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HomeMy WebLinkAbout09-23-11 (2)FAMILY AGREEMENT AND RELEASE ESTATE OF JOHN W. PHILLIPS This Agreement entered into this day ofy~~-f- , 2011, by and between Joseph C. Phillips and Michael J. Phillips as Executors under the will dated September 24, 1996, of John W. Phillips, Deceased, and Joseph C. Phillips and Michael J. Phillips, beneficiaries of the estate. For purposes of this agreement, when they are referred to in their fiduciary capacity, the term `Executors' will be used and, when they are referred to in their individual capacities, they will be referred to by their names. BACKGROUND WHEREAS, John W. Phillips ("Decedent") died on September 23, 2010, leaving a will dated September 24, 1996. WHEREAS, Decedent's will was admitted to probate by the Register of Wills of Cumberland County on October 1, 2010 and letters testamentary were issued to Joseph C. Phillips and Michael J. Phillips as co-executors. WHEREAS, in his will Decedent named his two children, Joseph C. Phillips and Michael J. Phillips, as the sole beneficiaries. WHEREAS, the executors advertised the grant of Letters Testamentary, prepared and fled a Pennsylvania Inheritance Tax Return and Decedent's federal and state personal income tax ,,-,returns and paid~the appropriate taxes thereon. ~_ ~,_-- ___ `,, .- .~ n_ - -; ~, ;, _ - ~ _; ~c G ~, :._ v WHEREAS, the executors have paid all taxes, debts and expenses of the estate known to them, and they have no knowledge of any unpaid claims, absolute or contingent, which may be asserted against the estate nor do they have any reason to believe there are any such claims. WHEREAS, a statement reflecting all estate assets, disbursements and distributions is annexed hereto as Exhibit A. WHEREAS, Joseph C. Phillips and Michael J. Phillips desire that this family Agreement (The `'Agreement") make unnecessary the filing of an accounting in the Orphan's Court Division of the Court of Common pleas of Cumberland County. WHEREAS, Joseph C. Phillips and Michael J. Phillips have reviewed the records of the executors, and based upon such examination, they have determined that they have sufficient information to make an informed decision to waive their right to an account. NOW THEREFORE, in consideration of the willingness of the executors to distribute and terminate the estate in accordance with the terms of the will without the protection afforded them by a formal adjudication of an Executors' account, Joseph C. Phillips and Michael J. Phillips, the undersigned beneficiaries, individually and with respect to their heirs, personal representatives, successors and assigns, do hereby: L Acknowledge that we have read this agreement and represent that the facts set forth above are true and correct to the best of our knowledge, information and belief. We further acknowledge that we are familiar with the provisions of the will of decedent; 2. Waive the filing of a formal account of the administration of this estate, in the Orphan's Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania; 3. Declare that we have examined the statement attached hereto as Exhibit A and find it to be true and correct in all particulars; accept and approve Exhibit A with the same force and effect as if it had been prepared and duly filed with, audited, adjudicated and confirmed absolutely by the Orphan's Court Division of the Court of Common Pleas of Cumberland County, and as if the balance of the principal had been awarded by said court in accordance with this agreement; 4. Warrant that we know of no outstanding and unsatisfied claims against the estate and approve the distribution as shown on the attached account; 5. Absolutely and irrevocably release and discharge the executors, their personal representatives, heirs, successors and assigns, from any and all actions, liabilities, claims and demands, including specifically, but not limited to, liability arising in connection with any mistakes of fact or law, or negligent or careless act or omission by the executors, in connection with the administration and distribution of assets shown in the statement, without a formal court account and adjudication; s 6. Agree that this agreement shall be governed by the laws of the Commonwealth of Pennsylvania. IN WI"INESS WHEREOF, we agree to be bound hereby and have signed this agreement this L; day of , 2011. ~~ ~~I ~~ Joseph C. Phillips, Executor ~: ~ .~ ._,. J. Phillips, Executor Joseph C. PhiJ,~z~ . Michael J. Phillips ~ EXHIBIT A FINAL STATEMENT OF ACCOUNT Estate of JOHN W. PHILLLIPS ESTATE ASSETS Personal Property 2009 Ford Ranger $18,879.00 Misc. Costume Jewelry $200.00 Clothing $100.00 Misc. Hiousehold Furniture $5,000.00 Total Personal Property $24,229.00 Cash Union National Bank CD 0140806962 $29,552.04 Union National Bank CD 0140806962 $42,710.64 Union National Bank CD 014080691 $18,879.00 M&T Bank checking 98433501715 $40.02 Auto Insurance Refund $989.00 Federal Income Tax Refund $1,432.00 Pa Income Tax Refund $116.00 Inheritance Tax Refund $g.gg Total Cash $93,727.59 TOTAL ASSETS $117,956.59 ESTATE EXPENSES Farrow Funeral Directors $2,871.26 Medical Bills $1,007.55 Cumberland County Register of Wills $385.50 Cumberland County Law Journal $75.00 Carlisle Sentinel $187.54 Inheritance Tax $17,885.38 Chase Credit Card $139.03 Fulton Bank charges $11.86 TOTAL EXPENSE DISBURSEMENTS $22,563.12 -$22,563.12 BALANCE FOR DISTRIBUTION TO BENEFICIARIES $95,393.47 DISTRIBUTION TO BENEFICIARIES Joseph C. Phillips 1/2 Ford Ranger Pick Up--in kind 1/2 Furniture--in kind 1/2 Clothing--in kind 1/2 Costume Jewelry--in kind Cash Total Distributed to Joseph C. Phillips Michael J. Phillips 1/2 Ford Ranger Pick Up--in kind 1/2 Furniture--in kind 1/2 clothing--in kind 1/2 Costume Jewelry--in kind Cash Total Distributed to Michael J. Phillips $9,439.50 $2,500.00 $75.00 $100.00 $35,582.23 $9,439.50 $2, 500.00 $75.00 $100.00 $35, 582.24 $47,696.73 $47,696.74 TOTAL DISTRIBUTI IONS TO BENEFICIARIES $95,393.47