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HomeMy WebLinkAbout02-10-1215(]5610143 REV-1500 Ex(D,_,D, PA Department of Revenue pennsylvania OFFICIAL USE ONLY Bureau of Individual Taxes DEPARTMENT OF REVENUE County Code Year File Number Po Box.2sosoi INHERITANCE TAX RETURN Harrisburg, PA 1712s-0601 RESIDENT DECEDENT 21 11 1158 ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 201 18 5127 12 16 2006 04 04 1325 Decedent's Last Name Suffix Decedent's First Name MILLER MI PAUL A (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MILLER MI JEAN A Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE R EGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW 1. Original Return ^ 2. Supplemental Return ^ 3. Remainder Return (date of death ~ prior to 12-13-82) '~ 4. Limited Estate ^ 4a Future Interest Compromise (date of death after 12-12-82) ^ 5. Federal Estate Tax Return Required g Decedent Died Testate Ii X (Attach Copy of Will) ^ 7, Decedent Maintained a Living Trust (Attacn Copy of Trust) 8. Total Number of Safe Deposit Boxes 9. Litigation Proceeds Received ^ 10. between 12 31 ~Craedditl(datges~f death ^ 11. Election to tax under Sec. 91 t 3(A) (Attach Sch. O) CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number JERRY A WEIGLE ESQUIRE 717 532 7388 First line of address 126 EAST KING STREET Second line of address City or Post Office State ZIP Code SHIPPENSBURG PA 17257 Correspondent's a-mail address: ...a REGISTER WILLS USE'DNLY -:.p ,: .~, _l~ _ ~1 u ^ ; ^- c.J ~ m __._ r,..c. ~ _: ~ Ct . ~ ~ D~E`7=1LED ~, :~'i ~:.-V _ ~ r:_~ =;r ">> FTI Q _.T..t Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer other than the personal representative Is based on all information of which preparer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN DATE V Q>~ ~ ~'~ ?'~'~' I /~' Jean L Miller Z ~ - ~ Z ADD SS Side 1 15[]5610143 150561(7143 1505610243 REV-1500 EX Decedents Name: i~iiiirr~ pawl A. Decedent's Social Security Number RECAPITULATION 201 18 5127 -- 1 Real Estate (Schedule A) ....................... ........................................................... ..... 1. 515 , 8 65 . ® 0 2. Stocks and Bonds (Schedule B) .................... ................................................... ...... 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C).... ..... 3. 4. Mortgages & Notes Receivable (Schedule D) ....... ............................................ ..... 4. 5 Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ........... .... 5. 6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested ......... 7. Inter-Vivos Transfers & Miscellaneous boo-Probate Property (Schedule G) ... 6. u Separate Billing Requested......... ... 7. 8. Total Gross Assets (total Lines 1-7) ......... ........................................................ .... 8. 515,865.00 9. Funeral Expenses & Administrative Costs (Schedule H) ................. ................... ... s. 14 , 937.78 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) ........................... ... 10. 11. Total Deductions (total Lines 9 & 10) ........................... ..................................... ... 11. 14 , 937.78 12. Net Value of Estate (Line 8 minus Line 11) ............... ................. . ...................... 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which .. 12. 500 , 927 .22 an election to tax has not been made (Schedule J) .... .............. ........................... .. 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) ....... ...................................... .. 1a. 500, 927.22 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES --- 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a>(1.z>x.oo 500, 927.22 15. 0 00 16. Amount of Line 14 taxable . at lineal rate X .045 O, Q Q 16. 0 0 0 17. Amount of Line 14 taxable . at sibling rate X .12 Q. 0 0 17. Q Q Q 18. Amount of Line 14 taxable at collateral rate X .15 0. 0 0 18. 0. 0 0 19. Tax Due ........................................ .......................................................................... 19. 0 . 0 0 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. ^ Side 2 1505610243 1505610243 REV-1500 EX Page 3 Decedent's Complete Address: File Number 21-11-1158 DECEDENT'S NAME Miller, Paul A. STREET ADDRESS 735 Walnut Bottom Road CITY Shippensburg I STATE ZIP PA 17257 Tax Payments and Credits: 1. Tax Due (Page 2, Line 19) 2. Credits/Payments (1) 0.00 A. Prior Payments B. Discount 0.00 Total Credits (A + g) (2) 0.00 3. Interest (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 2 Line 20 to request a refund (4) _ 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) _ ~.~0 Make Check Payable to: REGISTER OF WILLS, AGENT. PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: a. retain the use or income of the property transferred :............................................................... Yes No b~ retain ah eve stionary interest /oo shall use the property transferred or its income :.....::..:..:::........... ~ I~ d. receive the promise for life of either payments, benefits or care? ............................................................ 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without ~ x receiving adequate consideration?....... ~-~ ........................... ^ U . ............................................... .... Did decedent own an "in trust for" or payable upon death bank account or security at his or her death....... ~ f~ 4 Did decedent own an Individual Retirement Account, annuity, or other non-probate property which x contains a beneficiary designation? .............. ..... .... ............................................................... ~ J IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent [72 P.S. §9116 (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 percent [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 21 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 percent [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 percent, 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 percent [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. Rev-1502 EX+(1t-pg) - SCHEDULE A y ~ ~ REAL ESTATE COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ~•+rr+r L VI Miller, Paul A. FILE NUMBER I ~1-11-1158 All real property owned solely or as a tenant in common must be reported at fair market value. Fair market value is defined as the price a[ which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which is jointly-owned with right of survivorship must be disclosed on schedule F. Attach a copy of the settlement sheet if the property has been sold Include a copy of the deed showing decedent's interest if owned as tenant in common. ITEM NUMBER DESCRIPTION VALUE AT DATE 1 Real Estate at 735 Walnut Bottom Road, Shi OF DEATH ppensburg, Cumberland County, Pq _ 1/2 interes 515,865.00 TOTAL (Also enter on Line 1, Recapitulation) 515,865.00 Copyright (c) 2009 form software only The (LacknerpGroupn Inced, additional pages of the same size) Form PA-1500 Schedule A (Rev. 11-08) REV•1151 EX+ (10-06)~~ ,h}tl COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT CJ~HIt ur Miller, Paul A. SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ITEM NUMBE A. FUNERAL EXPENSES: Debts of decedent must be reported on Schedule I. DESCRIPTION B. 1 See continuation schedule(s) attached ADMINISTRATIVE COSTS: Personal Representative's Commissions Name of Personal Representative(s) 10,410.28 Street Address City State Zio Year(s1 Commission paid 2. Attorney's Fees Weigle & Associates, P.C. 500.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) 3,500.00 Claimant Jean A. Miller Street Address 735 Walnut Bottom Road (on date of death) city Shippensburg state PA zio 17257 Relationship of Claimant to Decedent SpOUSe 4 Probate Fees Register of Wills, Cumberland County 507.50 5 Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 20.00 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 14 937.78 Copyright (c) 2009 form software only The Lackner Group, Inc. FILE NUMBER 21-11-1158 AMOUNT Form PA-1500 Schedule H (Rev. 10-06) SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER Miller, Paul A. 21-11-1158 ITEM NUMBER DESCRIPTION AMOUNT Funeral Expenses 1 Cocklin Funeral Home, Inc. 10,410.28 H-A 10,410.28 Other Administrative Co is 2 Register of Wills, Cumberland County -filing PA Inheritance Tax Return 20.00 H-B7 20.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) REV-1513 EX+111-08) • ~.e ~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES ESTATE OF Miller, Paul A. NUMBER NAME AND ADDRESS OF PERSON(Sl RECEIVING PROPERTY I~ TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116(al(1.2)1 1 Jean L. Miller 907 Charles Street Mechanicsburg, PA 17055 FILE NUMBER 21-11-1158 _ RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE DECEDENT Do Not List Trustees (WordS~ ($~$~ Spouse 100% 500,927.22 I ~ Total I 500,927.22 Enter dollar amounts for distributions shown above on lines 15 throw h 18 on Rev 1500 cover sheet, as a ro riate. NON-TAXABLE DISTRIBUTIONS: II. A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV 1500 COVER SHEET Copyright (c) 2009 form software only The Lackner Group, Inc. Form PA-1500 Schedule J (Rev, 11-08) JRZ - 5.1 miller.paul May 18, 1998 LAST WILL AND TESTAMENT I, Paul A. Miller, of 735 Walnut Bottom Road, Cumberland County, Shippensburg, Pennsylvania, declare this to be my last will and testament and revoke any will or codicil previously made by me. ITEM I: I direct that all my just debts, except as may be barred by a Statute of Limitations, and my funeral expenses, including my gravemarker and expenses of my last illness; shall be paid from my residuary estate as soon as practicable after my decease as a part of the administration of my estate. ITEM II: I give and bequeath all my tangible personal property, including but not limited to, any and all automobiles and other motor vehicles, household goods and furniture and furnishings, china, silverware, jewelry, ornaments, works of art, ~~ books, pictures, wearing apparel and personal effects, but excluding cash on hand and tangible evidences of intangible personal property, together with any policies of insurance applicable thereto including any prepaid premiums thereon to my spouse, or if my spouse fails to survive me, tc my son, Edwin C. Miller. ITEM III: If my spouse survives me, I devise and bequeath to my Trustee hereinafter named, to be held in a separate trust (the non-marital or by-pass trust) the maximum amount that can pass at my death free of Federal estate tax because of the unified credit and all other credits or deductions applicable to my estate other than the marital deduction, provided however, that the credit for state death taxes shall be taken into account only to the extent that doing so does not result in state death taxes that would otherwise not be payable. The amount of this non-marital gift and its funding shall be governed by the following: A. The amount of this non-marital gift shall be reduced by the aggregate of (1) all items includable in my estate for Federal estate tax purposes which either are taxable gifts made during my lifetime or are disposed of in previous articles of this will or pass outside of this will, but only if such items do not qualify for the Federal estate tax marital deduction or the Federal estate tax charitable deduction and (2) the amount of any administration expenses claimed as income tax rather than estate tax deductions. B. My executor shall allocate and set aside or distribute to this non-marital gift any (up to all} assets (or proceeds of assets) which do not qualify for the marital deduction for Federal estate taxes. In no event shall assets 1 be distributed in kind to this non-marital gift to the extent the effect would be to permit diminution of the marital deduction gift, created in Item IV below, by more than a pro- rata share of all depreciation occurring in my estate between the date of my death and the date of distribution to this trust. Any allocation of assets between this non-marital gift and the marital deduction gift shall, with respect to each share, be comprised of assets having an aggregate market value at the time of allocation fairly representative of the net appreciation or depreciation in value to the date of Page 2 distribution of all assets then available for distribution. C. My Trustee shall hold this non-marital gift, IN TRUST, for the following uses and purposes and under the following terms and conditions: 1. My Trustee shall pay the net income to or for the benefit of my spouse during my spouse's life, at least as often as quarter-annually. 2. In the event my spouse disclaims all or any portion of the right to the net incorne, such disclaimed portion shall be payable to my son, Edwin C. Miller, and this disclaimer shall not act to accelerate the remainder interest provided for in subparagraph 5 below. 3. In addition to the net income as set forth above, my Trustee may distribute such additional amounts of pr.i.ncipal to or for the benefit of my spouse as the Trustee, in Trustee's sole discretion, deems advisable for the education, health, support and maintenance in reasonable comfort of my spouse, after taking into account other income or assets which are available to her. 4. My Trustee may apply any distributions from this trust for the benefit of my spouse, should she by reason of age, illness or any other cause in the opinion of my Trustee be incapable of appropriately receiving or disbursing it. Page 3 5. Upon the death of my spouse, the then- remaining principal and any undistributed income shall be distributed to my son, Edwin C. Miller. In the event my son predeceases me or dies on or before the time set for distribution of this trust, principal and any undistributed income of the trust shall be distributed to the issue, per stirpes, of my said son living at the time set for distribution, and in default of any then-living issue, distribution shall be made to the David S. Miller Trust which my spouse and I established by ~ trust agreement dated February 27, 1995. In the event the aforesaid trust is not in existence at the time set for distribution, then the trust shall be distributed as follows: a. One-half thereof to United Cerebral Palsy of the capital area, Camp Hill, Pennsylvania, or its successor, to be used for the alternatives program or the support of group homes; b. One-half thereof to the Cumberland County Association for Retarded Citizens or its successor; ITEM IV: I devise and bequeath all the residue of my estate of every nature and wherever situate (the marital gift) to my spouse, Jean L. Miller, providing my spouse shall survive me by thirty days. Page 4 ITEM V: I remind my spouse, (and my spouse's personal representative, guardian, agent acting under a power of attorney or other representative) that my spouse may disclaim any part or all of any gift passing to my spouse hereunder or otherwise as a result of or by virtue of my death. In particular it may be desirable for my spouse to disclaim a portion of the marital gift, Item III or of other property passing otherwise by reason of my death, and if my spouse does so (either personally or by personal representative, guardian or agent acting under a power of attorney) the disclaimed portion shall pass as herein provided for and as if my spouse had died before my death. This may be desirable even if the result of such disclaimer and passing should be the payment of Federal estate taxes by my estate. ITEM VI: Any property disclaimed by my spouse except as is otherwise specifically provided otherwise elsewhere in this will or (((///"'• any other applicable and relevant document, shall pass under the provisions of Item III hereof. ITEM VII: Should my spouse predecease me, I devise and bequeath all the residue of my estate of every nature and wherever situate to my son, Edwin C. Miller. In the event my son, Edwin C. Miller, predeceases me or dies on or before the thirtieth day following my death, I give and devise the residue of my estate of every nature and wherever situate to the issue, per stirpes, of my said son living on the thirty-first day following my death. In default of any such then-living issue, the same shall be distributed to the David S. Miller Trust which my spouse and I Page 5 established by trust agreement dated February 27, 1995. In the event the aforesaid trust is not in existence at the time of my death, then I give, devise and bequeath the residue of my estate of every nature and wherever situate as follows: A. One-half to United Cerebral Palsy of the capital area, Camp Hill, Pennsylvania, or its successor, to be used for the alternative program or the support of group homes. B. One-half thereof to the Cumberland County Association for Retarded Citizens or its successor. ITEM VIII: If distribution is to be made to a natural person as a beneficiary of all or a portion of the remainder of my estate under this my last will and testament, but such beneficiary has not attained the age of thirty years at the time of distribution to such beneficiary, then I give, devise and bequeath the share of such beneficiary to Orrstown Bank, Orrstown, Pennsylvania, as trustee, IN SEPARATE TRUST, NEVERTHELESS, to hold, manage, invest and reinvest the share so received and the accumulation of income thereon, and to use and apply the income and principal or so much thereof as in the trustee's discretion may be necessary or appropriate for such beneficiary's maintenance, support and education (including any formal education or training beyond high school), without regard to any other means for maintenance, support or education, or to make payment for these purposes without further responsibility to such beneficiary or to such beneficiary's guardian or to any person taking care of such beneficiary. When each beneficiary attains the age of twenty-five years, the said Page 6 beneficiary may then or thereafter withdrawn, in the aggregate, one-half of the value of the remaining principal and accumulated income as of that beneficiary's twenty-fifth birthday, by written notice or notices delivered to trustee and intended to take effect during lifetime. When each beneficiary attains the age of thirty years, such beneficiary's trust shall terminate and the principal and accrued income thereof shall be distributed to such beneficiary absolutely. If a beneficiary for whom a trust is created hereunder dies before attaining the age of thirty years, such beneficiary's trust shall terminate, and the principal and accrued income thereof shall be distributed to the issue of such deceased beneficiary living at the time of such distribution, per stirpes; and if such deceased beneficiary shall leave no issue living at the rime of such distribution, then the same shall be distributed, in trust, to the trustee of the aforesaid David S. Miller Trust which my spouse ~~ and I previously established, naming my spouse and myself as t trustee, Edwin C. Miller as successor trustee, and Delores Stough as second successor trustee, with regard to my child, David S. Miller, as part of that trust for the uses and purposes and under the terms and conditions as therein set forth, so long as such trust is in existence at the time of such distribution; and if such trust with regard to my said child is not in existence at the time of such distribution, then the same shall. be distributed to the issue of my son, Edwin C. Miller, who are living at the time of such distribution, per stirpes, or if a trust is established under this my last will and testament for any such issue, then such Page 7 issue's share shall be distributed, in trust, to that trust for the uses and purposes thereof; and if my son, Edwin C. Miller, leaves no issue living at the time of such distribution, then the trustee shall distribute the aforesaid principal and accrued income unto the estate of such deceased beneficiary. ITEM IX: All Federal, state and other death taxes payable because of my death with respect to the property forming my gross estate for tax purposes, whether or not passing under this will, including any interest or penalty imposed in connection with such tax and not caused by negligent delay, shall be considered a part of the expense of the administration of my estate and shall be paid from the non-marital portion of my estate under Item III or under Item IV without apportionment or right of reimbursement, except for ~ the following specified death taxes, which shall be payable from the sources specified herein (and if no source is specified, from the source determined under the provisions of Chapter 37 of the Pennsylvania Probate, Estates and Fiduciaries Code, as in effect on the date of execution of this will): A. Any tax imposed by Chapter 13 of the Internal Revenue Code of 1986, as amended, (herein called "Code") (generation- skipping transfer tax) shall be payable from the property constituting such taxable transfer (except as may be provided otherwise in later provisions hereof or in relevant trust instrument); B. Any tax resulting from the inclusion in my estate of any qualified retirement plan benefit under Code Section Page 8 2039 (b) (whether such amounts are included in the probate estate) and any tax resulting from excess retirement accumulation under Code Section 4980A(d), shall be payable by the recipient(s) of any such benefits. C. Any tax resulting from the inclusion of any property in my estate under Code Section 2044 and/or Code Section 2056(b)(7) (certain property for which marital deduction was previously allowed), whether or not such taxes are statutorily payable by my estate or the recipient of any such property shall be payable by the recipient of or from such property. D. Any additional estate tax imposed by Code Section 2032A (valuation of certain farms, etc., real property) shall be payable by the qualified heir or. heirs whose actions result in the imposition of such additional estate tax. E. Any tax resulting from the inclusion in my estate under Code Section 2040 of the value of any jointly-owned v property shall be payable by the surviving joint tenant(s) of such property. F. Any tax resulting from the inclusion in my estate under Code Section 2042 of the proceeds of life insurance shall be payable by the beneficiary(s) of such life insurance. G, Any tax resulting from the inclusion in my estate under Code Section 2041 of the value of any property subject to a power of appointment, shall be payable by the appointee of such property. H. Any tax payable from a trust or other source which Page 9 instrument specifically provides therein for the payment of taxes shall be paid as provided for in the relevant instrument. I. I authorize my executor, in my executor's sole discretion, to make an election, in whole or in part, to cause a Pennsylvania inheritance tax to be payable by my estate on property passing to or for the benefit of my spouse or to defer the Pennsylvania inheritance tax on such property. My executor shall be without liability to anyone for making or failing to make such election. ITEM X: My executors, trustees and guardians, whether masculine or feminine, singular or plural, individual or corporate, ` as may from time to time be qualified or acting, (herein sometimes referred to as "fiduciaries" or "fiduciary") shall have the following powers in addition to those vested in them by law and by other provisions of my will applicable to all property, whether principal or income, including property held for minors, exercisable without court approval, and effective until actual distribution of all property: A. The executor and trustee shall have full power and authority to manage and control the trust estate, to borrow money from any source (including the power to borrow from a Trustee or any affiliate of a Trustee) and to sell, exchange, lease, grant options, rent, mortgage, pledge, assign, transfer or otherwise dispose of or encumber (including sales to a Trustee) all or any part of the trust estate (for terms Page 10 extending beyond the termination of the trust estate or otherwise), upon such terms and conditions as the Trustee may see fit. The Trustee may invest and reinvest all or any part of the trust estate in such stocks, common and preferred (including the corporate stock of any corporate Trustee, or any of its affiliates), debentures, shares or participation in any common or mutual fund, interests in any general, limited, or limited liability partnership or in any limited liability company, bonds, notes, repurchase agreements and deposit accounts of any kind from or in any bank (including any corporate Trustee, or any of its affiliates), savings and loan association or other financial institution or brokerage firm, stock options and warrants, securities or other property, real or personal, within or without the State of Pennsylvania, domesr_ic or foreign, whether or riot of the class or kind now or hereafter ordinarily approved or held to be lawfl.zl for the ~ investment of trust funds, as the Trustee may, in the Trustee's discretion, select. The Trustee may make and change such investments from time to time according to the Trustee's discretion, and the Trustee may continue to hold any stocks, securities or other property received by the Trustee hereunder without any duty of diversification. The Trustee may determine whether any money or other property coming into the Trustee's hands, concerning which there may be reasonable doubt, shall be considered as a part of the principal or income of the trust estate, and may apportion between such Page 11 principal and income any loss or expenditure in connection with the trust estate as to the Trustee may seem equitable, taking account of all present and future interests in the trust estate. The Trustee shall not be obligated to amortize premiums for trust securities out of income nor make additions to income because of the purchase of securities at a discount. The Trustee may exercise all options and all conversion, subscription, voting and other rights of whatsoever nature held by or pertaining to any property, including securities of the corporate Trustee or any affiliate thereof, held by the trust estate. Any corporate Trustee shall not disclose the name, address, or share position of the beneficial owner (s) of registered securities held by the corporate Trustee or its 1 nominees unless the beneficial owner(s) request otherwise in writing. It is the intention of the testator that the Trustee shall have the authority to invest in such ways as shall give due consideration for the theoYies of total return investing, modern portfolio theory, and the theory of risk and return. Accordingly, the Trustee is authorized to invest in any type of investment which plays an appropriate role in achieving the investment goals of the trust, which investment shall be considered as part of the total portfolio. It is my specific direction that no category or type of investment shall be prohibited. I specifically do not wish to limit the universe of trust investments in any way other than is dictated by the Trustee's exercise of reasonable care, skill, and caution. In Page 12 connection with the Trustee's investment and management decisions with respect to this trust, the Trustee is specifically entitled to take in account general economic conditions, the possible effect of inflation or deflation, the expected tax consequences of investment decisions or strategies, the role which each investment or course of action may play within the overall trust portfolio which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property; the expected total return from income and the appreciation of capital; other resources of the beneficiaries; the needs for liquidity; regularity of income and preservation or appreciation of capital; and the asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries . Nor shall my Trustee be limited to any one investment strategy or theory, including modern portfolio theory, the efficient markets theory or otherwise, but shall be free to consider any appropriate investment strategy or theory under all the circumstances. The Trustee may delegate investment and management functions which a prudent person of comparable skills would properly delegate under the circumstances. Should the Trustee delegate such function, the Trustee shall exercise reasonable care, skill and caution in selecting an agent, establishing the scope and terms of the delegation consistent with the purposes and terms of the trust, and periodically reviewing the agent' s Page 13 actions in order to monitor performance and compliance with the terms of the delegation. Should such delegation occur as set forth above, the Trustee who complies with the requirements for delegation shall not be liable to the beneficiaries or to the trust for the decisions and actions of the agent to which the function was delegated, but by accepting the delegation of a trust function by the Trustee of this trust, the agent submits to the jurisdiction of the courts of this state. B . Any fiduciary hereunder may renounce or resign at any time with or without cause. C. No fiduciary shall be required to file bond, execute any instrument appointing anyone to accept service of process, or file inventories or accounts of any kind, except as ordered to do so by a court of competent jurisdiction or as required to do so under a state statute not providing for release of ~ such requirements by a testator. D. If there is no corporate fiduciary acting hereunder, my executor or trustee may designate a corporation (regardless of where organized or headquartered) with fiduciary powers to act as agent or custodian hereunder, may delegate to it such duties as may be appropriate (including investment recommendation duties), may pay to it reasonable compensation for its services, and may discharge it with or without cause. E. To cause the title to any property held hereunder to stand in the name of a nominee or nominees. Page 14 F. To compromise, submit to arbitration or release any claim of my estate or any trust hereunder against others and to pay, compromise, or submit to arbitration any claim of others against my estate or any trust hereunder. G. To exercise any law-given option to pay death taxes in installments, the payment of interest due on such installments to be a charge against principal. H. To exercise any law-given option to treat administrative expenses either as income tax or as estate tax deductions, without regard to whether the expenses were paid from principal or income. I. To receive other property of any type acceptable to the Trustee, including, but not in way of limitation, life } insurance proceeds, which may be devised, bequeathed, assigned, granted, conveyed or made payable to the Trustee by ~ any other person, to be added to and administered in accordance with the then-applicable provisions of the trust or trusts hereunder; provided, however, if more than one trust is then being administered hereunder, such other person may specify, in the instrument of transfer, among which trusts, and in what proportions such property shall be allocated. J, To treat the entire trust estate as a common fund for the purpose of investment, notwithstanding any provision herein for division thereof into separate shares or separate trusts. K. Any trust beneficiary will have the right at any Page 15 reasonable times to request of and receive from the Trustee a written accounting of such matters pertaining to the administration of the trust as are pertinent to that beneficiary. In the Trustee's discretion, income tax returns of the trust may be used to satisfy such request. L. In making distribution of my estate, my executor (and in making distribution of any trust, my Trustee) is hereby granted the power to make non-prorata distribution of assets in kind. M. My Trustee in addition to other powers granted shall have the authority to purchase life insurance on the lives of any or all beneficiaries of the trust. In addition, specific authority or power is granted to pay premiums on existing policies as well as those purchased after the creation of the .~ trust even though said policies may not be owned by or payable to the Trustee as beneficiary. Premiums may be paid from the income of the trust estate or, if necessary, from principal. i N. Should the principal of any trust herein provided for be or become so small that, in the Trustee's discretion, establishment or continuance of trust is inadvisable, my Trustee or my personal representative may make immediate distribution of the then-remaining principal and any accumulated or undistributed income outright to the person or persons and in the proportions they are then entitled to. If any such person is then a minor, distribution may be made to that person' s guardian, or to a person selected by the Trustee Page 16 to be custodian for such person until the age of twenty-one years under the Pennsylvania Uniform Transfers to Minors Acty O. To pay from the principal of the trust created under Item III the funeral and administrative expenses of my estate, the inheritance, succession and estate taxes imposed thereon or payable thereby, and the debts thereof, including any mortgage indebtedness. P. To pay from the income or principal of the trust created under Item III hereof, monthly payments on any mortgage on real estate owned by me individually or jointly with another person at the time of my death, if my Trustee deems it advisable not to prepay any such mortgage. Q. My fiduciaries, generally, shall have full power and authority to exercise all rights and privileges appurtenant to any property held by my fiduciaries, and to execute and ~ deliver any and all instr~zments which may be necessary or expedient in the exercise of the powers granted herein. R, Any fiduciaries are authorized to make distributions in any manner which said fiduciary deems to be in the best interest of a beneficiary, including: 1. To such beneficiary directly, including mailing to said beneficiary's last-known address or depositing to the beneficiary's bank account or to a bank account to be opened by said beneficiary; and 2. Directly to third persons for the sole benefit of such beneficiary or such beneficiary's dependents. Page l7 3. To an existing trust (or fund thereof) for the sole benefit of such beneficiary and providing no less a right to present enjoyment of income and principal that would be the case under the trust hereunder; provided, however, that as to the marital deduction share distributable to my spouse as provided for in ITEM IV if at the time for distribution thereof my executor or trustee believes, in said fiduciary's discretion, that my spouse is incapable, because of age, illness or other infirmity, from appropriately receiving and disbursing such distribution and should there not then be a trust in existence, the distribution into which would qualify for the marital deduction for Federal estate taxes, then, in that event, my executor may in my executor's discretion, distribute the marital share to my Trustee hereinafter named to be held, administered and distributed for the benefit of my spouse under the following terms and conditions: a. My spouse shall be paid the entire net income from the principal in such periodic installments as my Trustee shall find convenient, but at least as often as quarter-annually. b. My spouse is hereby given power to appoint by will to my spouse's estate or to others, in such manner and for such estates as my spouse may appoint, exercisable only by specific reference by Page 18 my spouse alone and in all events over the principal of this trust. c. My spouse is hereby given a power to appoint from time to time during my spouse's lifetime, to any of my then-living issue, either outright or in trust, such amounts of the principal of this trust as my spouse, in my spouse's sole discretion, shall designate by written instrument delivered to my Trustee during my spouse's lifetime with specific reference hereto. d. As much of the principal of this trust as my Trustee may from time to time, in its discretion, think advisable for the support and maintenance in reasonable comfort of my spouse and for the protection and preservation. of my spouse's property or during illness or emergency shall be either paid to my spouse or else applied directly for my spouse's benefit by my Trustee. e. If my spouse shall fail, either wholly or in part, to exercise effectively the power of appointment created in either sub-paragraph b. or c. hereof, the unappointed principal shall be added to, and thereafter treated as part of, the principal of my residuary estate passing under Item VII hereof. f. If any provision of this section shall Page 19 result in depriving my estate of the marital deduction for Federal estate tax purposes, such provision is hereby revoked and this section shall be read as if any portion thereof inconsistent with allowance of the marital deduction for Federal estate tax purposes is null and void. 4. The receipt for any distribution made in conformity with the above provisions will fully discharge Trustee from any further liability for that distribution. 5. No fiduciary will exercise any discretionary authority to distribute principal or income for the benefit of any beneficiary to reimburse any governmental entity which may have incurred expense for the benefit of that beneficiary or pay any obligation of a beneficiary 1 if that expense or obl.igatior~ is otherwise payable by any governmental entity or pursuant to ar~y governmental. program of reimbursement or payment. Cv 6. Trustee shall have the authority and power, with a view towards administration of income taxes, to deal with income other than the Distribution Amount in any one or more of the following ways: a. To accumulate income; b. To distribute income to a custodian for the benefit of Settlor' s minor (under age twenty- one) children, under the Uniform Transfers for Minors Act of any appropriate state. The custodian Page 20 may be the Trustee (other than Settlor's spouse) or may be selected by the Trustee; c. To distribute income to a child of Settlor's who is twenty-one years of age or older. These powers may be exercised or not exercised by Trustee in Trustee's absolute discretion and may be exercised in differing amounts, or differently in different years and no beneficiary shall have any claim against Trustee or right of reimbursement from Trustee or the trust on account of Trustee's exercise or non-exercise of any of these powers. S. The situs of any trust created hereunder shall be in the County of Cumberland and State of Pennsylvania, and all questions pertaining to the construction or validity of the provisions of this instrument shall be governed by the laws of that state (other than its conflicts of laws provisions). Despite the foregoing, the Trustee may, at any time and from ' time to time, change the situs of any trust created hereunder as the Trustee in Trustee's sole discretion deems desirable for the benefit or security of this trust. The Trustee may elect (or decline to elect) the law of a different jurisdiction and thereafter the court of such other jurisdiction shall have the power to effectuate the purposes of this instrument to such extent. The Trustee may change the situs of any trust created hereunder, and may change the situs of one trust without changing the situs of other trusts Page 21 created hereunder. This is a continuing power which will not be exhausted by its use. The determination of the Trustee as to the change of situs shall be conclusive and binding on all persons interested or claiming to be interested in any trust hereunder. T. In any proceeding, legal or equitable, formal or informal, in court or out of court, in any jurisdiction, concerning any property or personal rights or interests, whether vested or contingent, which arise hereunder, the interests of the following persons shall be represented as hereinafter provided for: 1. In the case of beneficiaries whose whereabouts cannot be ascertained, Trustee or executor will represent them. 2. In the case of beneficiaries who are unborn, unknown, incompet.er~t, or otherwise subject to the appointment of a guardian and a guardian for such beneficiary has not been designated, the following ~' persons in the order named will represent them: a. The oldest competent parent, or if there is no competent parent, the oldest competent grandparent, of such beneficiary; b. The oldest competent sibling; co The oldest competent child, or if there is no competent child, the oldest competent child of a sibling of such beneficiary; Page 22 3. Unborn beneficiaries will be represented by their parent who is related most closely to me. No person will represent a beneficiary if it could or would result in an increase of Federal or state income, gains, gift, death or other taxes. U. If there are co-fiduciaries serving hereunder, they may delegate any and all management duties and responsibilities to one of them. My co-fiduciaries may, for example, designate one of them to maintain a bank account or accounts, and in that instance the signature of only that fiduciary shall be required to open and maintain such account, to deposit funds to such account and to write checks on such account. V. Any individual fiduciaries shall have jointly with any corporate fiduciary all the powers given to the fiduciaries, except that no individual fiduciary shall T participate in the exercise of any discretion to determine the ~~ amounts of a ents of income or principal to the propriety or P Ym individual fiduciary or to any person to whom the individual fiduciary is legally obligated, or possess any of the incidents of ownership with respect to any policy of insurance on the individual fiduciary's life, and the remaining fiduciaries alone shall exercise that discretion and possess those incidents of ownership. W. In the event of any disagreement between or among my fiduciaries, the decision of a majority of my fiduciaries Page 23 shall control. No fiduciary shall be liable for any loss resulting from a decision in which that fiduciary did not join. X. It will be sufficient authority for any person to deal with any successor or substitute fiduciary if the successor delivers to that person a signed written statement that the predecessor fiduciary is either deceased, has resigned or is because of some disability unable to act or continue to act and that the fiduciary is the duly appointed successor fiduciary. Such authority will remain in effect until such time (if any) that the predecessor fiduciary gives written notice that it is no longer effective. During the interim, acts taken pursuant to such authority will be valid as if taken by or with the predecessor fiduciary directly. Y. In establishing the inability of a fiduciary to ar_t or continue to act hereunder, the statements of twc licensed doctors of medicine shall be sufficient to establish such ~ incapacity and third persons are protected in relying upon such statements without any further act or notice. No further act on the part of any party hereto or of any court shall be necessary to vest in a successor fiduciary the fiduciary powers and duties in the supervision and management of the trust and/or estate. ITEM XI: I appoint my wife, Jean L. Miller, as executrix of this my last will. Should my wife fail to qualify or cease to act as executrix I appoint my son, Edwin C. Miller, as executor of this Page 24 my last will. Should my son fail to qualify or cease to act as executor, I appoint the Orrstown Bank, Shippensburg, Pennsylvania, as executor of this my will. ITEM XII: I appoint the Orrstown Bank, Shippensburg, Pennsylvania, trustee of any trusts created by this my last will. ITEM XIII: I direct that my executor or trustee or their successors shall not be required to give bond for the faithful performance of their duties in any jurisdiction. ITEM XIV: Any corporate fiduciary shall be entitled to compensation based upon its regular schedule of fees for such services in effect from time to time during the period over which its services are performed. ITEM XV: Any individual fiduciary shall be entitled to reasonable compensation for services rendered from time to time and/or to reimbursement of out-of-pocket expenses. ITEM XVT: I specifically give unto my attorney, Joel R. Zullinger, Esquire, or if unable or unwilling to act, Hamilton C. 1 Davis, Esquire, (or the successor to their firm), as the case may be, in my attorney's sole discretion, the right and authority to revoke the appointment of any corporate fiduciary designated in my will or in any codicil thereto, provided that my attorney consult prior to doing so with my spouse and at her death, my son, Edwin C. Miller, and my attorney simultaneously appoint a substitute corporate fiduciary. Anything herein to the contrary notwithstanding, it is my intention that there shall at all times be serving hereunder at least one Trustee who is not a "related or Page 25 subordinate party" as defined in Code Section 672(c), and is not a "member of the family" as defined in Code Section 2704(c)(2), with respect to me or any beneficiary hereunder. ITEM XVII: The interests of the beneficiaries hereunder shall not be subject to anticipation or to voluntary or involuntary alienation. IN WITNESS WHEREOF, I hereunto set my hand and seal to this my last will and testament, written on twenty-seven sheets of paper, dated this ~_day of f ~1 G( ` 19. ~~~ L~ _ ~,c~~~. ( SEAL ) Signed, sealed, published and declared by the above-named testator as and for his last will and testament in our presence, who in his presence, at his request and in the presence of each other have hereunto set our hands as attesting witnesses. ~~ ~ ,~~~ ~ 7 ~ ~ ~'~~'~ ~cf4 ~' ~~~~~ ~~~ /`725`7 y ~ :P 1 ~,. Paul A. Miller, _ .~if .~~~ %~. and We , , ;, ~,~ `~~~ ,~ ',~~ the testator and the witnesses respectively, whose names are signed to the attached or foregoing instrument, being first duly sworn, do hereby declare to the undersigned authority that the testator signed and executed the instrument as his last will and testament and that he executed it as his free and voluntary act for the purposes therein expressed and that each of Page 26 the witnesses, in the presence and hearing of the said testator signed the will as witnesses and to the best of their knowledge said signer was at that time eighteen years of age or older, of sound mind and under no constraint or undue influence. awC Q ~~~~ ~:~~ Testator __L ~~, tf~~` ~aT' t ess ~- JWitness Subscribed, sworn to and acknowledged before me by the above-named signer and subscribed and sworn to before me by the above-named witnesses this ,~ day of r ~. Notary Public Notarial Seal Patricia A. Corwell, Notary Public Shippensburg Boro, Cumberland County My Commission Expires March 9, 2002 Member, Pennsytvanla Association of Notsrles Page 27 ~I 6 f:3 Complete Real Estate Appraisal Summary Report of an Agricultural Conservation Easeme~It 735 Walnut Bottom Road Shippensburg, PA 17257 Cumberland County, Pennsylvania 121.38 Acres 121.38 Acres Appraised Prepared For: Cumberl Centraln~ Planning Commission Business 18 North Hanover Street Carlisle, PA 17013 Prepared By: Agrarian Associates, Inc. 243 South 8th Street, Suite 2 Lebanon, PA 17042 Htiective mate of npYruisal:.^^-.Yril 18, 2006 Date Submitted: May 3, 2006 ,(~ BRIAN D. PEDRICI~, IFAA PA. State Certified General Appraiser License #GA-001200-L 243 S. 8th Street, Suite 2, Lebanon, PA 17042 (717)228-1510 FAX: (717) 228-1512 e-mail: agrarian@nbn.net May 3, 2006 Ms. Rebecca Hawthorne, Farmland Preservation Coordinator and Planner Cumberland County Planning Commission 18 North Hanover Street Carlisle, PA 17013 Dear Ms. Hawthorne: In accordance with your request for appraisal of the Paul A. and Jean L. Miller property, I have estimated the conservation easement value of the 121.38 acres to be as follows: Nonagricultural Market Land Value: $1,031,730 Agricultural Market Land Value: $ 65.452 Effect of the Conservation Easement $ 376,278 The effective date of appraisal is April 18, 2006, the date of inspection. The accompanying report contains a total of 132 pages. I have made a careful study of the property and all related data and information documented in the report. I have considered all appropriate approaches to value and have complied with the intent and purposes of the Cumberland County Agricultural Land Preservation Board's procedures and regulations pertaining to this complete summary appraisal. I trust that you will find this report complete and to your satisfaction. If you have questions, feel free to contact me any time. __ F~espectful~ ~, ~~; e Brian D. ~~drlck, £FAA PA State Certified General Appraiser License # GA-001200E SPEC£ALIZING IN CERTIFIED: FOR NON-BIASED: • Fzir Market Values • Agricultural-Use Values • Marketing • Taxation • Conservation Easement Values Estate Planning • Settlements ~_ -,~, .u ~.~ .; ~- t•,~ c~ l_ _ •. .. ~ "' 'v .1 .' "'.::1 ~.,1 i ~ i L~ i m ~aa r ~... ~- _~t., ~'~ r- ~ Lf; .G. r` ~~ V C.~ J /~ M ~ ~ ~ ~ y N "" ~-1 v~ ~ ~ d ~ d n ~ ~ ° ~ ~: ., o~,~ ~, +~ 0 v b H d 1"'~ T~ d 3 ~ o ,n° +~ H Fa N 0J ~ O +,- p ~ U! U ~O~,C d a g a ~'1 n a w d ~--I N Sri r-I