 9Z .000247 ZOO3 SZ .000157 --Xnterest is calculated as follows: /NTEREST = BALANCE OF TAX UNPAZD X NUHBER OF DAYS DELZN{IUENT X DA/LY ZNTEREST FACTOR --Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (15) days beyond the date of the assessment. If payment is made after the interest computation date shown on the Notice, additional interest must be caXculated. BUREAU OF TNDZVZDUAL TAXES TNHERTTANCE TAX DZVZSTON DEPT. Z8060! HARRTSBURG, PA 171Z8-0601 COMMONWEALTH OF PENNSYLVANZA DEPARTMENT OF REVENUE NOTZCE OF DETERMZNATZON AND ASSESSMENT OF PENNSYLVANZA ESTATE TAX BASED ON FEDERAL ESTATE TAX RETURN SUSAN E LEDERER S E LEDERER LAW OFCS q811JONESTOWN RD 226 PA 17109 DATE 05-12-2005 ESTATE OF LOTZ DATE OF DEATH 0q-21-2002 FZLE NUMBER 21 05-0036 COUNTY CUMBERLAND ACM 201 Amoun~ Rem'i ~:*l:ed WILLIAM H MAKE CHECK PAYABLE AND REMZT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 1701:5 NOTE: To insure proper credit: ~o your account, submit: ~he upper por~:ion of ~his for. w~h your ~ex payment. CUT ALONG THZS LZNE ~ RETATN LOWER PORTZON FOR YOUR FZLES ~ REV-483 EX AFP (01-03) ~ NOTZCE OF DETERMZNATZON AND ASSESSMENT OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL ESTATE TAX RETURN ~ ESTATE OF LOTZ WILLIAM H FZLE N0.21 0:3-0036 ACM 201 DATE 05-12-200:3 ESTATE TAX DETERMZNATZON 1. CredAt For State Death Taxes as Verified .00 Z. Pennsylvan/a Inhergtance Tax Assessed (Exclud/ng D/scount and/or Interest) q3~q00.15 $. Inher/tance Tax Assessed by Other States .00 or Territories of the Un/ted States (Exclud/ng O/scount and/or Interest) q. Total Inher/tance Tax Assessed q3~q00.15 5. Pennsylvania Estate Tax Due .00 TAX CREDZTS: PAYMENT RECEIPT DISCOUNT (+) DATE NUMBER INTEREST/PEN PAID (-) ~ZF PAZD AFTER THZS DATE, SEE REVERSE SZDE FOR CALCULATZON OF ADDZTZONAL ZNTEREST. TOTAL TAX CREDZT I .00 BALANCE OF TAX DUEl .00 ZNTEREST AND PEN. .00 TOTAL DUE .00 (ZF TOTAL DUE ZS LESS THAN $1, NO PAYHENT ZS REQUZRED ZF TOTAL DUE ZS REFLECTED AS A "CREDZT" (CR), YOU HAY BE DUE A REFUND. SEE REVERSE SZDE OF THZS FORH FOR ZNSTRUCTZONS.) PURPOSE OF NOTICE: PAYNENT: REFUND (CA): OBJECTIONS: ADNIN- ISTRATIVE CORRECTIONS: PENALTY: INTEREST: To fulfill the requirements of Section ZlqO (b) of the Inheritance and Estate Tax Act, Act 23 of ZOO0. (7Z P.S. Section 9140). Detach the top portion of this Notice and submit with your payment to the Register of #ills printed on the reverse side. -- Make check or money order payable to: REGISTER OF MILLS, AGENT. A refund of a tax credit amy be requested by completing an "Application for Refund of Pennsylvania Inheritance and Estate Tax" (REV-1315). Applications ara available at the Office of the Rag[star of Mills, any of the Z5 Revenue District Offices or from the Department's 24-heur ansaaring service for fores ordering: 1-800-56Z-ZO50; services for taxpayers with special hearing and / or speaking needs: 1-800-4qT-50ZO [TT only}. Any party in interest not satisfied with the assessment of tax as shown on this notice amy object within sixty (60) days of receipt cf this Notice by: --aritten protest to the PA Department of Revenue, Board of Appeals, Dept. 281021, Harrisburg, PA 171ZB-lOZ1, --aIacting to have the matter determined at audit of the personal representative, OR --appeal to the Orphans' Court. OR Factual errors discovered on this assessment should be addressed in writing to: PA Department of Revenue, Bureau of Individual Taxes, ATTN: Post Assessment Review Unit, Dept. Z80601, Harrisburg, PA 171Z8-0601, Phone (7173 787-6505. Sam page 5 of the booklet "Instructions for Inheritance Tax Return for a Resident Decadent" (REV-iS01) for an explanation of administratively correctabZa errors. The 15Z tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and nat paid before January 18, 1996, the first day after the and of the tax amnesty period. This non-participation penalty is appealable in the same manner and in the the same time period as you would appeal the tax and interest that has been assessed as indicated on this notice. For dates of death on ar after 10-5-91, Pennsylvania Estate Tax based on the Federal Estate Tax return becomes delinquent at the expiration of nine (09) months from the date of death. For dates of death prior to 10-5-91, Pennsylvania Estate Tax based on the Federal Estate Tax return becomes delinquent at the expiration of eighteen (18) months frae the date of death. Taxes which became delinquent before January 1, 1982 bear interest at the rate of six (6Z) percent par annum calculated at'a daily rate cf .000164. All taxes which became delinquent on or after January 1, 198Z mill bear interest at a rate which will vary fram calendar year to calendar year with that rate announced by the PA Department of Revenue. The applicable interest rates for 198Z through Zg05 ara: Interest Daily Interest Daily Interest Daily Yaa~ Rate Factor Yaa~ Rate Factor Yaa._._r Rate Factor 1982 ZOZ . O00Sq8 1987 9Z .000247 1999 77. .000192 1985 16Z .000458 1988-1991 112 .000501 2000 8Z .000219 1984 112 · 000501 199Z 9Z .000247 ZOOX 97. · 000247 1985 132 .000556 1995-1994 77. .O00lgZ ZOOZ 67. .000164 1986 107. .000274 1995-1998 97- . O00Z47 2005 57. .000157 --Interest is calculated as follows: INTEREST = BALANCE OF TAX UNPAID X NUNBER OF DAYS DELINQUENT X DAILY INTEREST FACTOR --Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (IS) days beyond the date of the assessment. If payment is sade after the interest computation date shown on the Notice, additional interest must be calculated. BUREA[J OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. 280&01 HARRISBURG, PA 17128-0&0! '03 I'1A¥ 16 ~.10:47 SUSAN E LEDERER S E LEDERER LAW OFCS 4811 JONESTOWN RD 22~[~{~,-'' L_. '~ HBG PA ~'~,'f].'{i~i)C~i;: i{~ - , F COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX DATE 05-12-2005 ESTATE OF LOTZ DATE OF DEATH 04-21-2002 FILE NUMBER 21 COUNTY CUMBERLAND ACN 101 Amount Remitted WILLIAM H MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17015 CUT ALONg THIS LINE ~- RETAIN LONER PORTION FOR YOUR RECORDS REV-1547 EX AFP C01-05~ NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ESTATE OF LOTZ WILLIAM H FILE NO. 21 0~-0056 ACN 101 DATE TAX RETURN WAS: ( } ACCEPTED AS FILED C X} CHANGED SEE ATTACHED NOTICE RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estate (Schedule A} 2. Stocks and Bonds (Schedule B} $. Closely Held Stock/Partnership Interest (Schedule C} 4. Hortgages/Notes Receivable (Schedule D} 5. Cash/Bank Deposits/Hisc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) 7. Transfers (Schedule G} 8. Total Assets APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adm. Costs/N/sc. Expenses (Schedule H) 10. Debts/Hortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Return 1~. .00 .00 .00 .00 .00 lr027~$45.88 (8} Char/table/Governmental Bequests; Non-elected 9115 Trusts (Schedule J) Net Value of Estate Sub3ect to Tax NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment. 1,028,775.88 10,898.04 .00 (12) 1,017,877.84 (is) 52,000.00 (la) 965,877.84 NOTE: reflect figures that include the total of ALL returns assessed to date. If an assessment was issued previously, lines 14, 15 and/or 16, 17, 18 and 19 will ASSESSMENT OF TAX: 15. Amount of Line 14 at Spousal rate C15) l&. Amount of L/ne 14 taxable at Lineal/Class A rate (16) 17. Amount of L/ne 1~ at Siblln9 rate (~7) 18. Amount of L/ne 1~ taxable at Collateral/Class B rate (18). 19. Principal Tax Due TAX CREDITS PAYMENT RECEIPT DISCOUNT (+) DATE NUMBER INTEREST/PEN PAID (-) INTEREST IS CHARGED THROUGH 05-27-2005 AT THE RATES APPLICABLE AS OUTLINED ON THE REVERSE SIDE OF THIS FORM 1,450.00 x O0 = .00 964,447.84 x 045 = 45,400.15 .00 x 12 = .00 .00 x 15 = .00 cig)= ~5,400.15 AMOUNT PAID TOTAL TAX CREDIT BALANCE OF TAX DUE INTEREST AND PEN. TOTAL DUE .00 4~,400.15 IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. 749.17 44,149.52 ( IF TOTAL DUE IS LESS THAN 91, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" CCR}, YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.} RESERVATION~ Estates of decedents dying on or before December 12, 1982 -- if ar~ future interest in the estate is transferred in possession or enjoyment to Class B (collateral) beneficiaries of the decedent after the expiration of any estate for life or for years, the Commonwealth hereby expressly reserves the right to appraise and assess transfer Inheritance Taxes at the lawful Class B (collatera]I rate on any such future interest. PURPOSE OF NOTICE= PAYHENT: REFUND (CR): OBJECTZONS= ADHIN- ISTRATIVE CORRECTIONS= DISCOUNT= PENALTY = INTEREST= To fulfill the requirements of Section 21q0 of the Inheritance and Estate Tax Act, Act 23 of 2000. (72 P.S. Section 91~0). Detach the top portion of this Notice and submit with your payment to the Register of Hills printed on the reverse side. --Hake check or money order payable to= REGISTER OF RILLS, AGENT A refund of a tax cred/t, mb/ch was not requested on the Tax Return, may be requested by complet/ng an °°Applicat/on for Refund of Pennsylvan/a Inher/tance and Estate Tax" (REV-1315). Appl/cations are ava/labia at the Office of the Rog/star of W/11s, any of the 25 Revenue Distr/ct Offices, or bv calling the special 2~-hour answering service for forms ordering: 1-800-562-2050; services for taxpayers w/th spec/al hearing and / or speak/no needs= 1-800-~47-5020 (TT only). Any party in interest not satisfied w/th the appraisement, allowance, or disallowance of deduct/ons, or assessment of tax (/nclud/ng d/scount or interest) as sho~n on this Not/ce must object within s/xty (60) days of race/pt of this Not/ce by: --written protest to the PA Department of Revenue, Board of Appeals, Dept. 281021, Harrisburg, PA 17128-1021, OR --elect/on to have the matter determ/ned at audit of the account of the personal representative, OR --appeal to the Orphans' Court. Factual errors d/scovered on th/s assessment should be addressed in writing to: PA Department of Revenue, Bureau of Individual Taxes, ATTN= Post Assessment Review Un/t, Dept. 280601, Harrisburg, PA 17128-0601 Phone (717) 787-6505. See page 5 of the booklet "Instructions for Inheritance Tax Return for a Resident Decedent°' (REV-IS01) for an explanation of adm/n/stratively correctable errors. If any tax due Ks paid w/thin three (5) calendar months after the decedent's death, a five percent (5~) d/scount of the tax pa/d is allowed. The 15~ tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and not pa/d before Januar~ 18, 1996, the first day after the end of the tax amnesty period. This non-part/cipat/on penalty /s appealable in the same manner and in the the same time period as you would appeal the tax and interest that has been assessed as /ndicated on this not/ce. Interest Ks charged beginn/ng w/th first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. Taxes which became del/nquent before Januar~ 1, 1982 bear interest at the rate of six (&~) percent per annum calculated at a daiXy rate of .000164. All taxes which became delinquent on and after Januar~ 1, 1982 w/11 bear interest at a rate which will vary from calendar year to calendar year with that rate announced by the PA Department of Revenue. The applicable interest rates for 1982 through 2005 are= Interest Da/ly Interest Da/ly Interest Daily Year Rate Factor Year Rate Factor Year Rate Factor 1982 20~ .000548 1987 9~ .000247 1999 7~ .000192 1985 16X .000~58 1988-1991 ll~ .000501 2000 8~ .000219 1984 11~ .000501 1992 9~ .000247 2001 9~ .000247 1985 15~ .000556 1995-1994 7~ .000192 2002 G~ .000164 1986 10~ .00027~ 1995-1998 9~ .000247 2005 5~ .000157 --Interest is calculated as follows: INTEREST = BALANCE OF TAX UNPAID X NUNBER OF DAYS DELINQUENT X DAILY INTEREST FACTOR --Any Notice issued after the tax becomes delinquent will reflect an /nterest calculat/on to f/fteen (15) days beyond the date of the assessment. If payment is made after the interest computat/on date shown on the Not/ce, addit/onal /nterest must be calculated. PROBATE [] JBA [] DATE:4130/03 REV-1470 EX (6-88)  INHERITANCE TAX EXPLANATION COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE OF CHANGES BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128-0601 DECEDENT'S NAME FILE NUMBER William H. Lotz 2103-0036 ACN 101 ITEM EXPLANATION OF CHANGES SCHEDULE NO, H BI-11 Disallowed. Since the property was held by the trust, expenses incurred in the sale of the property would be fiduciary expenses of the trust, not expenses necessary to administer the estate. We note that it was not necessary to sell the property in order to pay the debts of the decedent and the expenses associated with administering the estate. J IIA-2 In the absence of a timely filed request for a future interest compromise including a completed Schedule M which addresses all possible distributions, especially distributions of principal during the lifetime of the surviving spouse, the Department has the right to assess tax at the highest rate in the chain of potential distributions. Therefore, the entire trust has been taxed at the lineal rate. Payment of tax on the remainder interest cannot be postponed until the death of the surviving spouse because the trust does not qualify as a sole use trust under Section 9113(a). TAX EXAMINER: Shawn E. Youn~l PAGE I BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX D/VZSION DEPT. Z80601 HARRISBURG, PA 171ZS-DG01 COHNONgEALTH OF PENNSYLVANIA DEPARTNENT OF REVENUE INHERITANCE TAX STATEHENT OF ACCOUNT '03 JU; 2O SUSAN E LEDERER S E LEDERER LAg OFCS 1811JONESTOgN RD HBG P~ DATE 06-09-2005 ESTATE OF LOTZ DATE OF DEATH 04-Z1-Z00Z FILE NUHDER 21 05-0056 COUNTY CUHBERLAND ACN 101 Amouni Remittsd REV-160? EX AFP cOl-OS) gILLIAH H HAKE CHECK PAYABLE AND REHIT PAYHENT TO: REGISTER OF gILLS CUHBERLAND CO COURT HOUSE CARLISLE, PA 17015 NOTE: To insurs propsr crsdit to your s¢¢ount, submit ihs uppsr portion of this form with your CUT ALONG THIS LINE I~ RETAIN LONER PORTION FOR YOUR RECORDS ~ ESTATE OF LOTZ WILLIAH H FILE N0.21 05-0056 ACN 101 ])ATE 06-09-2005 THIS STATEHENT ZS PROVIDED TO ADVISE OF THE CURRENT STATUS OF THE STATED ACN ZN THE NAHED ESTATE. SHOWN BELOW ZSA SUHHARY OF THE PRINCIPAL TAX DUE, APPLICATION OF ALL PAYHENTS, THE CURRENT BALANCE, AND, ZF APPLICABLE, A PROJECTED INTEREST FIGURE. DATE OF LAST ASSESSHENT OR RECORD ADdUSTHENT: 05-12-2005 PRINCIPAL TAX DUE: ........................................................................................................................................................................................................................... PAYHENTS (TAX CREDITS): 45,400.15 PAYNENT RECEIPT DISCOUNT (+) DATE NUNBER INTEREST/PEN PAID (-) AHOUNT PAID 05-22-2003 05-22-2003 CD002603 CD002602 IF PAID AFTER THIS DATE, SEE REVERSE SIDE FOR CALCULATION OF ADDITIONAL INTEREST. ( ZF TOTAL DUE ZS LESS THAN $1, NO PAYHENT ZS REQUIRED. ZF TOTAL DUE ZS REFLECTED AS A "CREDIT" (CR), .00 719.44- 749.17 43,400.15 TOTAL TAX CREDIT 43,429.88 BALANCE OF TAX DUE Z9.73CR INTEREST AND PEN. .00 TOTAL DUE 29.73CR YOU HAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORH FOR INSTRUCTIONS. ) PAYNENT: Detach the top portion of this Notice and submit with your payment made payable to the name and address printed on the reverse side. -- If RESIDENT DECEDENT make check or money order payable to: REGISTER OF #ILLS, AGENT. -- If NON-RESIDENT DECEDENT make check or money order payable to: COHHONNEALTH OF PENNSYLVANTA. REFUND (CR): A refund of a tax credit, ehich was not requested on the Tax Return, may be requested by completing an "Application ~or Refund of Pennsylvania Inheritance and Estate Tax" (REV-1313}. Applications are available et the Office of the Register of #ills, any of the Z3 Revenue District Offices or from the Department's Z4-hour anseering service for forms ordering: 1-800-56Z-2050; services for taxpayers with special hearing and / or speaking needs: 1-800-447-$020 (TT only). REPLY TO: Questions regarding errors contained on this notice should be addressed to: PA Department of Revenue, Bureau of Individual Taxes, ATTN: Post Assessment Review Unit, Dept. 280601, Harrisburg, PA I7128-0601, phone (717) 787-6505. DISCDUNT: If any tax due is paid within three (3) calendar months after the decedent's death, a five percent (SI) discount of the tax paid is allowed. PENALTY: The iSZ tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and not paid before January lB, 1996, the first day after the end of the tax amnesty period. INTEREST: Interest is charged beginning with first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. Taxes which became deLinquent before January l, 198Z bear interest at the rate of six (SX) percent per annum calculated at a daily rate of .000164. All taxes which became delinquent on and after January l, 198Z will bear interest at a rate which will vary from calendar year to calendar year with that rate announced by the PA Department of Revenue. The appXicabIe interest rates for 198Z through ZOO5 are: Interest Daily Interest Daily Interest Daily Year Rate Factor Year Rate Factor Year Rate Factor 198Z 20Z .000548 1987 9Z .000247 1999 7Z .O0019Z 1983 16Z .000458 1988-1991 X1Z .000301 ZOOO 8Z .000219 1984 llX .000301 199Z 9Z .000Z47 ZOO1 9Z .000247 1985 132 .000356 1993-1994 72 .000192 ZOOZ 62 .000164 1986 102 .OOOZ74 1995-1998 92 .O00Z47 ZOO3 SZ .000137 --Interest is calculated as follows: INTEREST = BALANCE OF TAX UNPAID X NUHBER OF DAYS DELINQUENT X DAILY INTEREST FACTOR --Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (15) days beyond the date of the assessment. If payment is made after the interest computation date shown on the Notice, additional interest must be calculated. May 23, 2003 Register of Wills Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 ESTATE OF WILLIAM H. LOTZ SOCIAL SECURITY NO. 716-09-7301 DATE OF DEATH: 04-21-2002 Dear Sir: Enclosed is one (1) photocopy of the Notice of Inheritance Tax Appraisement indicating a balance due and two (2) checks ($43,400.15 & $749.17) for the payment of the Pennsylvania Inheritance Tax plus accrued interest due for the above decedent. Please forward a receipt for this payment to my office using the envelope provided. If you have any questions or require further information, please do not hesitate to contact me. Sincerely, Susan E. Lederer, Esquire 4811Jonestown Road · Suite226 · Harrisburg, PA 17109 · Phone717.652.7323 · Fax 717.652.7340 · susan@ledererlaw.com www.ledererlaw.com '~B['REAU O~ INDIVIDUAL TAXES IN'HERITANCE TAX DIVISION DEPT. 280&O1 HARRISBURG, PA 1712B-060i COMHONWEA'TH OF PENNSYLVANIA DEPAR~tENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX SUSAN E LEDERER S E LEDERER LAW OFCS 4811 JONESTOWN RD DATE 05- 12-200,~ R(~COF~;.~-~;iJ i... ".; ?i ESTATE OF LOTZ i~;:; DATE OF DEATH 04-21-2002 FILE NUMBER 2i 05-0056 COUNTY CUMBERLAND '03 HAY22 ~2:48 Ac. zo~ Amount Remitted WILLIAM H MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA I7015 CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR RECORDS -~ REV-ID47 EX AFP (01-0~) NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ESTATE OF LOTZ WILLIAM H FILE NO, 21 0~-00~6 ACN 101 DATE 05-12-200~ TAX RETURN WAS: ( ) ACCEPTED AS FILED (X) CHANGED SEE ATTACHED NOTICE RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN i. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) (2) 5. Closely Held Stock/Partnership Interest (Schedule C) (5) 4. Mortgages/Notes Receivable (Schedule D) $. Cash/Bank Deposits/Misc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) (63 7. Transfers (Schedule G) (7) 8. TotaI Assets APPROVED DEDUCTIONS AND EXEMPTIONS: ~. Funeral Expenses/Adm. Costs/M~sc. Expenses (Schedule H) 10. Debts/Mortgage L~abilities/Liens (Schedule I) ii. Total Deductions 12. Net Value of Tax Return 15. 14. 1~450.00 .00 · 00 NOTE: To insure proper .00 credit to your account, .00 submit the upper portion · 00 of this form with your tax payment. 1 t 027 ~ :545.88 (8) 10,898.04 .00 1,028,77.5.88 Charitable/Governmental Bequests; Non-elected ~Ii~ Trusts (Schedule J) Net Value of Estate SubSect to Tax (11) lOo~9~.fl~ (12) 1,017,877.84 (Za) 52,000.00 c14) 965,877.84 NOTE: reflect figures that include the total of ALL returns assessed to date. If an assessment was issued previously, lines 14, 15 and/or 16, 17, 18 and 19 will ASSESSMENT OF TAX: 15. Amount of Line 14 at SpousaI rate (15) 16. Amount of Line 14 taxabIe at Lineal/Class A rate (1~) 17. Amount of Line 14 at Sibling rate (17) 18. Amount of Line 14 taxable at Collateral/Class B rate (18) 19. Principal Tax Due TAX CREDITS PAYMENT RECEIPT DISCOUNT (+) INTEREST/PEN PAID (-) NUMBER DATE 1,450.00 x O0 = .00 964,447.84 x 045= 4:5,400.15 .00 x 12 = .00 .00 x 15 : .00 (~)= 4:5,400.15 AMOUNT PAID INTEREST IS CHARGED THROUGH 05-27-200:5 AT THE RATES APPLICABLE AS OUTLINED ON THE TOTAL TAX CREDIT BALANCE OF TAX DUE REVERSE SIDE OF THIS FORM INTEREST AND PEN. TOTAL DUE IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. .00 4:5,400.15 749.17 [ IF TOTAL DUE IS LESS THAN ~1, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR)~ YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128-O601 RECEIVED FROM: PENNSYLVANIA INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT NO. CD REV-1162 EX(11-96) 0O2603 LEDERER SUSAN E ESQUIRE 134 SIPE AVENUE HUMMELSTOWN, PA 17036 ........ fold ESTATE INFORMATION: SSN: 716-09-7301 FILE NUMBER: 2103-0036 DECEDENT NAME: LOTZ WILLIAM H DATE OF PAYMENT: 05/22/2003 POSTMARK DATE: 00/00/0000 COUNTY: CUMBERLAND DATE OF DEATH: 04/21/2002 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 $749.17 REMARKS: TOTAL AMOUNT PAID: SUSAN E LEDERER ESQUIRE $749.17 SEAL CHECK# 2168 INITIALS: JA RECEIVED BY: DONNA M. OTTO DEPUTY REGISTER OF WILLS REGISTER OF WILLS COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128-0601 RECEIVED FROM: PENNSYLVANIA INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT NO. REV-1162 EX(11-96) CD 002602 LEDERER SUSAN E ESQUIRE 134 SIPE AVENUE ~ru~r~.S~ PA Z7036 ........ fold ESTATE INFORMATION: SSN: 716-09-7301 FILE NUMBER: 2103-0036 DECEDENT NAME: LOTZ WILLIAM H DATE OF PAYMENT: 05/22/2003 POSTMARK DATE: 00/00/0000 COUNTY: CUMBERLAND DATE OF DEATH: 04/21/2002 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 $43,400.15 TOTAL AMOUNT PAID: $43,400.15 REMARKS: WILLIAM A HOTZ C/O SUSAN E LEDERER ESQUIRE SEAL CHECK# 1003 INITIALS: JA RECEIVED BY: DONNA M. OTTO DEPUTY REGISTER OF WILLS REGISTER OF WILLS BUREAU OF ZNDZVZDUAL TAXES /NHERTTANCE TAX DTV/SION DEPT. 280601 HARRTSBURG, PA 17128-0601 COHHONWEALTH OF PENNSYLVANZA DEPARTHENT OF REVENUE NOTICE OF DETERHZNATZON AND ASSESSHENT OF PENNSYLVANZA ESTATE TAX BASED ON FEDERAL CLOSZNG LETTER DATE OZ-Z~-Z00~ ESTATE OF LOTZ DATE OF DEATH O~-ZI-ZOOZ RE¥-TSi; EX AFP (01-0Z) WILLIAM FZLE NUHBER 21 05-0036 '04 FEB 20 ,q)l :2! COUNTY CUHBERLAND SUSAN E LEDERER ACN 202 S E LE~ LAW OFCS~ HAKE CHECK PAYABLE AND REHZT PAYHENT TO: REGISTER OF WILLS CUNBERLAND CO COURT HOUSE CARLISLE, PA 17013 NOTE: To insure proper credit to your account, submit the upper portion of this form wi~h your tax payment. CUT ALONG THIS LZNE ~ RETAZN LOWER PORTION FOR YOUR FZLES ~ REV-736 EX AFP (01-02) .~ NOTICE OF DETERHZNATZON AND ASSESSHENT OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL CLOSING LETTER .# ESTATE OF LOTZ WILLIAH H FZLE NO.ZI 03-0036 ACN 202 DATE O2-Zq-2OOq ESTATE TAX DETERHZNATZON l. Credit For State Death Taxes as Verified .00 2. Pennsylvania Inheritance Tax Assessed (Excluding Discount and/or Interest) Inheritance Tax Assessed by Other States or Territories of the Un/ted States (Excluding Discount and/or Interest) Total Inheritance Tax Assessed 5. Pennsylvania Estate Tax Due 6. Amount of Pennsylvania Estate Tax Previously Assessed Based on Federal Estate Tax Return .00 7. Additiona! Pennsylvania Estate Tax Due .00 TAX CREDITS: 30,575.8~ .00 30;575.8q .00 PAYHENT RECEIPT DISCOUNT (+) DATE NUHBER INTEREST/PEN PAID (-) AHOUNT PAID ~IF PAID AFTER THIS DATE, SEE REVERSE SIDE FOR CALCULATION OF ADDITIONAL INTEREST. TOTAL TAX CREDIT I BALANCE OF TAX DUE TNTEREST AND PEN. TOTAl. DUE (IF TOTAL DUE IS LESS THAN $1, NO PAYHENT TS REI)U'rRED ZF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU HAY BE DUE A REFUND. SEE REVERSE SIDE OF THTS FORH FOR INSTRUCTIONS. .00 .00 .00 .00 BUREAU OF INDIVIDUAL TAXES TNHERTTAHCE TAX DTVTSZON DEPT. 28D601 HARRISBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE INHERITANCE TAX RECORD ADJUSTMENT RE¥-1595 EX AFP (01-05) SUSAN E LEDERER S E LEDERER LAW OFCS 4811JONESTOWN RD 226 HBG PA 17109 DATE 01-27-Z004 ESTATE OF LOTZ DATE OF DEATH 04-21-Z002 FTLE NUMBER 21 05-0056 COUNTY CUMBERLAND ACN 101 I Amoun~ RemA~ted WILLIAM HAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17015 NOTE: To lnsurm proper credAt to your account, submAt the upper por~ton of thAs fora wAth your tax payment. CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR RECORDS -.~ ESTATE OF LOTZ WILLIAM H FILE NO. Z1 05-0056 ACN 101 DATE 01-27-2004 ADJUSTMENT BASED ON: BOARD OF APPEALS REFUND VALUE OF ESTATE: 1. Real Estate (Schedule A) (1) 2. Stocks and Bonds (Schedule B) (2) $. Closely Held Stock/Partnership Interest (Schedule C) ($) q. Mortgages/No,es ReceAvable (Schedule D) (q) 5. Cash/Bank Deposit:s/MAsc. Personal Property (Schedule E) (F,) 6. JoAntly Owned Property (Schedule F) (6) 7. Transfers (Schedule G) (7) 8. Tote1 Assets DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/AdmAnAstratAve Costs/ MAscellaneous Expanses (Schedule H) (9) 10. Debts/Hor~gage LAabilities/Liens (Schedule Z) (10) 11. Total Deduct Aons 12. Nat Value of Tax Return 15. CharAteble/Governaental Bequests; Non-elected 9115 Trusts (Schedule J) lq. Nat Value of Estate Sub~ect to Tax TAX: 15. Aaount of LAne 1~ at Spousal rata (15) 16. Amount of LAne lq taxable at Lineal/Class A rata (16) 17. Aaount of LAne 1~ at SiblLng ra*e (17) 16. Amount of LAne 14 taxable at Collateral/Class B ra~e (lB) 19. PrincApal Tax Due TAX CREDITS= I'AYfll:N ! KbCl:lr i U,~CUUN I t +J DATE NUHBER INTEREST/PEN pATD (-) 05-22-2003 05-22-2003 CD002603 CD002602 .00 506.86- ZF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. .00 .00 .00 .00 1~430.00 .00 1~027~345.88 (8) 10,898.04 .00 1,028,775.88 (11) 10t898.04 (12) ltO17z877.84 (15) 5ZzO00.O0 (1~) 965~877.84 286~414.69x O0 = .00 679/463.15x 045= 30z575.84 .OOX 12 = .00 .OOx 15 = .00 (19) 30z575.84 AMOUNT PATD 749.17 43,q00.15 TOTAL TAX CREDIT I BALANCE OF TAX DUEI INTEREST AND PEN. TOTAL DUE 43,642.46 13,066.62CR .00 13,066.62CR ( IF TOTAL DUE IS LESS THAN $1, NO PAYMENT ZS REQUIRED. IF TOTAL DUE 1S REFLECTED AS A 'CRED/T' (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) PAYMENT: Detach the top portion of this Notice and submit with your payment made payable to the name and address printed on the reverse side. -- Hake check or money order payable to: REGTSTER OF #TLLS, AGENT. REFUND (CR): REPLY TO: A refund of a tax credit, ehich mas not requested on the Tax Return, may be requested by completing an "Application for Refund of Pennsylvania Inheritance and Estate Tax" (RE¥-1313). Applications are available at the Office of the Register of Hills, any of the Z3 Revenue District Offices or from the Department's Z4-hour answering service for forms ordering: 1-800-36Z-ZOSO; services for taxpayers with special hearing and / or speaking needs: 1-BOO-447-30ZO (TT only). guestions regarding errors contained on this notice should be addressed to: PA Department of Revenue, Bureau of Individual Taxes, ATTN: Post Assessment Review Unit, Dept. ZB0601, Harrisburg, PA 171ZB-060I, Phone (717) 787-650S. DISCOUNT: PENALTY: INTEREST: If any tax due is paid within three (3) calmndar months after the decedant's death, a five percent (5Z) discount of the tax paid is alIowed. The 15Z tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and not paid before January 18, 1996, the first day after the end of the tax amnesty period. Interest is charged beginning with first day of delinquency or nine (9) months and one (l) day fram the date of death to t~ne date of payment. Taxes which became delinquent before January l, lgsg bear interest at the rate of six (GZ) percent per annum calculated at a daily rate of .000164. All taxes which became delinquent on and after January 1, 198Z will bear interest at a rate which wilI vary from calendar year to calmndar year with that rate announced by the PA Department of Revenue. The applicabIe interest rates for 198Z through ZOO3 are: Interest Daily Interest Daily Interest Daily Rate Factor Year Rate Factor Year Rate Factor 1982 gOD .000548 1987 92 .O00Zq7 1999 72 .O0019Z 1983 XGZ .000438 1988-1991 llZ .000301 ZOO0 BX .O00ZX9 1984 ZlZ .O003OX 1992 9Z .O00Z47 ZOO1 9Z .000247 1985 132 .000356 1993-1994 72 .O0019Z ZOOZ 6Z .000164 1986 log ,000274 1995-1995 9Z .OOOZ47 ZOO3 5Z .000137 --Interest is calculated as follows: XNTEREST = BALANCE OF TAX UNPAXD X NUNBER OF DAYS DELZNI;IUENT X DAXLY XNTBREST FACTOR --Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (15) days beyond the date of the assessment. If payment is made after the interest computation date shown on the Notice, additional interest must be calculated. BOARD OF APPEALS DEPT. 281021 HARRISBURG, PA 17128-1021 COMM~/N.WEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE SUSAN E LEDERER ESQ S E LEDERER LAW OFCS 4811 JONESTOWN RD STE 226 HBG PA 17109 IN RE ESTATE OF: LOTZ WILLIAM H DOCKET NO.: TAX TYPE: APPEAL TYPE FILE NUMBER: ACN: APPRAISEMENT: PETITION FILED: EXAMINER: MAILING DATE: 0313352 Inheritance Refund 2103-0036 101 5/12/2003 6/25/2003 DONNA E AUMENT Direct Dial: (717) 783-7894 Fax: (717) 787-7270 Email: daument@state.pa.us December 24, 2003 DECISION AND ORDER In its appraisement and assessment of the estate's inheritance tax return, the Department determined that, in the absence of a request for a future interest compromise, tax on the $964,447.84 Family Trust was due at the 4.5% rate, the highest rate in the chain of potential distributions. Petitioner requests the Board to accept a compromise which assesses tax at the 0% spousal rate on her life interest in the trust and at the 4.5% rate on the remainder interest. Article Nine of the decedent's Living Trust establishes a Family Trust from which the trustee must pay or apply for the benefit of the surviving spouse the entire net income. The trustee may also in its discretion pay the spouse and the decedent's descendants so much of the principal deemed proper for their health, maintenance, support and education. The trustee is directed to give primary consideration to the surviving spouse's needs. The spouse may also request in writing the yearly distribution of $5,000.00 or 5% of the trust assets. Upon the death of the surviving spouse, the trust terminates into trusts for the benefit of the decedent's two children. LOTZ WILLIAM H BOARD DOCKET NO. 0313352 Page 2 of 2 Petitioner states that both of the decedent's children are self-sufficient and that it is not anticipated that any principal distributions will be made to them or to the spouse during the spouse's lifetime. The spouse resides in an assisted living facility and her monthly income is presently sufficient to meet her monthly expenses. Based on the aforementioned and the mandatory payment of the income to the spouse only, the Board accepts Petitioner's future interest compromise offer. We also confirm that the life estate factor appropriate to a person aged 83 in April of 2002, using the federal 5.6% table, is 0.29549. Accordingly, it is hereby Ordered that the petition for refund is granted.. The Department is directed to issue an amended appraisement and assessment reflecting that tax on the Family Trust is due at the 0% on the surviving spouse's $284,984.69 life interest and at the 4.5% rate on the $679,463.15 trust remainder. It is further Ordered that the estate be issued a cash refund, plus appropriate interest, of the resulting overpayment. FOR THE BOARD OF APPEALS GERARD J. SALLAVANTI, CHAIRMAN JOSEPH R. SLEEK, MEMBER ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE BOARD OF FINANCE AND REVENUE, 1101 SOUTH FRONT ST., SUITE 400, HARRISBURG, PA 17104, WITHIN NINETY (90) DAYS OF THE MAILING DATE OF THIS DECISION. TELEPHONE (717) 787-2974. A CASH REFUND WILL BE MAILED TO YOU BY THE BUREAU OF INDIVIDUAL TAXES. IF YOU REQUIRE THIS INFORMATION IN AN ALTERNATE FORMAT UNDER THE PROVISIONS OF AMERICANS WITH DISABILITIES ACT OF 1990, PLEASE CALL (717) 783-3664, OR FOR SERVICES FOR TAXPAYERS WITH SPECIAL HEARING AND SPEAKING NEEDS: 1-800-447-3020 (TT ONLY). PURPOSE OF NOTICE: PAYMENT: REFUND (CR): OBJECTIONS: ADMIN- ISTRATIVE CORRECTIONS: PENALTY: INTEREST: To fulfill the requirements of Section ZlqO of the Inheritance end Estate Tax Act, Act Z3 of Z000. (TZ P.S. Section 91qO). Detach the top portion of this Notice and submit with your payment to the Register of Mills printed on the reverse side. -- Make check or money order payable to: REGZSTER OF N/LLS) AGENT. A refund of a tax credit may be requested by completing an "Application for Refund of Pennsylvania Inheritance and Estate Tax" (REV-1313). Applications are available at the Office of the Register of Hills, any of the 13 Revenue District Offices or from the Dapartment"s Zq*-hour answering service far forms ordering: 1-800-361-Z050; services for taxpayers eith special hearing and/or speaking needs: 1-800-q*q*7-30ZO (TT only). Any party in interest not satisfied with the assessment of tax as shown on this notice may object within sixty (60) days of receipt of this Notice by: --written protest ta the PA Department of Revenue, Board of Appeals, Dept. 281021, Harrisburg, PA 17128-1011, --electing to have the matter determined at audit of the personal representative, OR --appeal to the Orphans' Court OR Factual errors discovered on this assessment should be addressed in writing to: PA Department of Revenue, Bureau of Individual Taxes, ATTN: Post Assessment Review Unit, Dept. 280601, Harrisburg, PA 17118-0601, Phone (717) 787-6505. Sea page 5 of the booklet "Instructions for Inheritance Tax Return for a Resident Decedent" (REV-IS01) for an explanation of administratively correctable errors. The 151 tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and not paid before January 18, 1996, the first day after the end of the tax amnesty period. This non-participation penalty is appealable in the same manner and in the the same time period as you would appeal the tax and interest that has been assessed as indicated on this notice. Additional Pennsylvania Estate Tax assessed as a result of a change on the Federal Estate Tax closing latter becomes delinquent at the expiration of Dna (1) month from the date the final notice of the increase in Federal Estate Tax is received. Taxes which became delinquent before January 1, 19BZ bear interest at the rate of six (6X) percent par annum calculated at a daily rate of .00016q*. All taxes which became delinquent on ar after January 1, 1981 0111 bear interest at a rate which will vary from calendar year to calendar year with that rata announced by the PA Department of Revenue. The applicable interest rates for 1981 through ZOOZ are: Year Interest Rate Oaily Znterast Factor Year Interest Rate 1982 20Z .0005q.8 1991 91 1983 167. . go 0q.38 1993-199q* 77. 198q* llZ .000301 1995-1998 97. 1985 131 . O 00356 1999 72 1986 lOX . OOOZTq* ZOOO 82 1987 97. . O00Zq*7 Z001 9Z 1988-1991 111* .000301 ZOOZ 61 --Zntarest is calculated as follows: :INTEREST = BALANCE OF TAX UNPATD DaiIy Interest Factor .OOgZq7 .00019Z .O00Zq*7 .000191 .000119 .O00Zq*7 .00016q* X NUHBER OF DAYS DELTNQUENT X DA/LY TNTEREST FACTOR --Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (15) days beyond the date of the assessment. If payment is made after the interest computation date shown on the Notice, additional interest must be calculated.