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HomeMy WebLinkAbout01-05-11Fi~FILES\CGrntsU 2104 Huganir\12104.1.petitionsuccessor.wpd IN RE: WILLIAM L. HUGANIR DEED OF TRUST DATED MAY 29, 1998 '_'~ IN THE COURT OF COMMON I~L]~~S OF -= CUMBERLAND COUNTY, PENI~S~~,VA<N:IA ORPHANS' COURT DIVISION` ' ' c-~ - - _t_ No. 21-11-0811 - ~' _~-; PETITION FOR THE APPOINTMENT OF A SUCCESSOR TRUSTEE AND NOW, this 5"' day of January, 2012, comes Frederick I. Huganir, by and through his attorneys MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER ("MARTSON LAW OFFICES"), and petitions this Court for the appointment of Swarthmore College as successor trustee effective January 1, 2012, under the William L. Huganir Deed of Trust dated May 29, 1998, and in support thereof avers as follows: 1. Petitioner Frederick I. Huganir (hereinafter "Petitioner") is an adult individual with a mailing address of P.O. Box 308, Carlisle, Cumberland County, Pennsylvania. 2. Petitioner's father, William L. Huganir (hereinafter "Settlor"), created a charitable remainder unitrust (hereinafter "Trust") for the benefit of Swarthmore College, naming his three sons, Frederick I. Huganir (Petitioner herein), John Huganir and Peter Huganir as co-Trustees (herein collectively the "Trustees") and income beneficiaries. A true and accurate copy of the trust document is attached hereto as Exhibit "A." 3. Trustees Peter A. Huganir, John L. Huganir and Petitioner resigned as Trustees of the Trust as of May 27, 2005 with the expectation that Swarthmore College would serve as successor Trustee. Swarthmore's serving as successor Trustee did not come to fruition at that time, and Trustee Frederick I. Huganir has continued to serve as Trustee since then. A true and accurate copy of the Trustees' resignation is attached hereto as Exhibit "B." 4. Petitioner filed a certain First and Partial Account for the Trust through June 30, 2011, which Account was confirmed absolutely by this Court on October 11, 2011. 5. Swarthmore College has agreed to serve as successor Trustee effective January 1, 2012. A true and accurate copy of Swarthmore College's acceptance is attached hereto as Exhibit "C." ;~ ,, 6. The Attorney General of the Commonwealth of Pennsylvania has been informed of the desired change in Trustee and has consented to the same. A true and accurate copy of a letter from the Office of the Attorney General, indicating the approval of the proposed change in Trustee, is attached hereto as Exhibit "D." WHEREFORE, Frederick I. Huganir requests that this Court enter an Order, without a hearing, as all parties have consented hereto, approving the resignation of Frederick Huganir, John Huganir, and Peter Huganir as Trustees of the William L. Huganir Charitable Remainder Unitrust, discharging them from liability with respect to the William L. Huganir Charitable Remainder Unitrust and its beneficiaries; and appointing Swarthmore College as as Successor Trustee for the William L. Huganir Charitable Remainder Unitrust effective January 1, 2012, without bond. Respectfully Submitted, MARTSON LAW OFFICES By: No V. Otto III, Esquire Attorney I.D. No. 27763 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: ~ I `> I `~~ ~1 ~ ~ Attorneys for Frederick I. Huganir EXHIBIT "A" . I I ATTORNEY AT UW PARNVIEW TOWER • SurtE 423 1150 fIRSI AVEUNE ~-• - KING uE PRUSSIA. PA 19406 DEED OF TRUST ~ ~~ On this :~`~ day of May, 1998, I, WILLIAM L. HUGANIR, (hereinafter referred to as "the Donor"), desiring to establish a charitable remainder unitrust, within the meaning of Section 5 of Rev. Proc. 90-30 and Section 664(d)(2) of the Internal n _ _ /~., J.. /L. .. -. Cr•... ... f...... ..1 ~.. ... Ii/L. .. ~f~4~"` h.~rn~~~ nrr~~4r+ 1{-~r~ ~I I~•-nir ~ l v. Chartable Remainder Unitrust No. 1 and designate ,JOHN ``~ HUGANIR and FRED HUGANIR. or the survivors of them, as the Trustees. 1. Funding of (rust i he Uohor transfers to the Trustees the prcperty described in Section A. and the Trustees accept such property and agree to Hold. manage. and distribute such property of the Trust under the terms set forth in this Trust instrument. 2. Payment of Unitrust Amount. In each taxable ~, ::tar of the Trust. the Trustees shall pay a unitrust amount equal to the lesser of (i) th~~ ~ rust income for the taxable year. as defined in Section 643(b) of the Code and the regulations thereunder, or (ii j six percent (6%) of the net fair market value of the assets of the Trust valued as of the first day of each taxable year of the Trust (the "valuation date") to. my children PETER HUGANIR. JOHN HUGANIR and FRED HUGANIR (individually, a Recipient". collectively. "Recipients"), in equal shares during their lifetimes. Upon the death of a Recipient. the survivor Recipient(s) shall be entitled to receive the entire unitrust amount. The unitrust amount shall be paid in equal quarterly installments. Any income of the Trust for a taxable year in excess of the unitrust ~... amount shall be added to principal. If for any year the net fair market value of the Trust assets is incorrectly determined, then within a reasonable period after the value is finally determined for federal tax purposes, the Trust shall pay to the Recipients then entitle to income (in the case of an undervaluation) or receive from the Recipients then entitled to income (in the case of an overvaluation) an amount equal to the difference between the unitrust amount properly payable and unitrust amount actually paid. 3. Pa ment of Federal Estate Taxes and State Death Taxes. The lifetime unitrust interest of the survivor Recipient wilt continue in effect on the death of ,~,_ c ,.• P').. ..+ +.. rdir, nnl~i .f 1V~n ci ~r~ii~in~ Rcriniant fi imichAS the fUndS fOr oavment ~t any federal estate taxes or state death taxes for which the Trustees may be liable upon the death of the first Recipient to die. 4 Proration of the Unitrust Amount. In determining the unitrust amount. the Trustees shall prorate the same on a daily basis for a short taxable year and of the taxable year ending with the survivor Recipient's death. 5. Distribution to Charity. Upon the death of the iast survivor vi a i~ Rec~oients. the Trustees shall distribute all of the then principal and income of the Truss ~ ether than any amount due either of the Recipients or their estates under the previsions above) to SWARTHMORE COLLEGE, Swarthmore, Pennsylvania thereinafter referred to as "the Charitable Organization"). If the Charitable Orcan~zat~on ~s not an organization described in Section 170(c), 2055(a), and 2522~a of the Code at the time when any principal or income of the Trust is to be distributed to 2 it, then the Trustees shall distribute such principal or income to such one or more organizations described in Section 170(c), 2055(a), and 2522(a) as the Trustees shall select in their sole discretion. 6. Additional Contributions. If any additional contributions are marls to the Tn ic+ after the initial rnntrihi itinn, the? i initri ict amni int fnr tha yaar in which the additicnal contribution is made shall be six percent (6%) of the sum of (a) the net fair market value of the Trust assets as of the valuation date (excluding the assets so aaoeo and any InCUrrle if Uf (l, Uf d~pfe(;18IIUrl Uf I, SU(.: 1 cd55~lJ) d! IU .(U) ii lal Ni vN~f tivi-~ i:il the fair market value of the assets so added that was excluded under (a) that the number of days in the period that begins with the date of contribution and ends with the earlier of the last day of the taxable year of the. date of death of the survivor Recipient bears to the number of days in the period that begins on the first ~~ay of such taxable year and ends with the earlier of the last day in such taxable ye r or the date of death of the survivor Recipient. In the case where there is no valuation date after the time of contribution. the assets so added shall be valued as of the time of contribution. e- :. V ..: ..: :..._.,.. ... _...±;,,°J... • -,.,... .~..;.. ..~ ~. ~ rr .. ~:. .k.., ~~.., ~ ~!1 alt. -2!. 7e±... .~-. • •-_ _. ... .._ at such time and in such manner as not to subject the Trust to tax under Section 4942 of the Code. Except for the payment of .the unitrust amount. to the Recipients, the Trustees shall not engage in any act of self-dealing, as defined in Section 494(d), and shall not make any taxable expenditures, as defined in Section 4945(d). The Trustees shall not make any investments that jeopardize the charitable purpose of the Trust, 3 g. Power to Terminate Recipient's Interest. Donor retains the right to revoke or terminate the interest of any Recipient through a Will specifically referring to this provision. g. Taxable Year. The taxable year of the Trust shall be the calendar year. 10. Governing Law. The operation of the Trust shall be governed by Jthe laws of the Commonwealth or r~nnsyiva~`na.`~ ~ ~ le i rus~cc~, ~ ~.,'r~~e~r, ~= 1~.. ~ - from exercising any power or discretion granted under said laws that would be _ _ ___ „i„r,+ , ,;i~., ,L,,~ r.,, ,.~~;F;r•~f;nn of +hc Tri_ICt I In~Pr ~PCtion 664(dl(21 of the Code and II II.VI IJIJ~GI n vr~u ~ u ~~+ y~~••••~~'••"• ". .• .- ._ . the corresponding regulations. 11. Limited Power of Amendment. The Trust is irrevocable. The Trustees. however. shall have the power, acting alone, to amend the Trust in any manner required for the sole purpose of ensuring the Trust qualified and continues to qualify as a charitable remainder unitrust within the meaning of Secticn 664(d)(2) of the Code:. * r _.. r 12. Investment of Trust Assets. Nothing in this Trust instrument shall be construed to restrict the Trustees from investing the Trust assets in a manner that could result in the annual realization of a reasonable amount of income or gain from the sale or disposition of Trust assets. 4 Executed May ,~ In the presence of ~ ~', 1, , ~_ , ~.~ Wyfness / Rece,~. ec and Accepted. ;;% ~ ~/ ~~-~ Witness ~ ~~~ ~ Li-~~ ~ ,~~~i~~ /~ / ~ '1 Witness i ~n~;tr2~~. 'Y 1998. (SEAL) WILLIAM L. HUGANIR, Don (SEAL; ~.~~ ~ Trustee l~ :~,~,~~ SEAL; /~ I~ HN'M1.IGANIR, Truste ~~ /" ,~ . /h ~ , i ~/ .~~ ,:' -_< ~ ,' ~ CI v, .,.~~ _ i (SEAL'; 1 5 ~~h,~ ~~' ~ ~S COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF MONTGOMERY ~-~ On the ~" day of ~ , 1998, before. the undersigned, a Notary Public, personalty appeared WILLIA L. HUGANIR and in due form of law acknowledged the above instrument to be his act and deed and desired that the same I tllyl Il C7G I C~.vi ucu'oo au`~.Y r ° ° . WITNESS my hand and notarial seat. Notary Public ~~ NOTARIAL SEAL SHARON J. HAHN, Notary Public Upper Meson Twp., Montgomery County M Commission Expires Marcfi 30. 2002 COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF MONTGOMERY __ , On the ~ day of , 1998, before the undersigne , a_ _-- - Notary Public. personally appeared and in due form of laws ~ . r-;< acknowledged the above instrument to be his act and deed and desired that the same ~_. ~ _ .a,,,.r .,.h WITNESS my hand and notarial seal. ~/ 1~9 ,( . >~`-1 Notary Public Notarial Seal Robin A. Babillis, Notary Public Norristown Boro, Montgomery County My Commission Expires April 8.2002 AAember, Pennsylvania Association of Notaries 6 COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF MONTGOMERY ' 'yam day of , 1998, before the undersigned, a On the Public, personally appeared OHN HUGANI ~ da d and des ed that the same Notary acknowledged the above instrument to be hls act an might be recorded as such. 1 •~..a~.., n, ~4.I~n IVVIOIy ~ ....~~.. Notarial Seal public Robin A. Babillis, Notary County Norristown Boro, Montgomery My Commission Expires April 8, 2002 Member, Pennsylvania AssociaUpn of Notaries COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF MONTGOMERY ' ~ da of , 1998, befcre the undersigned, a On the ~ Y _ ~,Intani Pi ~hllr personally appeared RED HUGANIR da d and desired u a ~i iC s°~ "e ed the above instrument to be hls act and acknowledg might be recorded as such. i,,,.,,,,a .,r..~ nn+~ri71 coal ~, __ _ C. otary Public Notarial Seal public Robin A. Babillis, Notary Norristown Boro, Mont~oAp~-8 20~0~ My Commission Exp' Member. Pennsylvarna Associatwn of Notaries 7 EXHIBIT ~B" William L. Huganir Deed of Trust Renunciation and Appointment of Trustee Peter A. Huganir, John L. Huganir and Frederick I. Huganir, for good and mutual consideration, and for the good of their mutual relationship and for the good of the remainderman, hereby renounce their appointment as trustees of the William L. Huganir Deed of Trust, dated May 29, 1998. This renunciation is effective upon full execution by Peter A. Huganir, John L. Huganir and Frederick I. Huganir. Trustees: ~ ~ ~ ~ - .. -O ~ ~~ r William L. Hu anir, Wi ss and ettlor Peter A. Huganir Date / .~.,d' itnes d Settl r ohn .Huganir William L. Huganir, W William L. Huganir, W; f' , /,/_ // ~/ i and Settlor Swarthmore College, of Swarthmore, Pennsylvania, hereby accepts being Trustee of the William L. Huganir Deed of Trust, and will protect the interests of the income beneficiaries therein. In the event Swarthmore College deems it desirable to appoint an alternative or co-Trustee, it shall seek the advice but not necessarily the consent of William L. Huganir, Settlor. For Swarthmore College: Witness c~~~~ ~- Q EXHIBIT "C" F:\FII,ES\Clients\12104 Huganir\12104. Lacceptanceswarthmore.wpd IN RE: WILLIAM L. HUGANIR DEED OF TRUST DATED MAY 29, 1998 No. 21-11-0811 ACCEPTANCE OF TRUST Swarthmore College, intending to be legally bound hereby, does hereby agree to serve as successor trustee pursuant to the terms and conditions of the Petition for Appointment of Successor Trustee in re: William L. Huganir Deed of Trust dated May 29, 1998, which conditions provide for the service of Swarthmore College without bond. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION SWARTHMORE COLLEGE Date: 2 / ~ /~ ~K~ &~~ ~ EXHIBIT "D" COMMONWEALTH OF PENNSYLVANIA OFFICE OF ATTORNEY GENERAL LINDA L. KELLY ATTORNEY GENERAL December 27, 2011 Charitable Trusts and Organizations Section 14th Floor, Strawberry Square Harrisburg, PA 17120 Telephone: (717) 705-1611 Facsimile: 717-787-1190 hvancerittman@attorneygeneral. gov No V. Otto, III, Esquire MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 Re: William L. Hu~anir Deed of Trust dated 5/29/1998; No. 21-11-811; Cumberland County. Dear Mr. Otto: This will. acknowledge receipt of your notice pursuant to Supreme Court Orphans' Court Rule 5.5 regarding the above-captioned matter. I have reviewed the Petition and have no objections. Please forward a copy of the Orphans' Court Order as soon as it is available so that I can complete my file. Please be advised that the above review was conducted pursuant to the parens patriae role of the office and has no bearing on any matter unrelated to that function. Thank you for your time and attention to this matter. Sincerely, ~,-~ v - '~ Heather J. Vance-Rittman Senior Deputy Attorney General ~.~:~:fn VERIFICATION The foregoing Petition for the Appointment of a Successor Trustee is based upon information which has been gathered by my counsel in the preparation of the lawsuit. The language of the document is that of counsel and not my own. I have read the document and to the extent that it is based upon information which I have given to my counsel, it is true and correct to the best of my knowledge, information and belief. To the extent that the content ofthe document is that of counsel, I have relied upon counsel in making this verification. This statement and verification are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities, which provides that if I make knowingly false averments, I may be subject to criminal CERTIFICATE OF SERVICE I, Melissa A. Scholly, an authorized agent for Martson Deardorff Williams Otto Gilroy & Faller, hereby certify that a copy of the foregoing Petition for the Appointment of a Successor Trustee was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Jill R. Fowler, Esquire Heckscher, Teillon, Terrill & Sager P.C. 100 Four Falls, Suite 300 West Conshohocken, PA 19428-2983 Heather J. Vance-Rittman, Esquire Senior Deputy Attorney General Commonwealth of Pennsylvania Charitable Trusts and Organizations Section 14`'' Floor, Strawberry Square Harrisburg, PA 17120 MARTSON LAW OFFICE n ~//~ By -~ 7 ~~ C ~~~L. Meliss A. Scholly Ten East High Street ~ Carlisle, PA 17013 (717)243-3341 Dated: January 5, 2012