HomeMy WebLinkAbout08-08-11 (2)IN RE: ESTATE OF : IN THE COURT OF COMMON PLEAS OF
SARAH MCCREA CHAPMAN :CUMBERLAND COUNTY, PENNSYLVANIA
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RESPONSE OF JOHN MCCREA, INDIVIDUAL CO-TRUSTEE,
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TO PETITION FOR RULE TO SHOW CAUSE
John McCrea, individual co-trustee, files the following Response to Petition For
Rule to Show Cause:
1-17. I admit the averments of paragraphs 1 to 17, inclusive.
18-24. I object to the averments of paragraphs 18 to 24, inclusive, on the ground
that said averments contain impertinent matter that has absolutely nothing to do with the
main thrust of the Petition---to reform the charitable remainder trust (CRT). The Court
should strike these averments and admit no evidence in support of these averments at any
hearing on the matter.
25. Denied. On the contrary, payments from the CRT have never been made to or
for any person or entity other than the designated life tenant, Alfred M. Chapman.
26-32. I object to the averments of paragraphs 26 to 31, inclusive, on the ground
that said averments contain impertinent matter that has absolutely nothing with the main
thrust of the petition---to reform the CRT. The Court should strike these averments and
admit no evidence in support of these averments at any hearing on the matter.
32-33. I admit the averments of paragraphs 32 to 33, inclusive.
34. Denied. On the contrary, nothing that the bank co-trustee either did or didn't
do with the investments of the CRT caused the trust to lose market value. The loss in
market value was, instead, caused by the global and national economic down fall that
began in 2008 and has continued for three years.
35. Admitted in part and denied in part. I admit that Alfred Chapman's expenses
have increased over the last several years. I deny that the only source of payment of these
increased expenses is the principal of the CRT. On the contrary, welfare programs
administered by the CoOmmonwealthof Pennsylvania may very well be a source for
payment of the expenses unfunded by the annual payments from the CRT.
36-40. I admit the averments of paragraphs 36 to 40, inclusive.
41. Denied. On the contrary, Decedent did not express any intent to provide for
the care, maintenance and support of Alfred Chapman in the testamentary provisions
which created the CRT and, therefore, did not countenance any reformation of the terms
of the CRT which would jeopardize the reasonable financial expectations of the five
charitable remainder entities. If the reformation of the terms of the CR'T sought by
Petitioners is granted, the result will likely be that the Internal Revenue Service will
revoke the charitable exemption originally allowed for the funds invested in the CRT and
assess federal estate tax on these funds, plus penalties and interest, thus depleting the
value of the CRT far more than the depletion caused by the current economic downfall.
WHEREFORE, I, in my capacity as individual co-trustee of the CRT, request
this Court to deny the Petition to reform the CRT, and to discharge and dismiss the Rule
to Show Cause heretofore issued.
Respectfully submitted,
M,~
J McCrea, individual co-trustee
P ox 341
Newville, PA 17241
Telephone 717.776.6656
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VERIFICATION
I, John McCrea, individual co-trustee, verify that the facts set6 forth in the
foregoing Response are true and correct. The language of the Response is my own. I
understand that false statements herein are made subject to the penalties of 18 Pa.C.S.
Section 4904 relating to unsworn falsification to authorities.
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Dated: Au ust 8, 2011 ~~~
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John rea
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CERTIFICATE OF SERVICE
I certify that I have served a true and correct copy of the foregoing Response to
Petition for Rule to Show Cause upon the following persons and in the manner specified
after each person's or entity's name:
Seth E. Mosebey, Esquire
10 East High Street
Carlisle, PA 17013
For co-trustee, M&T Bank
(e-mail to smosebey@martsonlawoffices. com)
James D. Flower, Esquire
10 West High Street
Carlisle, PA 17013
For St. Johns Episcopal Church
(e-mail to jim~~ower-law. com)
Michael T. Foerster, Esquire (e-mail to mfoerster@attorneygeneral.gov)
Office of Attorney General
Charitable Trusts & Organizations Section
14~' Floor -Strawberry Square
Harrisburg, PA 17120
For Pennsylvania Attorney General
Jeffrey R. Boswell, Esquire first class mail postage pre paid)
315 North Third Street
Harrisburg, PA 17101
For Henry Chapman, Karen Chapman & Katharine Chapman Michalka
Original Petitioners
Daniel L. Sullivan, Esquire (e-mail to dsullivan@ssr-attorneys. com)
Sullivan, Saidis & Rogers
26 West High Street
Carlisle, PA 17013
For Dickinson College, Brown University, and Pennsylvania State University)
The National Trust for Scotland (e-mail to information@uts. org. uk)
Hermiston Quay, 5 Cultins Road
Edinburgh, Scotland
United Kingdom EH 11 4DF
Episcopal Diocese of Central Pennsylvania
PO Boxl 1937
Harrisburg, PA 17108
Dated: August 8, 2011
first class mail postage pre paid)
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Jo cCrea
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