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HomeMy WebLinkAbout03-11-11Neil Warner Yahn, Esquire Attorney LD. No. 82278 James Smith Dietterick & Connelly, LLP P.O. Box 650 c7 ~ Hershey, PA 17033 '~; n '-" -r? ' r' r-, ~ ~ Petitioner , -r ~,`i ~ -~ r_ n • - - ~~ IN THE COURT OF COMMON PLEAS ` ' '` n ~- {_, _~ .~ CUMBERLAND COUNTY, PENNSYLVANIA ~ ? `~ ~ -~-' ORPHANS' COURT DIVISION ` ~ ~ =`J -- ~~-" ~~ _~ - ~., , Chi IN RE: ~~ No. 21-10 - 0973 ESTATE OF GUOLAUG BRYNJA , GUOJONSDOTTIR, deceased , MOTION TO CONFIRM PAYMENT TO THE HONORABLE JUDGES OF SAID COURT: Petitioner, Neil Warner Yahn, Esquire (herein "Petitioner") of the Law Firm of JAMES, SMITH, DIETTERICK and CONNELLY, LLP, and as Administrator of the Estate of Guolaug Brynja Guojonsdottir (herein the "Estate"), sets forth upon valid information and belief, as follows: 1. Guolaug Brynja Guojonsdottir (herein the "Decedent") died a resident of Reykjavik, Iceland on December 24, 2008, with a previous principal residence in Pennsylvania located at 2331 Chestnut Street, Camp Hill, Cumberland County, Pennsylvania. 2. Decedent is survived by her five (5) children who are named beneficiaries under the Estate, namely: i. Gudjon J. Olafsson who currently resides at 52 Boatswain Drive, Berlin, Maryland 21811 (electronically at Gudjon.Olafsson@perdue.com); ii. Bryndis Gudjonsdottir Bryndis Gudjonsdottir (can be written "Gudjonsdottir) Reynihlid 4 - 105 Reykjavik Iceland; iii. Brynja Gudjonsdottir Brynja Gudjonsd6ttir c/o: Halld6r Jakobsson Gautavik 20 104 Reykjavik Iceland (email at bgbebe65@gmail.com); iv. Asa B. Oates who currently resides at 121 Mapleton Blvd, Harrisburg, Pennsylvania 17112; and v. Olafur K. Olafsson who currently resides at 145 Taylor Street, Apartment 608, San Francisco, California 94102. 3. On or about February 2, 2009, Stefan Geir Thorisson, Esquire (herein "Thorisson"), of Reykjavik, Iceland, was appointed as Receiver of the Decedent's Foreign Estate by the Reykjavik District Court whereby the Will was probated. 4. On or about December 2, 2010, upon petition, Ancillary Letters of Administration were granted to Petitioner by the Cumberland County Register of Wills as Administrator of the Decedent's Domestic Estate. 5. Petitioner has determined that the Decedent was not a U.S. citizen based upon information to date, however, the question of residency (as the concept is for transfer tax purposes) is relevant,1 and now the Petitioner must apply the transfer tax concept of "residency" in order to determine whether the Code subjects or would subject a given property transfer to federal taxation and the amount of exemption of the Decedent. 6. If Petitioner finds that the non-citizen Decedent is a resident of the United States for transfer tax purposes, the Code reaches worldwide to all transfers of her Estate's property, wherever such properties are located at the time of the transfers resulting in an exemption of Two Million Dollars ($2,000,000.00), however if Petitioner finds that the non-citizen Decedent is not ' As the foregoing makes clear the application of the concept of residency, in any sense, is irrelevant if the Decedent is found to be a U.S. citizen (and even if a dual citizen), as the transfers made by U.S. citizens and their estates are subject to the Code's worldwide reach and thus a standard 706 is filed. a "resident" of the United States for transfer tax purposes, the Code embraces only transfers of Decedent's properties located within the United States and the exemption amount is limited to $60,000. 7. Residency is determined by domicile, which can be said that this definition clearly carries within it two essential elements, those being physical presence and intent. The Decedent is a domiciliary of the United States if she is "living" in the United States "for even a brief period of time" (the physical presence element), "with no definite present intention" of later relocating to live somewhere else (the intent element). 8. Petitioner is required to perform an extensive background check into the Decedent as the determination of domicile is mainly a question of fact and the U.S. Tax Courts look to a variety of factors in assessing the intention of an individual to live in the United States with no present, definite intention of relocating.2 9. By way of example of the fact sensitive nature of the matter at hand, in Khan Est. v. Comr., the U.S. Tax Court held that a Pakistani citizen was a resident of the United States z A point of clarification that must be reiterated in this introduction is that the concepts of residency for federal income tax purposes and residency for transfer tax purposes are profoundly different. Non-citizens who are "resident aliens" for Federal Income Tax (herein "FIT") purposes are not necessarily "resident" for the purposes of the Federal Estate Taxes. Residency for transfer tax purposes results only if the subject individual is a domiciliary of the United States. Thus, and as explained further below, for federal transfer tax purposes the term "residence" means "domicile," the term "resident" means colloquially a "domiciliary. Anon-citizen for FIT is considered to be a lawful permanent resident if he or she lawfully holds a "green card." One who holds a green card will continue to be considered a U.S. resident until such time as his or her green card is revoked or abandoned. And, anon-citizen that was not a U.S. resident during the previous calendar year, obtains a green card during the current year, and does not meet the "substantial presence test" with respect to the current year, is considered a U.S. resident as of the first day of the current year on which he or she was present in the United States whilst a "green card" holder. See §7701(b)(2)(A)(ii),7701(b)(6)(B); Regs. §301.7701(b)-1(b)(1). Effective for any individual whose expatriation date is on or after June 17, 2008, the Heroes Earnings Assistance and Relief Tax Act of 2008, P.L. 110-245, §301(c)(2)(B), (g)(1), added a provision to §7701(b)(6) specifying that an individual ceases to be treated as a lawful permanent resident if he or she commences to be treated as a resident of a foreign country pursuant to a tax treaty between the United States and that country, does not waive the treaty benefits applicable to residents of the foreign country, and notifies the IRS of the commencement of such treatment. when he died and, thus, his estate was entitled to the full unified credit for estate tax purposes.3 10. On or about February 15, 2011, Petitioner filed a Motion to Enjoin to secure Decedent's assets, including two (2) investment accounts with Charles Schwab, to ensure adequate funds would be available to satisfy the taxes owed to the IRS upon the filing of the Estate Tax Return. 11. The Motion to Enjoin was granted on February 16, 2011 by this Honorable, Court, however portions therefrom have already been paid to certain beneficiaries, namely, Gudjon, Asa, and Olafur. 12. In preparing the Estate Tax Return, Petitioner has completed two (2) separate Form 706s which will be filed depending upon whether the Decedent had relinquished her domicile within the United States. 13. The draft Estate Tax Return Form 706 (attached as Exhibit "A") concludes the Decedent died as a citizen or resident of the United States. 14. The draft Estate Tax Return Form 706 NA (attached as Exhibit "B") concludes the Decedent dies as anon-resident/non-citizen of the United States taxing only United States property. s In Khan, the decedent was bom and raised, married, and died in Pakistan. In the early 1900s, the decedent's father had established a farming and real estate business in California, the majority of which passed to the decedent upon his father's death in 1958. The decedent's eldest son came to California shortly after his grandfather's death and joined another relative in running that business, whilst the decedent remained in Pakistan, and therein operated a 15- acre farm and lived with his wife and other children. In 1971 the decedent came to the United States for the first time on a visitor's visa, leaving his wife and other children behind, but later returned to Pakistan in 1974 to continue farming. After being informed by his son that one of their U.S. businesses was going to lose U.S. rice subsidies because the decedent and the other owners had no social security numbers, the decedent returned to the United States and obtained a green card and a social security number. He returned to Pakistan about a year and a half later, in 1986. Although the decedent obtained a reentry permit before returning to Pakistan, he never returned to the United States. During this latter visit to the United States, the decedent resided with his son, who added a bedroom and bath to his home for his father's use. The decedent died in Pakistan in 1991. For tax years 1986-90, U.S. income tax returns were filed for the decedent, indicating that he was a nonresident, but after his death, amended returns were filed changing his status to resident. Additionally, the estate filed a U.S. estate tax return, indicating that he was a U.S. resident and, thus, his estate was not limited to the $13,000 unified credit under §2102. 15. At this time, Petitioner has insufficient facts to adequately answer Questions 5 and 6 of the Form 706-NA (see page 2 of Exhibit "B"). 16. As Petitioner has presented, the determination of the Decedent's domicile prior to her death has a substantial impact on the taxes owed to the IRS as the balance due on the traditional Form 706 (see line 20 of Exhibit "A") is approximately One Hundred Thirty Six Thousand Nine Hundred Eighty One Dollars and Forty Four Cents ($136,981.44) whereas the balance due on the non-resident/non-citizen Form 706-NA (see line 16 of Exhibit "B") significantly increases the taxes owed to approximately Three Hundred Thirty Two Thousand One Hundred Seventy Five Dollars and Fifty Three Cents ($332,175.53).4 17. However, as Petitioner continues to gather facts regarding the Decedent's domicile prior to her death, Petitioner is not desirous of further delaying payment to the IRS as penalties and interest continue to accrue on the overdue Estate Tax Return because at a minimum One Hundred Thirty Six Thousand Nine Hundred Eighty One Dollars and Forty Four Cents ($136,981.44) will be due to the IRS. 18. As such, Petitioner requests authority from this Honorable Court to make a payment to the IRS in the amount of One Hundred Twenty Five Thousand Dollars ($125,000.00) to mitigate the assessment of further potential penalties and interest. 19. Petitioner will provide copies of this pleading to the named beneficiaries above for purposes of filing objections. a These calculations do not include penalties or interest due on the balance owed which may be assessed by the IRS due to the delays in filing. In addition, allocations of additional assets and/or excluded assets maybe determined at a later time. WHEREFORE, Petitioner respectfully requests that this Honorable Court enter an order authorizing Petitioner, Neil Warner Yahn, Esquire, as Administrator of the Estate of Guolaug Brynja Guojonsdottir, to make a payment of One Hundred Twenty Five Thousand Dollars ($125,000.00) to the Internal Revenue Service from such assets as the Petitioner deems appropriate. Respectfully submitted, JAMES, SMITH, DIETTERICK & CONNELLY,LLP Date: 3 ~~ ~~ By: Neil,~'~OV. Yahn Attorney I.D. o. 82278 1 4 Sipe Ave e H melsto , PA 17036 (717) 53 -3280 Petitioner VERIFICATION I, NEIL WARNER YAHN, ESQUIRE, verify that the statements made in the foregoing Motion are true and correct to the best of my knowledge. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities. Date: ,.3 ~ ~ ~ N WA ER YAHN, ESQUIRE Neil Warner Yahn, Esquire Attorney I.D. No. 82278 James Smith Dietterick & Connelly, LLP P.O. Box 650 Hershey, PA 17033 Petitioner IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION IN RE: No. 21-10 - 0973 ESTATE OF GUOLAUG BRYNJA , GUOJONSDOTTIR, deceased , CERTIFICATE OF CONCURRENCE Pursuant to the Cumberland County Local Rules, having not been presented with opposing counsel in the matter herein, Petitioner avers the Motion to Confirm Payment is uncontested. Respectfully submitted, Date: ~ ' ~ ~ ~ JAMES SMITH DIETTERICK & CONNELLY, LLP By: Neil Warn Yahn, Esquire Attorney I. . #. 82278 P.O. Box 6 0 PA 17033 -3280 Petitioner EXHIBIT A orm 706 United States Estate (and Generation-Skipping (Rev. August Zoos) Transfer) Tax Return Department of the Treasury Estate of a citizen or resident of the United States (see separate instructions). Internal Revenue Service To be filed for decedents dying after December 31, 2007, and before January 1, 2009. ~ 1 a Decedent's first name and middle initial (and maiden name, if arty) 1 b Decedent's last name ° Guolau B n'a Guo onsdottir 3a res deryrxse (dom,dlejlaPt dme'of dearehgn country, of legal 3b Year domicile established 4 Date of birth Cumberland PA 17011 ,z ~C 6a Name of executor (see page 4 of Me instructions) 6b Execulor'a address (number and street including apartment or suite no.; city, town, c NeIIW.Yahn or post office;scate;andzlPCOde) 'O 8C Executor's social severity number (see page 5 of the instructions) PO Box 650 Hershey, PA 17033 Phone no. ~ 7a Name and location of court where will was probated or estate administered 7b Case number T a 8 If decedent died testate, check here - and attach a certified co of the will. 9 ff you extended the time to file this Form cos, check here - If Schedule R-1 is attached. check here - 1 Total gross estate less exclusion (from Part 5, Recapitulation, page 3, item 12) .............. ...................................... 2 Total allowable deductions (from Part 5, Recapitulation, page 3, item 22)} ........................ ..................................... 3 a Tentative taxable estate (before state death tax deduction) (subtract line 2 from line 1) ................. b Deduction for state death taxes ................................ ............................................................................................... c Taxable estate (subtract line 3b from line 3a) .................................................................................... ...................... c 4 Adjusted taxable gifts (total taxable gifts (within the meaning of section 2503) made by the decedent after December 31, 1976, other than gifts that are includible in decedent's gross estate (section 2001(b))).......... 5 Add lines 3c and 4 .................................................,..................... ..........................................:.................................. 6 Tentative tax on the amount on line 5 from Table A on page 4 of the instructions .............................. 7 Total gift tax paid or payable with respect to gifts made by the decedent after December 31, 1976. Include gift ~ taxes by the decedent's spouse for such spouse's share of split gifts (section 2513) onlyIf the decedent was the donor of these gifts and they are includible in the decedent's gross estate (see instructions) ................... o. 8 Gross estate tax (subtract line 7 from line 6) .............................. ............... c g Maximum unified credit (applicable credit amount) against estate tax............ 780 800.00 v 10 Adjustment to un~ed credit (applicable credit amount). (This adjustment = F may not exceed $6,000. See page 6 of the instructions.) ............................. 10 _ ~ 11 Allowable unified credit (applicable credit amount) (subtract line 10 from line 9) .................................................... 11 r 12 Subtract line 11 from line 8 (but do not enter less than zero) .................................................................................. 12 a 13 Credit for foreign death taxes (from Schedule(s) P). (Attach Form(s) 706-CE.) .................... 1 0.00 14 Credit for tax on prior transfers (from Schedule Q) .......................................... 0.00 15 Total credits (add lines 13 and 14) ............................................. ........................ 16 Net estate tax (subtract line 15 from line 12) ..........:................................... ............................................................. 17 Generation-skipping transfer (GST) taxes (from Schedule R, Part 2, line 10) ............................................................. 18 Total transfer taxes (add lines 16 and 17) ......:................................................................................................:........ 19 Prior payments. Explain in an attached statement ............. ...............................................:.................... .................. 0 Balance due (or overpayment) (subtract line 19 from line 18) OMB No. 1545-0015 1 7 1 ................................................................................. 2p 136 Under [~enafties of Penurv I declare that J have examined this return, including accompanvinq schedule;; and statements, and to the best of rt1 knowledge and belief, it Is true, correct, and Corti'plete. Declaration of preparer other than the executor is based bn all information of which preparer has any knowletl~e. Sign Here Paid Preparer's Use Only <Table Mlssing> Signature of executor Neil W. Yahn Signature of executor Preparer's , signature vFinn's name (or Ve BCdress end ZIP codd~' James, Smith, Dietterick & Connelly, LLP PO Box 850 Hershey, PA 17033 ' 03/03/2011 Date 1 Date Check If self- Preparer's SSN or 03/03!2011 employed 2 Decedent's Sociel Security No. 5 Date of death 12-24-2008 EIN - Phone no.717/533-3280 Form 706 (Rev. B-2tx)8) RGA Copyright 2008 form software only'The Lackner Group, Inc. state of: Decedent's Social Security Number Guolaug Brynja Guojonsdottir 12/24/2008 Part 3 -- Elections by the Executor °~ ~. .vv ~~~ cur d°cn yuesnon twee msllUCnons oegfnn(ng on page 6J. Note. Some of these elections re uire the ostin of bonds or liens. Yes No Do ou elect alternate valuation? ...................................................................................... 2 Do you elect special-use valuation? ........................................................ ................ .................................................................................. If "Yes ° ou must c m l t d h , y p o e e an attac Schedule A-1. 3 Do you elect to pay the taxes in installments as described in section 6166? .................................. 2 - ........ ................................................... If "Yes," you must attach the additional information described on 10 pages and 11 of the instructions. Note. By electing section 6166, you may be required to provide security for estate tax deferred under section 6166 and Interest in the form of a surety bond or a section 6324A Ilen. - 3 ,. 4 Do ou elect to ost one the art of the taxes attributable to a reversions or remainder interest as described in section 6163?......... rar a ~+ -- Vin@ral IniOrfTlailOn ~"""• ~'°OJO °t1°~" 111e necessary supplemental documents. You must attach the death certificate.) (See instructions on page 12) Authorization to receive confidential tax information under Regs. sec. 601.504(b)(2)(i}; to act as the estate's representative before the IRS; and to make written or oral presentations on behalf of the estate if return prepared by an attorney, accountant, or enrolled agent for the executor: Name of representative (print or type) State Address (number, street, and room or suite no., city, state, and ZIP code) Neil W. Yahn Esq. PA PO Box 650, Hershey, PA 17033 I declare that I am the ~ attorney ~ certified public accountant ~ enrolled agent (you must check the applicable box} for the executor and prepared this return for the executor. I am not under sus nsion or disbarment from ractice before the Internal Revenue Service and am ualified to ractice in the state shown above. Signature ~ CAF number Date Telephone number 2606-05763R 717!533-3280 1 Death cert~cate number and issuing authority (attach a copy of the death certificate to this return). 2 Decedent's business or occupation. If retired, check here - ~ and state decedent's former business or occupation 3 Marital status of the decedent at time of death: Married Widow or widower-Name, SSN, and date of death of deceased spouse - Single Legally separated Divorced-Date divorce decree became final - 4a Surviving spouse's name Social security number I4c Amount received (see page 12 of the instructions) 5 Individuals (other than the surviving spouse), trusts, or other estates who receive benefits from the estate (do not include charitable beneficiaries shown in Schedule O) (see instructions) Name of Individual, trust, or estate receiving S5,oo0 or more Identifying number Relationship to decedent Amount (see instructions) All unascertainable beneficiaries and those who receive less than $5,000 ............................... Total .......................................................................................................................................... ................................................ Please check the "Yes" or "No"box for each uestlon. 6 Dces the gross estate contain any section 2044 property (qualified terminable interest property (OTIP) from a prior gift or estate) see a e 12 of the instructions ? .................................................... .................... .................................... .............................................. 7a ave federal gift tax returns ever been filed? .................................................................... . ............................................................................ If "Yes," please attach copies of the returns, if available, and furnish the following information: . 7b Period(s) covered 7c Internal Revenue office(s) where filed 8a Was there any insurance on the decedent's life that is not included on the return as part of the gross estate? ....................... .................... Did the decedent own an insurance on the life of another that is not included in the ross estate? ...............: ............................................ (Cnnfinnprl nn nnvf n~nn\ Copyrighi 2008 form software only The Lackner Group, Inc. Page 2 Fonn 706 (Rev. 8-2008) orm 706 (Rev. 8-2008) Part 4 -General Information (continued) Guolaug Brynja Guojonsdottir 12/2412008 - .. yon answer --res-- >:o any or questions 9 - 76, you must attach additional information as described in the instructions . g Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (a) one or more of Yes No the other joint tenants was someone other than the decedent's spouse, and (b) less than the full value of the property is included on the return as part of the gross estate? If "Yes," you must complete and attach Schedule E ................................................................... 10a Did the decedent, at the time of death, own any interest in a partnership (for example, a family limited partnership), an unincorporated business, a limited liability corporation; or own any stock in an inactive or closely held corporation? ............................... ........................... b If "Yes," was the value of any interest owned (from above) discounted on this estate tax return? If "Yes," see the instructions for Schedule F on Page 20 for reporting the total accumulated or effective discounts taken on Schedules F or G ...................... ..................... 11 Did the decedent make any transfer described in section 2035, 2036, 2037, or 2038 (see the instructions for Schedule G beginning on page 15 of the separate instructions)? If "Yes," you must complete and attach Schedule G 12a Were there in existence at the time of the decedent's death any trusts created by the decedent during his or her lifetime? ....................... b Were there in existence at the time of the decedent's death any trusts not created by the decedent under which the decedent possessed anv power, beneficial interest, or trusteeship? ..................................................... ................................................... .................... c Was the decedent receiving income from a trust created after October 22, 1986 by a parent or grandparent? .............. If "Yes " was there a GST t bl t i , axa e erm nation (under section 2612) upon the death of the decedent? ....................................................... . d If there was a GST taxable termination (under section 2612), attach a statement to explain. Provide a copy of the trust or will creating the trust, and give the name, address, and phone number of the current trustee(s). e Did decedent at any time during his or her Iffetime transfer or sell an interest in a partnership, limited liability company, or closely held corporation to a trust described in question 12a or 12b? .................. ...................... ............................................:. ................................ es, provide the EIN number to this transferred/sold Rem. - .. 13 Did the decedent ever possess, exercise, or release any general power of appointment? If "Yes,° ou must corn lete and attach Schedule H Y P ........................ 14 Did the decedent have an interest in or a signature or other authority over a financial account in a foreign country such as a , bank account, securities account, or other financial account? ............................................... 15 Was the decedent, immediately before death, receiving an annuity described in the "General" paragraph of the instructions for Schedule I or a rivate annu' ? If "Yes," ou must corn lete and attach Schedule I .................... ........................................ ....................... 16 Was the decedent ever the beneficiary of a trust for which a deduction was claimed by the estate of apre-deceased spouse un r s ction 2 n whi his nor d n thi return? If "Y ch n ex Ian i n .. .... ............................................ . .,_~ ar a ~ - r•C~a}~rauiauvn Item number Gross estate Alternate value Value at date of death 1 Schedule A -Real Estate ............................................................................................. 2 Schedule B -Stocks and Bonds ................................................................................... 3 Schedule C -Mortgages, Notes, and Cash .................................................................. 4 Schedule D -Insurance on the Decedent's Life (attach Form(s) 712) .......................... 5 Schedule E -Jointly Owned Property (attach Form(s) 712 for life insurance) .............. 6 Schedule F -Other Miscellaneous Property (attach Form(s> 71z roriire Insurance) .................. 7 Schedule G -Transfers During Decedent's Life (attach Form(s) 712 for life insurance) ............. 8 Schedule H -Powers of Appointment ........................................................................... 1 ched I I -Annuities ............................................................................................... Total ross estate i s 1 hrou h 9 ...................................................................... 4 11 Schedule U -Qualified Conservation Easement Exclusion .......................................... 1 12 Total gross estate less exclusion (subtract item 11 from item 10). Enter here and on lin 1 of Part -Tax Com utation ...................................................................... 2 2,304,403.19 Item number Deductions Amount 13 1 Schedule J -Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims ............... 13 4 Schedule K -Debts of the Decedent .....................................:............................................................................... 14 0.00 15 1 Schedule K -Mortgages and Liens ....................................................................................................................... 15 0.00 6 Total of items 13 through 15 ..................................................................................................................................... 16 0.00 17 Allowable amount of deductions from item 16 (see the instructions for item 17 of the Recapitulation) .................... 17 0.00 18 Schedule L -Net Losses During Administration ...................................:............................................................... 18 0.00 19 Schedule L -Expenses Incurred in Administering Property Not Subject to Claims .............................................. S h d l M 19 0.00 20 c e u e -Bequests, etc., to Surviving Spouse ...............................................................................................~ 20 0.00 21 Schedule O -Charitable, Public and Similar Gifts and Be uests ......................................................................... 21 0.00 22 Tentative total allowable deductions add items 17 throw h 21 . Enter here and on line 2 of the Tax Corn utation 22 r aa~. c v Copynght 2008 form software only The Lackner Group, Inc. Form 706 (Rev. 8-2D08) orm 706 (Rev. a-zoos Estate of: I Decedent's Social Security Number Guolaug Brynja Guojonsdottir 12/24/2008 SCHEDULE A -Real Estate • For Jointly owned property that must be disclosed on Schedule E, see instructions on the reverse side of Schedule E: • Rea! estate that is part of a sole proprietorship should be shown on Schedule F. • Real estafe that is included in the gross estate under section 2035, 2036, 2037, or 2038 should be shown on Schedule G. • Real estate that is included in fhe gross estate under section 2041 should be shown on Schedule H. • If you elect section 2032A valuation, you must complete Schedule A and Schedule A-1. ~~~ ~~~~~~ ,Na~~ ~~ nccuCU, aiwa~ uie con~nuanon scneawe rrom me ena of trns pacKage or atltlltional sheets of the same size) Schedule A -Page 4 Copyright 2008 form software only The Lackner Group, Inc. Form 706 Schedule A (Rev. a-zoos orrn 706 (Rev. B-2oos> Estate of: Decedent's Social Security Number Guolaug Brynja Guojonsdottir 12/24/2008 ~ SCHEDULE B -Stocks and Bonds (For jointly owned property that must be disclosed on Schedule E, see the instructions for Schedule E.) Item Description includingg face amount of bontls ar number of shares and par Alternate Number value for identifica2lon. Give CUSIP number. If trust, partnership, or Unit Value valuation date Alternate Value Value at date of death closely held entity, give EIN CUSIP # a EIN, where aoolipble 1 2 3 4 5 6,666.217 shares of AIM Diversifies Dividend Fd Inv CI held in Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12/31/08 & public listing of stock on 12/24/08 8.62 10.51 7.28 43.11 57,462.79 5,951.14 18,868.37 42,463.35 566.236 shares of American Century Ginnie Mae held in Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12131/08 & public listing of stock on 12/24/08 2,591.809 shares of First American Small Cap Select Fund Class A held in Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12/31/08 & public listing of stock on 12124/08 985 shares of (shares S8rP 500 Growth held in Charles Scwhab Brokerage Account No. 2077-7276 - valued per statement ending ,12/31/08 8 public listing of stock on 12/24/08 494 shares of (shares SS<P 500 Value held In Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12131/08 8r public listing of stock on 12/24/08 43.07 Total from continuation schedules (or addition i i sheets) attached to this schedule ......................... 21,276.58 See attached TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 2.) ...:............................................... 420,519.35 ,•~ •••~•~ ..,...~. •~ .•~~ti`~, a„~„~ ~ ~~~ ~~~ ~.~~ ~~ae~~~ ~~~ ~CUUro iwm uie ena or trns pacKage or aaoluonal sneers or the same size) Schedule B -Page 12 Copyright 2008 form software only The Lackner Group, Inc. Form 706 Schedule B (Rev. a-2ooe> -2txI9) Estate of: Decedents Social Security Number Guolaug Brynja Guojonsdvttir 12124/2008 ~ SCHEDULE B -Stocks and Bonds (continued) Item Number Description including face mount of bonds or number of shares and par value for identification. C~,ive CUSIP number. If bust partnership or Unit Value Altemate , , closely held entity, give EIN valuation date Altemate Value Value at date of death CUSIP # or EIN, where applicable 6 450 shares of Ishares Trust S&P 86.66 38,997.00 500 held in Charles Scwhab Brokerage Account No. 2077-7276 - valued per statement ending 12/31/08 & public listing of stock on 12/24/08 7 1,664.698 shares of Munder Mid 16.31 27 151 22 Cap Core Growth Fund CI Y held in , . Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12131/08 & public listing of stock on 12/24/08 8 1,406.735 shares of Oppenheimer 36.6 51 486 50 Global Fund CI A held in Charles , . Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12/31/08 & public listing of stock on 12/24/08 9 10,276.404 shares of Pimco Total 10.05 103,277.86 Return Fund Class A held in Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 1?J31/08 8r public listing of stock on 12/24/08 10 1,152.833 shares of UMB Scout Intl 20.94 24,140.32 Fund held in Charles Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12/31/08 8r public listing of stock on 12/24/08 11 2,273.685 shares of Wells Fargo 12.95 29 ,444 22 Advantage Mid Cap Disciplined inv held in Charier Scwhab Brokerage Account No. 2077-7276 -valued per statement ending 12/31/08 8 public listing of stock on 12/24/08 Page 2 of Schedule B -Continued orm 706 (Rev. a-2ooa~ Estate of: Guolaug Brynja Guojonsdottir 12/24/2008 Decedent'snt's So~rity Number SCHEDULE C -Mortgages, Notes, and Cash (For jointly owned property that must be disclosed on Schedule E, see the instructions for Schedule E.) Item Number Description ~ Alternate valuation dale Alternate Value Value at date of death 1 Loans to Olafur Kjarton Goujonsson 28,450.00 2 Cash held in Charles Scwhab Brokerage Account No. 2077-7276 - 748 07 valued per statement ending 12/31/08 3 Cash held in Landsbanki 32,418.34 4 Cash held in Landsbanki 8,405.56 5 Citizens Bank Checking Account No. 610067-618-8 25,781.88 6 Money Market held in Charles Scwhab Brokerage Account No. 23,559.50 2077-7276 -valued per statement ending 12/31/08 Total from continuation schedules (or additional sheets) attached to this schedule TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 3.) ...............,.................. I I 119,363.35 (If more space Is needed, attach the continuation schedule from the end of this package or additional sheets of the same size) Schedule C -Page 13 Copyright 2008 form software only The Lackner Group, Inc. Form 706 Schedule C (Rev. a-zooe~ orm 706 (Rev. B-2008) Estate of: r 12/24/2008 Number SCHEDULE F -Other Miscellaneous Property Not Reportable Under Any Other Schedule (Forjointly owned property that must be disclosed on Schedule E, see the instructions for Schedule E.} (If you elect section 2032A valuation, you must complefe Schedule F and Schedule A-7.) ~ Did the decedent at the time of death own any articles of artistic or collectible value in excess of $3,000 or any Yes No collections whose artistic or collectible value combined at date of death exceeded $10,000? .............................................................. " " If Yes, submit full details on this schedule and attach appraisals. ,- . 2 Has the decedent's estate, spouse, or any other person, received (or will receive) any bonus or award as a result of the decedent's employment or death? ..................................................................... .......................................................................... " " If Yes, submit full details on this schedule. $ Did the decedent at the time of death have, or have access to, a safe deposit box? ....................................... If "Yes," state location, and if held in joint names of decedent and another, state name and relationship of joint depositor. If any of the contents of the safe deposit box are omitted from the schedules in this return, explain fully why omitted. Item Number Descripption (Including alternate valuation date, ii any). For securities ggive CUSIP number. It trust, partnership, or Gosely held entity, give SIN Alternate valuation date Alternate Value Value at date of death CUSIP # or EIN; where applicable 1 Car, registration no. IX-600 1,842 28 To tal from continuation schedules (or additional sheets) attached to this schedule ..... .................... TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 6.) .................................. 1,842.28 t~~ nixie space is neeaeo, anacn the contlnuauon schedule from the end of this package or additional sheets of the same size) Schedule F -Page 19 Copyright 2008 form software only The Lackner Group, Inc. Form 706 Schedule F (Rev. a-zoos) orm 706 (Rev. 8-2006) Estate of: Decedent's Social Security Number Guolaug Brynja Guojonsdottir 12/24/2008 SCHEDULE I -Annuities Note: Generally, no exclusion is allowed for the estates of decedents dying after December 31, 1984 (see page 17 of the instructions). A Are you excluding from the decedent's gross estate the value of a lump-sum distribution described in section 2039(f)(2) Yes No (as in effect before its repeal by the Deficit Reduction Act of 1984)? .................................................................................................... If "Yes," you must attach the information required by the instructions. _ Item Description Unit Value Alternate InGudible Includible Number Show the entire value of the annuity before any exclusions. valuation date alternate value Value at date of death 1 2,248.301 shares of America Fd Growth Fund CI 19.79 A held in Charles Scwhab IRA No. 6145-7755 - beneficiary is ;valued per statemen ending 12/31/08 8r public listing of stock on 12/24/08 2 26,542.962 shares of American Century Ginnie 10.51 Mae held in Charles Scwhab IRA No. 6145-7755 - beneficiary is ;valued per statemen ending 12/31/08 & public listing of stock on 12/24/08 3 Cash held in Charles Scwhab IRA No. 6145-7755 - beneficiary is ;valued per statement ending 12/31/08 4 3,255.006 shares of First American Small Cap 7.28 Select Fund Class A held in Charles Scwhab IRA No. 6145-7755 -beneficiary is ; valued per statement ending 12/31/08 & public listing on stock on 12/24/08 5 6,508.247 shares of Harbor Bond Fund Instl held 11.18 in Charles Scwhab IRA No. 6145-7755 - beneficiary is ;valued per statemen ending 12/31108 iii public listing of stock on 12/24/08 6 348 shares of Ishares S8rP 500 Growth held in 43.11 Charles Scwhab IRA No. 6145-7755 -beneficiary is ;valued per statement ending 12/31/08 & public listing of stock on 12/24/08 7 978 shares of /shares S8P 500 Value held in 42.97 Charles Scwhab Brokerage Account No. 2077 -7276 -beneficiary is ;valued per statement ending 12/31/08 & public listing of stock on 12!24/08 Total from continuation schedules or (addftional sheets) attached to this schedule ......................... TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 9.) .................................. t.. ~„~,~ ,pa~C ~~ uc~ueu, aiwcn me conunuauon scneaule rrom the end or iris package or additional sheets of the same size) Copyright 2008 form software only The Lackner Group, Inc. 44,493.88 278,966.53 1,589.56 23,696.44 72,762.20 15,002.28 42,024.66 See attached I 650,841.50 Schedule I -Page 22 Farm 706 Schedule I (Rev. a-2ooe> CHEDULE 1-Annuities (continued) Item Number Description Show the entire value of the annuity before any exclusions. Unit Value Alternate .valuation dale InGUditHe allemate value Includible Value at date of death 8 Money Market held in Charles Scwhab IRA No. 61,307.21 6145-7755 -beneficiary is ;valued per statement ending 12/31/08 9 2,599.515 shares of Munder Mid Cap Core 16.31 42,398.09 Growth Fund CI Y held in Charles Scwhab IRA No. 6145-7755 -beneficiary is valued per statement ending 12/31!08 8~ public listing of stock on 12/24/08 10 2,747.641 shares of Pimco Total Return Fund 9.34 25,662.97 Class A held in Charles Scwhab IRA No. 6145 -7755 -beneficiary is ;valued per statement ending 12/31/08 8r public listing of stock on 12/24/08 11 3,315.651 shares of Wells Fargo Advantage Mid 12.95 42,937.68 Cap Disciplined Inv held in Charles Scwhab IRA No. 6145-7755 -beneficiary is valued per statement ending 12/31/08 8~ public listing of stock on 12/24/08 Total ........................................................................................................................................ 650.841.50 Page 2 of Schedule I -Continued EXHIBIT B orm 706-NA (Rev. August 2008) Department of the Treasury Internal Revenue Service United States Estate (and Generation- Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States To be filed for decedents dying after December 31, 2007. ~ See separate instructions. OMB No. 1545-0531 Attach supplemental documents and translati~ns_ Shnw amni rots ir, I i c rinu~rc and 1a Decedent's first (given) name and middle initial b Decedent's last (family) name 2 U.S. taxpayer ID number (if any) Guolau B. Guojonsdottir 3 Place of death 4 Domicile at time of death 5 Citizenship (nationality) 6 Date of death Re k'avik Re k'avik Iceland 12/24/2008 7a Date of birth b Place of birth 8 Business or occupation 9a Name of executor 10a Name of attorney for estate in Neil W. Yahn, Administrator Neil W. Yahn, Esquire United b Address b Address States p O. Box 650 P.O. Box 650 Hershey, PA 17033 Hershey, PA 17033 11a Name of executor 12a Name of attorney for estate Outside Stefan G. Thorrison United b Address b Address States • Tax computation 1 Taxable estate from Schedule B, line 9 1 1,022,319.50 2 Total taxable gifts of tangible or intangible property located in the U.S., transferred (directly or indirectly) by the decedent after December 31, 1976, and not included in the gross estate (see section 2511) 2 0.00 3 Total. Add lines 1 and 2. 3 1,022,319.50 4 Tentative tax on the amount on line 3 (see instructions) . 4 354,951.00 5 Tentative tax on the amount on line 2 (see instructions) . 5 0.00 6 Gross estate tax. Subtract line 5 from line 4 . 6 354,951.00 7 Unified credit. Enter smaller of line 6 amount or maximum allowed (see instructions) 7 22,775.47 8 Balance. Subtract line 7 from line 6. . 8 332,175.53 9 Other credits (see instructions) 9 0.00 10 Credit for tax on prior transfers. Attach Schedule Q, Form 706. 10 0.00 11 Total. Add lines 9 and 10 11 0.00 12 Net estate tax. Subtract line 11 from line 8 12 332,175.53 13 Total generation-skipping transfer tax. Attach Schedule R, Form 706 13 0.00 14 Total transfer taxes. Add lines 12 and 13 14 332,175.53 15 Earlier payments. See instructions and attach explanation 15 0.00 16 Balance due. Subtract line 15 from line 14 see instructions) Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the bes it is true, correct, and complete. I understand that a complete return requires listing all property constituting the part of the decedent the statute) situated in the United States. Declaration of preparer (other than executor) is based on all information of which preparer h 16 t of my 's gros as any 332,175.53 knowledge and belief, s estate (as defined by knowledge. Sign Here ' Signature of executor ' Date ' 'Signature of executor ' Date Paid Preparer's Preparer's signature Date Check if self- em to ed ^ Preparer's SSN or PTIN USe Only Firm's name (or James Smith, Dietterick & Connell LLP l ' EIN address, and ZlP code' P.O. Box 650 Hershe PA 17033 Phone no. (717) 533-3280 For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10145K Form 706-NA (Rev. 8-2008) orrn 706-NA (Rev. 8-2008) Page 2 General Information Yes No 7 Did the decedent make any transfer (of Yes No is Did the decedent die testate? / property that was located in the United States b Were letters testamentary or of administration at either the time of the transfer or the time of death) described in sections 2035 2036 granted for the estate? . / , , 2037 or 2038 (see th i t ti f If granted to persons other than those filing the , e ns ruc ons or Form 706, Schedule G)? . return, include names and addresses on page 1. If "Yes, "attach Schedule G, Form 706. 2 Did the decedent, at the time of death, own any: g At the date of death, were there any trusts in a Real property located in the United States? , i t th ex s ence at were created by the decedent b U.S. corporate stock? and that included ro t l t d i p per y oca e n the c Debt obligations of (1) a U.S. person, or (2) the United States either when the trust was United States, a state or any political created or when the decedent died? . subdivision, or the District of Columbia? If "Yes," attach Schedule G, Form 706. d Other property located in the United States? g At the date of death did the de d t 3 Was the decedent engaged in business in the , ce en : a Have a general power of appointment over United States at the date of death? any propert located in the Unit d St t ? y e a es . 4 At the date of death, did the decedent have b Or, at any time, exercise or release the power? access, personally or through an agent; to a If "Yes" to either a or b, attach Schedule H, Form 706. safe deposit box located in the United States? 10a Have federal ift tax returns ever b fil d? 5 At the date of death, did the decedent own g een e any property located in the United States as b Periods covered - a joint tenant with right of survivorship; as a --------------------------------------------- tenant by the entirety; or, ..with surviving c IRS offices where filed - spouse, as community property? . If "Yes," attach Schedule E, Form 706. 11 Does the gross estate in the United States i l nc ude any interests in property transferred 6a Had the decedent ever been a citizen or resident to a "skip person" as defined in the of the United States (see instructions)? instructions to Schedule R of Ftirm 706? b If "Yes," did the decedent lose U.S. citizenship or If"Yes,"attach Schedules Rand/orR-1,Form resident within 10 years of death? (see instructions). 706. Schedule A. Gross Estate in the United States see ins tructions Yes No Do you elect to value the decedent's gross estate at a date or dates after the decedent's death (as authorized by section 2032)? - / To make the election, you must check this box "Yes. " If you check "Yes, " complete all columns. If you check "No, " complete columns (a), (b), and (e); you may leave columns (c) and (d) blank or you may use them to Pxnanrl vnu~ ~wr,m„ /hl P/conrinl;nn (a) Item no. tb) Description of property and securities For securities, give USIP number (~) Alternate valuation date . (~ Alternate value in U.S. dollars . ,_ _...,,,..r...,,... fe) Value at date of death in U.S. dollars 1 Charles Scwhab Brokerage Account No. 2077-7276 420,519.35 2 Cash held in Charles Scwhab Brokerage Account 748.07 3 Citizens Bank Account No. 610067-618-8 25,781.88 4 Money Market held in Charles Schwab Brokerage Account 23,559.50 5 Charles Schwab IRA No. 6145-7755 650,841.50 (If you need more space, attach additional sheets of same size.) Total . 1,121,450.30 Scneawe t~. taxable Estate Caution. You must document lines 2 and 4 for the deduction on line 5 to be allowed. 1 Gross estate in the United States (Schedule A total) . 2 Gross estate outside the United States (see instructions) . 3 Entire gross estate wherever located. Add amounts on lines 1 and 2 . 4 Amount of funeral expenses, administration expenses, decedent's debts, mortgages and liens, and losses during administration. Attach itemized schedule. (see instructions). . 5 Deduction for expenses, claims, etc. Divide line 1 by line 3 and multiply the result by line 4 . 6 Charitable deduction (attach Schedule O, Form 706) and marital deduction (attach Schedule M, Form 706, and computation) 7 State death tax deduction (see instructions) 8 Total deductions. Add lines 5, 6, and 7 . 9 Taxable estate. Subtract line 8 from line 1. Enter here and on line 1 of Part II . 1,121,450.30 1,182,952.89 2,304,403.19 0.00 _8 99,130.80 9 1,022,319.50 Form 706-NA (Rev. 8-2008) Neil Warner Yahn, Esquire Attorney I.D. No. 82278 James Smith Dietterick & Connelly, LLP P.O. Box 650 Hershey, PA 17033 Petitioner IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION IN RE: No. 21-10 - 0973 ESTATE OF GUOLAUG BRYNJA . GUOJONSDOTTIR, deceased CERTIFICATE OF SERVICE AND NOW, this l ( day of March, 2011, I, Neil W. Yahn, Esquire, do hereby certify that I served a true and correct copy of the foregoing Motion to Confirm Payment upon the following below-named individuals by depositing the same in the U.S. Mail, postage pre-paid at Hershey, Dauphin County, Pennsylvania: Gudjon J. Olafsson 52 Boatswain Drive Berlin, MD 21811 Brynja Gu~jonsdottir 20 IS-104 Reykjavik Olafur K Olafson 145 Taylor Street, Apt 608 San Francisco, CA 94102 Bryndis Gu~jonsdottir Reynihli~ 4 IS-105 Reykjavik Asa B. Oates 121 Mapleton Blvd Harrisburg, PA 17112 Kristine Passow Charles Schwab Estates Distribution Services Orlando Operations Center P.O. Box 628291 Orlando, FL 32862 Stefan Geil Thorisson Adalstraeti 6 IS-101 Reykjavik