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HomeMy WebLinkAbout02-22-12 IN RE: ESTATE OF : IN THE Ct~URT OF COMMON PLEAS OF SARAIi~ MCCREA CHAPMAN : CUMB~:ItLAND COUNTY, FENNSYZ;VANIA BONES, LATE OF LOWER : ORPHANS COURT DIVISION TflWNSIiIP, - ~ CUMBERLAND COUNTY, PA : NO 21-090329 ~~~ DECEASED ~~,,;~ ~~ OBJECTIONS OF JOHN MCCREA, IlVDIVIDUAL CO-TRUSTEE,=~~ PROPOSED THIItD AND FINAL ACCOUNT AND n ~-~ SCHEDULE OF PROPOSED DISTRIBUTION FOR TRUST UNDER WILL OF SARAH MCCREA CHAPMAN JONES FOR CHAPMAN LODGE COMES NOW John McCrea, individual co-tnistee of the trust created under h 19 of the Last Will and Testament of Sarah McCrea Chapman Jones (Chapman Lodge Trust) (the "Objector"), and objects to the proposed Third and Final Account and Schedule of Proposed l3isGn`bution, of MST Bank, corporate co-trustee. dated February 3, 2012,. and filed Felnvary 5, 2012, in the Orphans Court of Cumberland County, Pennsylvania, and states in support hereof as follows:. CASE BACKGROUND Prior to her death in July 1978, Sarah McCrea Chapman Jones ("Aunt Sarah") was the owner of a substantial rustic log Douse situate on the edge of the North Mountain in Lower Mifrlin Township, Cumberland County, Pennsylvania ("Chapman Lodge"). By provisions of her Last Will and Testament, Aunt Sarah placed Chapman Lodge and its setting of approximately 21 acres intrust for the use of various beneficiaries. She also placed the sum of $35,000.00 in trust for the upkeep and maintenance of Chapman Lodge. At all times relevairt to these proceedings, Aunt Sarah's son, Alfred Chapman, a benefic~azy of Bar Chapman Lodge Trust, has suffered from ttte serious mental illness described as chronic schizophrenia and has lived in various institutions in the Philadelphia area. Wide the hope that springs eternal, Aunt Sarah established the duration of the trust as either Alfred's lifetime, or as long as he has any need for it [Chapman Lodge]. Ailer at least 1985, Alfred. never visited Chapman Lodge or evinced any interest in Chan Lodge, or demonstrated any need for Chapman Lodge. The $35,000.00 fluid set aside by Aunt Sarah for upkeep and maintenance of cv rv N 0 cn rn~~' c~ c_. w ~ f- .~:~ ~; ---, ~.._ :~~ ~: .. `~ ~ Chapman Lodge had diminished to a zero balance by sometime in the early I990's. The corporate trustee, M&T Bank, nevertheless continued to advance its oven funds for the payment of bills for real estate taxes, insurance, and utilities for Chapman Lodge. At any time after about 1985, M&T Bank possessed the capability to terminate the Chapman Lodge Trost by the offer of compet~t medical evidence that .Alfred Chapman no longer had any need for Chapman Lodge. M&T Bank chose not to do so until 2009. When M&T Bank did file a Petition to Terminate Chapman Lodge Trust, their attorneys initially neglected to join Alfred Chapman as a party to the proceeding. I told them multiple tip they were doing ft wrong_ Then, when: they decided it would be better to Join Alfred Chapnnan, they did not ask in their Petition for the appointment of a guardian ad litem for Alfred Chapman, despite the fact that they anal M&T Bank were painfully aware that Alfired Chapman continued to suffer from serious mental illness. Finally, after various tries, the MST Bank attomeys got the parties right But they never got it right that the Chapman Lodge Trust could only be terminated in favor of the three named life tenants, Henry, Karen, and Kate, the children of Aified Chapman. They stubbornly insisted in asking the Court to tE;rminabe the Trust in favor of the remainder entity, St Johns Episcopal Church. This stubborn insistence has continued despite the total lack of any factual basis or legal principle which would justify the bypassing of the named life tenants. For some unfathomable reason, the lower Coed has bought into the illegal termination position advanced by M&T Bank in favor of St Johns Episcopal Church. Timely Exceptions to die December 29, 201 1, Order of Court have been filed by John McCrea and by the named life tenarrts. Those Exceptions are pending. The Objector reserves the right to supplant these Objections in view of any final decision on the Exceptions, ant as additional information not presented in the proposed Third and Final Aa;owrt and Schedule of Proposed Distribution is received. OBJECTIONS TO THIRD AND FINAL ACCOUNT 1. The Objector objects to the inchision of the IBIS Appraisal Service aPlnnaisal fee for Chapman Lodge personal property appraisal in the amount of 51950.40 as a principal disbursement, because this personal property appraisal did not, and does not, and will not, serve a valid purpose of the must, nor will it benefit the trust. The personal property 2 appraisal was only aself-serving activity by the corporate trustee, M&T Bank, calculated only to make it easier for M&T Bank to charge and receive additional fees from the trust estate. Therefore, MBiT Bank should be required to [pay for this personal property appraisal from its own funds. 2. The Objector objects to the inclusion as a reserve expense of the Chapman Lodge Trust the Manson Law Offices current balance of $12,350.00 for legal services, because the proceedings for which said legal services were rendered were legally and factually wrong from the outset. Chapman Lodge Trust should not have to pay for the mistakes of M&T Bank and the Manson Law Offices in proceeding against the wrong parties and in requesting improper relief. Moreover, the legal services rendered did not advance any legitimate tn~st purpose and did not benefit the trust in any way, shape or form. 3. The Objector objects to the inclusion as a reserve expense of the Chapman Lodge Trust the Manson Law Offices estimated future legal services in the amount of $15,000.00, because the future legal services to be offered by this law firm will simply be "more of the same", the expenditure of legal time and effort in pugsuit of the vindication of a legal outcome unsupported by any facts or by an y rational legal theory. Chapman Lodge Trust should not Dave to pay for the continued mistaken legal path pursued by MB~T Bank and Manson Law Offices. Moreover, the legal services for which this amount of money is estimated as its cost will not advance any Legitimate trust purpose and will not benefit the trust in any way, shape or form. 4. The Objector objects to the inclusion as a reserve expense of the Chapman Lodge Trust the M&T Bank claim for trustee's fees for the years 2003-2012 in the amount of 59000.00, because the M&T Bank vice president announced in open court before Judge Mimnmah that the bank had decided to not charge any fees in the Chapman Lodge Trust after the :~35,000.00 find had been reduced to a zero balance, for which 3 decision the Court thanked the vice president at the time. Also, M&T Bank could have chosen to terrminate thetrusttwenty-five years earlier than it tried to do so, and should not be allowed to collect a windfall at the expense of the life tenants or remainder entity. Furthermore, M&T Bank did nothing during the years for which a fee is claimed to advance any legitimate purpose of the trust or to benefit the hvst in any way 5. The Objector objects to the inclusion as a reserve expense of the Chapman Lodge Trust the claim of M8cT Bank for estimated fugue fees for non routine servicing in the amouat of $5000.00, because the need for non-routine servicing has only arisen as a result of mistakes made by M&T Bank and its attorneys, and the bank should not be permitted to profit from its earlier mistakes. Furthermore, Objector believes that no portion of the so-called "non-routine servicing" anticipated as needed by M&T Bank to advance any legitimate purpose of the trust, or to benefit the trust in any way. OBJECTIONS TO PROPOSED SCHEDULE OF DISTRIBUTION 6. The Objector objects to the proposed distribution of the principal aad any undistributed income of the Chapman Lodge Trust to St. Johns Episcopal Church, because the children of Alfred Chapman, Henry, Karen and Kate, are named life tenants for this property and should receive it following termination of the Trust. T here exist no facts and no relevant legal theory on the basis of which distribution should bypass the life tenants and go to the remainder entity, St. Johns Episcopal Church. 7. The Objector objects to the condition which has been inserted in the Schedule of Proposed Distribution making receipt of the. Trust property contingent upon, or subject to, an agreement or requirement for the distributee to satisfy all outstanding fees and expenses of M&T Bank. First of all, this contingency, or subject to, requirement is contrary to the language of Judge Mumrnah's Order dated December 29, 2011. Iudge Mummah placed no contingency upon the right to receive the 4 Trust property. The amended petition of M&T Bank for termination of the Trust requested no such contingency WHEREFORE, John McCrea, individual co-trustee, requests the Court sustain the above Objections and grant such other relief as the Court deems aPProPn~- Respectfiilly submitted, Dated: February 20, 2012 _ o McCrea Box 341 Newville, PA 1 X241 717.776.6656 VERiFiCATION I verify ihat the facts set forth in the foregoing Objections are true and correct to the best of my knowledge, information, and belief. This statement is made subject to the penalties of 18 Pa. C.S.A. section 4904 relating to unsworn falsification to authorities. Dated: February 20, 2012 ~ " iG' o McCrea 5 CERTIFICATE OF SERVICE I certify that I have served a true and correct copy of the foregoing Objections upon the following persons and in the manner specified after each person's name: Seth E. Mosebey, Esquire Manson Law Offices 10 East High Sheet Carlisle, PA 17013 For co-trustee, M&T Bank Original Petitioner James D. Flower, Esquire Flower Law LLC 10 west High street Carlisle, PA 1'7013 For St..7ohns Episcopal Church (e-moil to smosebey@mortsvnlawo,~ces. com) (e-mail to jim(c~lower-law.com) Michael T. Foerster, Esquire (e-mail to mfoerster(a3attorneygeneralgov) Office of Attorney General Charitable Trusts & Organizations Section (hard copy by I~ class mail also) 14'~ Floor -Strawberry Square Harrisburg, PA 17120 For Permsylvania Attorney General Jeffrey R l3oswell, Esquire (e-mail to jboswell@btpalaw.com) 315 North Third Street I~arrisburg, PA 17101 For Henry Chapman,. Karen Chapman & Katharine Chapman Michalka Dated: February 20, 2012 r. - J McCrea 6