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HomeMy WebLinkAbout06-17-11 (2)-~ REV-1500 E"(°'-'°' ,~ 1505610143 OFFICIAL USE ONLY PA Department of Revenue pennsylvania -county code Year File Number Bureau of Individual Taxes DEPARTMENT OF REVENUE PO 60X.280601 INHERITANCE TAX RETURN 2 1 10 010 7 5 Harrisburg, PA 17128-0601 RESIDENT DECEDENT _ ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 187 14 4376 09 21 2010 07 07 1921 Decedent's Last Name Suffix Decedent's First Narne MI COSTELLO SR. JOHN M (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name! MI COSTELLO LOIS R Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW ® 1. Original Return ^ 2. Supplemental Return ^ 3. Remainder Return (date of death prior to 12-13-82) ^ 4. Limited Estate ^ 4a. Future Interest Compromise ^ 5. Federal Estate Tax Return Required (date of death after 12-12-82) g Decedent Died Testate (Attach Copy of Will) ^ ~ Decedent Maintained a Living Trust (Attach Copy of Trust) 0 - ~~. Total Number of Safe Deposit Boxes ^ 9. Litigation Proceeds Received ^ 10. Spousal Poverty Credit (date of death between 12-31-91 and 1-1-95) ^ ~ 1. Election to tax under Sec. 9113(A) (Attach Sch. O) CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL 7'AX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number RICHARD E CONNELL ESQ 7;17 232 8731 First line of address 2303 MARKET STREET Second line of address City or Post Office CAMP HILL State ZIP Code PA 17011 Correspondent's a-mail address: c o n n e l l@ b m c -law . n e t REGISTER O~-p,S USE SLY ~. C/7 ~ ....~ DAT~FILED t'r'i Under penalties of perjury, 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 all information of which preparer has any knowledge. SIG RE OF PERSON RESPONSIBLE FOR FILING RETURN DATE ,~ ~- ~ Lois Rae Costello 6~ti~11 722 Oak Oval, Mecha~sburg, PA 17055 IGNATURE OF PREP RER OTH TH REP ES F 2303 Market Street, Camp Hill, PA 17011 Richard E Connell Esq JE '/, Side 1 L 1505610143 1505610143 J 1505610243 REV-1500 EX Decedent's Social Security Number Decedent's Name: G O S T E L L O, JOHN M. S R. 18 7 14 4 3 7 6 RECAPITULATION 1. Real Estate (Schedule A) .......................................................................................... 1. 2. Stocks and Bonds (Schedule B) ............................................................................... 2. 4 8 5, 9 3 0. 2 0 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C).......... 3. 4. Mortgages 8 Notes Receivable (Schedule D) .......................................................... 4. 5. Cash, Bank De osits 8~ Miscellaneous Personal Pro e p p rty (Schedule E) ................ 5. 6 , 9 3 8 . 2 5 6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested ............. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ^ Separate Billing Requested ............. 7. 8. Total Gross Assets (total Lines 1-7) ....................................................................... g. 4 9 2, 8 6 8. 4 5 9. Funeral Expenses & Administrative Costs (Schedule H) ......................................... 9. 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) ................................ 10. 11. Total Deductions (total Lines 9 & 10) ...................................................................... 11 • 0 0 0 12. Net Value of Estate (Line 8 minus Line 11) ............................................................. 12. 4 9 2 , 8 6 8 4 5 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) ................................................. 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) ................................................. 14. 4 9 2 , 8 6 8 . 4 5 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) x .o0 4 9 2, 8 6 8 4 5 15. 0. 0 0 16. Amount of Line 14 taxable at lineal rate X .045 16. 17. Amount of Line 14 taxable at sibling rate X ,12 17. 18. Amount of Line 14 taxable at collateral rate X .15 18. 19. Tax Due ..................................................................................................................... 19. 0 . 0 0 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. ^ Side 2 L 1505610243 1505610243 J REV-1500 EX Page 3 Decedent's Complete Address: File Number 21 - 10 - 01075 DE NT' NAME Costello, John M. Sr. _ STREET ADDRESS 722 Oak Oval CITY Mechanicsburg STATE PA ZIP 17055 Tax Payments and Credits: 1. Tax Due (Page 2, Line 19) (1) 0.0 0 2. Credits/Payments A. Prior Payments B. Discount Total Credits (A + B) (2) 0.00 3. Interest (3) 0.0 0 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. (4) Check box on Page 2 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 0.0 0 Make Check Payable to: REGISTER OF WILLS, AGENT. S, . ... 'r .Y i .. Win.. ti 9Rt~ . d y ~ . F 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 :.................................................................................. ^ ^x b. retain the right to designate who shall use the property transferred or its incomE~ :.................................... ~ ~x c. retain a reversionary interest; or .................................................................................................................. ^ ^x d. receive the promise for life of either payments, benefits or care? .............................................................. ^ ^x 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? ....................................................................................................................... ^ ^x 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... ^ ^x 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ...................................................................................................................... ^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent [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 percent [72 P.S. §9116 (a) (1.1) (ri)]. 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 refurn 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 21 ears 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 percent [72 P.S. §9116 (a) (y.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 percent, except as noted in 72 P.S. §9116 1.2) [72 P.S. §9116 (a) (1)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12 percent [72 P.S. §9116 (a) (1.3)1. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the: decedent, w ether y blood or adoption. ,. COWMAONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE B STOCKS & BONDS FILE NUMBER ESTATE OF COSte~~O, John M. Sr. 21 - 10 - 01075 All property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTION UNIT VALUE VALUE AT DATE OF DEATH 1 Raymond James Financial Services, Inc. 277,738.00 Account No. 52478059 2 First Commonwealth Financial Corporation 5.15 24,967.20 Common Stock 3 Mainline Bancorp 25.00 183,225.00 Common Stock TOTAL (Also enter on line 2, Recapitulation) 485,930.20 SCHEDULE E CASH, BANK DEPOSITS, & MISC. COMMONWEALTH OF PENNSYLVANIA PERSONAL PROPERTY INHERITANCE TAX RETURN RESIDENT DECEDENT FILE NUMBER ESTATE OF COSt@IIO, John M. Sr. 21 - 10 - 01075 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 DESCRIPTION VALUE AT DATE OF NUMBER DEATH 1 1st Summit Bank 3,433.48 Certificate No. 34165 2 1st Summit Bank 3,504.77 Certificate No. 33963 ~ TOTAL (Also enter on Line 5, Recapitulation) ~ 6,938.25 REV-1513 EX+(11-08) SCHEDULE J COMMONWEALTH OF PENNSYLVANIA BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Costello, John M. Sr. 21 -10 - 01075 NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY RELATIONSHIP TO DECEDENT Do Not List Trustee(s) SHARE OF ESTATE (Words) AMOUNT OF ESTATE ($$$) I ' TAXABLE DISTRIBUTIONS include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] 1 Lois R. Costello Wife / ~ (~ ~O 722 Oak Oval Mechanicsburg, PA 17055 -~- -L>~tq~e~-.. Enter dollar amounts for distributions shown above on lines 15 through 18 on Rev 1500 cover sh eet, as appropriate. II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TA;K I~~ NOT TAKEN B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV'-1500 COVER SHEETI 0.00 CC7P°~ ~.; t 6 1 Q ~ 1' ~~ - _ _ - ~~ I, JOHN M. COSTELLO, of Summerhill Borough, Cambria Cowrty, Pennsylvania, being of sound mind, memory and understanding, do hereby make, publish and declare the following to be my Last WiII and Testament, hereby revoking any Wills by me at any time heretofore made: FIRST: I order and direct my hereinafter named Executrix to pay all of my just debts, which are legally collectible, and funeral expenses as soon as may be after my decease. SECOND: I give and bequeath my passenger automobiles, household furniture and furnishings and personal effects and other tangible personalty of like nature (not including cash or securities), together with any insurance thereon, to my wife, I.OIS RAI? C'OSTELLO. ,~f my wife predeceases me, I give and bequeath to my children who sux-vive me so much of my passenger automobiles, household furniture and furnishings and personal effects and other tangible personalty of like nature (not.including cash or securities}, together with any insurance thereon, as they may select, said items to be distributed among them as they shall mutually agree, making suc11 distribution in as nearly equal shares as possible. At the time of the execution of this my Last Will and Testament, I have four children, JOHN M. COSTELLO, JR., SUSAN I. LORDITCH, MARGARET A. PLANK and AMX L. SUHR. In the event my children who survive me are unable to agree on the distribution of any particular item of personal property referred to above, my Executors shall sell such item on sealed bids at private sale among my said surviving children to the highest bidder with the proceeds to become part of my residuary estate to be distributed as hereinafter. provided. If my Executors desire to bid, then bids shall be submitted to and opened by a third party selected by my Executors. At a child's election, payment for items. thus purchased may Ise made by deduction of the purchase price from the amount, if any, which would othei-~vise be ~pa~~able to such child from my estate. I encourage my children to agree amicably on distribution .so that the "sealed bid" procedure will not be necessary. ~!' 1 ~~ //../ f/ ~' _~ ~ ,r~ ;. ,rl,. ~f The remaining items of said tangible personal property not so selected or not so sold as herein provided in the event of dispute shall be added to and become a part of my residuary estate to be disposed of as hereinafter provided. T~-IIRD: If my wife, LOIS RAE COSTELLO, survives me, lit is my desire either to eliminate or to reduce to the lowest amount alI federal estate tax payable; on account of my death, without needlessly increasing the size of my wife's taxable estate. Therefore, for purposes of takes advantage of the reduction in the amount of federal estate tax payable on my estate by permitting ~. _...~ my estate to make full use of the unified credit against federal estate anti gift taxes, and by the allowance of the marital deduction to the extent provided for herein: (A) I give, devise and bequeath to my wife, LOIS RAE COSTEL,LO, all the rest, residue and remainder of my estate, real, personal and mixed, of whatsoever kind and wheresoever situate, less that portion of my said residuary estate n~e~aed to increase my taxat~le estate to the largest amount required in.~rder fnr my estate to make full use of the unified credit against federal es to and gif~taxe~nd any other allowable credits and deductions, which latter :portion of my residuary estate shall be known as the "UTC Trust". The L7TC Trust shall consist of that amount in assets in order to provide my estate with the maximum unified credit against fc;de;ral estate and gift taxes and any other allowable credits and deductions available to my estate undc~r the Iaw at the time of my death, i.e., the largest amount required in order for my estate to make; full use of the unified credit against federal estate and gift taxes and of any other allowabl~° credits and deductions; however, credits and deductions shall be used only to the extent that their usE~ will not increase death taxes on my estate. If there are in my estate any assets or proceeds of s~ny assets or fractional shares of any assets which will not qualify for the marital deduction bequest: and devise to my wife, I direct that such non-qualifying assets or proceeds of any assets or fractional shares of any assets not be included in the bequest and devise to my wife and that my Executrix select such other assets from my estate for inclusion in the bequest and devise to my wife as do qualify for the marital deduction; any such assets so selected to be distributed or allocated to my wife shall be valued at their respective fair market values at the date or dates of their distribution to my wife; and in making the aforesaid distribution or. allocation, the final determinations in the feder<<1 estate tax proceedings shall control; said devise and bequest to my wife, however, shall be reduced to the extent that it cannot be created with such qualifying assets. ~~?~~~ (B) I give, devise and bequeath INTRUST to my Trustees herein2~fter named that amount of my residuary estate referred to above identified as the UTC Trust, which shall consist of the amount needed to increase my taxable estate to the largest amount require;d :in order for my estate to make use of the unified credit against federal estate and gift taxes, and any other allowable credits and deductions. My Trustees shall manage, invest and reinvest said UTC: Trust and shall distribute the income and principal of the UTC Trust as follows: (1) During the lifetime of my said wife, LOIS RAE ~CC)STELLO, the Trustees shall pay the income quarterly to her or for her benefit or more frequently iii she so requests. (Z} In addition to said income, the Trustees shall expend such amounts from principal of the UTC Trust as the Trustees, in their sole discretion, deem necessary for the health, maintenance and support of my wife, LOIS RAE COSTELLO. In the exercise of discretion relative to the distribution of the principal of the UTC Trust to or for the benefit of my wife, it is my desire, but in no way my direction, that consideration be given to prior utilization of the assets which my wife may have in her own name. (3) Upon the death of my said wife, (a) One-half (1/2) of the trust estate as then constituted [except as provided in paragraph Third (B)(3}(c} below] shall be distributed to my children, JOHN M. COSTELLO, JR., SUSAN I. LORDITCH, MARGARET A. PLANI<~ rind AMY L. SUHR, in equal shares, share and share alike. If any child of mine should die before distribution of his or her share of the trust estate as herein provided, such deceased child's share shall be distributed to his or her issue then living, per stirpes, or, if he or she has no issue then living, his or her share shall be distributed to my other children, both those then living and those then deceased with issue then .living, which issue shall receive, per stirpes, the share of any such deceased child. Any distribution hereunder shall be subject to the provisions relating to the age of each. beneficiary restricting distribution hereinafter set forth. {b) One-half (1/2) of the trust estate as thf;n constituted [except as provided in paragraph Third (B}{3)(c) below] shall be retained IN TRUST' b~,~ my Trustees allocated in four equal shares, with one such share so held in trust for. the benefit of the children of my son, John M. Costello, Jr., one such share so held in trust for the benefit of thf; children of my daughter, Susan I. Lorditch, one such share so held in trust for the benefit of the children of my daughter, Margaret A. Plank, and one such share so held in trust for the bene:Fit of the children of my daughter, Amy L. Suhr. The Trustees shall hold said shares in separate funds for the benefit of the beneficiaries aforesaid with the income to be distributed quarterly to each such beneficiary with one~half (l/2) of each such fund to be distributed to each beneficiary upon such beneficiary attaining the age of twenty-five (25} years and the balance of such fund, i.e., the remaining one-half {1/2} of each such fund, to be distributed to each such beneficiary at the ~~ge of thirty (30) years, thereby terminating said fund. During the period of the trust for each such beneficiary, the Trustees shall pay to the person having custody of such beneficiary, or to such beneficiary directly, without liability on the part of the Trustees to see to the application thereof, or may e;xpend directly so much of the principal as the Trustees deem advisable for the maintenance, education and support of such beneficiary. If any one of the beneficiaries should die before distribution of his or her share of the trust as herein provided, the share of such deceased grandchild of mine sl-~al:~ be distributed to his or her issue then living, per stirpes, or, if he or she has no issue then livin€;, hiis or her share shall be distributed to his or. her. siblings, both those then living and those then de;ceased with issue then living, which issue shall receive, per stiipes, the share of any such deceased h~andchild. {c) The one~half {1/2} share to be distributed pursuant to paragraph Third (B)(3)(b) above shall not exceed the amount (currently one million. dollars) of the applicable generation skipping transfer tax exemption provided for under applicable federal tax law at the time of distribution, and if said one-half (1/2) share exceeds such amount, the excess shall be allocated to and distributed under paragraph Third (B}(3}(a). It is the intent and pur)~o;~e of this provision that there be no federal generation skipping transfer tax payable by reason of the dispositions made in this Will. {C) Neither the principal nor the income of any trusts created hereunder or any part or share thereof shall be liable in any manner to the control or answerable fo~• the debts, contracts or other obligations of any of the beneficiaries hereunder, or Liable to any charge, encumbrance, assignment, conveyance or anticipation by any of them. (D) Upon the death of any income beneficiary, any income acc;rued or received by the Trustees subsequent to the last income payment date shall be paid to the person or persons for whose benefit the principal producing such income is continued il~~ TRUST or to whom such principal is distributed under the terms hereof. (E) Corporate distributions received in shares of the distributing corporation shall be allocated to principal, regardless of the number of shares and however de:>cribed or designated by the distributing corporation. (F) In the administration of any trusts herein created, my Trustees shall have, in addition to and not in limitation of. any authority given to them by law and without the necessity of obtaining the consent of any court, the following powers: To accept distribution of my estate and to retain investments and property which are a part of my estate; to invest and reinvest the principal of the trust estate in any kind of property, real or personal, or part interest therein, without being restricted to investments which are legal for trust funds; to give options for ~~ales, leases and exchanges; to borrow money; to sell, pledge, exchange or mortgage any real or personal property; to compromise claims; to lease real or personal property for terms exceeding five years; to join in or oppose the merger, consolidation, reorganization or readjustment of the financial structure of any i7rtn or corporation in which the trust estate may have an interest; to carry securitic;s in the name of a nominee; to carry on any business owned or controlled by me. at the time of my death and distributed to my Trustees herein for whatever period of time my said Trustees shall think proper, and my Trustees shall have the power to do any and all things they deem necessary or appropriate, including the power to incorporate the business, the power to borrow and to pledge assets contained iri my trust estate as security for such borrowing and the power to close out, liquidate or sell the business at such time and upon such terms as to my said Trustees shall. seem best; and to distribute the trust estate in cash or in kind. (G} No person or corporation dealing with my Trustees shall be required to inquire into the necessity or propriety of any proposed action or to see to the application of any money paid to my said Trustees. ,'~~~ (H) The provisions of subparagraphs (A), (C) and (D) of p~ar~agraph Fifth shall also apply to the trusts created under this paragraph Third. FOURTH: In the event my wife, LOIS RAE COSTELLO, prede<;eases me, I give, devise and bequeath all the rest, residue and remainder of my estate, real, personal and mixed, of whatsoever kind and wheresoever situate, as follows: (A) One-half (1/2) share of my residuary estate [except as provided in paragraph Fourth (C) below] to my children, JOHN M. COSTELLO, J'R., ;SLiSAN I. LORDITCH, MARGARET A. PLANK and AMY L. SIJHR, in equal shares, share and share alike. If any child of mine shall predecease me, such deceased child's share shall be distributed to his or her issue then living, per stirpes, or, if he or she has no issue then living, his or. her sharE: shall be distributed to my other children, both those then living and those then deceased with issue then living, which issue shall receive, per stirpes, the share of. any such deceased child. Any distribution hereunder shall be subject to the provisions relating to the age of each beneficiary restricting di;~tribution hereinafter set forth. (B) One-half (l./Z) share of my residuary estate [except as provided in paragraph Fourth (C) below] to be held INTRUST by my Trustees allocated in four equal shares, with one such share so held in trust for the benefit of the children of my son, John M. Costello, J'r., one such share so held in trust for the benefit of the children of my daughter, Susan I. Lor~iitch, one such share so held in trust for the benefit of the children of my daughter, Margaret A. Plank, and one such share so held in trust for the benefit of the children of my daughter, Amy L. Stihr. The Trustees shall hold said shares in separate funds for the benefit of the beneficiaries aforesaid with the income to be distributed quarterly to each such beneficiary with one-half (l./2) off' each such fund to be distributed to each beneficiary upon such beneficiary attaining the age of twenty-five (25) .years and the balance of such fund, i.e., the remaining one-half (1/2) of each such fiand to be distributed to each such beneficiary at the age of thirty (30) years, thereby terminating said fund. During the period of the trust for each such beneficiary, the Trustees shall pay to the: pf;rson having custody of such beneficiary, or to such beneficiary directly, without liability on the part of the Trustees to see to the application thereof, or may expend directly so much of the principal as the Trustees deem advisable for the maintenance, education and support of such beneficiary. If any one of the beneficiaries should die before distribution of his or her share of the trust as herein provided, the share of such deceased grandchild of mine shall be distributed to his or he;r issue then living, per stirpes, or, if he or she has no issue then living, his or her share shall be distributed to his or her siblings, both those then living and those then deceased with issue then. living, which issue shall receive, per stirpes, the share of any such deceased grandchild. (C) The one-half {1/2) share to be distributed pursuant to paragraph Fourth (B) above shall not exceed the amount (currently one million dollars) of the: applicable generation skipping transfer tax exemption provided for under applicable federal tai: law at the time of my death, and if said one-half (1/2) share exceeds such amount, the excess; shall be allocated to and distributed under paragraph Fourth {A) hereof. It is the intent and purl~os;e of this provision that there be no federal generation skipping transfer tax payable by reason o~f the dispositions made in this Will. (D) The provisions of subparagraphs {C), (D), (E), (F} and (G) of paragraph Third, and the provisions of subparagraphs {A), {C} and {D) of paragraph Fifth shall also apply to the trust created for any beneficiary in this paragraph Fourth (B). ~rH: If any beneficiary hereunder has not attained the age o.f twenty-five (25) years, I direct that the full share of my estate to which said beneficiary shall be entitled shall be distributed to my Trustees hereinafter named IN TRUST for such beneficiary until the 2Sth birthday of such beneficiary, at which time said separate trust shall terminate and the principal shall be transferred and delivered to him or to her, free of trust; provided, lio`Never, that if a trust is maintained for said beneficiary under any other paragraph hereof, the share of any such beneficiary shall be added to the trust maintained under such other paragraphs hereo:F and shall be administered as such. During the period of the trust, the Trustees shall pay to the person having custody of such beneficiary, or to such beneficiary directly, without liability on the part of the Trustees to see to the application thereof, or may expend directly, so much of the income and Irincipal as the Trustees deem advisable for the maintenance, education and support of said beneficiary, and shall add any excess income to principal and invest it as such. The administration and distribution of any trust created hereunder shall be in accordance with the terms hereof and subject to the following: ~., /~ 7 {A} The existence of any trust herein created shall not relieve the; natural guardian or the person or institution maintaining the beneficiary thereof, if any exists, of their primary obligation to educate, maintain and support such beneficiary, and such beneficiary's txus~t shall. expend funds for such purposes if in the sole discretion of the Trustees the natural guardian or the person or institution maintaining such beneficiary has insufficient funds to provide the same, and, in such case, the trust hereunder shall be used only to supplement and assist in providing same. {B) If any beneficiary hereunder predeceases the termination and distribution of his or her trust maintained under this paragraph Fifth, his or her said trust shall be; distributed, per stirpes, to his or her issue then living, or, if said beneficiary has no issue then living, his or her trust shall be distributed in. equal shares to his or her siblings whose parent is a desc;en.dant of mine, either by blood or adoption, or, if said beneficiary has no issue and no such siblings then living, his or her trust shall be distributed in equal shares to my other children, both those then living and those then deceased with issue then living, which issue shall receive, per stirpes, the sh;~re of any such deceased child, to be added to their respective trusts hereunder, if. any, or disti~ib~uted to those who have attained the age of twenty-five (25) years. Upon the death of any such t~eneficiary, any income accrued or received by the Trustees subsequent to the last income payment date shall be paid to the person or persons for whose benefit the principal producing such income is continued INTRUST or to whom such principal is distributed under the terms hereof. {C) 7f any person is entitled to a distribution hereunder and at the time of such distribution such person has been adjudicated an incapacitated person. under the laws of the Commonwealth of Pennsylvania or an incompetent or incapacitated person under the laws of any other jurisdiction, or, if in the opinion of the Trustees such person is incapacitated within the meaning of that term as defined in Section 5501 of the Pennsylvania Probate, Estates and Fiduciaries Code at the time such person would be entitled to distxibut:ion hereunder, then the Trustees may retain such sum INTRUST during the entire period that such :incapacity continues and during such time may pay to the person having custody of such incapacitated person or the person or institution maintaining such incapacitated person or to such incapacitated person directly, without liability on the part of the Trustees to see to the application thereof, or may expend directly, so much of the income and principal as the Trustees deem advisable for the ~we.lfare, comfort, support, recreation and education of said incapacitated person or, if in the judgment of the Trustees the incapacitated person would have used such funds for such purpose, for the care, maintenance and education of such person's dependents. Any excess income not distributed or expended shall be added to principal and invested as such. (D) Notwithstanding anything to the contrary in any other provision of this Will or any trust herein created, each disposition I have made in this Will or any trust must vest in interest although not necessarily in possession within twenty-one (21) years plus any period of gestation involved after the death of the last to survive of my children and their issue living on the date of my death. It is the intent and purpose of this clause that all dispositions shall vest within the period of the rule against perpetuities as defined and interpreted by the statutes and courts of the Commonwealth of Pennsylvania, and that no interest created by or. devised under this Will or any trust shall be construed in such a manner that it will be invalid under that rule. (E} The provisions of subparagraphs (C), (D), (E), {F) and (Ci) of paragraph Third shall also apply to the separate trust created for any beneficiary provided aforesaid in this paragraph. SIXTH: I hereby appoint my wife, LOIS RAE COSTEI,L~~, Executrix of this my Last Will and Testament. In the event my wife predeceases me or fails to G;ualify or ceases to act as such Executrix, I hereby appoint two of my children, JOHN M. COSTELLO, JR., and AMY L. SUHR, or the survivor, Executors in her place. If both JOHN M. COSTI'sLLO, JR., and AMY L. SUHR predecease me or fail to qualify or cease to act as such Executors, I hereby appoint my other two children, SUSAN I. LORDITCH and MARGARET A. PLANK, or the survivor, Executors in their place. I hereby further direct that no fiduciary hereunder shall be required to post bond or surety in any jurisdiction in which such fiduciary shall be reauir~ed to act. In addition to the powers vested in my Executrix by law or by other provisions of my Will, my Executrix, in the settlement of my estate, shall have full power in her discretion to do all things necessary, including the power to sell at public or private sale, and without order of court, any real property and any and all personal property (Sl1B~JECT to the provisions of paragraph Second hereinabove set forth) belonging to my estate; to compound, compromise or otherwise to settle any and all claims, charges, debts and demands what:sof;ver against or in favor of my estate as fully as I could do if living; to carry on any business owned or controlled by me at the time of my death and to do any and all things necessary or appropriate:, including the power to incorporate the business, the power to borrow and to pledge assets of my estate, and the power to close out, liquidate and sell the business. Without in any way restricting i:hese powers, I hereby direct that my Executrix shall have the right to take over and retain unconverted each and every item of real or personal property of which I may die possessed, without liability for depreciation in the value thereof, and to distribute the same to the beneficiaries hereunder in kind, or partly in kind and partly in cash or entirely in cash as in her judgment she may deem best. l:f a.ny real estate is sold, it may be sold for such price or prices, and upon such terms and conditions as my Executrix may deem best, and it shall be conveyed to the purchaser thereof, free of. liability on the part of the purchaser to see to the application of the purchase money. In the set~'~le:ment of my estate, my Executrix is also authorized to borrow funds for administrative, tax or other purposes, at such rate or rates of interest as she may determine and is authorized to execute any notes or mortgages and to put up any assets of my estate as collateral for any such loan. SEVENTH: I hereby appoint two of my children, JOHN M. COSTELLO, JR., and AMY L. SUHR, or the survivor, Trustees of any trusts herein created. If both JOHN M. COSTELLO, JR., and AMY L. SUHR predecease me or fail to qualify to cease to act as Trustees, I hereby appoint my other two children, SUSAN I. LORDITCH and MA.R~iARET A. PLANK, or the survivor, Trustees in their place. I hereby further direct that said parties shall be permitted to serve as Trustees without the necessity of providing bond or suxety in arty jurisdiction in which such Trustees shall be required to act. EIGHTH: (A) Upon my death, or at such other tune or Mimes thereafter as may be provided, my 'Trustees hereinabove named shall collect the total amount of proceeds from any life insurance, pension plan, annuities, mutual funds, stock funds, bond funds or other source whatsoever wherein I have designated the Trustees as a beneficiary, all of which proceeds my Trustees shall add to the assets received by my Trustees from my Executrix to be held, administered andJor distributed as hereinabove set forth. (B} The payment to my Trustees by any payor of the pro~~eeds of any policy of insurance, pension plan, annuities, mutual funds, stock funds, bond funds or other source G~~'J~~ whatsoever wherein I have designated the Trustees a.s a beneficiary shall be a full discharge of said payor therefor and the payor shall in no manner be responsible for the proper discharge of the trust or any part thereof. (C} My Trustees shall be responsible for the aforesaid proceeds only as, if and when paid to my Trustees, and my Trustees shall not be Liable to anyone if, for a.ny reason, the policies, pension plan, annuities, mutual funds, stock funds, bond funds, etc., or any of them, shall lapse or otherwise be uncollectible. Except at their own option, my Trustees sha1L not enter into or maintain any litigation to enforce payment of the policies, pension plan, annuities, mlztual funds, stock funds, bond funds, etc., or any of them, until my Trustees shall have been indena.ni.fied to their satisfaction against all expenses and liabilities to which they may, in their judgment, be subject by any such action on their part; but my Trustees may utilize the proceeds from aYiy other payor to meet expenses incurred in connection with enforcing any other such payment. (D} My Trustees are authorized to purchase with the proceeds received by them any securities or other property, real or. personal, belonging to my estate, as an investment for the trust estates aforesaid, and to hold the same for such period of time as my Trustees deem advisable, without liability for any depreciation in the value thereof; or, in their discretion, to make loans, secured or unsecured, to my estate without liability for the nonpayment thereof; as well as to pay from said proceeds, if my Executrix is unable to comply with the directio~i to pay such taxes from my residuary estate, any federal estate, state inheritance or estate and succession taxes imposed upon or with respect to my estate passing under my Will or otherwise, at such time or times as my Trustees may deem advisable, and no such tax so paid shall be co1lE;cted from or paid by any beneficiary or under any Will by way of apportionment or proration. N1NTH: I direct my Executrix to pay out of the principal of my residuary estate, all estate, inheritance and succession taxes, both state and federal, unposed upon or with respect to my estate or any property in which I may have an interest, including those attributable to property not forming part of my testamentary estate, at such times and in such amou.nt;~ as my Executrix, in her sole discretion, shall determine, and no part thereof shall be prorated or apportioned among or charged against the respective interests of any of the beneficiaries. .~' 11 TENTH: All questions pertaining to the validity and construction of this 'V~Vill and to the administration of any trust herein created shall be determined in accordance with the laws of the Commonwealth of Pennsylvania. ELEVENTH: Whenever used in this Will, the singular shall inc;lude the plural, the plural the singular, and the use of any gender shall be applicable to all genders. IN WITNESS WHEREOF, I have hereunto set my hand and se~a1 this ~ day of A.D., .2006. >EAL) Signed, sealed, published and declared by the above named JOHN M. COSTELLO, as and for his Last Will and Testament, in the presence of us, who, at his request and in his presence and in the presence of each other, have hereunto subscribed our names as v~~itnesses thereto. ~ ~'~ ~! !~ ,r.•ycJ --r X ~ ~"~ ~~~,~~ i ~ ,~ ~ ~ . 12 COMMONWEALTH OF PENNSYLVANIA COUNTY OF SOMERSET ss. I, JOI3N M. COSTELLO, Testator, whose name is signed tc- the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my Last Will; that I signed it wi 'ngly; and. that I signed it as my free and voluntary act for the purposes therein expressed. `, ~~ ,/` estator ' Sworn or affirmed to, subsc 'bed to nd a nowledged bef~~re me by JOHN M. COSTELLO, the Testator, this day of -='_, 200y:,, Natalia! Seaf Cartee~ J. Twornbfy, Notary Public ~. 5rrnarset Pc~rc~, :3omerset County ~ M' , My C~rrrirnt:SSion f rapirt~s Jtst~e ~0, 20p7 ~n (~/ ~. (SF AT ,~ tvt.;rn~et, c~enns~~ivar,~s :~.;,.ocla4.iurt r~'~icst~n ~ (O ficiai~ Ca city of officer} COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF SOMERSET We, ~~L;tif'~'!A ~- 1~.1~ and .~~~_, the witnesses whose names are signed to the attached or foregoing instrum nt, being duly qualified according to law, do depose and say that we were present and saw Testator sign and execute the instrument as his Last Will; that he signed willingly and that he executed it as his free :and voluntary act for the purposes therein expressed; that each of us in the hearing and sight of the Testator signed the Will as witnesses; and that to the best of our knowledge the Testator was at that time 18 or more years of. age, of. sound mind and under no constraint or undue influence. Sworn or firmed to and subscribed to before me by ~ ~~ ~~~ and ~ ,witnesses, this _~~~- day of ~- , 2006. v wa tnes Nvtarialseat ~~.t%:1~yt ~--~G~.,y~,yCJ~ Carfean J. Tvuornbty, Notary Pubfi Somerset P.,oro, Somerset Coun ~ ~, My Commission expires Juna 30, 2Q0' ~ ~,~'~(, {SEAL) 4~tomber, Pe~t;tsytvarti9 Ass,^.rfaYlon as trlotartes (OffiG18.~ Ca city of officer)