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Home My WebLink About03-0329COMMONWEALTH 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. CD REV-1162 EX(11-96) 002444 DEL DUCA FRANCES H 10 W HIGH STREET CARLISLE, PA 17013 ........ fold ESTATE INFORMATION: SSN: 571-92-0439 FILE NUMBER: 2103-0329 DECEDENT NAME: LAWS FLORENCE W DATE OF PAYMENT: 04/1 4/2003 POSTMARK DATE: 00/00/0000 COUNTY: CUM BERLAN D DATE OF DEATH: 01/15/2003 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 $4,550.00 REMARKS: TOTAL AMOUNT PAID: FRANCES H DEL DUCA ESQUIRE $4,550.00 SEAL CHECK# 1052 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. CD REV-1162 EX(11-96) O02443 DEL DUCA FRANCES H 10 W HIGH STREET CARLISLE, PA 17013 ........ fold ESTATE INFORMATION: SSN: 571-92-0439 FILE NUMBER: 2103-0329 DECEDENT NAME: LAWS FLORENCE W DATE OF PAYMENT: 04/14/2003 POSTMARK DATE: 00/00/0000 COUNTY: CUMBERLAND DATE OF DEATH: 01/15/2003 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 $6,700.00 REMARKS: TOTAL AMOUNT PAID: FRANCES H DEL DUCA ESQUIRE $6,700.00 SEAL CHECK//1651 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 002708 DEVLIN MICHAEL B BOYER & RITTER P O BOX 668 CARLISLE, PA 17013 ........ fold ESTATE INFORMATION: SSN: 571-92-0439 FILE NUMBER: 2103-0329 DECEDENT NAME: LAWS FLORENCE W DATE OF PAYMENT: 06/19/2003 POSTMARK DATE: 06/1 9/2003 COUNTY: CUMBERLAND DATE OF DEATH: 01 / 15/2003 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 $75.85 TOTAL AMOUNT PAID: $75.85 REMARKS' KENNETH LLAWSC/O MICHAELB DEVLIN - HAND DELIVERED SEAL CHECK# 1652 INITIALS: SK RECEIVED BY: DONNA M. OTTO DEPUTY REGISTER OF WILLS REGISTER OF WILLS REV-I500 EX (6-00) LU Z COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 INHERITANCE TAX RETURN RESIDENT DECEDENT DECEDEN'PS NAME (LAST, FIRST, AND MIDDLE INITIAL) DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) 1/15/2003 12/01/19o9 (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) OFFICIAL USE ONLY FILE NUMBER 2 3. COUNTY CODE -- 03 00329 YEAR NUMBER SOCIAL SECURITY NUMBER 571-92-0439 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS SOCIAL SECURITY NUMBER [-~1. Odginal Return r--~ 4. Limited Estate f----~ 6. Decedent Died Testate (Attach copy of Will) [-'--'~ 9. Litigation Proceeds Received ---] 2. Supplemental Return ~ 3. Remainder Return (date of death phor to 12-13-82) E~4a. Future Interest Compromise (date of death after 12-12-82) ~ 5. Federal Estate Tax Return Required [~7. Decedent Maintained a Living Trust (Attach copy of Trust) i 8. Total Number of Safe Deposit Boxes ~ 10. Spousal Poverty Credit (date ot death between 12-31-9t and 1-~-gS) [--~ 11. Election to tax under Sec. 9113(A) (Attach Sch O) THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: COMPLETE MAILING ADDRESS NAME MICHAEL B DEVLIN FIRM NAME (If Applicable) BOYER & RITTER TELEPHONE NUMBER 717-249-3414 P O BOX 668 CARLISLE, PA 17013 1. Real Estate (Schedule A) (1) 2. Stocks and Bonds (Schedule B) (2) 3. Closely Held Corporation, Partnership or Sole-Prepdetorship (3) 4. Mortgages & Notes Receivable (Schedule D) (4) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) (5) 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) 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) 368 4,237 3,282 (8) OFFICIAL USE ONLY tJ'l 280,553 (11) 15,712 264,841 264,841 (12) (13) (14) SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) 16. Amount of Line 14 taxable at lineal rate 17. Amount of Line 14 taxable at sibling rate 18. Amount of Line 14 taxable at collateral rate 19, Tax Due 20. x .0 __ (15) 264,841 x.0 045(16) x .12 (17) x .15 (18) (19) 11,917.85 11,917.85 · · BE SURE TO ANSWER ALL QUESTIONS ON REVERSE SIDE AND RECHECK MATH < < 2W4645 1000 Decedent's Complete Address: /S~ET ADDRESS C/O KENNETH LAWS 10 DOUGLAS CRT CARLISLE STA~ ZIP PA 17013 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount interest/Penalty if applicable D. Interest E. Penalty 11,250 592 (1) Total Credits (A + B + C) (2) Total Interest/Penalty (D + E) (3) 11,917.85 11,842 .00 75.85 If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. 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. A. Enter the interest on the tax due. (4) (5) (5A) (5B) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. Make Check Pa to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 75.85 Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred; ....................... E~ [~ b. retain the right to designate who shall use the property transferred or its income; ......... E~ E~ c. retain a reversionary interest; or ................................ d. receive the promise for life of either payments, benefits or care? ................. ~-~ E~ if death occurred after December 12, 1982, did decedent transfer property within one year of death 2. 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. Declaration of preparer other than the personal representative is based on all information of which preparer has any know~edge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN 10 DOUGLAS CRT, CARLISLE, PA 17013 DATE SIGNATL~E OF PREPARER OTHER THAN REPRESENTATIVE ADDRESS (2 P 0 BOX 668, CARLISLE, PA 17013 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. § 9916 (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. 2W4646 1.000 REV-1507 'EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE D MORTGAGES & NOTES RECEIVABLE ESTATE OF FILE NUMBER LAWS, FLORENCE W 21-2003-0329 All =roperty jointly-owned with the right of survivorship must be disclosed on Schedule F. ITEM VALUE AT DATE NO. DESCRIPTION OF DEATH 1. INSTALLMENT NOTE ON VEHICLE 368.00 TOTAL (Also enter on line 4, Recapitulation) $ 3 6 8 o 0 0 {If more space is needed, insert additional sheets of the same size) 0 PA15071 NTF 33304 Copyright 2000 Greatland/Nelco LP- Forms Software Only REV-1508 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY ESTATE OF LAWS, FLORENCE W FILE NUMBER 21-2003-0329 Include proceeds of litigation & date proceeds were received by the estate. All prop. jointly-owned with right of survivorship must be disclosed on Sch. F. ITEM NO. 1. 2 3 DESCRIPTION HEALTH INSURANCE REIMBURSEMENTS SCE PENSION - FEBRUARY, 2003 REFUND FROM THORNWALD HOME TOTAL (Also enter on line 5, Recapitulation) VALUE AT DATE OF DEATH 218.00 999.00 3,020.00 $ 4,237.00 0 PA15081 NTF 33305 (if more space is needed, insert additional sheets of the same size) Copyright 2000 Greatland/Nelco LP - Forms Software Only REV-1509 I~X + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE F JOINTLY-OWNED PROPERTY ESTATE OF FILE NUMBER T.AWS, FT.ORENCE W 2 1 - 2 0 0 3 - 0 3 2 9 If an asset was made joint within one year of the decedent's date of death, It must be reported on Schedule G. SURVIVING JOINT TENANT(S) NAME ADDRESS RELATIONSHIP TO DECEDENT SON A. LAWS, KENNETH 10 DOUGLAS COURT CARLISLE, PA 17013 JOINTLY-OWNED PROPERTY: DESCRIPTION OF PROP~-H ~ Y % OF DATE OF DEATH .ETTER DATE Include name of financial institution and bank ITEM FOR MADE account number or similar identifying number. DATE OF DEATH DECD'S VALUE OF JOINT NO. TENANT JOINT Attach deed for jointly-held real estate. VALUE OF ASSET INTEREST DECEDENT'S INTEREST 1. A 01/01/1995 CANADIAN MAPLE LEAF GOLD COI 355.00 50 178.00 2 A 01/01/1995 M & T BANK CHECKING ACCOUNT 4,331.00 50 2,166.00 3 A 01/01/1995 5 GOLD KRUGERRANDS 1,775.00 50 888.00 4 A 01/01/1995 MISC JEWELRY IN SAFE DEP BOX 100.00 50 50.00 TOTAL (Aisc enter on line 6, Recapitulation) $ 3,282.0(~ 0 PA15091 NTF 33306 (If more space is needed, insert additional sheets of the same size) Copyright 2000 Greatland/Nelco LP - Forms Software Only .TIIFq ~3--200~ O~ :05 PM FRAN(ZkSD~LD JJA k'. ~z~ Mcnufacturem and Traders Trust Company, 1100 Wehrfe Drive, P.O, Box 767, BuffalO, NY 142404)76? February 27, 2003 Estate Search The Estate of: Date of Death (D.O.D.) FLORENCE W LAWS 1/15/2003 To Whom It May Concern: Identified below is th~ account information requested. I M&T Bank accounts in which the decedent's name appears: Account Account Number Account Title Type CHK 1160249 FLORENCE W I.AWS KENrNETH L LAWS (TIIORNWALD HOM~ Opening Branch D.O.D. Accrued Interest Balances (Includes Acct. Int.) 4319 $4331.12 $.00 2 Loans, Mortgages, or othcr obligations titled in the decedent's name Account Numbcx Amount Owed Account Description A Safe Deposit Box titled in tile Decedent's namc cxistcd al our IIlGH STREET CARLISLE OFFICE. The Safc Dcposit Box Number is 1088. Ifyau havc any qucstions ubout the information provided, please ccmtr, ct mu' Records Dcpartnlet~t at (716) 635-4010 or 1-g00-724 2440 outside of the Buffalo, NY calling area. Thnnk you. Slnce~ely, M&T BANK CORPORATION FI EV-l S l O' EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF FILE NUMBER LAWS, FLORENCE W 21-2003-0329 This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. DESCRIPTION OF PROPERTY % OF INCLUDE NAME OF THE TRANSFEREE, THEIR ITEM RELATIONSHIP TO DECD & DATE OF TRANSFER. DATE OF DEATH DECD'S EXCLUSION TAXABLE VALUE NO. ATTACH COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST (IF APPLICABLE) 1. LAWS SURVIVORS TRUST 272,666.00 100 0.00 272,666.00 TOTAL (Also enter on line 7, Recapitulation) $ 2 7 2,6 6 6.0 0 0 PA15101 NTF 333o7 (If more space is needed, insert additional sheets of the same size) Copyright 2000 Greafland/Nelco LP - Forms Software Only VALU 50786429 C WY31 FUNC LAST FLORENCE W & KENNETH LAW TTEES SURVIVORS TR BETW 01/16/03 END OF FILE 4C1._.4_ CASH $272,340.95 T1-M/V USD/EQ T1-FM/V TOTAL T2-LM/V MARGIN T2-SM/V OTHER OTH MM/V DIV/INT OTH CM/V $325.06 MMKT $136,170.46 T1 C/A SMA $272,340.95 Ti M/SEC $325.06CR FDS AVL $272,340.95 TOT M/V QUANTITY DESCRIPTION SYM CRNCY CUSIP 1400L ADAMS EXPRESS CO ADX USD 006212104 6058.426L AIM PREMIER EQUITY B AVLBX USD 008879728 2000L BLUE CHIP VALUE FD INC BLU USD 095333100 4015.852L G/S CORE LGE CAP GWTH B GCLCX USD 38142B427 2053.34L OPP MAIN ST GRTH & INC-B OMSBX USD 68380D801 800L VAN KA/,~PEN INVT PA MUNI VTP USD 920934106 70L PA INSD MUN INC TR 199 M USD 70884D873 197L NUV PA INSD 197 M USD 6706H8134 10L PENNA IMIT 106 M USD 70884B562 15L PENNSYLVANIA IMIT 108 M USD 70884B604 F-CALL H-CALL D-INT M-INT EQTY % EQUITY C/A B/P $272,666.01 TOT VL VALUE T LOC M 15302.00 1 SEG M 44832.35 1 SKF M 10200.00 1 SEG M 34656.80 1 SKF M 54228.70 1 SKF M 13232.00 i SEG M 73453.10 1 SEG M 20448.60 1 SEG M 3138.75 1 SEG M 2848.65 1 SEG M AMENDMENT NO. 5 to REVOCABLE LIVING TRUST AGREEMENT DECEMBER 3, 1976 between ALLEN L. ~AWS AND FLORENCE WINDSOR LAWS, SETTLORS and ALLEN L. LAWS AND FLORENCE WINDSOR LAWS, TRUSTEE " THIS AMENDMENT NO. 5 to Revocable Living Trust Agreement dated December 3, 1976, as amended, is made in duplicate on October ~..~, 1987, between ALLEN L. LAWS and FLORENCE WINDSOR LAWS (Settlors) and ALLEN L. LAWS and FLORENCE WINDSOR'LAWS (Trustee). .. The Revocable .Living Trust Agreement dated December 3, 1976, as previously amended by Amendment Nos. 1 through 4, is hereby amended, by Settlors and, except as amended;.shal1 remain in'full force and e~fect. For convenience of'reference, the trust as amended herein, except for Schedule A attached to the original trust, is restated.in its entirety. ARTICLE I PROPERTY SUBJECT TO THIS TRUST A. The Settlors have previously transferred to the Trustee in trust Settlors, community property'described on I certify that this is a true and correct co~y of the original. Schedule A, which shall be held for the uses hereinafter described, together with any additional property that has been oF may be added to the trust. The trust shall be known as the Laws Family Trust,. Settlors are hereafter referred t'o as Trustors, and the Trustee is hereafter referred co as Trustees. B. Trustors declare that all property in the trust estate is their community property and any other community property heretofore or hereafter transferred to the trust shall retain its character as such notwithstanding the transfer to this trust. Any power reserved to Trustors to alter, amend, modify, '..or revoke this trust, in whole or in part, is held by the Trustors during their Joint lifetimes.. in their capacity as managers of the community property, subject to all restrictions imposed by law on their management of the community property. In no event shall the powers granted t~ the Trustees under this instrument durin~ the joint lifetimes of Trustors be more extensive than those powers possessed by husband, and wife under the provisiohs of California Civil Code Sections 5125 and 5127. If the trust.is revoked, this community property shall be returned to Trustors as their community property and not as the separate property of either or both Trustors. ARTICLE II FAMILY DESCRIPTION Trustors declare that they'have two children now living, whose names and dates of birth are: and put Page 2 BONNIE L. SMITH KENNETH L. LAWS June 6, 1932 May 30, 1935 Trustors further'declare that .they have no deceased children, Trustors have four srendchildren now living, whose names and dates of birth are as follows: SCOTT GAVIN SMITH KENNETH ALLEN SMITH KEVIN ALLEN LAWS VIRGINIA LAWS May 13, 1961 April 20, 196~ August 7, 1968 August 8, 1970 ARTICLE III ADDITIONAL PROPERTY Either ALLEN L. LAWS or FLORENCE WINDSOR LAWS shall have the right at any time, either during lifetime or by will at death, through proceeds of life insurance on the life of either of them or other benefit plans, to add other property to the 'trust. All assets ¢ontr'ibuted to this trust shall be deemed to constitute or have consti~uted the community property of Trustors and shall continue to retain their character as such notwithstanding the transfe~ to the t~ust. ARTICLE IV PAYMENTS TO MARRIED TRUSTORS FROM COMMUNITY ESTATE DURING JOINT LIFETIMES A. During the Trustors' Joint lifetimes, the Trustees shall pay to husband and wife for the account of the community, or shall apply for the. Trustors' benefit, as much of the net income of the trust estate es the Trustors demand in quarter-annuaI or more frequent installments and accumulate and add to principal any undistributed net income. If the Trustees consider the net income insufficient, the Trustees shall pay to husband and wife for the account of the community, or apply for the'Trustors, benefit, as much of the principal of the trust estate as is necessary in the Trustees' discretion for the Trustors, Proper health, support, maintenance, comfort, and welEare, in accordance with their accustomed manner of living at the date of this instrument, without taking into consideration funds and assets available to them held free of this trust. ~. The Trustor receiving payments shall have the same duty to use community income and principal received under this instrument for the Trustors, benefit as he or she has fo= any other community property. Any income or Principal paid to or for the Trustors, benefit or withdrawn by them shall continue to retain its character as com~unity property. B If at any time, either in the Trustees, discretion, or as certified in writing by two licensed physicians not related by blood or marriage to either Trustor or any beneficiary Of this trust, either spouse has become physically or mentally Incapacitated, whether or not a court o~ competent Jurisdiction has declared him or her incompetent or mentally ill or has appointed a conservator, the Trustees shall pay to the other spouse or apply for the benefit o~ either Trustor, first the trust estate, and then from the separate estates o~ either Page or both Trustors in equal shares to the extent possible, thi amounts of net income and principal necessary in the Trustees' d~scret[on ~or the proper health, support, and maintenance, com~ort, and welfare of both Trustors ~n accordance with their accustomed manner o~ l~v~ng at the date of th~s ~nstrument, until the incapacitated Trustor, either ~n the Trustees' d~scret~on, or as certt~led by two licensed physicians not related by blood or marriage to e~ther Trusto= or to any beneficiary o~ this trust, is agaln able to manage his or her owh a~fa~rs., or until the earlier death of either Trustor. The nontncapac~tated spouse may also withdraw, from accumulated trust ].ncome and principal ~ community property contributed by that spouse. Income and pr[nc[pal from community property so paid or withdrawn shall be held and adm~.ntstered as community property by the non~ncapacitated spouse. Any income In excess of the. amounts applied ~or the benefit of the Trustors shall be accumulated and added to . principal o~ the trust estate. I~ a conservator of the person .o= estate Is appointed fo= either .Trustor, the Trustees shall. take into account any payments made for e~ther Trustor"s. benefit by such conservator. ARTICLE V ALL TRUSTORS - PAYMENTS TO OTHERS The Trust°rs act~ngl]o[ntly may at any tlme direct the Trustees in writing to pay single sums or periodic payments out of the trust estate as gi~ts to any other person orsanization. Each Trustor's respective power to so .diTect the Trustees shall be personal to each Trustor, except th,at =h~s power may be exercised by a Trustgr's conservator to the exte~ that payments to one or more persons qualify for the annual federal Sift tax exclusion. ARTICLE VI DIVISION OF TRUST - SIMULTANEOUS DEATH OF BOTH TRUSTORS If both Trustors dee simultaneously or under such c~rcumstances-as to render it diffEcult or tmpossEble to determine who predeceased the other, Et shall be conclusively presumed that neither Trustor survived ~he o~her. In such event, the entire remaEnEn~ balance of the trust es=ate shall be di¥~ded ~n~o two shares. One share shall comprise the interest of Trustor AI.LEN L. ~AWS in'the trust estate, and the other share shall comprise the ~n~eres= of Trustor FLORENCE WINDSOR LAWS En ~he trus= eS'rate. Out of the asse~s each Trustor's share DE the =rust estate, the Trustee shall pay all the debts of such decedent, all amounts required b~ such decedent's executor for pa3flnent of lesacEes ~o(~,c such decedent's WEll and expenses of adminEstra~Eon, the expenses such decedent's last ~llness and burEal, and all taxes occasioned or payable by reason of the dea=h of such decedent, ~ncludins Enteres= or penalties, which taxes are a~trEbutable ~o assets held'~n this trust. Out of assets comprisinS each Trustor's share of the trust estate, the Trustee may also pay taxes occasioned or payable by reason of the'death of such decedent which are not attributable to assets held in this trust. All such taxes may be paid directly by the Trustee or the personal representative of the decedent's estate. After payment of the debts, expenses and taxes as provided in this paragraph, the entire remaining balance of each decedent,s share (as may be augmented by assets passing under, the terms of the Wilt of the decedent, Erom ltfe *.nsurance, or from 'any other source) shall, be allocated to the exemption trust, to be distributed as provided in Article VIII below for distribution · upon the death of the surviving spouse (without, however, the implementation of any provisions of the exemption trust relating to payments to the surviving spouse). ARTICLE VLL DIVISION OF TRUST INTO TWo TRUSTS AT MARRIED TRUSTOR'S DEATH A. The'first Trustor to die shall be called the deceased spouse, and the liv~ing spouse shall be called the surviving spouse. On the deceased spouse's death, the Trustee shall divide the trust estate, l. ncluding any additions made to the trust by reason oE the deceased spouse's death, such as from the' decedent's will. or life insurance policies on the decedent's life, into two separate trusts, designated the survivor's trust and the exemption trust. B. Whenever the Trustee is directed to make a distribution of trust assets or a division of trust assets into Separate trusts or shares on the deceased spouse's death, the Trustee may, tn the~Trustee's discretion, defer that distribution or division until six months after the deceased Spouse,s death. When the Trustee defers distribution or divisio~ of the trust assets, the deferred division or distribution shall be made as tf it had taken place at the time prescribed in this ~.nstrument in the absence of this paragraph, and all rights giVen to the bene~Jctari-es of those trust assets under other provisions of this instrument shall be considered to have accrued and vested as of that prescribed time. C. The survivor's trust shall consist of the marital deduction amount identified fn the following paragraph D. O. The exemption trust shall consist of a pecuniary amount equal to the maximum sum that can be allocated to a trust, that does not qualiEy for the federal estate tax maritaI deduction to any extent, without producLn~ any federal estate. tax, aEter taking into account: l. All available deductions taken in determining the estate' tax payable by reason of the deceasud spouse's death; Z. Ail credits allowed for federal estate tax purposes, p~ov~ded n'o credit shall be taken into account if such credit ~hall ~esult in the disallowance of the marital deduction; 3. The net value of all other p~operty included tn. the deceased spouse'S gross estate, whether or not it is given under this instrument'and whether it passes a't the time of the deceased spouse's death or has passed before the deceased spouse's death to any person, trust, or other entitY, so that it is included in the deceased spouse'S gross estate and does not qualify for the federal estate tax marital deduction- In determining the amount of the exemption trust, however, any disclaimers by the surviving spouse shall be disregarded. The survivor'S trust shall consist of the balance of. the trust estate. All state death taxes and unclaimed administration expenses attributable in whole or in part to the from the exemption trust survivor's trust shall be paid (regardleSS of any other provision either in this instrument or by applicable law allocating administration expenses or taxeS)- The term ,,unclaimed administration expenses" means administration expenses, described in internal Revenue Code sections 2053(a)(2), 2053(b), that a~e.eliglble for deduction on the federal estate tax'return, but that are Bot deducted on that return because they are claimed as income tax deductiOnS. · The Trustee shall satisfy the amount so determined'in cash or in kind,, or partly in each, and shall 'allocate to the exe~ption trust any assets of the deceased spouse contributed or added to the trust that are not eligible for the federal.estate tax marital dedUCtion' Assets allocated in kind shall be considered to satisfy this amount on the basis of the'ir net fair market values at the date or dates of ~llocation to the exempt~dn trust. Assets qualifying for the federal estate mart. tal deduction shall be transferred to the survivor's trust only to the extent that the transfer reduces the federal estate tax otherwise payable by reason of the deceased spouse's death. No assets for which a credit for foreign death taxes ts allowed under the federal estate tax law applicable to the deceased spouse's estate shall be allocated to the survivor's trust, unless that estate contains insufficient other property to-~ully fund the survivor's trust. If the surviving Trustor shall so request, by" written instrument directed to the TruStees, within six months of the date of death of the deceased spouse, there shall be allocated to the survivor's trust, in lieu of other assets of equivalent value, all real property, if any, in the trust estate that'the surviving spouse and the deceased spouse were using for residential.purposes (whether on a full-time or part-time bases, including'resort property). Said real property shall be subject to any liens and encumbrances then existing against Lt. Said real property may be d~stributed in its entirety to the surveying spouse at any time during his l~etEme, subject to any such liens and encumbrances, in the o reasonable discretion of the Trustee. E. It is the deceased spouse's intention to have the surv~vor's trust qualify ~or the martial deduction under Inter~al Revenue Code section 2056 and the regulations 'Page 10 pertaining to that section or any corresponding or substitute provisions applicable to the trust estate. [n no event shall the Trustee take any action or have any power that will impair the marital deduction, and all provisions regarding the survivor,s trust shall be interpreted to conform to this primary objective. F. On the deceased spouse's death, the Trustee, in the Trustee's discretion, shall pay out of the trust estate the deceased spouse's debts outstanding at the time of his death and no.t barred by the statute of l£mitations, Statute of Frauds, or any other provision .of law; the federal or state estate and inheritance taxes, lncludins interest and penalties attributable to the trust estate arising because of the deceased spouse's death; the last-illness and ~uneral expenses of the deceased spouse;.attorneys' fees; and other costs incurred in administering the deceased, spouse's probate estate. Any payments for estate or inheritance taxes shall be charged to the exemption trust. Payments for last-illnesS, funeral, and other administration costs shall be' charged to the exemption trust, and if the exemption trust is insufficient, to the survivor's trust; provided, however, administration costs allocable to the surviving Spouse's share of the community property administered in the deceased spouse's estate shall be charged to the survivor's trust. Payment of 'any of the-deceased spouse's debts Shall be made proportionately from the property of the trust estate as such property shall be liable for the debts. ARTICLE VIII EXEMPTION TRUST A. The Trustee shall distribute to or apply for the benefit of the surviving spouse quarter-annually or at more frequent intervals the entire net income of the exemption trust. B. While the surviving spouse is serving as Trustee of the exemption trust, he shall be disqualified from' making payments to himself of principal ~rom the exemption trust for his benefit. All decisions regarding payments of principal to the surviving spouse from the exemption trust shall be made '.-solely by the special co-trustee. The responsibilities of the ~~~pecial co-trustee shall be limited to the exercise of ~'.~ scretion under this paragraph and it shall, not be concerned with any other aspects of trust administration. The special co-trustee shall, in its discretion, pay to or apply for the benefit of the surviving spouse from the exemption trust such sums from principal as the special co-trustee shall determine as reasonabI~ necessary or proper Eot the surviving spouse's proper health, support, maintenance, comfort, and welfare, taking into account (1) the other assets (excluding those that cannot be readily liquidated) and the income.~rom other sources of"the surviving spouse, and (2) his customary standard o~ living. The special co-trustee shall not make such payments to the surviving spouse if it determines that the surviving spouse can satisfy such needs from his other property or sources. Page 12 C. If the surviving spouse ts not serving as Trustee o~ the exemption trust, and if the Trustee considers the income ~rom the exemption trust to be insufficient, taking into account (1) the other assets (excluding those that cannot be readily liquidated) and the income from other sources of the surviving spouse, and (2) his customary standard of living, the Trustee shall also pay to or apply for the benefit of the surviving spouse such sums out of the principal of.the exemption trust as the Trustee in the Trustee's discretion shall consider reasonably necessary for the surviving spouse's proper health, support, maintenance, comfort, and welfare. The Trustee shall not make such payments to the surviving spouse if it determines that the surviving spouse can satisfy such needs from his other property or sources, including the survivor's trust. D. Upon the death of'the surviving spouse, the exemption trust, shall terminate and be d!stribut~d free of trust as follows: 1. One-half (l/Z) thereof to Trustors' daughter, BONNIE L. SMITH. If BONNIE L, SMITH does not survive the surviving spouse, said one-half share shall lapse and be distributed as follows: a. One-half (l/l) thereof to Trustors, son-in-law, DONALD WALTER SMITH, provided that he was married to Trustors' daughter at the time of her death. If he does not survive the surviving spouse, or was not so married to Trustor's daughter, this distribution shall lapse and a the distribution under the following subparagraph b. b. One-half (1/2) thereof to BONNIE L. SMITH's . issue who survive the surviving spouse, by right of representation. IE there are no then surviving issue, and DONALD WALTER SMITH qualifies to take under the preceding subparagraph a, the one-half share to be distributed under this subparagraph b shall augment the distribution under the following subparagraph 2 or equally the distributions under the following subparagraphs a and b thereof, if KENNETH L. LAWS does not survive the surviving Spouse. If there are no then surviving issue, and DONALD WALTER SMITH does not qualify to ta~e under the preceding subparagraph a, the one-half share of the entire trust estate to be distributed under subparagraphs a and b shall lapse and augment the distribution under the following subparagraph Z or equally the distributions under the following subparagraph a and b thereof, if KENNETH ~. LAWS does not survive the surviving~spouse; provided, that if the distributions under the following subparagraph 2 and under subparagraphs a and b thereof shall also fully lapse, the distribution of said one-half share o~ the entire trust estate shall augment equally the ~lfts under the followin~ subparagraph 3. 2. One-half (1/2) thereof to Trustors' son, KENNETH b. LAWS. If:KENNETH b. CAWS does not survive the surviving spouse, said one-halE share shalI lapse and be Page a. One-half (1/2) thereof to Trustors' daughter-in-law, PRISCILLA WATSON LAWS, provided that she was married to Trustors' son at the'time of his death. If she does not survive the surviving spouse, or was not so married to Trustors' son, this distribution shall lapse and augment the distribution under the following subparagraph b. b. One-half (1/1) thereof to KENNETH L. LAWS's issue who survive the surviving spouse, by right of reSresentation. If there are no then surviving issue, 'and PRISCILLA WATSON LAWS qualifies to take under the preceding' subparagraph a, the' one-half share to be distributed under this subparagraph b shall augment the distribution under the preceding subparagraph 1 or equally the distributions under the preceding subparagraphs a and b thereof, if BONNIE L. SMITH does not survive the surviving spouse. If there are no then surviving issue, and pRISCILLA WATSON LAWS does not qualify to take under the preceding subparagraph a, the one-halE share oE the entire trust estate to be distributed under subparagraphs a and b shall lapse and augment the.distributiOns under the preceding subparagraph 1 or equally the distributions 'under the preceding subparagraphs a and b thereof, if BONNIE L. SMITH does not survive the surv~ving spouse; provided, that if the distributions under subparagraph 1 and under subparagraphs a and b thereof shall also fully lapse, the d[stribution-o~ said one-half share of the entire trust estate shall augment equally the &ifts under the following subparagraph 3. 3. If distribution under all of the precedin~ subparagraphs 1 (a - b) and 2 (a - b) shall fully lapse, the entire trust estate shall be distributed free of trust in equal shares to CALIFORNIA INSTITUTE OF TECHNOLOGY, UNIVERSITY OF REDLANDS, and DICKINSON COLLEGE in Carlisle, Pennsylvania. ARTICLE IX SURVIVOR'S TRUST A. Commencing with the date of death of the deceased spouse; the entire net'income of the survivor.'s trust estate shall be paid .to the surviving spouse, such payments to continue for the entire lifetime of the surviving spouse. Such payments shall be made in monthly or other convenient installments, but no less frequently than quarterly. B. In addition to .the net income, the Trustee shall pay to or apply for the benefit of the surviving spouse so much of the principal of the survivor's trust estate, up to the whole thereof, as the Trustee shal~ deem reasonably necessary for the health, support, comfort, welfare, and .maintenance of the surviving spouse in accordance wit~ the standard of living which such surviving spouse enjoyed as of the date of the death of the deceased spouse. In..exercise of this discretion, the Trustee need not take into consideration' the other resources of the surviving spouse available for such purposes and held free of this trust. : C. The survivinE spouse shall have the unlimited risht to Page ie su~vivor's ~he entire remaining balance of the survivor's trust estate (excluding however any accrued and undistributed income which shall be paid to the estate of the surviving spouse) shall be distributed outright to, or in trust for, one or more persons and entities, including the surviving spouse's own. estate, and as the surviving spouse shall appoint. Such power of appointment shall be exercisable by the surviving spouse solely by a written instrument referring to this power and evidencing · ...an intention to exercise it, which instrument shall be executed by the surviving spouse and delivered to the Trustee. If the surviving spouse shall execute more than one such instrument the provisions of which are inconsistent, the instrument bearing the latest date shall control." If, or to the extent, the surviving spouse shall fail to exercise this power of appointment, or any attempt to exercise it shall be invalid, then upon the death of the surviving'spouse the ~emaining balance of the trust e~tate (or the portion thereof not so appointed) shall augment the principal of the exemption trust to be held in trust, administered, and distributed as provided in-Article VIII above. £. Notwithstanding the provisions of the preceding Paragraph D, unless otherwise p'rov£ded for by the surviving spouse by will or other written instrument, prior to the distributton of the remaining balance of the Trustee shall pay from the survivor's trust estate all estate and inheritance taxes, including interest and penalties, occasioned or payable by reason of the death of the surviving spouse and which are attributable to the assets held in this survivor's trust. The Trustee may pay such taxes directly or to the personal representative of the estate of the survivin& spouse. this survivor's ARTICLE X RIGHTS RESERVED BY TRUSTORS A. During their Joint lifetimes, this trust may be revoked or amended in whole or in part by ALLEN L. LAWS or FLORENCE WINDSOR LAWS. Upon such revocation, the property shall be returned to the Trustors as their community property. B. From and after the death of the first Trustor to die, the exemption trust shall become irrevocable and unamendable. The surviving Trustor shall have the power to amend or revoke the survivor's trust. C. RevocatLon or amendment shall be effected by wrLtten Lnstrument signed by the revoking parties or party'and flied with the Trustee. The powers of a Trustor to revoke or amend this trust are personal to him and shall not be exercisable in his behalf by any guardian, conservator, or other person. ARTICLE XI SUCCESSOR TRUSTEES A. Upon the death, resignatLon, or incapacity of either. Pa&e 18 LAWS or FLORENCE WINDSOR LAWS, the other shall become sole Trustee. B. If both ALLEN L. LAWS and FLORENCE WINDSOR LAWS shall cease to act as Trustees, then BONNIE LAWS SMITH and KENNETH LEE LAWS, or either of them acting alone, shall act as Trustee(s). If both BONNIE LAWS SMITH and K~NNETH LEE LAWS for any reason fail or cease to act as Trustee(s), then FARMERS & MERCHANTS BANK OF LONG BEACH shall act as Trustee.~ C. When either ALLEN L. LAWS or FLORENCE WINDSOR LAWS is acting as sole Trustee, after the death of one of them, FARMERS & MERCHANTS BANK OF LONG BEACH shall act as special cotrustee. D. All rights, powers, duties, and discretions conferred upon the original Trustee shall vest in any successor Trustee. No successor Trustee shall have any responsibility or liability for the acts or omissions of any prior Trustee, nor shall such successor have any duty to audit or £nyestigaCe the accounts or. administration of any priOr Trustee, but such successor shall~ only be liable for its own acts and defaults.- E. Any Trustee shall have the right to resign the trusteeship at any time. Upon resignation or inability to act of both original Trustees, a successor Trustee shall be appointed in the manner provided herein. No bond shall be required of any. Trustee named herein nor of'any successor Trustee who may be appointed hereunder. · Page 19 'ARTICLE XII C~MPENSAT[ON OF TRUSTEES No compensation shall be paid to ALLEN L, LAWS or FLORENCE WINDSOR LAWS for their services as Trustee's. Any other Trustee shall be entitled to reasonable compensation for its services in accordance w~th the.compensation then being paid for similar services to corp°rate institutions acting as sole Trustee in the County off Orange, Cal~ornia, unless the Trustee shall waive the right to such compensation. ARTICLE XII~ POWERS OF TRUSTEES To carrY out the purposes off the trust and sub~ect to any Iimitations provided flor ~n California Civil Code Section 5110.150 and ~hose herein expressed, the Trustees are vested with the following powers and discret~ons in addition to any now or hereafter conferred by law: A. To continue to hold amy Property, ~ncluding stock off a trustee corporation, and to operate at the risk off the trust estate and not at the rLsk off the Trustees, any property or bus,ness received ~n this trust, as long as the Trustee may deem advisable, the profits and losses therefrom to inure to or be chargeable to the trust' estate as a whole and'not to'the Trustees (this specifically ~ncludes, but is not limited to. the power to hold an interest, or act, as a general or limited partner, regardless off the delegation off authority or the mutua~ agency that may be involved in any such partnership · Page 20 The Trustees shall not be required to sell any such assets merely for the sake of diversifying trust investments, or for the sake of obtaining funds to purchase assets that produce more income. Notwithstanding the foregoing, the surviving spouse shall have the power to compel the Trustee to dispose of any assets in the survivor's trust which fail to provide a reasonable income to the surviving spouse as income beneficiary. B. To manage, control, sell, convey, exchange, partition. divide, subdivide, improve, or repair trust property; to grant options and to sell for cash or upon deferred payments; to lease for terms within or extending beyond the duration of the trust for any purpose, including exploration for or removal of gas, oil, and minerals; to enter into community oil leases, pooling, and unitization agreements; to compromise, arbitrate, or otherwise adjust claims in favor o~'or against the trust; to create restrictions, easements; and other servitudes; to institute, compromise, and defend actions and proceedings; and to carry such insurance as the Trustees may deem'advisable. C. To invest and reinvest the principal, and income i~ accumulated, and to purchase or acquire therewith every kind o~ property, rea~, personal, or mixed, and every kind of investment, speci~ically including, but not by way o~ limitatton, corporate obligations oE every kind.and stock, preEerred or common, all in a manner conforming with then exis'ting law; to .invest in any common or comingled trust fund Page 21 or funds now or hereafter established by any corporate tr hereunder and operated by said corporate trustee solely for the' investment of trust ~unds, all in conformity with the express provisions of the instruments establishing such common trust fund or funds and all amendments .thereto. D. To advance funds to said trust for any trust purpose, such advances with interest at current rates to be a first lien on and to be repaid out of principal or income; and to reimburse the Trustees from principal or income for an~ loss or expense incurred by reason of the Trustees' ownership or holding of any property in this trust. .. E. To borrow money for any trust purpose upon such terms and conditions as the Trustees may deem proper, and to obligate the trust estate for repayment; to encumber the trust estate or any of its property by mortgage, deed of trust, pledge or otherwise, using such procedure to consummate the transaction as the Trustees may deem advisable. F. To have respectin~ securities all the rights, powers, and privileges of an owner, including, without limitin$ the foregoing, the power to ~ive proxies, pay callsj assessments and other sums deemed by the Trustees necessary for the protection of the trust estate; to participate in voting trusts, poolins agreements, foreclosures, reorsanizations, consolidations, mergers, and liquidations, and in. connection therewith to deposit securities with and transfer title to any protective or other committee under such terms as the Trustees Page 22 may deem advisable; to exercise or sell stock subscriptions or conversion fishes; and to accept and retain as an investment hereunder any securities received through the exercise of any of.the foregoing powers. Notw{thstandlns the foregoing, the surviving spouse shall have the power to compel the Trustee to dispose of any assets Ln the survivor's trust which fail to provide a reasonable income to the surviving spouse as income beneficiary, G. Upon any dLvisLon or partial or final dLstributLon of the trust estate, to partition, allot, and distribute the trust estate in undivided interests Or in kind, or partly in money and partly in kind, at valuations determined by. the Trustees, and to sell such property as the Trustees may deem necessary to make such division or distribution. In making any division or partial or final distribution of the trust estate, the Trustee shall be under no obligation to make a pro rata division, or to distribute the same assets'to the beneficiaries similarly situated; bu%'rather, the Trustees may in the Trustees' discretion, make a non pro rata division between trusts or shares and non pro rata distributions to the beneficiaries thereof, as long as the respective assets allocated to separate trusts or shares, or distributed to the beneeiciaries thereof, have equivalent or Proportionate market value. The income tax bases o~ assets allocated or distributed no~ pro rata need not be equivalent and may vary to a greater or lesser amount, as determined by the Trustees in their discretion, and no Page 23 adjustment need be made to compensate for any difference bases. H. The determination by the Trustees in all matters with respect to what shall constitute principal and income of the trust estate and the apportionment and allocation of receipts and disbursements between these accounts shall be ~overned by the provisions of the Principal and Income Law of the State of California as it may from time to time exist, except as to any of such matters as may otherwise be provided for in this instrument. In the event and to the extent that any of such matters is not provided for either in this instrument or in the principal and Income Law, it shall be de~ermined by the Trustees in their discretion. The Trustee shall amortize premiums and accumulate discounts. All distributions of investment trusts derived from profits on the sale of securities stated in writin~ to be such by the payin~ corporation or investment trust shal{ go to principal. The Trustees shall not set aside out of income a reserve for depreciation, obsolescence, repair, replacement, or improvement of any capital assets contributed to this trust during ALLEN L. LAWS's or FLORENCE WINDSO~ LAWS's l%fetimes or by will upon the death of either. If the Trustees thereafter acquire any property subject to depreciation, amortization, or depletion, a reasonable reserve shall be maintained therefor, which reserve shall constitute a part of the principal-of the trust. All Trustees' fees, attorneys' fees, and investment counsel fees Pa~e 2~. by-the-trust shall be charged to principal. I. To cause any'securities or other property to be held by a custodian (includinE without limitation a bank or trust company) in a custodial account, or in the name of a nominee (includin8 without limitation a nominee brokerage firm), or in such form that title will pass by delivery. J. To appoint proffessional, independent,= and disinterested investment counsel and t° delegate to such inveStment counsel such investment powers and responsibilities as.the Trustees deem proper. Such powers and responsibilities may include directing the purchase and sale of securities, determining the minimum or maximum prices at which such securities shall be sold or purchased, and selecting a broker or brokers to be employed in connection with the sale and purchase of securities. Neither the T=ustees, hOC any person dealing with'the Trustees or the investment counsel, shall incur any liability to any beneficiary of the trust for following the recommendations or directions of the investment counsel, and the Trustees..the investment counsel, or any persons dealing with them, shall not incur any liability to any beneficiary asserted on the grounds that the appointme~t of the investment counsel and the compliance with its recommendations and directions constitute an improper de~egation of fiduciary duties by the Trustees. The investment counsel appointed by the Trustees shall be entitled to a reasonable fee payable by the trust for its services as determined by the Trustees. Any investment counsel shall have the right to resign at any time. The appointment and authority of an investment counsel shall continue until the Trustees. by affirmative action, terminate such appointment and authority'.' As used herein the term ,,professional, independent, and disinterested investment counsel" shall mean counsel who are not personally or financially interested in the purchase or sale of securities but.are only paid compensation or fees for their services. K. To purchase in their discretion at less than par obliSatiOns of the United States of America that are redeemable at par in payment of any federal estate tax liability of the deceased Trustor in such amounts as the Trustees deem advisable, and for that purpose the Trustees may partition a portion o~ the. community property of the trust estate and make such purchases from either or. both portions. The Trustees shall exercise the Trustees' discret£on and purchase such oblisations if the Trustees have reason to believe that either Tcustor is in substantial danger of death, and may borrOw funds and give security for that purpose. The Trustees shall resolve any doubt concernin~ the desirabll{ty ofmaking the purchase and its amount in favor of making the purchase and in purchasing a lar~e~, even though somewhat excessive, amount. No Trustee shall be liable to the deceased Trustor, any heir of the deceased Trustor, Or any beneficiary of this trust for losses resulting from purchases made in goo4 faith. The Trustees' are directed to redeem any such obligations that are Pa~e 26 extent possible in payment ,oE Eederal estate tax liability o~ the deceased Trustor. Notwithstanding any.thing in this instrument to the contrary, the Trustee is directed, to pay the Eederal estate tax due on the deceased Trustor's death in an amount not less than the par .value plus accrued interest oE such obligations that are eligible ~or redemption in payment of the deceased Trustor's taxes, without apportionment or charge against any.bene~iciary o~ the trust estate or transferee oE property passin& outside the trust estate. The legal representative of the deceased Trustor's estate, or if none was appointed, the Trustee acting · under this instrument, shall select the redemption date oE such obligations. The direction to use accrued interest on Treasury bonds for payment oE death taxes shall not deprive the surviving spouse of any income to which the surviving spouse may be entitled pursuant to the provisions of the survivor's trust created hereunder, and such income shall be taken into consideration in determining the share of income to which the surviving spouse is entitled under the terms of such trust. L. To purchase ~nd carry securities on margin which purchase would involve a loan to the trust and a pledge of the securities in the margin account as collateral Eot the loan; and which could obligate the trust to meet margin callS. M. E~cept as otherwise speciEicsllY provided in this instrument, or in the Trustor's wil~, Eederal estate taxes imposed on or by reason o~ the inclusion of any portion of the ?age 27 trust estate Ln the gross taxable estate the provLsLons of any federal tax law shall be paLd by Trustee and charged: to, prorated among, or recovered from the trust estate or the person en~Ltled to the beneELts under these trusts as and to the extent provLded by any app1Lcable tax law or any proratLon statute. Except when otherwLse specLfLcalLy provLded, state death taxes shall be. paLd and charged to the trust estate or deducted and collected as provided-bY law. N. When two co-trustees are actLng as Trustees 'hereunder, eLther Trustee ac:Lng alone may sLgn checks Ln checkLng savLngs accounts on behalf of :he trust. The Trus:e~'s'~a¥ authOrtze BONNIE L. SMITH and/or KENNETH L. L~W$ actLng together or alone , and not Ln a capacLtY as a Trus:ee, to checks Ln checkLng or savings accounts on behalf of the trust. O. The enumeratLon of certaLn powers of :he Trustees shall no: 1LmL: :halt general or Lmp1Led powers, and :he Trustees, subject always to the dLscharge of fLductary oblLga:Lons, are vested wtth and shall have all of the rL&hts~ powers, and prLvL~e&es whLch an absolute owne: of the same property would have; p:ovtded, however, fha: none of :he foregoLng powers shall be cons:cued to allow :he Trustees to transfer trust property to any person, other than the desLgnated :rust benefLciarLes Ln accordance wtCh the provLsLons of the trust, wtthout receLvLng fall and adequate oE the Trusto= the ~ consLderatLon. // Page 28 'ARTICLE ×IV GEN£KAL PROVISIONS The following additional provisions shall apply to the trusts and the trust estates'created hereunder: A. The interests of beneficiaries in principal or' income of the trust, or any part thereof, shall not be subject to claims of their creditors or others nor to legal process, and may not be voluntarily or involuntarily alienated or encumbered; provided, however, that this paragraph shall not prevent the relinquishment or transfer, in whole or in part, of any beneficiary's interests hereunder by such beneficiary to any other beneficiary or beneficiaries of this .trust. B. Income accrued or unpaid on trust property when received into the trust shall be treated as any other income. C. The Trustee may make payments to any beneficiary under disability by making them to the guardian or conservator of the person 'of the beneficiary, or directly, to the beneficiary, or may apply them for the beneficiary's benefit. 'In the case of'a beneficiary who has not reached twenty-one (21) years of age, payments, may also be made to either parent, or may be made directly tO such beneficiary,-if, in the Judgment of the Trustee, he or she is sufficiently mature to use the same judiciously. D. The term "issue" whenever used in this instrument shall mean lawful lineal descendents and shall include legally adopted children who were minors at the time of their adoption. Page 29 E. Upon the death of any beneficiary (other than the : surviving spouse with: respect to the survivor's trust), any accrued or undistributed income which would have been payable to such beneficiary had such beneficiary continued to live, shall be paid to the person or persons who may be entitled to the payment of income on the day on which income next is payable, or who may be entitled to the transfer of principal upon such beneficiary's death.. This provision shall not apply to income accrued on Treasury bonds redeemed in payment of the sucvivLn$ spouse's federal estate tax. F. Until the Trustee shall receive written notice of any birth, marriage, death, or other event 9pon which the right to payments from this trust may depend, the Trustee shall incur no 1Lability to persons whose interests may have been affected by that event for disbursements made in good faith. G. The Trustee shall be fully protected in any action or nonaction taken, permi, tted, or suffered Ln good faith and .in accordance with the opinion of counsel, and in case of legal proceedings involving the Trustee or the principal or income of the trust estate, the Trustee may defend such proceedings, or may, upon beins advised by counsel that such action is necessary or advisable for the protection of the'interests of the Trustee or of the beneficiaries, institute any legal proceedings. H. Unless terminated earlier in accordance with other provis'ions ·of this Lnstrument, all trusts created under this Page 30 instrument shall terminate 21 years after the death of the last survivor of Trustors' issue living on the date of the death of the first Trustor to die. The principal and undistributed income of a terminated trust shall be distributed to the income beneficiaries of that trust in the same proportion that the beneficiaries are entitled to receive income when the trust terminates. If at the time of termination the rights to income are not fixed by the terms of the trust, distribution under this clause shall be made, by right of representation, to the persons who are then entitled or authorized, in the Trustee's discretion, to receive trust payments. I. ff any provision of this trust shall be held invalid or unenforceable, the remaining provisions thereof shall continue to be. fully effective. J. This trust'has, been accepted by the Trustees and shall be administered in the State of California, and its validity, construction, and all rights thereunder shall be Eoverned by the laws of that state. K. The Trustee, and any income beneficiary% but not a remainderman'or any.other person, may petition the Superior Court of the State of California, in and for the county in which this trust is being administered, with respect to any of the matters listed in Section 17200 of the California Probate Code, and to the extent herein expressly provided, but not otherwise, this trust shall be subject to the provisions of DiviSion 9 of said Probate Code. Page 31' L. The masculine, feminine, or neuter gender, and the singular or plural number shall each include the others whenever the context so indicates. ARTICLE XV USE AND SALE OF RESIDENTIAL REAL PROPERTY If real property referred to En paragraph D of Article VII hereof is held in any trust estate created hereunder (excluding the exemption trust), then the Trustors, or the surviving TrustOr, shall have the ri~ht to occuPY such 'real property, rent free. The Trustors, or the survivin~ Trustor, :shall pay all real property taxes, mortsase or trust deed .:paymentS, and all expenses of maintenance and repair of such real propertY. No sale of any such real property shall be made without the consent of both TrustOrS if they are competent, nor without the consent of the survEvEn~ Trustor if such survivor In addition, the TrustO~S, or the surviving ~s competent, ch real TrustOr, shall have the ri'hi t° direct a sal~ ~p[~ty, the err · Upon any sale of a parcel. Of such prop Y ..... ~, mmv be used to purchase another et cash proceeds o~ such ~- --- ' n - : : . - ~-- -esEdentEal purposes rcel of real property to ~e uses ru~ ~ pa -ull time or part-time bases, includin~ resort (whether om a r - - property) i~ the Trustors, or the surviwin~ Trustor, so elect. : A~TICLE XUI FLOreNcE WINDSOR LAWS is sometimes NAMES OF TRUSTORS AND TRUSTEES ALLEN L. LAWS ~s somet'Emes 'known aa ALLEN LEE lAWS and known aa FLORENCE W. LAWS. ~F page 32 Executed at this /~.:c. day o~ October, 1987. ,, California AL~EN L. ~AWS ..,, ;?,~' ,I~-~ ~ ,. .- , . FLORENCE WINDSOR LAWS Trustors Trustees STATE OF CALIFORNIA COUNTY· OF /%D~M~.I:' · on ncTn~ ER 1~_. ! 987 ~... -.......,..~i;n.,. No..~. ~,l~ in a.d ~ personally known to me Or.grov~ tO mi on ~l ~lil of Mtl~ ~l~ to ~ the ~n(I) .~. sub=rind to ~e wim'in Instm~nt I~ ~k~ mit .~Ey.~,~ exit. the w;;.;~~=~. TO NE ON ~E BAS[S OF SATISFACTORY EV[~ENCE.~ .:..-....,., .~:... ~ ~,:,--' .._., ~:.. '- [ ~ '~ , ~ ' .,~ (~eal} ..' ' ·: ~:-'.~ .,." '.: · '..: · .... '.~.' ,.', C . ' ~ "-" "~': :.0TM ': ' "' - :' '=0 ..... O~3ZO0 ~-I~* Z~ ~ tn~Jvl~uM Notarial Acknowl~ment Page 33 REV-1511 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER LAWS, FLO~_~NCE W 21-2003-0329 Debts of decedent must be reported on Schedule I. ITEM NO. A. 1. 2 3 5. 6. 7. DESCRIPTION FUNERAL EXPENSES: HOFFMAN- ROTH KENNETH LAWS -REIMBURSE FOR FUNERAL DINNER BONNIE SMITH - REIMBURSE FOR TRAVEL TO FUNERAL ADMINISTRATIVE COSTS: Personal Representative's Commissions Name of Personal Representative(s) Social Security Number(s)/EIN No. of Personal Representative(s) Street Address City State Zip Year(s) Commission Paid: Attorney Fees Name: FRANCES DEL DUCA Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State Zip Relationship of Claimant to Decedent Probate Fees Accountant's Fees Name: Tax Return Preparer's Fees REGISTER OF WILLS - FILING FEE BOYER & RITTER TOTAL (Also enter on line 9, Recapitulation) AMOUNT 75.00 245.00 428.00 0.00 11,000.00 0.00 0.00 2,500.00 0.00 15.00 14,263.00 0 PA15111 NTF 33308 (If more space is needed, insert additional sheets of the same size) Copyright 2000 Greatland/Nelco LP- Forms Software Only hE~-~512 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS ESTATE OF FILE NUMBER LAWS, FLORENCE W 21-2003-0329 Include unreimbursed medical expenses. iTEM NO. DESCRIPTION AMOUNT 2 3 4 PHARMERICA - MEDICINES CHECK TO AMER LUNG ASSOC SPRINT - PHONE BILL (NET) BOYER & RITTER 207.00 20.00 32.00 1,190.00 TOTAL (Also enter on line 10, Recapitulation) $ 1,44 9.0 0 (If more space is needed, insert additional sheets of the same size) 0 PA15121 NTF 33309 Copyright 2000 Greatland/Nelco LP- Forms Software Only REV-1513 EX+ (9-00) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES ESTATE OF FILE NUMBER LAWS FLO_W__~NCE W 21 - 2003 - 0329 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE II TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] LAWS, KENNETH 10 DOUGLAS COURT CARLISLE, PA 17013 , LAWS SURVIVOR'S TRUST C/O KENNETH LAWS 10 DOUGLAS CRT CARLISLE, PA 17013 SON TRUST 3,282.00 261,559.00 ENTER DOLLAR AMTS. FOR DISTRIBS. SHOWN ABOVE ON LINES 15 THROUGH 18~ AS APPROPRIATE, ON REV-1500 COVER SHEET NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SEC. 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 0.00 TOTAL OF PART II -- ENTER TOTAL NON-TAXABLE DISTRIBS. ON LINE 13 OF REV-1500 COVER SHEET $ 0 o 0 0 (If more space is needed, insert additional sheets of the same size) Copyright 2000 Greatland/Nelco LP- Forms Software Only 0 PA15131 NTF33293 BUREAU OF ZNDTVZDUAL TAXES ZNHER/TANCE TAX DTVZSZON DEPT. 180601 HARRTSBURG, PA 17118-0601 HICHAEL B DEVLIN BOYER 8 RITTER PO BOX 668 CARLISLE COHHONWEALTH OF PENNSYLVANIA DEPARTHENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAZSENENT, ALLONANCE OR DZSALLONANCE OF DEDUCTIONS AND ASSESSNENT OF TAX ~'~ ' ~' DATE t? ESTATE OF DATE OF DEATH , ~ ~'ZLE NUHBER '03 JUL 28, /:, >, ?~COUNTY ACN 07-28-2003 LAWS 01-15-2003 21 03-03Z9 CUHBERLAND 101 Amoun'~ Remitted REV-i~i? EX AFP COl-OS) FLORENCE HAKE CHECK PAYABLE AND REHZT PAYNENT TO: REGISTER OF WILLS CUHBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THZS LINE ~ RETAZN LOWER PORTION FOR YOUR RECORDS ~ REV-l$47 EX AFP (01-03) NOTICE OF INHERITANCE TAX APPRAISEHENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTTONS AND ASSESSNENT OF TAX ESTATE OF LAWS FLORENCE WF]:LE NO. 21 03-0329 ACN 101 DATE 07-28-2003 TAX RETURN NAS: (X) ACCEPTED AS F/LED ( ) CHANGED RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Es~a*e (Schedule A) (1) 2. S~ocks and Bonds (Schedule B) (2) 3. Closely Held S~ock/Per~nership Zn~eres~ (Schedule C) ($) ~. Not,gages/No,es Receivable (Schedule D) (~) 5. Cash/Bank Deposi~s/Nisc. Personal Proper~y (Schedule E) (S) 6. Jointly O~ned Proper~y (Schedule F) (6) 7. Transfers (Schedule G) (7) 8. To~el Asse~s APPROVED DEDUCTIONS AND EXEHPTIONS: 9. Funeral Expenses/Ada. Cos~s/Hisc. Expenses (Schedule H) (9) 10. Deb~s/Hor~gaga Liabilities/Liens (Schedule 1) (10) 11. To,al Deductions 12. Ne~ Value of Tax Ra~urn .00 .00 .00 368.00 4~237. O0 3~ZGZ. O0 Z7Z~666. O0 (G) 14,263.00 1,449.00 (11) (12) NOTE: To /nsure proper credi~ ~o your account, submi~ ~he upper por~ion of ~h/s fore ~i~h your ~ax payeen~. Z80,553.00 15.711.00 264,841.00 1:5. 1~.. NOTE: ASSESSHENT OF TAX: 15. Amoun'l: of Line 1~ a~ Spousal ra~e 16. Amoun~ of Line 1~ ~axable a~ Lineal/Class A ra~:e 17. Amoun~ of L/ne 1~ a~: Sibling ra~e 18. Amoun~ of Line 1~ ~axable a~ Collateral/Class B ra~o 04-14-2003 04-14-2003 06-19-2003 Charitable/Governmental Bequests; Non-elected 911:5 Trusts (Schedule J) (1:5) Ne~ Value of Es~a~e Subjec~ ~o Tax (lq) If an assess.ent ~as ~ssued previously, ZSnes :/4, ~5 and/or 16, 17, reflect figures that include the total of ALL returns assessed to date. DISCOUNT (+) /NTEREST/PEN PAID (-) 352.63 239.47 .00 19. Principal Tax Due TAX CREDITS: PAYMENT KI~CEZPT DATE NUNDER CD002443 CD002708 .00 264,841.00 18 and 19 will (1..;) .00 x 00 = .00 (16) 264,841.00 x 045= 11,917.85 (17) . O0 x 12 = . O0 (18) .00 x 15 = .00 (19)= 11,917.85 ZF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDIT/ONAL /NTEREST. AHOUNT PA/D 6,700.00 4,550.00 75.85 TOTAL TAX CREDIT I I BALANCE OF TAX DUE INTEREST AND PEN. TOTAL DUE 11,917.95 .1OCR .00 .1OCR ( IF TOTAL DUE 1S LESS THAN $1) NO PAYNENT ZS REQUIRED. ZF TOTAL DUE IS REFLECTED AS A 'CREDIT" (CR), YOU NAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORN FOR INSTRUCTIONS.) RESERVATION: Estates of decedents dying on or before December 1Z, 198Z -- if any futura interest in the estate is transferred in possession or enjoyment to Class B (collataral) beneficiaries of the decadent after thm expiration of any estate for life or far years, the Commonaealth hereby expressly reserves the right to appraise and assess transfer Inheritance Taxes at the lawful Class B (caIlataral) rate on any such future interest. PURPOSE OF NOTICE: PAYNENT: REFUND (CR): OBJECTIONS: ADHIN- ISTRATIVE CORRECTIONS: DISCOUNT: PENALTY: INTEREST: To fulfill the requirements of Section Z140 of the Inheritance and Estate Tax Act, Act Z5 of ZOO0. (TI P.S. Section 9140). Detach the top portion of this Notice and submit aith your payment to the Register of Hills printed on the reverse side. --Hake chock or money order payable to: REGISTER OF MILLS, AGENT A refund of a tax credit, ahich Has not requested on the Tax Return, may be requested by completing an "Application for Refund of Pennsylvania Inheritance and Estate Tax" (REV-ISIS). Applications are available at the Office of the Register of Hills, any of the Z3 Revenue District Offices, or by calling the special Z4-hour ansaering service for forms ordering: 1-800-36Z-Z050; services for taxpayers with special hearing and / or speaking needs: 1-800-447-30Z0 (TT only). Any party in interest not satisfied aith the appraisement, allaaance, or diselloeanca of deductions, or assessment of tax (including discount or interest) as sheen on this Notice must object mithin sixty (60) days of receipt of this Notice by: --aritten protest to the PA Department of Revenue, Board of Appeals, Dept. Z81021, Harrisburg, PA 171Ze-lOZ1, OR --election to have the matter datersined at audit of the account of the personal representative, OR --appeal to the Orphans' Court. Factual errors discovered on this assessment should be addressed in ariting to: PA Department of Revenue, Bureau of Individual Taxes, ATTN: Post Assessment Revise Unit, Dept. Z80601, Harrisburg, PA 17128-0601 Phone (717] 787-6505. Sea page S of the booklet "Instructions for Inheritance Tax Return for a Resident Decedent" (REV-1501) for an explanation of administratively correctable errors. If any tax due is paid .ithin three (3) calendar months after the decedant's death, a five percent (SI) discount of the tax paid is allowed. The 1SI 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 .ould appeal the tax and interest that has been assessed as indicated on this notice. Interest is charged beginning .ith first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. Taxes .hich became delinquent before January 1, 198Z bear interest et the rate of six (6Z) percent par annum calculated at a daily rate of .000164. A11 taxes .hich became delinquent on and after January l, 19aZ .ill bear interest at a rate mhich ,ill vary free calendar year to calendar year ,ith that rate announced by the PA Department of Revenue. The applicable lntarast rates for 1982 through ZOO3 ara: Interest Daily Interest Daily Interest Daily Year Rate Factor Yaa__r Rate Factor Yaa__r Rate Factor 198Z ZOZ .000548 1987 9X .000247 1999 7Z .00019Z 1983 16Z .000438 1988-1991 11Z .000301 ZOO0 8~ .000Z19 1984 llZ .000301 1992 9Z .000247 2001 9Z .000247 1985 i3Z .000356 1995-1994 7Z .000192 2002 6Z .000164 1986 iOZ .000274 1995-1998 9X .000Z47 ZOO3 5Z .000137 --Interest is calculated as folio.s: INTEREST = BALANCE OF TAX UNPAID X NUNBER OF DAYS DELINI~UENT X DALLY INTEREST FACTOR --Any Notice issued after the tax becomes delinquent .111 reflect an lntarast calculation to fifteen (15) days beyond the date of the assessment. If payment is made after the interest computation date sho.n on the Notice, additional interest must bm calculated. I, ( ~~ x ftJ~ Signatur ~<!.i L.. 'Sh:L-\-+O Name ICfO'1 Grfie/d S-h--ee.-f, Canr ~ 1\. /)A noli Address (711) 131- 3,239 Telephone No. - Register of Wills of Cumberland County STATUS REPORT UNDER RULE 6.12 Name ofDecedent: ?o.---\-c ~c...\0... ~ Dobt( (l 5 Date of Death: H.o.rc...h ~ lo ;;),00 d. I Estate No.: ~ \ - () d. - b '3 .1 g Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: 1. State whether administration of the estate is complete: Yes ~ No 0 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: 3. If the answer to No. I is Yes, state the following: a. Did the personal representative file a final account with the Court? Yes 0 No~' b. The separate Orphans' Court No. (if any) for the personal representative's account is: 1'0\ A c. Did the perso~epresentative state an account informally to the parties in interest? Yes J2S.l No 0 c. Copies of receipts, releases, joinders and approval offormal or informal accounts may be filed with the Clerk of the Orphans' Court and may be attached to this report. Date:~~\05 C'o-J Capacity: ~ Personal Representative o Counsel for personal representative uJf