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Home My WebLink About12-01-11Y IN RE: IN THE COURT OF COMMON PLEAS OF HELEN MELL CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. a21- t ~- 12 ~5~6 t. - _:~ ~, • -~ ~.. -. p` ~ -~ ~~ r ~. DECLARATORY JUDGMENT AI~~ 4~ l A ~ _;. ._ t .___ „:~ __- - _ ,~ ~_ PETITION FOR DECLARATORY JUDGMENT ~ ?<? ---~ . ~ ~, PURSUANT TO 42 PA.C.S.A. 7535 1 ~ ~.,., f ~e r,. -- AND NOW, comes Sheryl Mell, Agent for Helen Mell, by and through their attorney, Michael A. Scherer, Esquire, and respectfully represents as follows: 1. No judge has been assigned to this case. 2. The Orphans Court has jurisdiction to hear this matter pursuant to 20 Pa.C.S.A. Section 711, which states that "the jurisdiction of the court of common pleas over the following shall be exercised through its orphans' court division: "711(22) Agents-All matters pertaining to the exercise of powers by agents acting under powers of attorney as provided in Chapter 56 (relating to powers of attorney)." 3. Helen Mell was born October 14, 1912, and is 99 years old. 4. Helen Mell has been a resident of Forest Park Nursing Home, 700 Walnut Bottom Road, Carlisle, Pennsylvania 17013 since October, 2010. 5. On March 7, 2003, Helen Mell signed a Power of Attorney naming Sheryl Mell as her agent. A copy of the Power of Attorney is attached hereto as "Exhibit A." 6. Sheryl Mell is Helen Mell's granddaughter-in-law. 7. Sheryl Mell is married to Helen Mell's grandson, Ronald Mell, Jr. n~ 8. The Power of Attorney mentioned above allows Sheryl Mell to engage in real property transactions on behalf of Helen Mell. 9. Helen Mell owns real estate situate at 399 Petersburg Road, Carlisle, Pennsylvania 17015. 10. Helen Mell previously resided at 399 Petersburg Road until approximately November, 2010, when she became a resident of Forest Park. 11. Since Helen Mell became a resident of Forest Park, her home on Petersburg Road has been vacant. 12. There is no mortgage on 399 Petersburg Road, however, taxes, insurance and maintenance expenses continue to accrue on the property. 13. There is little chance Helen Mell will return to 399 Petersburg Road. 14. A recent market analysis of Helen's home indicated a suggested list price of $52,900.00. The market analysis prepared by William Ohrum, of ReMAX. Helen Mell's indicates that the home is small and antiquated. A copy of the market Analysis is attached as "Exhibit B." 15. Due to its size, Helen Mell's home would be considered a starter home, however many upgrades are needed to the property and it is very doubtful conventional financing could be obtained for the property according to Sheri Mell-Motter, Helen's granddaughter, who is a loan officer with Sovereign Bank in Carlisle. 16. Helen's home has two small bedrooms and is in need of structural repairs, including electrical, plumbing and foundation work. 17. The cost to perform the structural repairs is approximately $25,000.00 according to the estimates from Armold and Son Excavation, P. Edward Mullin Construction and Central Penn Waterproofing, which are attached as "Exhibit C." 18. Helen Mell had three children: Raymond Mell, Polly Thompson and Ronald Mell, Sr. Raymond Mell and Polly Thompson are alive, and Ronald Mell, Sr. is deceased. 19. Ronald Melt, Sr. had three children, Russ Mell, Sheri Mell-Molter and Ronald Mell, Jr. 20. There are no other heirs of Helen Mell. 21. Ronald Mell, Jr. would like to purchase Helen Mell's house under an installment sales contract, since Ronald Mell, Jr. lives directly behind Helen's house. The sale price would be $30,000.00. 22. The only person who will not agree to the transaction is Ray Mell. A copy of his letter of objection is attached hereto as "Exhibit D." 23. Undersigned counsel wrote to the heirs of Helen Mell in an effort to obtain their consent to the transaction due to the inherent conflict of interest for Sheryl Mell to authorize the transaction on behalf of Helen Mell. A copy of undersigned counsel's letter to the heirs is attached as "Exhibit E." 24. Helen Mell's stay at Forest Park Nursing Home is funded primarily by the Department of Public Welfare. 25. DPW has a lien against Helen's estate for monies advanced to Forest Park for Helen Mell's stay. 26. DPW's lien was approximately $41,000.00 as of October 31, 2011, as set forth in "Exhibit F." 27. DPW would get the first $41,000 of Helen Mell's estate after administrative expenses were paid if DPW would not provide further assistance to Helen Mell hereafter. 28. Each month Helen Mell relies upon DPW assistance, the DPW lien grows by approximately $5,000.00. 29. Even if Helen Mell's DPW lien stopped increasing, it is likely that Helen Mell's heirs would not receive anything from Helen's estate. 30. Undersigned counsel wrote to DPW in order to get permission for the sale of Helen's home to Ronald Metl, Jr. pursuant to the proposed Installment Sales Contract. A copy of undersigned counsel's letter is attached as "Exhibit G." 31. DPW approved the transaction. DPW's approval letter is attached as "Exhibit H." 32. Undersigned counsel met with Helen Mell at Forest Park on October 18, 2011 and Helen Mell seemed to undersigned the nature of the transaction, the growing DPW lien and she consented to the transaction proposed herein. 33. The Declaratory Judgment Act, 42 Pa.C.S.A. Section 7531, provides that persons interested, as through a fiduciary, may have a declaration of rights or legal relations in respect thereto to direct fiduciaries to do or abstain from doing any particular act in their fiduciary capacity. See 42 Pa.C.S.A. Section 7535. WHEREFORE, Sheryl Mell requests that this Honorable Court issue a citation to the following persons to show cause why Sheryl Mell should not be able to execute an Installment Sales Contract to sell 399 Petersburg Road, Carlisle, Pennsylvania to Ronald Mell, Jr. for $30,000.00. Ray Mell 3119 Ritner Highway Newville, Pennsylvania 17241 Russ Mell 328 West Old York Road Carlisle, Pennsylvania 17015 Polly Thompson 505 Adams Road Carlisle, Pennsylvania 17015 Sheri Mell-Motter 251 Clay Road Carlisle, Pennsylvania 17015 Respectfully submitted, BARK SCHERER LLC _ ~~~ Michael A. Scherer, Esquire I . D . # 61974 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 .DURABLE GENERAL POWER OF ATT4RIVEY NQTfCiE THE PURPOSE OF THIS POWER OF ATTORNEY IS TO GNE THE PERSON YOU DESIGNATE (YOUR "AGENT"} BROAD POWERS TO HANDLE YOUR PROPERTY, WHICH 14AAY INCLUDE POWERS TO SELL flR OTHERWISE DISPOSE- 0f= ANY REAL OR PERSONAL PROPERTY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU. THIS POWER OF ATTORNEY DOES NOT IMPOSE A DUTY ON YOUR AGENT TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED, YOUR AGENT MUST USE DUE CARE TO AGT FOR YOUR BENEFIT AND IN ACCORDANCE WITH THIS POWER OF ATTORNEY. YOUR AGENT MAY EXERCISE THE POWERS GIVEN HERE THROUGHOUT YOUR LIFETIME, EVEN AFTER YOU BECOME INCAPACITATED, UNLESS YOU EXPRESSLY LIMIT THE DURAT{ON OF THIS POWERS OR YOU REVOKE THESE POWERS OR A COURT ACTING ON YOUR BEHALF TERMINATES YOUR AGENT'S AUTHORITY. YOUR AGENT MUST KEEP YOUR FUNDS SEPARATE FROM YOUR AGENT'S FUNDS. A COURT CAN TAKE- AWAY THE POWERS OF YOUR AGENT IF IT FINDS YOUR AGENT tS NOT ACTING PROPERLY. THE POWERS AND DUTIES OF AN AGENT UNDER A POWER OF ATTORNEY ARE EXPLAINED MORE FULLY IN 20 PA. C. S. CH. 56. iF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAND, YOU SHQULD ASK A LAWYER OF YOUR OWN CHOOSING TOEXPLAIN IT TO YOU. i HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE AND I UNDERSTAND ITS CONTENTS. MARCH 7, 2003 HELEN R. MELL "EXHIBIT A" DURABLE GENERAL POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, that I, HELEN R. MELL, of 399 Petersburg Road, Carlisle, Pennsylvania 17013, do by these presents make, constitute and appoint SHERYL MELL (hereinafter referred to as "my agent"), my true and lawful agent under a power of attorney, for me and in my name and on my behalf generally, to do and perform all matters and things, including, without limiting the generality of the foregoing, to transact all business, to make, execute, acknowledge, endorse and deliver all deeds of conveyance, certificates of stock, bonds, car titles, releases of lien or satisfaction of bonds and mortgages, contracts, orders, releases, checks, notes and endorsements, transfers and assignments of any such contracts, specifically including but in no way limited to the execution in my name of checks or orders of any nature for the withdrawal of funds standing to my credit in any type of account in any bank, building and loan association or other financial institution, and also to deposit in any accounts in my name in any such institutions any money, funds, checks or drafts, payable or belonging to me; to enter my safe deposit boxes in any and all banking institutions and to establish new safe deposit boxes and to add to and to remove any of the contents thereof; to borrow money and to mortgage, pledge or hypothecate any property, real or personal, now or hereafter owned by me as security therefore; to buy, sell possess, insure, manage, maintain, improve, lease, mortgage, pledge, encumber, convey and otherwise dispose of, or take any other action with respect to, any property, real or personal, now or hereafter owned by me, on such terms and conditions as my agent may consider appropriate, and in the event of sale of any of my real estate, to execute the safes agreement and the deed in my name and to make settlement and receive the proceeds; and to prepare, execute and file any tax returns, governmental reports and other instruments of whatever kind, and likewise to execute any and ail writings, assurances, instruments or documents which may be requisite or proper to effectuate any matter or thing appertaining or belonging to me. I hereby authorize my agent to contract with and arrange for my entrance to any hospital, nursing home, health center, convalescent home, residential care facility or similar institution, to authorize medical, therapeutic and surgical procedures for me and to pay all bills in connection therewith. GIVING AND GRANTING unto my agen# full authority and power to do and perform any and all other acts necessary or incident to the performance and execution of the powers herein expressly granted, with power to do and perform a(I acts authorized hereby as fully to all intents and purposes and with the same validity as I might or could so if personally present, hereby ratifying and confirming whatsoever all that my agent shall lawfully do or cause to be done by virtue hereof. AND, I hereby declare that any act or thing lawfully done hereunder by my agent shall be binding on myself and my heirs, legal and persona! representatives and assigns. AND, if incapacity proceedings for my estate or person are hereafter commenced. I hereby nominate my agent to be appointed the guardian of my estate or person by any court having jurisdiction in accordance with the provisions of Section 5604 (c) (2) of the Probate, Estates and Fiduciaries Code. This Power of Attorney shall continue in force and may be accepted and relied upon by anyone or any entity to whom it is presented despite my purported revocation of it or my death, until actual written notice of any such event is received by such person or entity. fn the event of my incapacity from whatever cause, this Power of Attorney shall not thereby be revoked but shall thereupon become irrevocable and may be accepted and relied upon by anyone or any entity to whom it is presented despite such incapacity, subject only to it becoming void and of no further effect only upon receipt by such person or entity either of (1) written evidence of the appointment of a guardian (or similar fiduciary) of my estate following adjudication of incapacity, or (2} written notice of my death. This Power of Attorney shall not be affected by my subsequent disability or incapacity. This power of attorney shalt rescind and revoke any other powers of attorney previously made by me. fN WITNESS WHEREOF, {have hereunto set my hand and seal this 7`h day of March, 2003. WIN SED BY: (SEAL) HELEN R. MELL COMMONWEALTH OF PENNSYLVANIA :SS: COUNTY OF CUMBERLAND 4n this, the 7T" day of March, 2Q03, before me, the undersigned officer, personally appeared HELEN R. MELL, known to me or satisfactorily proven to be the person whose name is subscribed to the within instrument, and acknowledged that she executed same for the purposes therein contained. Notary Public NOTARMl.4E/lt pIAA01.D $. IRIMIlV.1M, Nl7TAp'Y PlJBl1C OI~MlE ~OROU6l1, COtIr1iY OF q!Ml81LMIp t~tC6tN~8101101PIti~304`106Ei;2~2006 ACKNOWLEDGMENT BY AGENT I, SHERYL MELL, have read the attached Power of Attorney executed by HELEN R. MELL and am the person identified as the Agent for the PRINCIPAL. 1 hereby acknowledge that in the absence of a specific provision to the contrary in the Power of Attorney or in 2Q PA. C. S. when I act as Agent: I shall exercise the powers for the benefit of the PRINCIPAL. i shall keep the assets of the PRINCIPAL separate from my assets. I shalt exercise reasonable caution and prudence. I shall keep a full and accurate record of all actions, receipts and disbursements on behalf of the PRINCIPAL. March 7, 2003 ERYL L COMMONWEALTH OF PENNSYLVANIA :SS: COUNTY OF CUMBERLAND On this, the 7t'' day of March, 2003, before me, the undersigned officer, personally appeared SHERYL MELL, known to me or satisfactorily proven to be the person whose name is subscribed to the within acknowledgment and acknowledged that she executed same for the purposes therein contained. WITNESS my hand and seal the day ar}d yey r aforesaid. Public - - ....r....,.,._ N~iY1FMAt.BEiN,. t~UR01.D S. IRIAI~1, M. N0~'lIR1f PtJeI.IG Ca1~l9t~ 80NOIIt~ tiQfAllr OF gN1~Jlt~ NIY Ly~1011 Ol~t~i 2~ a001# ~.~..., ® Seller's Estimated Proceeds Pro~~osed Selling Price 1 st ,~ lortgage Title Insurance Brokerage Fee Horr a Warranty Policy Terry cite Inspection DocL meet Preparation/Estate Deed ~ppr.Iisal Fee Transfer Tax to State of PA Tram action Fee to RF,/MAX A-1 Realty, Inc. peptic: Pump/Clean Apprc xima.te Net Proceeds DISCLAIMER Items and amounts presented are estimates only. Williun Ohtvtn, CSP, CDPE, O~ce.•''17-432-1436 Office f ax.• 717-432-8187 Direct717-502-8929 CeUu/~r•717-571-9455 Emai/.• ~ ohrum@remaxnet Each Of'ice Independently Owned and Operated. "EXHIBIT B" RE/MAlE Jul 20 11 05:55p Armold $ Son Excavation Armold & Son Excavation,LLC 556 Roxbury Rd. Newville, PA 17241 PA021789 Name (Address Ronald Mell p.o. # Term s Description Backhce Moving Fee Backhae Services Precast Steps With Be[co Doors & Installation /Yri~rold SE Son Excavation,ttC 7177767749 p.2 Date 7l20lz011 Estimate # 48 Due Date 7/2012011 Other Qty Rate Total 1 100.00 100.00 2.5 85.00 212.50 1 2,978.30 2,978.30 Subtotal $3,290.80 Sales Tax (0.0%) $0.00 Total $3,290.8D 717-776-5322 717-776-7749 "EXHIBIT C" Jul 20 11' 05:55p Armoid 8~ Son Excavation Armad & Son Excavation,LLC 556 Roxbury Rd. Newvilfe, PA 17241 PA021789 iVame /Address Ronald Mell P.O. #, Term s Description Service Call Excavation Labor V 100 Tank 112" Broiler Drain Tank lee 1" Check valve 114"X4" Bress Nipple Pressure Refief Valve Pressure Switch Pressure Gauge artnotd & Son Excavatior~,ttC 717706 / l49 p..~ Date 7120/201 f Estimate # 49 Due Date 7/20V2011 Other Qty Rate Total 1 50.00 50.00 1 50.00 5 D.00 1 294.59 294.59 1 6.94 6.94 1 45.50 45.50 1 30.32 30.32 1 3.26 3.26 1 8.23 6.23 1 18.84 18.84 1 4.67 4.67 5 u btotal 5512.35 Sates Tax (4.096} $0.00 Total 5512.35 717-775-5322 717-776-7749 P. Edward Mullin Construction & Maintenance v ~~ ~ ~ 128 Woods Road pA075136 Newville, PA 17241 {717) 776-4085 i j `{717} 713-4048 cell ,~ 2~, ~,~, Name tn~ ~~f ~. Ld, Date ,~ ~ Address. ~~~ ~Y~~r.`~~--~ Phone Quanti Descri tion Unit Price Amount ,~ r .1°.yFI+C+~ ~ d ri ' f ..sV ro ~ c:. /~f. //r~' //~~ r... .'~ 5 i/ f' I i Sub Total Tax 1-1/296 Per A(Ontt1 Added After 30 Days Total ~,.. /~ ll ~j ) / ~ • ~ ~' !) Gti..-'( f JU~Gf f'~'~2~~ ~•' tJ ~ ~/~l (/ ~~ C. ~.i !' VS.~.~~~! ~i ~ ./L, (•.~ / ,ri ~'£' l"~ I f' br^' ~/~~ C~ t y i .~ ~~ i `F i r .-,4 ~~ _~ ~ru~IISttl Harrisburg 728-9550 Reading 372-9001 York 843-5396 Central Penn Lebanon 272-5446 Lancaster 399-0050 Williamsport 327-1994 Cafiisle 243-7195 Sunbury 286-2878 Chambersburg 264-2742 Waterproofing State College 814-237-1797 Scranton 570-341-7000 West Chester 610-429-9924 Allentown 610-435-4420 800-531-6793 s To i tted Propp~.sal Subm` Phone (HOME) ~ i -~ r,~.,:? ~~ _ n 7 y~i Del'eryald ,r } ~ /{ 1 +~ e'I ~~/ ~ ~.~ l I Phone (WORK) / _ ~ /~ . ~ ~ Street } Job Name City, ,state and Zip , de Job Lo~,~tion We hereby submit specifications and estimates 11 Opening to Cut ps of WaN Finish ) ~ ,A Block Wall Plain d Wall O Wo ^ Panelin ,, ~ ~~ o g ^ Other ^ Plaster Board ^ Other __. ' y e of W ii r yp a ~j Block pe of Floor Finish ~ O Pour Concrete Concrete O 8ridr ^ Til e ^ Other ^ Carpeting ^ Other S stem to Drain into Sump Pump Obstacles to go around O Floor Drain O Soil Pipe O Sump Pump ^ Plaster ~ (to be installed Hot WaterHeater by owner) ^ Oil Tank O Behind O Oilier ^ Other Material Ouant' Su r Pum ' 114 Pi Floor Crack i Tlla D n ra kY 'etsim OIMr The cantrarsor's representative has fuyy eaplaklad dsa merits d the Preswre Rdief system. l understaW the Prasatre Relief system will remedy the problem wYh water seepage coming from walla a below floor slab. l fully urttlerstand Use warrenry esirls tis issued upm comPMUOn d scary job and accept sre wanaMy wflich is Iransfeerrabls to futtue have owners for Ilia rhlration d the warranty. There will be no Burgs fa service pas which are leeks in ste Pressure RaYef system ar+erad under the eete7rMlt Any sanioe pYs whidt are net leaks n ate syaNm a leaks from damage ar abuse will be charged t50 minimum and t25 Der man hour a anY service whiCs does rat irtrLlde labor far pwnp service. SrenP Pumps ero CoeRed under manu4ekrer's wenyMy, Inatallaaen d the Prsswre Rdid alone will nd d'uninale moisture eased by mtdartsatlort. WarrarNy does nd a1Mer nMaal disasters. taaricarses, fI00dB. etc. Applying irNerlar adl sealers alone wIH na raR01w vraNr seepage due to high Water table, hydrostaBc preesus. er Qonde7lsalitln prcblens. InstaasliM d the syskan doss not include pdn6rsg. 6nishsd t9rparltry, eleehk hodtrlp, a riaphoemenl d floor file or carpeting tallaDa spedfied. Payment to be made upon oonrpietlon. ~elI~11rapns~~ereby to f rn/jsh matgrial atnd 1 Co plate in accolydance with above specificati ~Af~tim of: 1 (~II"~/~~Vti Ot~.SG.•~(,-~ T CJ4t / IlrrvH t3 ~CeL !+'1 f ~fr~ ~" ~ c{ I~LT' dO11afS ($ ~~J ) f- i . I / . All material is uaranteed to be as specified. All work to be wmplsted in ~ ~ ~ y g Authorized ''f ~ %' ~ ~_ a workmanlike mariner according to dte standard practises. Arty alterations ~+ ~ p' -~~ ' , .) or deviations hom above specifiications involving s:tra costa will bs Slgftature executetl only upon strikes, accidents or delays beyond our control. Note: This proposal may be withdrawn by us if not accepted within days. ~tteptttttte of ~rupasrtl -The above prices, specifications and conditions Signature are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Date of Acceptance: Signature Observations regarding Ron Mell's proposal to purchase Helen Mell's real estate: 1. DPW's approval of the proposal should be discussed in light of the fact that DPW stands to collect all monies due for Helen Mell's care through this agreement in light of Ron Mell's agreement to °obtain a roan to pay all monies due DPW upon I-~e~len Men's death. If the real estate were to be sold on the open market DPW would have to settle for the revenue from that sale, regardless of the amount due for care at the time of Helen Mell's death. . -Aaa ~xtrerx~e eo~a#Iact of -interest exkst~s r€gardaa~g -Ron -Meld's proposaa. aaad Sl~ery~l -Mel.1's. current role in making financial and health decisions for Helen McII. If the proposal were approved, the longer Helen Mell lives the more Ron Mell will owe DPW. The conflict of interest exists in that Sheryl Mell would be making all health care decisions leading up to Helen Meld's death. ~. l~lowhere in the proposal is there any commitment on Ron Mell's part to effect the improvements on Helen Meld's house. He could, in fact, purchase the home and rent or sell it as is. 4. Why is there only one set of estimates regarding real estate value? S. Why is there only one set of estimates regarding home improvements? 6. Why should Ron Mell not be expected to pay fair market value on the home? It is understood that heirs have no reasonable expectation to inherit from Helen Mell's estate upon her death. At this time, the suggested value of the home is less than the amount owed to DPW, with no expectation that the situation will change in the near future. I,s ata-realastie expect~.tior~ ~tl~at;Ron~[el~l Eould~, ov€x tiwae~, profit by pua-cl~a~i~ng tl~e hie az below market value, even after paying off DPW? If so, neither DPW or the heirs would receive any of the profit. Recognition of Ron and Sheryl Mell's ongoing and considerable role in the care given to Helen Mell for many :years needs to be made clear. These observations are not meant to discredit their critical role. To prevent any suggestion of a conflict of in#erest the following suggestions are made: Suggestions: 1) It should be legally ascertained as to whether or not the home is or is not sellable, as is; 2) A minimum of three estimates should be obtained for current market value of the home; 3} A minimum of three estimates. should be obtained for critical home improvements; 4) Assuming the real estate can be sold as is, bids should be accepted from the heirs to purchase the home based on a minimum appraised value; 5) If heirs are not interested, or bid(s) do not cover minimum appraisal value, the real estate should be placed on the open market at the current maximum appraised value. - -- - -` _._~_~I.4~~cIL-- "EXHIBIT D" BARK Attorneys at Law SCHERER LLC David A. Baric Michael A. Scherer ~.~ Tricia D. Naylor Bret P. Shaffer 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 (717) 249-5755 -Fax mscherer@baricscherer.com August 31, 2011 Polly Thompson 505 Adams Road Carlisle, Pennsylvania 17015 Russ Mell 328 West Old York Road Carlisle, Pennsylvania 17015 Ray Mell 3119 Ritner Highway Newville, Pennsylvania 17241 Sheri Mell-Molter 251 Clay Road Carlisle, Pennsylvania 17015 RE: Helen Mell Real Estate 399 Petersburg Road, Carlisle Dear Folks: Several years ago I prepared a Will for Helen wherein she divided her estate into three equal shares, one each to her son, daughter and children of her deceased child. As many of you know, Sheryl has been acting as Helen's Power of Attorney for many years. Recently Ron Mell approached me about the status of Helen's house located at 399 Petersburg Road, Carlisle, PA. Ron indicated that the house is vacant, and is concerned that it continues to accrue tax bills, upkeep and maintenance. The obvious consideration is to sell the home. Given the fact that Ron lives on a contiguous lot, Ron would be concerned about who the new owner would be. As such, Ron is interested in purchasing the home. If Ron were to purchase the home, it would be done with Sheryl executing the documents on behalf of Helen. This creates a potential conflict of interest, in that Sheryl (and Ron) could potentially benefit from the sale of the house to the detriment of the heirs listed in Helen's Will (you folks). "EXHIBIT E" Polly.Thompson Ray Mell Russ Mell Sheri Mell-Motter 08/31 /11 letter page 2 In fact, I do not believe that Helen's heirs will be negatively affected by a sale of the real estate to Ron. Helen's assets at this time are a very modest bank account, and the real estate. Helen is currently in Forrest Park Nursing Home and her bill is paid in part by medical assistance. She is required to spend her funds down to a minimal level to qualify for medical assistance, which she has been on since she entered the nursing home last Fall. The monies paid by medical assistance for Helen's care are required to be reimbursed from Helen's estate prior to Helen's heirs receiving any money from her estate. A sale of Helen's property would have to be approved by the Department of Public Welfare. I have obtained their approval to sell the property to Ron and I provided them the following documents in support thereof: 1. May 31, 2011 letter to Max Byers, Department of Public Welfare; 2. ReMax Real Estate Services Proposal dated March 16, 2011; 3. Estimates of repair from Arnold & Son Excavating, LLC and P. Edward Mullin Construction & Maintenance and Central Penn Waterproofing; 4. Installment Sales Contract between Helen and Ron. Helen's home is aged and in need of structural repairs, as detailed by item 3. above. Specifically, the foundation, crawl space, plumbing and electric are in need up upgrades/repairs. This home is small and only has two bedrooms and would be considered a starter home. Typically it would be the type of home a young couple might want. Ron has been told that it would be very difficult for someone to obtain a loan for the home in its present condition because its condition does not meet lender requirements. This would severely limit the potential buyers of this home to persons with cash. Anyone who buys the property as a "fixer-upper" would deduct from the sale price the cost to repair the property. The ReMax proposal suggests that comparable properties have sold in a range from $42,000.00 to $64,000.00. With a proposed sale price of about $52,000.00 and deducting the cost of the repairs the sale price would be about $30,000.00, which Ron is proposing to pay. I have supplied items 1. - 4. above to the Department of Public Welfare and they have approved the installment sale to Ron at $30,000.00. I enclose the August 24, 2011 DPW fax from Max Byers to me herewith. Polly Thompson Ray Mell Russ Mell Sheri Mell-Motter 08/31 /11 letter page 3 My office contacted the Department of Public Welfare to get a total for the amount of money Helen owes DPW for her care. The worker indicated that a formal statement of claim must be made to obtain that figure, and if a formal inquiry is made, DPW will have to open a file and that will result in an expectation from them for payment from Helen or her estate. In the alternative to giving us the exact total, the worker told us that we can figure the amount at $5,000.00 per month. Since we are nearing the one-year mark since Helen entered Forrest Park Nursing Home, the total she would owe at the end September would be about $60,000.00. My purpose in writing to each of you is to disclose what is taking place regarding Helen's financial situation and to apprise you of the proposed transaction between Ron and Helen; and to give you an opportunity to consent or object to the transaction. I have enclosed a form for you to sign indicating your approval or rejection of the transaction. If all of you do not approve this transaction, I will suggest to Ron that we take the matter to Court to get Court approval of the transaction so that Ron and Sheryl are protected. The long and short of this is that it appears that Helen's real estate is considerably less valuable than the amount of money it will take to repay the Department of Public Welfare to reimburse them for her care. As such, it appears Helen's estate will be insolvent, particularly if she remains in Forrest Park for any length of time. If you agree to this transaction, please sign the Consent form I have included herewith. If you object to the transaction, please call my office to notify me. I would recommend you discuss this matter with your own attorney if you have questions. I will however take your calls if you have questions. I would appreciate hearing from you on or before September 16, 2011 so that this matter can either move forward with your consent or so that we can file a Petition requesting a Court Order. Thank you for your consideration. Very truly yours, BARK SCHERER LLC ~l ~~ ~j''~ ~`' ~ ~I~ ~' ~,/ 1 ~~~°~ ~~ Michael A. Scherer MAS/jl Enc. cc: 4 File ell mas.dirlestateslmelllheirs.ltr •- r r g a a a a g a a g g a g a a¢ a s r r z ~ d zz z zz z 'z z z z z z z z z z z m = ~ m a a N T A 0 f7 O O O O O O O O O O O O O O O O O O O O O O V O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O Q O O O O O O O O O O O ~ O O O O o O J o O O O O C t0 O 10 6I N Q i/I ~ ~ - N V O O OO O .-, jn R h N ) N R t0 m O O O 0 0 P O O ~+ ~ C O O Qf V c0 O 07 • N N a0 N I~ ~ N N N N V o0 O O ~ Oi I~- 1~ A ~ O ~ R aD Q M 1~ ^ 1p ~ N M I~ O O V o O ~ ~ r E ~ N h M ~ ~ to s{ - --~ _ to ~ w M M 1~- .- ~ Of 4 ') r 7 I~ d' N N ~ O O A N 7 O N OI CO ~ N Q (D ~ iD ~ M ~ M ~ . 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Banc Michael A. Scherer Tricia D. Naylor Bret P. Shaffer 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 (717) 249-5755 -Fax May 31, 2011 Max Byers Department of Public Welfare 7591 Lake Raystown Shopping Center Huntingdon, PA 16652 RE: Helen Mell D.O.B.: October 14, 1912 Dear Mr. Byers: I write relative to Helen Mell, who is presently in Forrest Park nursing home in Carlisle, and is the recipient of medical assistance. Helen owns real estate at 399 Petersburg Road, Carlisle, Pennsylvania 17015. The real estate in question is improved with a single family dwelling that is very small and rather old. Sheryl Mell is Helen's granddaugher-in-law and Agent under a Power of Attorney. Sheryl and her husband Ron Mell live on a contiguous tract of land known as 397 Petersburg Road, Carlisle, Pennsylvania, and they would like to purchase Helen's real estate at 399 Petersburg Road under and Installment Sales Contract. I am enclosing herewith the following documents which reflect the value of the real estate in questions: 1. Real Estate Services Proposal from William Ohrum, Re-Max Broker, which indicates comparable property values ranging from $42,900 to $45,500 and a proposed selling price of $52,900 resulting in net proceeds of $48,527.00. 2. Two estimates from Armold & Son Excavating totaling $3,490.65 relative to excavation under the house to allow for foundation work to occur to stabilize the home. 3. Estimate from P. Edward Mullin totaling $3,500.00 to upgrade the electric and "EXHIBIT G" plumbing in the basement. 4. Two estimates from Central Penn Waterproofing totaling $23,865.00 to complete basement and foundation work. Ron Mell is agreeable to offering $30,000.00 to purchase the home under an Installment Sales Contract where he would pay Helen or the nursing home a monthly fee including principal and interest. At Helen's death, he would secure financing within six months of Helen's death to pay the Department of Public Welfare the then outstanding balance of the loan. The Cumberland County Tax assessment for Helen's property is $78,200.00. When this tax assessment was received by Sheryl Mell, she believe it was high and no effort was made to challenge the assessment given Helen's residence in a nursing home. Nevertheless, Ron Mell feels that the assessment is inaccurate. Please let me know if we have a basis to move forward on this transaction or if you want more information on value of condition and necessary repairs to the property. I would also like to know at this point what the total outstanding lien is against Helen's estate for medical assistance provided to her since her admission into Forrest Park Nursing Home. I would like to share this information with Helen's children when I present this proposed transaction to them for their comments. Very truly yours, BARK SCHERER Mic ael A. Scherer MAS/jl cc: Sheryl Mell Ron Mell File mas.dir/estates/mell/ron8sheryl.ltr _ r _ ~ „„ V IYLYJJ4Y f fI UI Il I I IyvlVl l env ~*4 ~ ~! ~ ~A ~ A C PA ~~PAR~"Ni~~IT OF PIJi3l.iC UVEi+fiAR~ ®ffice ®f in~orne Niain~enance Huntingdoa~ County Assistance b~#ice 759~i Lake Rays#own Shopping Center Hunt9;ngdon, PA 16652 iViain Phone: (814) 643-~ 170 DATE. Vii? ~, TI Fax: (814) fi4~-5441 r Total # of pages with ti~is cover sheet = cover -~ ~ _ _ _ _ posies F 1F YOU DQ NOT RECEIVE ALL PAG1=S QR IF OTHER PROBLEMS OCCUR, PLE,4Sf; CAI.i US AT 834-643-1~7Q A5 SOON.4S POSSIBLE. IF YOUR FAX NUMBER iS GOING TO 8E GHANGEa, PLEASE NOTIF"`(T1iE CAO AS SOON AS POSSIBLE, it YOU RFCEfVE THIS FAX IN ERROR, PLEASE CONTACT" THE SENDER IMMEDIATELY AND THEN DESTRQY T~iE FAX1=n MATERIALS. CQNFi[]ENTIAL,lT'Y NOTICE: The inficrmaton contairzd in ti~is facsimile message is privileged and canPidentiaf infermatron ir,tanced for.ihe use of the individual or entity named above_ 'rlealth Care Enformation ±s persona( anc s~rsiti~~~ and should only be read b~,~ authorized individuals_ i;aifure to mainta'n confidentiality is sunjact to panalties ur:der stag. =nd federal law. "EXHIBIT H" SEiVi~ER CO~I~lE1~T~: __r.~__ VERIFICATION The statements in the foregoing Complaint For Declaratory Judgment Pursuant To 42 Pa.C.S.A. SS 7535 are based upon information which has been assembled by my attorney in this litigation. The language of the statements is not my own. I have read the statements; and to the extent that they are based upon information which I have given to my counsel, they are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsifications to authorities. DATE: ~ I -' c~ l' I 1 eryl Mell CERTIFICATE OF SERVICE I hereby certify that on December 1, 2011, I, Jennifer S. Lindsay, secretary at Baric Scherer LLC, did serve a copy of the Petition For Declaratory Judgment, by first class U.S. mail, postage prepaid, to the parties listed below, as follows: Ray Mell 3119 Ritner Highway Newville, Pennsylvania 17241 Polly Thompson 505 Adams Road Carlisle, Pennsylvania 17015 Russ Mell 328 West Old York Road Carlisle, Pennsylvania 17015 Sheri Mell-Motter 251 Clay Road Carlisle, Pennsylvania 17015 J if ndsay