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HomeMy WebLinkAbout04-0929 I05.905MS REV.(01/03) This is to certify that this is a true copy of the record which is on file in the Pennsylvania Division of Vital Records in accordance with Act 66, P.L. 304, approved by the General Assembly, June 29, 1953. WARNING: It is illegal to duplicate this copy by photostat or photograph. 0440134 No. Charles Hardester State Registrar H10aS.14a Rev. 2/87 COMMONWEALTH OF PENNSYLVANIA · DEPARTMENT OF HEALTH · VITAL RECORDS W.~.,.T CERTIFICATE OF DEATH BLACKINK · 4. Ellis W. Harned [~male [3. 1 61 - 28 -- 0370 I~an. 1 7. 2004 ~=J I Months I Days I Houm I Mfnute~ ~. ~st Pe~ 1~ S~lal H~piN1 n.~Rmn,.c. ,o~i~e ,.. ret. Hiqhway Pla~. Trans DECEDENT'S MAILING ADuA,-SS (Stme{, CAyfl'own, State, Zip Code) [ 5317 Cobblestone Dr '"---- ~3. Mechanicsburo. PA~I 7Q~ m~r~) FATHER'S NAME (Flint. Middle Last) -. Ellis ~c~ne INFORMANT'S NAME (Type/Print) AS DECEDENT EVER INDECEDENT'S EDUCATIONI tN~'S' ARMED FORCES? I {~ ~1~ ~.~m,t p~ ~ MARITAL STATUS - Mardel, SUR~VING S~USE /~"~ ~O I ~,~, s , ..... , I". l~2. 1~3. ~a Ehly *,. Vlsi ni a Slat~ .~m~o,=s~mo, m,5317 ~les~ne ~.. ~ni~.N~. PA 170qg m~e ~s 2~ ~ ~;~' ~ To ~ ~ ~ ~ ~, d~ ~ ~ ~e ~me, ~ a~ ~ ~. LICENSE NUMBER ~TE SIGNED I ~' I ~. INJURY AT WORK?ye, ll ml--] [DESCRIBE HOWiNJURY OCCURRED LICENSE NUMBER I DATE SIGNF~O (MOUrn. Day Year) N~E AND A~RE~ O~ ~RS~ ~0 ~MPLETE~USE QF ~TH ~/~ ~/~ -~/ REV-1500 OOMMONWEA.TH O. PE..SVLVAN,A INHERITANCE TAX RETURN DEPARTMENT OF REVENUE D~.T.~so~o~ RESIDENT DECEDENT HARRISBURG, PA 17128-~01 DECEDENT'S NAME (~ST, FIRST, AND MIDDLE INITIAL) Harned, Ellb W DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) 01/17/2004 06/19/1933 (IF APPLICABLE) SURVIVING SPOUSE'S NAME ( LAST, FIRST AND MIDDLE INITIAL) Harned, Barbara E. [] 1. Original Return [] 2. Supplemental Return FILE NUMBER 21 CO.~UNTY CODE 04 YEAR NUMBER SOCIAL SECURITY NUMBER ]61-28-0370 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS SOCIAL SECURITY NUMBER ] 3. Remain0er Return (date of death pdor to 12-13-82) ] 4. Limited Estate [] 4a. Future Interest Compromise (date of death after 12-12-82) [] 6. Decedent Died Testate (Attach copy [] 7. Decedent Maintained a Living Trust (Attach of Will) copy of Trust) [] 9. Litigation Proceeds Received [] 10. Spousal Poverty Credit (date ol death between [] 5. Federal Estate Tax Return Required __ 8. Total Number of Safe Deposit Boxes [] 11 .Election to tax under Sec. 9113(A) (Attach Sch O) ~IAME Susan E. Lederer :IRM NAME (If applicable) Law Offices of Susan E. Lederer 'ELEPHONE NUMBER 717/652-7323 COMPLETE MAILING ADDRESS 4811 Jonestown Rd. Suite 226 Harrisburg, PA 17109 1. Real Estate (Schedule A) (1) 2. Stocks and Bonds (Schedule B) (2) 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) 4. Mortgages & Notes Receivable (Schedule D) (4) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) (5) 6. Jointly Owned Property (Schedule F) (6) [] Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 11. Total Deductions (total Lines 9 & 10) 12. Net Value of Estate (Line 8 minus Line 11) None 11,267.t5 None None 8,230.00 None 480,869.23 15,970.50 100.00 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) 14. Net Value Subject to Tax (Line 12 minus Line 13) (11) (12) (13) (14) 500,366.38 16,070.50 484,295.88 442,448.27 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15.Amount of Line 14 taxable at the spousal tax rate, 41 847.61 or transfers under Sec. 9116(a)(1.2) x .00 (lS) 41,847.61 16. Amount of Line 14 taxable at lineal rate x .045 (16) 17. Amount of Line 14 taxable at sibling rate 18. Amount of Line 14 taxable at collateral rate 19. Tax Due 20. [] x .12 (17) x .15 (48) (19) 0.00 0.00 Copyright 2000 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00) . Decedent's Complete Address: ISTREET ADDRESS 5317 Cobblestone Drive CITY Mechanicsburg J STATE PA ZIP 17055 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1) Total Credits (A + B + C) (2) 0.00 3. Interest/Penalty if applicable D. Interest E. Penalty Total Interest/Penalty (D + E) (3) 0.00 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. (4) Check box on Page 1 Line 20 to request a refund 5. If Line I + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 0.00 A. Enter the interest on the tax due. (5A) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B) 0.00 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: Yes No a. retain the use or income of the property transferred; ........................................................... [] [] b. retain the right to designate who shall use the property transferred or its income; .................................... c. retain a reversionary interest; or .................................................................................................................. 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 receiving adequate consideration? ....................................................................................................................... [] [] 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? ......... [] [] 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ...................................................................................................................... [] [] IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and slatements, 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 ADDRESS Barb~'a E. Harned . S ~Oq~'~JRrE-OF PERS6N RESPONSI-BLE FOR F"~.II~G RI~TURff -- ~ ~ SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE Susan E. Lederer 5317 Cobblestone Drive DATE Mechanicsburg, PA 17055 ADDRESS /D/VI'E ADDRESS 4811 Jonestown Rd. DAT Suite 226 Harrisburg, PA 17109 For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [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% [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 twenty-one 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% [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%, 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% [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. COMMONWEALTH OF PENNSYLVANIA INHERiTANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Harned, Ellis W SCHEDULE B STOCKS & BONDS FILE NUMBER 21 - 04 - Ail property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM I VALUE AT DATE OI NUMBER DESCRIPTION UNIT VALUE DEATH 1 259 shares of Prudential Financial, Inc. Cusip 4/744320102, titled to Ellis W. Harned 43.5025 11,267.15 TOTAL (Also enter on line 2, Recapitulation) 11,267.15 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Harned, Ellis W SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY FILE NUMBER 21 - 04 - Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on schedule F. ITEM NUMBER DESCRIPTION 1993 Honda Accord, titled to Ellis W. Harned (The car was transferred to Barbara Harned and then gifted to son-in-law after Ellis Harned's death.) 1996 Buick Regal, titled to Ellis W. Harned TOTAL (Also enter on Line 5, Recapitulation) VALUE AT DATE OF DEATH 4,200.00 4,030.00 8,230.00 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF FILE NUMBER Harned, Ellis W 21 - 04 - This schedule must be completed and filed if the answer tt any of uestions 1 throuc DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. ! DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE (IF APPLICABLE) INTEREST 1 217.097 shares of Dreyfus Appreciation Fund Cusip # 8,081.44 50% 4,040.72 261970107, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($37.225/sh) 2 784.646 shares of Jennison Equity Opportunity Fund Z, 13,319.37 50% 6,659.69 Cusip # 74437E800, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($16.975/sh) 3 633.09 shares of Lord Abbett Affiliated Fund A, Cusip # 9,002.54 50% 4,501.27 544001100, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($14.22/sh) 4 1007.829 shares of Strategic Partners Focused Value Fund 10,642.67 50% 5,321.34 Z, Cusip # 86276R882, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($10.56/sh) 5 2954.486 shares of Eaton Vance National Muni Fund B, 30,756.20 50% 15,378.10 Cusip # 27826L108, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust($10.41/Eh) 6 706.644 shares of Capital Income Builder Fund A, Cusip # 35,229.74 50% 17,614.87 140193509, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($49.855/sh) 7 900 shares of Blackrock Muni Income Trust II, Cusip # 12,863.25 50% 6,431.63 09249N101, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($14.2925/sh) Total of Continuation Schedule(s) 420,921.61 TOTAL (Also enter on line 7, Recapitulation) 480,869.23 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Harned, Ellis W FILE NUMBER 21 -04 - This schedule must be completed and filed if the answer to any of uestions I throu¢ DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE Attach a copy of the deed for real estate. (IF APPLICABLE INTEREST 8 1500 shares of Blackrock Muni Income Trust II, Cusip # 21,708.75 50% 10,854.38 09249N101, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($14.4725/sh) 9 1530 shares of Nuveen PA Premium Income Muni Fund 2, 24,613.88 50% 12,306.94 Cusip # 67061F101, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($16.0875/sh) 10 1000 shares of Pimco Muni Income Fund II, Cusip # 14,562.512 50% 7,281.25 72200W106, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust (14.5625/sh) 11 2350 shares of Van Kampen PA Value Muni Income Trust, 39,491.75 50% 19,745.88 Cusip # 92112T108, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($16.805/sh) 12 2300 shares of Van Kampen PA Muni Quality Trust, Cusip 39,462.25 50% 19,731.13 # 920924107, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust (17.1575/sh) 13 2400 shares of Van Kampen Investment Grade PA Munis, 39,930.0C 50% 19,965.00 Cusip # 920934106, held at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust ($16.6375/sh) 14 20 shares of PA Insured Muni Income Trust Series 206, held 15,778.30 50% 7,889.15 at Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust (788.915/sh) Page 2 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Harned, Ellis W SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued !FILE NUMBER 21 - 04 - This schedule must be completed and filed if the answer to any of uestions 1 throm DESCRIPTION OF PROPERTY ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. DATE OF DEATH % OF NUMBER Attach a copy of the deed for real estate. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE (IF APPLICABLE INTEREST 15 Certificate of Deposit with Provident Bank, held at 7,000.00 50% 3,500.00 Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust 16 Certificate of Deposit with Mill Creek Bank, held at 8,000.0¢ 50% 4,000.00 Wachovia Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust 17 Command Bank Deposit Sweep, held at Wachovia 11,273.013 50% 5,636.50 Securities, LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust 18 Command Money Fund A, held at Wachovia Securities, 5,929.00 50% 2,964.50 LLC, account number 08A-027679-K3, titled to Ellis W. Harned and Barbara E. Harned Trustees of the Ellis W. and Barbara E. Harned Living Trust 19 Prudential Discovery Choice Annuity, Contract Number 107,738.70 100% 107,738.70 E0223383, Ellis Harned, owner, Ellis W. Harned and Barbara E. Harned Living Trust, beneficiary 20 House and lot located at 5317 Cobblestone Drive, 164,346.0¢ 50% 82,173.00 Mechanicsburg, PA, Parcel ID # 13-24-0793-161, titled to Ellis W. and Barbara E. Harned as Trustees of the Ellis W. and Barbara E. Harned Living Trust (tax assessed value $156,520.00 X 1.05) 21 1636.028 shares of The Growth Fund of America -A, 41,735.07 50% 20,867.54 Account Number 58845033, held at American Funds, titled to Ellis W. Harned and Barbara E. Harned as Trustees of the Ellis W. and Barbara E. Harned Living Trust ($25.51/sh) 22 3718.485 shares of Washington Mutual Investors Fund-A, 108,840.06 50% 54,420.03 Account Number 58845033, held at American Funds, titled to Ellis W. Harned and Barbara E. Harned as Trustees of the Ellis W. and Barbara E. Harned Living Trust ($29.27/sh) Page 3 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY continued ESTATE OF Harned, Ellis W FILE NUMBER 2! - 04 - This schedule must be completed and filed if the answer to any of questions 1 throu( DESCRIPTION OF PROPERTY DATE OF DEATH % OF ITEM Include the name of the transferee, their relationship to decedent and the date of transfer. VALUE OF ASSET DECD'S EXCLUSION TAXABLE VALUE NUMBER Attach a copy of the deed for real estate, (IF APPLICABLE) INTEREST 23 1422.904 shares of Fundamental Investors-A, 41,847.61 100% 41,847.61 IRA account number 59525541, held at American Funds, titled to Ellis W. Harned, Barbara E. Harned, beneficiary ($29.41/sh) Page 4 of Schedule G COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUI~a~=LN_ EXPENSES & ESTATE OF Harned, Ellis W FILE NUMBER 21 -04- Debts of decedent must be reported on Schedule I. ITEM NUMBER DESCRIPTION AMOUNT Ao FUNERAL EXPENSES: Malpezzi Funeral Home ADMINISTRATIVE COSTS: Personal Representative's Commissions Social Security Number(s) / EIN Number of Personal Representative(s): Street Address City State Zip Year(s) Commission paid Attorney's Fees Law Offices of Susan E. Lederer Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City Relationship of Claimant to Decedent Probate Fees State Zip Accountant's Fees Tax Return Preparer's Fees Other Administrative Costs Attorney fees (Jan Brown and Associates) Inheritance Tax Return/Inventory Filing Fee TOTAL (Also enter on line 9, Recapitulation) 11,968.00 3,500.00 487.50 15.00 15,970.50 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Harned, Ellis W SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS FILE NUMBER 21 - 04 - Include unreimbursed medical expenses. ITEM NUMBER ! DESCRIPTION AMOUNT Payment of Medicare Deductible I00.00 TOTAL (Also enter on Line 10, Recapitulation) 100.00 REV-1513 EX+ (9-00) ~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Harned, Ellis W SCHEDULE J BENEFICIARIES FILE NUMBER 21 - 04 - NUMBER II. NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS (include outright spousal distributions) Barbara E. Harned 5317 Cobblestone Drive Mechanicsburg, PA 17055 RELATIONSHIP TO DECEDENT Do Nat Li~t Tru~t~q) Wif~ AMOUNT OR SHARE OF ESTATE IRA ($41,847.61) Enter dollar amounts for distributions shown above on lines 15 through 18, as appropriate, on Rev 1500 cover sheet NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUT ONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE Family Trust under Article 10 of the Living Trust A~eement 442,448.27 Disclaimers and Renunciations by Ann Harned Reisinger (7/19/2004) and Ellis Michael Harned B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II - ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 442,448.27 The ELLIS W. AND BARBARA E. HARNED Living Trust prepared for ELLIS W. HARNED and BARBARA E. HARNED by Robert J Kreidler Robert J Kreidler and Associates 800 Corporate Circle, Suite 104 Harrisburg, Pennsylvania 17110 Telephone: (717) 540-9460 Copyright© 1999 Robert J Kreidler Table of Contents The ELLIS W. AND BARBARA E. HARNED Living Trust Introduction Article One ................................... Creation of Our Trust Article Two ................................... Our Family Article Three ................................. Funding Our Trust Providing for Us and Our Family during Our Lifetimes Article Four ................................... Administration of Our Trust during Our Lives Article Five ................................... Insurance Policies and Retirement Plans Providing for Us and Our Family upon Our Deaths Article Six ...................................... Administration of Our Trust upon the Death of a Trustmaker Article Seven ................................ Distribution of Our Tangible Personal Property and Specific Distributions Article Eight .................................. Creation of the Marital and Family Trusts Article Nine ................................... The Marital Trust Article Ten .................................... The Family Trust Article Eleven ............................... The Common Trust Article Twelve ............................... Distribution of Our Trust Property Article Thirteen ............................. Ultimate Distribution Pattern Article Fourteen ............................ Methods of Distribution and Trust Administration with Regard to Minor and Disabled Beneficiaries Provisions Regarding Our Trustee Article Fifteen ............................... The Resignation, Replacement, and Succession of Our Trustees Article Sixteen .............................. General Matters and Instructions with Regard to the Trusteeship General and Administrative Provisions Article Seventeen ......................... Our Trustee's Administrative and Investment Powers Article Eighteen ............................ Definitions and General Provisions The ELLIS W. AND BARBARA E. HARNED Living Trust Article One Creation of Our Trust Section 1. Our Trust We are husband and wife. This is our Living Trust, dated ~'~'"'"'",'i. /2//~; , 1999, by ELLIS W. HARNED, the husband Trustmaker, BARBARA E. HARNED, the wife Trustmaker, and the following initial Trustees: ELLIS W. HARNED and BARBARA E. HARNED Our trust is a joint revocable living trust that contains oUr instructions for our own well-being and that of our loved ones. All references to "our trust" or "trust," unless otherwise stated, shall refer to this Living Trust and the trusts created in it. All references to "Trustee" shall refer to our initial Trustee or Trustees, or their successor or successors in trust. When the term "Trustmaker" is used in our trust, it shall have the same legal meaning as "Grantor," "Settlor," "Trustor," or any other term referring to the maker of a trust. Notwithstanding anything in our trust to the contrary, when we are serving as Trustees under our trust, either of us may act for and conduct business on behalf of our trust as a Trustee without the consent of any other Trustee. Section 2. The Name of Our Trust For convenience, our trust shall be known as the: ELLIS W. AND BARBARA E. HARNED dated ~,~,,,.,~? /4/,CEE ,1999 LIVING TRUST, 1-1 For purposes of beneficiary designations and transfers directly to our trust, our trust shall be referred to as: ELLIS W. HARNED and BARBARA E. HARNED, Trustees, or their successors in trust, under the ELLIS W. AND BARBARA E. HARNED LIVING TRUST, dated /-,,'",¢,-.,,.-;/ /,,?//¢.~ ~ , 1999, and any amendments thereto. In addition to the above descriptions, any description for referring to our trust shall be effective to transfer title to our trust or to des gnate our trust as a beneficiary as long as that description includes the date of our trust, the name of at least one initial or successor Trustee, and any reference that indicates that assets are to be held in a fiduciary capacity. 1-2 Article Two Our Family The names and birth dates of our children are: ELLIS MICHAEL HARNED, born March 1, 1962 ANN HARNED REISINGER, born September 28, 1964 All references to our children in this aqreement are to these children, as well as any children subsequently born'to us, or legally adopted by us. Article Three Funding Our Trust Section 1. Initial Funding We hereby transfer, assign, and convey all of our right, title, and interest in and to all of our property that is permitted by law to be held in trust, wherever situated, whether personal or real, tangible or intangible, separate or community, to our Trustee to hold and administer for our benefit and for the benefit of our beneficiaries pursuant to the terms of this ~ru~L We shall also each initially fund our trust with $10 concurrent with its execution. a. Reliance by Third Parties Upon presentation by our Trustee of this Article of our trust and a separate Affidavit of Trust stating the name and address of our Trustee, affirming that our trust is in full force and effect, and containing any pertinent provisions of our trust, all third parties shall rely on this transfer and follow all of our Trustee's instructions without risk of incurring any liability to us, our Trustee, or our beneficiaries. b. Specific Transfers of Property Our trust may be additionally funded with property interests of all kinds by either of us or by any other person in any manner. All property interests assigned, conveyed, or delivered to our Trustee must be acceptable to our Trustee. 3-1 Section 2. Funding with Community Property Any community property which is or becomes trust property, and the proceeds from such community property, shall remain community property during our lives. a. Transfer or Conveyance of Community Property A conveyance or transfer of community property to our trust, whether directly transferred or transferred to a nominee or agent on behalf of our trust, shall not be construed as a partition of the community property unless there is an express written agreement to that effect between us. b. Withdrawals of Community Property If withdrawals of community property are made from the trust, the property that is withdrawn shall retain its character as community property. If we revoke our trust, any and all community property held on behalf of our trust shall be reconveyed by our Trustee to us as community property. During our lives: The net income from the community property shall retain its community character regardless of whether it is accumulated or to whom our Trustee is directed to distribute it. Our Trustee shall have no power with respect to community property that would be greater than that power that each of us would have over that same community property were it free of trust. Section 3. Funding with Separate Property Any separate property, including any individual interests in property, and the proceeds from such property, which is or becomes trust property, shall remain the separate property of a Trustmaker. A separate schedule of such property shall be maintained to facilitate the payment of income or the transfer of all or part of the principal to the Trustmaker who is entitled 3-2 to such distributions. Either of us shall have the unrestricted right to remove all or part of our respective separate property at any time. .3-3 Article Four Administration of Our Trust during Our Lives Section 1. Our Lifetime Powers While we are both living, we shall have the following powers: a. Control and Direct Payments Our Trustee shall distribute or retain the principal and net income of the community estate, if any, as we may direct from time to time, except that we shall have no power to direct our Trustee to make gifts of principal or income from the community estate to a third party. Our Trustee shall distribute or retain the principal and net income of a Trustmaker's separate estate as that Trustmaker shall direct, except that a Trustmaker shall have no power to direct our Trustee to make gifts of principal or income from the Trustmaker's separate estate to a third party. Any gift made directly by our Trustee to a third party in violation of these provisions shall be construed as a distribution made directly to either or both of us, and then a gift from one or both of us to such third party. Absent directions from us, our Trustee shall distribute the trust income from the community estate, if any, at least monthly and shall distribute the trust income from a Trustmaker's separate estate to that Trustmaker at least monthly. b. Investment Decisions During our lifetime, except for any period of our incapacity, we individually reserve the right to specifically approve or disapprove 4-1 each and every trust investment, purchase, or sale before it is made. Our Trustee is relieved from all liability for loss which may result from the purchase or sale of trust property which has been directed by either of us. c. Add or Remove Trust Property We shall have the absolute right, either individually or jointly, to add to the trust property at any time. A Trustmaker shall also have the absolute right to remove his or her own separate property, in whole or in part, from the trust at'any time. Both of these rights shall be exercised in writing. Each of us shall have the absolute right to remove as community property as much of our respective interes[s ~n' me community estate, if any, as we shall request in writing at any time. d. Amend or Revoke the Trust We shall have the absolute right to amend or revoke our trust, in whole or in part, at any time. Any amendment or revocation must be in writing, signed by both of us, and delivered to our Trustee. This right to amend or revoke is personal to us and may not be exercised by a legal representative of either of us. After the death of one of us, this agreement shall not be subject to amendment or revocation. Section 2. The Definition of Our Disability Our disability, for purposes of this agreement, shall be defined as follows: a. The Opinion of Two Licensed Physicians A Trustm~ker *hall be deemed disabled ",,-'~ ......... ,~,~,,, ,~ any period when, in the opinion of two licensed physicians, a Trustmaker is incapacitated or disabled because of illness, age, or any other cause which results in the Trustmaker's inability to effectively manage his or her property or financial affairs. 4-2 b. Court Determination A Trustmaker shall also be deemed to be disabled upon the determination of a court of competent jurisdiction that a Trustmaker is incompetent, incapacitated, or otherwise legally unable to effectively manage his or her property or financial affairs. c. Disappearance orAbsence A Trustmaker shall be deemed to be disabled upon the unexplained disappearance or absence of a Trustmaker, or if a Trustmaker is being detained under duress where the Trustmaker is unable to effectively manage his or her property or ~a~,u a, affairs. Section 3. Procedural Guidelines for Our-Disability During any period of time when one or both of us are disabled, our Trustee shall apply the trust property, including its income, exclusively for our benefit and for our valid obligations by observing the following procedural guidelines: a. The Disability of One of Us Our Trustee shall provide as much of the principal and net income of a disabled Trustmaker's separate estate, and as much of the principal and net income of the disabled Trustmaker's share of the community estate, if any, as is necessa~ or advisable, in its sole and absolute discretion, for the health, support, maintenance, and general welfare of the disabled Trustmaker. Our Trustee may make the distributions called for in this Article directly to, or for the benefit of, the disabled trustmaker. b. Provide for the Other Trustmaker During any period of time that one of us is disabled, our Trustee, in its sole and absolute discretion, shall provide as much of the 4-3 principal and net income of the disabled Trustmaker's separate estate and as much of the principal and net income of the disabled Trustmaker's community estate, if any, as is necessary for the education, health, maintenance, and support of the other Trustmaker. c. Provide for Our Obligations Our Trustee shall provide as much of the principal and net income of our trust as our Trustee, in its sole and absolute discretion, deems advisable for the payment of any valid obligations as confirmed by our Trustee. A payment shall be paid from any community estate, if an obligation of both of us, and out of a Trustmaker's separate share or out of a Trustmaker's share of the community estate, if any, if an obligation of that Trustmaker. Our-Trustee shall provide as much of the principal and net income of our trust as our Trustee deems advisable for the payment of insurance premiums on policies owned by one of us, either directly or beneficially, or our trust. Our Trustee shall pay premiums for any life insurance policies that are the sole and separate property of one of us from that Trustmaker's sole and separate property. d. Procedural Guidelines In making distributions under this Section, our Trustee shall, at all times, give primary consideration to the needs of the disabled Trustmaker and thereafter tothe other Trustmaker. When making such distributions to the other Trustmaker, our Trustee shall consider other income and resources available to the other Trustmaker and that are known to our Trustee. A distribution made to a Trustmaker shall not be charged against the ultimate share which may be distributible to the Trustmaker under any other provision of this 4-4 Section 4. Undistributed Net Income ,~,ny net income which is not distributed under this Article shall be accumulated and added to principal, 4-.5 Article Five Insurance Policies and Retirement Plans Section 1. During Our Lives During our lives, we shall have the following rights, and our Trustee shall have the following duties, with respect to insurance policies or retirement plans owned by or made payable to our trust, to the extent of our community or sole and separate interest in those policies or plans. a. A Trustmaker's Rights Each of us reserves, and may exercise without the approval of our Trustee or any beneficiary, all of the rights, powers, options, and privileges with respect to any insurance policy, retirement plan, annuity, or any other third-party beneficiary contract made payable to our trust or deposited with our Trustee. b. Our Trustee's Obligations Our Trustee shall deliver to a Trustmaker or the Trustmaker's designee, upon the Trustmaker's written request, any and all insurance policies, retirement plan documents, annuity contracts, and all other third-party beneficiary contracts, as well as all related documents, which are owned by or deposited with our Trustee pursuant to our trust. Our Trustee shall not be under any obligation to have any or all of such documents returned. Our Trustee shall have no obligation to see that premiums or other sums that may be due and payable under any insurance policy, retirement plan, annuity contract, or any other third-party beneficiary contract are paid. Further, our Trustee shall have no obligation with respect to any insurance policy, retirement plan, annuity contract, or other third-party beneficiary contract, as well as any documents related thereto, deposited with our Trustee, other than to provide for their safekeeping. No provision of this agreement shall be construed to impose any obligation on either of us to maintain any insurance policy, retirement plan, annuity contract, or any other third-party beneficiary contract in force. Section 2. Upon a Trustmaker's Death Upon the death of a Trustmaker, our Trustee shall make all appropriate elections with respect to insurance policies, retirement plans, and other death benefits which constitute the separate estate of the deceased Trustmaker. As to all insurance policies, retirement plans, and other death benefits which are a part of the community estate, our Trustee and the surviving Trustmaker shall together make all appropriate elections consistent with the laws of the state having jurisdiction over such property. a. Collection of Insurance Proceeds Nonretirement Death Proceeds and Other Our Trustee shall make every reasonable effort to collect all sums made payable to our trust or our Trustee under all life insurance policies, or other nonretirement death benefit plans, which provide for death proceeds made payable to or owned by the trust. In collecting policy or death benefit proceeds, our Trustee may, in its sole and absolute discretion, exercise any of the settlement options that may be available under the terms of a policy or any other third-party beneficiary contract with regard to the interest of the deceased Trustmaker in those policy or death benefit proceeds. Our Trustee shall not be liable to any beneficiary for the settlement option ultimately selected. - b. Retirement Plan Elections Our Trustee shall have the right, in its sole and absolute discretion, to elect to receive any retirement plan death proceeds, whether under a qualified pension, profit sharing, Keogh, individual retirement account, or any other retirement plan, either in a lump sum or in any other manner permitted by 5-2 the terms of the particular retirement plan, to the extent of the interest of the deceased Trustmaker. Our Trustee shall not be liable to any beneficiary for the death benefit election ultimately selected. Our Trustee, in its sole and absolute discretion, may disclaim the benefits of any retirement plan payable to our trust, including individual retirement accounts that are payable to our trust. Such disclaimed benefits shall be payable to the surviving Trustmaker. c. Collection Proceedings Our Trustee may institute proceedings, whether in law or equity, muir n~suauve or [R~rwise, to enforce payment of such proceeds. Our Trustee need not, except at its option, enter into or maintain any litigation or take action to enforce any payment until it has been indemnified to its satisfaction for all expenses and liabilities to which, in its sole judgment, it may be subjected. Our Trustee is expressly authorized, in its sole and absolute discretion, to adjust, settle, and compromise any and all claims that may arise from the collection of any death proceeds. The decisions of our Trustee shall be binding and conclusive on all beneficiaries. d. Liability of Payor No person or entity which pays insurance proceeds or other death proceeds to our Trustee as beneficiary shall be required to inquire into any of the provisions of this trust or to see to the application of any such proceeds by our Trustee. The receipt of the proceeds by our Trustee shall relieve the payor of any further liability as a result of making such payment. 5-3 Article Six Administration of Our Trust upon the Death of a Trustmaker Section 1. Payment of Expenses, Claims, and Taxes Upon the death of the first one of us to die, our Trustee is authorized, but not directed, to pay the following: Expenses of the last illness, funeral, and burial, including memorials of all types and memorial services of such kind as our Trustee in its sole discretion shall approve. Legally enforceable claims against the deceased or the estate. Expenses with regard to the administration of the estate. Federal estate tax, applicable state inheritance or estate taxes, or any other taxes occasioned by death. Statutory or court-ordered allowances for qualifying family members. The payments authorized under this Section are discretionary, and no claims or right to payment by third parties may be enforced against our trust by virtue of such discretionary authority. Our Trustee shall be indemnified from the trust property for any damages sustained by our Trustee as a result of its exercising, in good faith, the authority granted it under this Section. The payments authorized under this Section shall be paid only to the extent that the probate assets (other than real estate, tangible personal property, or property that, in our Trustee's judgment, is not readily marketable) are insufficient to make these payments. Section 2. Redemption of Treasury Bonds If our trust holds United States Treasury Bonds which are eligible for redemption at par in payment of the fedeX-al estate tax, our Trustee shall redeem such bonds to the extent necessary to pay federal estate tax as a result of a death. Section 3. Coordination with the Personal Representative This Section shall be utilized to help facilitate the coordination between the personal representative of the deceased Trustmaker's probate estate, if any, and our Trustee with respect to any property, whether owned solely or held as community property, to the extent of the deceased Trustmaker's interest in such property owned by the Trustmaker outside of this trust agreement on the Trustmaker's death. a. Authorized Payments Our Trustee, in its sole and absolute discretion, may elect to make the payments authorized under this Article either directly to the appropriate persons or institutions or to the personal representative of the deceased Trustmaker's probate estate. Our Trustee may rely upon the written statements of the deceased Trustmaker's personal representative as to all material facts relating to these payments; our Trustee shall not have any duty to see to the application of such payments. b. Purchase of Assets and Loans Our Trustee is authorized to purchase and retain in the form received, as an addition to our trust, any property which is a part of the deceased Trustmaker's probate estate. In addition, our Trustee may make loans, with or without security, to the deceased Trustmaker's probate estate. Our Trustee shall not be iiabie for any loss suffered by our trust as a result of the exercise of the powers granted in this paragraph. 6-2 c. Distributions from the Personal Representative Our Trustee is authorized to accept distributions, from the personal representative of the deceased Trustmaker's probate estate without audit and our Trustee shall be under no obligation to examine the records or accounts of the personal representative of the deceased Trustmaker's probate estate. d. Distributions to the Personal Representative Our Trustee, in its sole and absolute discretion, may make distributions of any or all of the trust property to the personal representative of the deceased Trustmaker's estate in order to fund any testamentary trust created under the deceased Trustmaker's Last Wiii and Testament. in lieu of distributing such property to the personal representative, our Trustee may distribute such property to the Trustee designated in such testamentary trust. Section 4. Treatment of Exempt Property In making any payments pursuant to this Article, our Trustee shall not use any property to the extent it is not included in the deceased Trustmaker's gross estate for federal estate tax purposes. However, if our Trustee makes the determination, in its sole and absolute discretion, that other nonexempt property is not available for payments pursuant to this Article, or that it is not economically prudent to use nonexempt property for the payment of such expenses, it may then use such exempt property. Section 5. Apportionment All expenses and claims and all estate, inheritance, and death taxes e,,~,udl,,ganyr~e - ' ,- · , ~ n~ratlon-s~(ippmg transfer tax, resulting from the death of a Trustmaker shall be paid without apportionment and without reimbursement from any person, except as otherwise specifically provided in this trust. 6-3 a. Protection of Marital Trust Notwithstanding anything to the contrary in our trust, no death taxes payable as a result of the death of the first Trustmaker to die shall be allocated to or paid from the Marital Trust or from any assets passing to the surviving Trustmaker and qualifying for the federal estate tax marital deduction unless our Trustee has first used all other assets available to our Trustee. b. Property Passing Outside Our Trust Notwithstanding anything to the contrary in our trust, estate, inheritance, and death taxes assessed with regard to property passing outside of our trust or outside of our probate estates, but included in the gross estate of a Trustmaker for federal estate tax purposes, shall be chargeable against the persons receiving such property. Section 6. Our Trustee's Authority to Make Tax Elections Our Trustee may exercise any available elections with regard to state or federal income, inheritance, estate, succession, or gift tax law. a. Alternate Valuation Date The authority granted our Trustee in this Section includes the right to elect any alternate valuation date for federal estate or state estate or inheritance tax purposes. b. Deduction of Administration Expenses The authority granted our Trustee in this Section shall include the right to elect whether all or any parts of the administration expenses of a deceased Trustmaker's estate are to be used as estate tax deductions or income tax deductions. Any administration expenses claimed as income tax deductions shall be charged against the Family Trust. 6-4 No compensating adjustments need be made between income and principal as a result of such elections unless our Trustee, in its sole and absolute discretion, shall determine otherwise, or unless required by law. c. Deferment of Estate Taxes The authority granted our Trustee in this Section shall include the right to elect to defer payment of all or a part of a deceased Trustmaker's estate taxes, pursuant to any law permitting deferral, and to enter into any agreement necessary to defer payment of estate taxes even if doing so extends the statute of limitations and regardless of whether sufficient funds are available to pay the estate taxes when due. d. Election for Qualified Terminable Interest Property Our Trustee, in its .sole and absolute discretion, may elect to have trust property qualify for the federal estate tax marital deduction as qualified terminable interest property under the appropriate provisions of the Internal Revenue Code and its regulations. e. Special Use Valuation The authority granted to our Trustee in this Section shall include the right to elect to value qualified real property at its value based upon actual use rather than its fair market value and to enter into any agreement necessary to make such election as permitted under the Internal Revenue Code and its regulations. f. Taxes and Returns Our Trustee may also: Sign ~,~i,,+ tax returns. Pay any taxes, interest, or penalties with regard to taxes. Apply for and collect tax refunds and interest thereon. 6-5 Article Seven Distribution of Our Tangible Personal Property and Specific Distributions Section 1. Nonbusiness Tangible Personal Property On the death of each. of us, our Trustee sha_! distr, bute the nonbJs.ness tangible personal property belonging to the deceased Trustmaker as follows: a. Use of Memorandum Our Trustee shall distribute the jewelry, clothing, household furniture, furnishings and fixtures, chinaware, silver, photographs, works of art, books, boats, automobiles, sporting goods, artifacts relating to the hobbies of the deceased Trustmaker, and all other tangible articles of household or personal use in accordance with any written, signed, and dated memorandum left by the deceased Trustmaker directing the distribution of such property. Any memorandum written, dated, and signed by the deceased Trustmaker disposing of nonbusiness tangible personal property shall be incorporated by reference into this agreement. Should the deceased Trustmaker leave multiple written memoranda which conflict as to the disposition of any item of nonbusiness tangible personal property, that memorandum which is last dated shall control as to those items which are in conflict. b. Distribution of Property Not Distributed by Memorandum If state law does not allow the use of a memorandum to distribute nonbusiness tangible personal property or, to the extent that a Trustmaker's nonbusiness tangible personal property which is or 7-1 becomes trust property is not disposed of by memorandum for any reason, then that nonbusiness tangible personal property shall be distributed under the terms of this trust agreement. Section 2. Business Tangible Personal Property The disposition of the tangible personal property under this Article shall not include tangible personal property which our Trustee, in its sole and absolute discretion, determines to be part of or used exclusively in any business or profession in which the deceased Trustmaker had an interest at the time of death. Section 3. Specific Distributions of Trust Property Neither of us wishes to make any specific distributions of trust property. 7-2 Article Eight Creation of the Marital and Family Trusts Section 1. Division of Trust Property Upon the death of the first one of us to die, our Trustee shall divide the trust property into two separate trusts, to be known as the Marital Trust and the Family Trust. a. Creation of the Marital Trust The Marital Trust shall consist of the surviving Trustmaker's interest in the community portion of the trust property, if any, and his or her separate portion of the trust property. In addition, the Marital Trust shall consist of an amount equal in value to the smallest amount of the federal estate tax marital deduction allowable to the deceased Trustmaker's estate that will result in the least possible federal estate tax being payable at the death of the first Trustmaker to die, after taking into account all other deductions, the unified credit, and the credit for state death taxes (to the extent that its use does not increase state death taxes) allowable to the estate of the first Trustmaker to die for federal estate tax purposes at the time of that Trustmaker's death. 1. Nontrust Maritai Deduction Assets The Marital Trust shall be reduced by the value, for federal estate tax purposes, of any interest in property that qualifies for the federal estate tax marital deduction and which passes or has passed from the deceased Trustmaker to the surviving Trustmaker other than under this Article. 8-1 2. Pecuniary Amount The marital deduction amount determined under this Paragraph a shall be a pecuniary amount and not a fractional share. b. Creation of the Family Trust The Family Trust shall consist property. of the balance of the trust Section 2. Allocation of Assets between the Two Trusts Our Trustee shall have complete authority to make allocations of the deceased Trustmaker's trust property between the Marital and Family Trusts. It may, in its sole and absolute discretion, make allocations in cash or in kind, in undivided interests, or in any proportion thereof between the two trusts. a. Nonqualifying Property Our Trustee shall not allocate any property or the proceeds from any property to the Marital Trust which would not qualify for the federal estate tax marital deduction in the deceased Trustmaker's estate. b. Life Insurance Policies on the Surviving Trustmaker's Life Our Trustee shall not allocate any policies of life insurance insuring the life of the surviving Trustmaker to the Marital Trust that are the sole and separate property of the deceased Trustmaker. c. Insufficient Assets for Funding the Marital Trust To the extent that there are insufficient assets qualifying for the marital deduction to fully fund the Madtal Trust, the amount of the funding to the Marital Trust shall be reduced accordingly. $-2 Section 3. Distributions from Retirement Plan to the Marital Trust If Retirement Plan distributions are included in the Marital Trust our Trustee shall comply with the following guidelines. a. Form of Distribution Our Trustee may elect to receive distributions from any pension, profit sharing, individual retirement account, or other retirement plan ("Retirement Plan") for which our Trust is named as beneficiary, in installments or in a lump sum. b. Income Requirement Our Trustee shall elect to receive distributions from a Retirement Plan payable to the Marital Trust in compliance with the minimum distribution rules of the internal Revenue Code if applicable and also so that at least all income earned by the Retirement Plan each calendar year is distributed to the Trust and allocated to trust income during the year. If distributions from the Retirement Plan total less than all income earned by the Retirement Plan for a calendar year, our Trustee shall demand additional distributions equal to at least the shortfall so that the surviving Trustmaker will receive all income earned by the Retirement Plan at least annually. The surviving Trustmaker shall have full power, in his or her discretion, to compel our Trustee to demand such distributions and to compel the Retirement Plan Trustee to convert any nonproductive property to productive property. c. Retirement Plan Expenses In calculating "all income earned by the Retirement Plan," our Trustee shall allocate all Retirement Plan expenses, including income taxes and trustee's fees, that are attributable to principal distributions so that all income distributions from the Retirement Plan are not reduced. Section 4. The Valuation of Allocated Property In making the computations necessary to determine the amount passing to the Marital Trust, our Trustee shall use those values as finally determined for federal estate tax purposes. a. Valuation of Property In no event shall the aggregate fair market value of the deceased Trustmaker's cash and property on the date or dates of distribution be less than the amount of the Marital Trust as finally determined for federal estate tax purposes. b. Consideration of Tax Consequences When making the decision as to which of the deceased Trustmaker's property shall be allocated to the Marital Trust, our Trustee shall consider the tax consequences and advisability of allocating property subject to foreign death tax, property on which a tax credit is available, or property which is income in respect of a decedent under applicable income or estate tax laws. Section 5. The Surviving Trustmaker's Right to Convert, Marital Trust Assets Notwithstanding anything in this agreement to the contrary, the surviving Trustmaker shall have the absolute and unequivocal right to compel our Trustee, at any time, to convert any nonproductive property held as an asset of the Marital Trust to productive property. The surviving Trustmaker shall direct our Trustee in writing to convert such property. Section 6. Disclaimer The surviving Trustmaker may disclaim all or any portion of any interest in property or power with respect to property passing to the surviving Trustmaker, or for the surviving Trustmaker's benefit, under this trust within the time and under the conditions permitted by law with regard to disclaimers. $-4 The surviving Trustmaker's disclaimer may be exercised by delivering an irrevocable and unqualified refusal to accept all or any portion of such interest or power to our Trustee. If the surviving Trustmaker exercises this disclaimer with respect to all or any portion of the Marital Trust, the interest so disclaimed shall be added to the Family Trust. If the surviving Trustmaker exercises this disclaimer as to the surviving Trustmaker's interest in all or any portion of the Family Trust, the interest that is disclaimed shall be disposed of under the appropriate provisions of this agreement as though the surviving Trustmaker had predeceased the first Trustmaker to die. 8-.5 Article Nine The Marital Trust Section 1. The Surviving Trustmaker's Right to Income Our Trustee shall pay to or apply for the benefit of the surviving Trustmaker, at least monthly durinq the lifetime of the surviving Trustmaker, all of the net income from t~e Marital Trust. Section 2. The Surviving Trustmaker's Right to Withdraw Principal Our Trustee shall pay to or apply for the benefit of the surviving Trustmaker such amounts from the principal of the Marital Trust, as the surviving Trustmaker may at any time request in writing. No limitation shall be placed on the surviving Trustmaker as to either the amount of or reason for such invasion of principal. Section 3. Principal Distributions in Our Trustee's Discretion Our Trustee may also distribute to or for the benefit of the surviving Trustmaker as much of the principal of the Marital Trust as our Trustee, in its sole and absolute discretion, shall consider necessary or advisable for the education, health, maintenance, and support of the surviving Trustmaker. Section 4. The Surviving Trustmaker's General Power of Appointment The surviving Trustmaker shall have the unlimited and unrestricted general power to appoint, by a valid last will and testament or by a valid 9-1 living trust agreement, the entire principal and any accrued and undistributed net income of the Marital Trust as it exists at the Trustmaker's death. In exercising this general power of appointment, the surviving Trustmaker shall specifically refer to this power. The surviving Trustmaker shall have the sole and exclusive right to exercise the general power of appointment. This general power of appointment specifically grants to the surviving Trustmaker the right to appoint property to the surviv ng Trustmaker's own estate. It also specifically grants to the surviving Trustmaker the right to appoint the property among persons, corporations, or other entities in equal or unequal proportions, and on such terms and conditions, whether outright or in trust, as the surviving Trustmaker may elect. Section 5. Administration of the Marital Trust at the Death of the Surviving Trustmaker The Marital Trust shall terminate at the death of the surviving Trustmaker. Our Trustee shall administer the unappointed balance or remainder of the Marital Trust as follows: a. The Surviving Trustmaker's Final Expenses Our Trustee is authorized, but not directed, to pay the following expenses, claims, and other liabilities: Expenses of the last illness, funeral, and burial of the Trustmaker. Legally enforceable claims against the surviving Trustmaker or the surviving Trustmaker's estate. Expenses with regard to the administration of the surviving Trustmaker's estate. ~ea=ral ,-,~o,,:, tax, applicable ~*~*^ ;-,-^ ',~ -- .......... ~aL~ ~l u luFILdn,,.;~ or estate taxes, or any other taxes occasioned by the death of the surviving Trustmaker. Statutory or court-ordered allowances for qualifying family members. 9-2 The payments authorized under this Section are discretionary, and no claims or right to payment by third parties may be enforced against the trust by virtue of such discretionary authority. Our Trustee shall be indemnified from the trust property for any damages sustained by our Trustee as a result of its exercising, in good faith, the authority granted it under this Section. It is our desire that, to the extent possible, any payments authorized under this Section be paid from the surviving Trustmaker's probate estate before any payments are made pursuant to this Section. Our Trustee shall, to the extent that it is reasonable and prudent, coordinate with the surviving Trustmaker's personal representative to minimize expenses and taxes resulting from the surviving Trustmaker's death. b. Redemption of Treasury Bonds If the Marital Trust holds United States Treasury Bonds eligible for redemption in payment of the federal estate tax, our Trustee shall redeem the bonds to the extent necessary to pay any federal estate tax due by reason of the death of the surviving Trustmaker. c. Coordination with the Personal Representative This Paragraph shall be utilized to help facilitate the coordination between the personal representative of the surviving Trustmaker's probate estate and our Trustee with respect to any prop_erty owned by the surviving Trustmaker outside of this agreement at the surviving Trustmaker's death. 1. Authorized Payments Our Trustee, in its sole and absolute discretion, may elect to pay the payments authorized under this Section either directly to the appropriate persons or institutions or to the surviving Trustmaker's personal representative. 9-3 Our Trustee may rely upon the written statements of the surviving Trustmaker's personal representative as to all material facts relating to these payments; our Trustee shall not have any duty to see to the application of such payments. 2. Purchase of Assets and Loans Our Trustee is authorized to purchase and retain in the form received, as an addition to the trust, any property which is a part of the surviving Trustmaker's probate estate. In addition, our Trustee may make loans, with or without security, to the surviving Trustmaker's probate estate. Our Trustee shall not be liable for any loss suffered by the trust as a result of the exercise of the powers granted in this paragraph. 3. Distributions from the Personal Representative Our Trustee is authorized to accept distributions from the surviving Trustmaker's personal representative without audit and our Trustee shall be under no obligation to examine the records or accounts of the personal representative. d. Trustee's Authority to Make Tax Elections Our Trustee may exercise any available elections with regard to state or federal income, inheritance, estate, succession, or gift tax law. 1. Alternate Valuation Date The authority granted our Trustee in this Paragraph includes the right to elect any alternate valuation date for federal estate or state estate or inheritance tax purposes. 9-4 2. Deduction of Administration Expenses The authority granted our Trustee in this Paragraph shall include the right to elect whether all or any parts of the administration expenses of the surviving Trustmaker's estate are to be used as estate tax deductions or income tax deductions. No compensating adjustments need be made between income and principal as a result of such elections unless our Trustee, in its sole and absolute discretion, shall determine otherwise, or unless required by law. 3. Taxes and Returns Our Trustee may also sign tax returns; pay any taxes, interest, or penalties with regard to taxes; and apply for and collect tax refunds and interest thereon. Section 6. Subsequent Administration of the Marital Trust The unappointed balance or remainder of the Marital Trust shall be administered as provided in Article Eleven. 9-.5 Article Ten The Family Trust Section 1. The Surviving Trustmaker's Right to Income If there is a surviving Trustmaker, our Trustee shall pay to, or apply for the benefit of, the surviving Trustmaker, at least monthly during the surviving Trustmaker's lifetime, all of the net income from the Family Trust. Section 2. The Surviving Trustmaker's Right to Withdraw Principal The surviving Trustmaker shall be unable to withdraw from the principal of the Family Trust. Section 3. Principal Distributions in Our Trustee's Discretion Our Trustee may distribute to or for the benefit of our descendants as much of the principal of the Family Trust as our Trustee, in its sole and absolute discretion, shall consider necessary or advisable for their education, health, maintenance, and support. Our Trustee shall, at all times, give primary consideration to the income requirements of the surviving Trustmaker, and only thereafter to our descendants. Section 4. Discretionary Guidelines for Our Trustee In making discretionary distributions pursuant to this Article, our Trustee shall consider the following factors: 10-1 a. Other Resources Available to Our Beneficiaries Our Trustee, in making distributions pursuant to this Article, shall take into consideration, to the extent that our Trustee, in its sole and absolute discretion, deems advisable, any income or other resources which are available outside of the Family Trust to our beneficiaries. b. Distributions to Our Beneficiaries According to Their Needs Our Trustee may make distributions to or for the benefit of one or more of the beneficiaries of the Family Trust to the complete exclusion of the other beneficiaries. These distributions may be I I 1{2;l~J ~ a i..,~[;~ i i~;~1 i~,,.~1(:2[i .)¢ u~;~l i~1 it.~l(~l i~2;o ii i 1~;~.{ ~1(:~1 or i~1 amounts according to the respective needs of our beneficiaries. A distribution to or for the benefit of a beneficiary shall be charged to the Family Trust rather than against the beneficiary's ultimate share or the shares of those persons taking through such beneficiary upon the termination of the Family Trust. Section 5. Termination of the Family Trust The Family Trust shall terminate at the death of the surviving Trustmaker. The remainder of the Family Trust, including any accrued and undistributed net income, shall be administered as provided in the Articles that follow. 10-2 Article Eleven The Common Trust It is not our desire to create a Common Trust for the benefit of our chi,dren. Upon the death of the second Trustmaker to die, al! of the trust property which has not been distributed under prior provisions of this agreement shall be divided, administered, and distributed under the Articles that follow. 11-1 Article Twelve Distribution of Our Trust Property Section 1. Division into Separate Shares The remaining trust property shall be divided into as many shares as shall be necessary to create one equal share for each of our then living children, and one equal share for each of our deceased children who has then living descendants. Section 2. Distribution of Trust Shares for Our Living Children The share of each child then living shall be distributed as follows: Distribution of Trust Share for ELLIS MICHAEL HARNED The trust share set aside for ELLIS MICHAEL HARNED shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to ELLIS MICHAEL HARNED, free of the trust. If ELLIS MICHAEL HARNED should die before the complete distribution of his trust share, his trust shall terminate and our Trustee shall distribute the balance of the trust property to his then living descendants, per stirpes. If ELLIS MICHAEL HARNED has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants, per stirpes. 12-1 If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Thirteen of this agreement. b. Distribution of Trust Share for ANN HARNED REISINGER The trust share set aside for ANN HARNED REISINGER shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to ANN HARNED REISINGER, free of the trust. I.C ^ ~.lkl _l-J. ^ Dk IE I"~ D_[~ I O I k /--' r- E) ~-^, ,IA ' Il /'~1~11~1 I I/'~l~l~lr-I.J Fkr-IOit~lt,~r-i-% blIUUIU die complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants, per stirpes. If ANN HARNED REISINGER has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants, per stirpes: If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Thirteen of this agreement. c. Distribution of Trust Share for Afterborn or Adopted Children If we have any additional children or legally adopt any children who are under the age of 18 after the creation of our trust, each such child's share shall be administered and distributed under the trust provisions of Article Fourteen. Section 3. Share of a Descendant of a Deceased Child Each share set aside for a deceased child who has then descendants shall be distributed or administered as follows: living 12-2 a. Outright Distribution Each share set aside for a deceased child who has then living descendants shall be distributed to such descendants, per stirpes. b. Retention of a Minor's or Disabled Descendant's Portion in Trust If any portion of a share is distributible under this Section to any descendant of a deceased child who is under 21 years of age, or to any such descendant who is disabled or incapacitated as defined in Article Eighteen of this agreement, then our Trustee shall retain such portion in trust under the provisions of Article FUUl kt~l I, Section 4. Retention of Distributions in Trust Whenever a distribution is authorized or required to be made by a provision of this Article to any beneficiary, then that beneficiary may direct our Trustee in writing to retain such distribution in trust as follows: a. A Beneficiary's Right to Income Our Trustee, during the lifetime of the beneficiary, shall pay to or apply for the benefit of the beneficiary from time to time and at the beneficiary's written direction all of the net income from this trust. b. A Beneficiary's Right to Withdraw Principal Our Trustee shall pay to or apply for the benefit of the beneficiary such amounts from the principal as the beneficiary may at any time request in writing. No limitation shall be placed on the beneficiary as to either the amount of or reason for such invasion of principal. 12-3 c. Principal.Distributions in Our Trustee's Discretion Our Trustee may also distribute to or for the benefit of the beneficiary as much of the principal of the trust as our Trustee, in its sole and absolute discretion, shall consider necessary or advisable for the education, health, maintenance, and support of the beneficiary. d. A Beneficiary's General Power of Appointment The beneficiary shall have the unlimited and unrestricted general power to appoint, by a valid last will and testament or trust agreement, the entire principal and any accrued and undistributed net income of the trust as it exists at the benefic.ary's death. In exercis.ng this genera, power of appointment, the beneficiary shall specifically refer to this power. The beneficiary shall have the sole and exclusive right to exercise the general power of appointment. This general power of appointment specifically grants to the beneficiary the right to appoint property to the beneficiary's own estate. It also specifically grants to the beneficiary the right to appoint the property among persons, corporations, or other entities in equal or unequal proportions, and on such terms and conditions, whether outright or in trust, as the beneficiary may elect. Any property in the trust which is not distributed pursuant to the exercise of the general power of appointment shall be distributed to the beneficiary's then living descendants, per stirpes. If the beneficiary has no then living descendants, our Trustee shall distribute the remaining trust property as provided in Article Thirteen of this agreement. 12-4 Article Thirteen Ultimate Distribution Pattern If at any time there is no person, corporation, or other entity entitled to receive all or any part of the trust property of one of us: One-half of the trust property shall be distributed to those persons who would be the wife Trustmaker's heirs had she died intestate owning such property. The balance of the property shall be distributed to those persons who would be the husband Trustmaker's heirs had he died intestate owning such property. The distribution of trust property, for purposes of this Article, shall be determined by the laws of descent and distribution for intestate estates in the State of Pennsylvania as such laws are in effect at the time of any distribution under this Article. 13-1 Article Fourteen Methods of Distribution and Trust Administration with Regard to Minor and Disabled Beneficiaries Section 1. GeneraJ Guidelines for Distribution Whenever a distribution is authorized or required by a provision of this agreement to any beneficiary who is disabled or incapacitated, such distribution may be made by our Trustee: Without continuing court supervision or the intervention of a guardian, conservator, or any other legal representative. Without giving or requiring any bond or surety on bond. Pursuant to any of the methods authorized under this Article. In making distributions under this Article, disability or incapacity shall include adjudicated mental incapacity by a court of competent jurisdiction, or incapacity because of age, illness, or injury. Before making any distributions to beneficiaries, other than a Trustmaker, under this Article, it is our desire that our Trustee, to the extent that it is both reasonable and possible: Inquire into the ultimate disposition of the distributed funds. Take into consideration the behavior of trust beneficiaries with regard to their disposition of prior distributions of trust property. Our Trustee shall obtain a receipt from the person, corporation, or other entity receiving any distribution called for in this Article. 14-1 Section 2. Methods of Payment Our Trustee may make the distributions called for in this Article in any one or more of the following ways: Directly to a beneficiary. To persons, corporations, or other entities for the use and benefit of the beneficiary. To an account in a commercial bank or savings institution in the name of the beneficiary, or in a form reserving the title, management, and custody of the account to a suitable person, corporation, or other entity for the use and benefit of the beneficiary. In any prudent form of annuity purchased for the use and benefit of the beneficiary. To any person or duly licensed financial institution, including our Trustee, as a custodian under the Uniform Transfers to Minors Act, or any similar act, of any state, or in any manner allowed by any state statute dealing with gifts or distributions to minors or other individuals under a legal disability. To any guardian, agent under a valid power of attorney, or other person deemed by our Trustee to be responsible, and who has assumed the responsibility of caring for the beneficiary. Section 3. Our Trustee's Discretion to Keep Property in Trust If any trust property becomes distributible to a beneficiary when the beneficiary is under 21 years of age, or when the beneficiary is under any form of legal disability, as defined in Article Eighteen, our Trustee may retain that beneficiary's share in a separate trust until he or she attains 21 years of age, or until his or her legal disability has ceased, as follows: a. Distributions of Trust Income and Principal Our Trustee shall apply to or for the benefit of the beneficiary as much of the net income and principal of the trust as our Trustee, 14-2 in its sole and absolute discretion, deems necessary or advisable for the beneficiary's education, health, maintenance, and support. In making any distributions of income and principal under this Article, our Trustee shall be mindful of, and take into consideration to the extent it deems necessary, any additional sources of income and principal available to the beneficiary, which arise outside of this agreement. Any net income not distributed to a beneficiary shall be accumulated and added to principal. b. Termination and Distribution Our Trustee shall distribute the trust property to a beneficiary: When he or she attains 21 years of age, or When he or she ceases to be disabled. c. A Beneficiary's General Power to Appoint Trust Property If a beneficiary should die before the complete distribution of his or her trust, the trust shall terminate and all of the trust property shall be distributed to such persons, corporations, or other entities, including the beneficiary's own estate, in the manner in which the beneficiary shall elect. This general power of appointment must be exercised by the beneficiary by either a valid living trust or last will and testament, either of which specifically refers to this power of appointment. To the extent this general power of appointment is not exemised, our Trustee shall distribute the remaining trust property to the then living descendants of the beneficiary, per stirpes. If the beneficiary has no then living descendants our Trustee shall distribute the rema ning trust property to our then living descendants, per stirpes. 14-3 If we have no then living descendants, our Trustee shall distribute the remaining trust property as provided in Article Thirteen of this agreement. 14-4 Article Fifteen The Resignation, Replacement, and Succession of Our Trustees Section 1. The Resignation of a Trustee Any Trustee may resign by giving thirty days' written notice to each of us or to our respective legal representatives. If either of us is not living, the eligible to receive mandatow or discretionaw distributions of net income from any trust created under this agreement. If a beneficiary is a minor or is legally incapacitated, the notice shall be delivered to that beneficiary's guardian or other legal representative. Section 2. The Removal of a Trustee Any Trustee may be removed as follows: a. Removal by Us We reserve the right to remove any Trustee at any time, but only if we both agree. b. Removal by One of Us After one of us dies or during any period that one of us is disabled and the other Trustmaker is living and is not disabled, the surviving nondisabled Trustmaker may remove any Trustee. 15-1 c. Removal by Other Beneficiaries After the death or incapacity of both of us, a majority of the beneficiaries then eligible to receive mandatory or discretionary distributions of net income under this agreement may remove any Trustee. d. Notice of Removal Neither of us, nor any of our beneficiaries, need give any Trustee being removed any reason, cause, or ground for such removal. Notice of removal shall be ~,m~.+k,~, when made in , r either: ......... w ,t,ng by Personally delivering notice to the Trustee and securing a written receipt, or Mailing notice in the United States mail to the last known address of the Trustee by certified mail, return receipt requested. Section 3. Replacement of Trustees Whenever a Trustee is removed, dies, resigns, becomes legally incapacitated, or is otherwise unable or unwilling to serve, that Trustee shall be replaced as follows: a. The Death or Disability of a Trustee While We Are Serving as Trustees We may serve as the only Trustees or we may name any number of Trustees to serve with us. If any of these other Trustees subsequently die, resign, become legally incapacitated, or are otherwise unable or unwilling to serve as a Trustee, we may or may not fill the vacancy, as we both agree. 15-2 b. Disability Trustees'0f ELLIS W. HARNED Upon the disability of ELLIS W. HARNED, BARBARA E. HARNED shall serve as disability Trustee. If the nondisabled Trustmaker is then serving as a Trustee, she shall continue to serve upon the disability of ELLIS W. HARNED. if the disability Trustee is unwilling or unable to serve, or cannot continue to serve for any other reason, then the following shall be named as replacement disability Trustees in the order in which their names appear: First, ANN H REISINGER; then Second, ELLIS MICHAEL HARNED. c. Disability Trustees of BARBARA E. HARNED Upon the disability of BARBARA E. HARNED, ELLIS W. HARNED shall serve as disability Trustee. If the nondisabled Trustmaker is then serving as a Trustee, he shall continue to serve upon the disability of BARBARA E. HARNED. If the disability Trustee is unwilling or unable to serve, or cannot continue to serve for any other reason, then the following shall be named as replacement disability Trustees in the order in which their names appear: First, ANN H REISINGER; then Second, ELLIS MICHAEL HARNED. d. Death Trustees of ELLIS W. HARNED On the death of ELLIS W. HARNED, BARBARA E. HARNED acting as our death Trustee shall replace all of our initial Trustees, if they are then serving, or the disability Trustee, if she is then serving. If the surviving Trustmaker is then serving as a Trustee, she shall continue to serve upon the death of ELLIS W. HARNED. If the death Trustee is unwilling or unable to serve as a death Trustee, or cannot continue to serve for any other reason, then the following shall be named as successor death Trustees in the order in which their names appear: First, ANN H REISINGER; then Second, ELLIS MICHAEL HARNED. e. Death Trustees of BARBARA E. HARNED On the death of BARBARA E. HARNED, ELLIS W. HARNED acting as our death Trustee shall replace all of our initial Trustees, if they are then serving, or all of the disability Trustees, if he is then serving. If the surviving Tr ,~*mo~-~,r ' ............. iS then serving as a Trustee,' he shall continue to serve upon the death of D^DDAD^ If the death Trustee is unwilling or unable to serve as a Trustee, or cannot continue to serve for any other reason, then the following shall be named as successor death Trustees in the order in which their names appear: First, ANN H REISINGER; then Second, ELLIS MICHAEL HARNED. f. Successor Trustees A successor death Trustee shall be replaced upon death, resignation, or legal disability and the next successor death Trustee in the order named above shall serve and carry out the terms and provisions of our trust. A Trustee may be listed more than once in this Section or an initial Trustee may also be named as a disability Trustee or a Trustee who will serve at death. Naming a Trustee more than once is done as a convenience only and is not to be construed as a termination of that Trustee's trusteeship. g. Unfilled Trusteeship In the event no named Trustees are available, a majority of the beneficiaries then eligible to receive mandatory or discretionary 15-4 distributions of net income under this agreement shall forthwith name a corporate fiduciary. If a majority of the beneficiaries then eligible to receive mandatory or discretionary distributions of net income under this agreement cannot agree on a corporate fiduciary, any beneficiary can petition a court of competent jurisdiction, ex parte, to designate a corporate fiduciary as a Trustee. The court that designates the successor Trustee shall not acquire any jurisdiction over any trust created under this agreement, except to the extent necessary to name a corporate fiduciary as a successor Trustee. Section 4. Corporate Fiduciaries Any corporate fiduciary named in this trust aqreement or appointed by a court of competent jurisdiction as a Truste~ must be a bank or trust company situated in the United States having trust powers under applicable federal or state law. Such fiduciary shall have a combined capital and surplus of at least 100 million dollars. Section 5. Powers and Liabilities of Successor Trustee Any successor Trustee, whether corporate or individual, shall have all of the rights, powers, and privileges, and be subject to all of the obligations and duties, both discretionary and ministerial, as given to the original Trustees. Any successor Trustee shall be subject to any restrictions imposed on the original Trustees. No successor Trustee shall be required to examine the accounts, records, and acts of any previous Trustees. No successor Trustee shall in any way be responsible for any act or omission to act on the part of any previous Trustees. 15-5 Article Sixteen General Matters and Instructions with Regard to the Trusteeship Section 1. Use of "Trustee" Nomenclature As used throughout this agreement, the word "Trustee" shall refer to our initial Trustee as well as any single, additional, or successor Trustees. It replacement, substitute, or added Trustee. Section 2. No Requirement to Furnish Bond Our Trustee shall not be required to furnish any bond for the faithful performance of its duties. If a bond is required by any law or court of competent jurisdiction, it is our desire that no surety be required on such bond. Section 3. Court Supervision Not Required All trusts created under this agreement shall be administered free from the active supervision of any court. Any proceedings to seek judicial instructions or a judicial determination shall be initiated by our Trustee in the appropriate state court having original jurisdiction of those matters relating to the construction and administration of trusts. 16-1 Section 4. Our Trustee's Responsibility to Make Information Available to Beneficiaries Our Trustee shall report, at least semiannually, to the beneficiaries then eligible to receive mandatory or discretionary distributions of the net income from the various trusts created in this agreement all of the receipts, disbursements, and distributions occurrin.q durinq the reporting period along with a complete statement of the trust I~roperty'~ The trust's books and records along with all trust documentation shall be available and open at all reasonable times to the inspection of the trust beneficiaries and their representatives. Our Trustee shall not be required to furnish trust records or documentation to any individual, corporation, or other entity that is not a beneficiary, does not have the express written approval of a beneficiary, or is not requesting such pursuant to a court order. Section 5. Delegation among Our Trustees Any Trustee may delegate to any other Trustee the power to exercise any or all powers granted our Trustee in this agreement, including those which are discretionary, if allowed by law. Our delegating Trustee may revoke any such delegation at will. The delegation of any such power, as well as the revocation of any such delegation, shall be evidenced by an instrument in writing executed by the delegating Trustee. As long as any such delegation is in effect, any of the delegated powers may be exercised by the Trustee receiving such delegation with the same force and effect as if the delegating Trustee had personally joined in the exercise of such power. Section 6. Utilization of Substitute Trustee If our Trustee is unwilling or unable to act as to any trust property, our Trustee shall designate, in writing, an individual, bank trust department, or trust company to act as a substitute Trustee with regard to such property. 16-2 The property being administered by the substitute Trustee, as well as the net income therefrom, shall be distributed or remitted as directed by the delegating Trustee consistent with the terms of this agreement. Each substitute Trustee shall exercise all of the fiduciary powers granted by this agreement unless expressly limited by the delegating Trustee in the instrument appointing such substitute Trustee, or by any provision w th,n this Any substitute Trustee may resign at any time by delivering written notice to our Trustee to that effect. Section 7. Trustee's Fee Our Trustee shall be entitled to fair and reasonable compensation for the services it renders as a fiduciary. The amount of compensation shall be an amount equal to the customary and prevailing charges for services of a similar nature during the same period of time and in the same geographic locale. Our Trustee shall be reimbursed for the reasonable costs and expenses incurred in connection with its fiduciary duties under this agreement. Section 8. A Majority of Trustees Required to Control When more than two Trustees are acting, the concurrence and joinder of a majority of Trustees shall control in all matters pertaining to the administration of any trust created under this agreement. If only two Trustees are acting, the concurrence and joinder of both shall be required. When more than two Trustees are acting, any dissenting or abstaining Trustee may be absolved from personal liability by registering a written dissent or abstention with the records of the trust; the dissenting Trustee shall thereafter act with the other Trustees in any manner necessary or appropriate to effectuate the decision of the majority. 16-3 Section 9. Successor Corporate Fiduciaries If any bank or trust company succeeds to the trust business of any corporate fiduciary serving as a Trustee under this agreement, whether because of a name change or any other form of reorganization, or if such corporate fiduciary ever transfers all of its existing business to any other bank or trust company, the successor shall thereupon, without any action being required, succeed to the trusteeship as if originally named. Section 10. Early Termination of Trusts Based on Cost if our Trustee, other than the surviving Trustmaker acting as a Trustee, shall determine, in its sole and absolute discretion, that any trust created under this agreement has become uneconomical to administer due to the high cost of administration relative to the value of the trust property, our Trustee may terminate such trust or trusts and distribute the trust property, including any accrued but undistributed net income, in the following order: To either one of us if we are then living. To the then mandatory income beneficiaries of the trust, per stirpes. To the beneficiaries then entitled to receive discretionary payments of income of the trust, per stirpes. Section 11. Generation-Skipping Tax Provisions In order to minimize the impact of any generation-skipping tax that may be applied to any of the trusts created by this agreement or their beneficiaries, our Trustee, in its sole and absolute discretion, is authorized to take the following actions: a. Division into Exempt and Nonexempt Trusts If any trust created under this agreement would be partially exempt from generation-skipping tax by reason of an allocation of a generation-skipping tax exemption to it, prior to such allocation our Trustee shall divide the total trust assets into two 16-4 separate trust shares of equal or unequal value, to permit allocation of the exemption solely to one trust share (the "exempt trust"). The exempt trust shall consist of a fractional interest of the total trust assets in an amount necessary to cause the exempt trust to be entirely exempt from generation-skipping tax. The other trust share (the "nonexempt trust") shall consist of the remaining fractional interest of the total trust assets. For purposes of this allocation, assets values as finally determined for federal estate tax purposes shall be used. b. Additions to a Separate Trust ~ + .... + under this agreement, whether ,.r~.~,~,~ under this Section or not, is entirely exempt or nonexempt from generation- ~, ppfJ Jg tax ~-" ~'~-"-- · ~,,u ~uu,,,~ prope~y to it ...... ~ ~;~ ..... v,uu,u p~ ~,,y the trust to generation-skipping tax, our Trustee may hold that prope~y in a separate trust in lieu of making the addition. c. Terms of the Trusts If our Trustee divides a trust into two separate trust shares or creates a separate trust for additions, the trusts or trust shares that result shall have the same terms and conditions as the original trust. Our Trustee shall not make discretionary distributions from the income or principal of the exempt trust to beneficiaries who are nonskip persons as long as any readily marketable assets remain in the nonexempt trust. d. Allocation from an Exempt Trust First Upon division or distribution of an exempt trust and a nonexempt trust, our Trustee may allocate property from the exempt trust first to a share from which a generation-skipping transfer is more likely to occur. e. Taxable Distributions If our Trustee considers that any distribution from a trust under this agreement, other than pursuant to a power to withdraw or appoint, is a taxable distribution subject to a generation-skipping tax payable by the beneficiary, our Trustee shall augment the 16-5 distribution by an amount which our Trustee estimates to be sufficient to pay the tax and shall charge the same against the trust to which the tax relates. f. Taxable Terminations if our Trustee considers that any termination of an interest in trust property is a taxable termination subject to a generation-skipping tax, our Trustee shall pay the tax from the portion of the trust property to which the tax relates, without adjustment of the relative interests of the beneficiaries. 16-6 Article Seventeen Our Trustee's Administrative and Investment Powers Section 1. Introduction to Trustee's Powers Except as othe.rwise provided in this agreement, our TrLstee shall have both the administrative and investment powers enumerated under this ............... ~ ...... ~' ......~ .......by la;*,, trusts created by this agreement. Section 2. Powers to Be Exercised in the Best Interests of the Beneficiaries Our Trustee shall exercise the following administrative and investment powers without the order of any court, as our Trustee determines in its sole and absolute discretion to be in the best interests of the beneficiaries. Notwithstanding anything to the contrary in this agreement, our Trustee shall not exercise any power in a manner inconsistent with the beneficiaries' right to the beneficial enjoyment of the trust property in accordance with the general principles of the law of trusts. Section 3. Administrative and Investment Powers Our Trustee is hereby granted the following administrative and investment powers: a. Agricultural Powers Our Trustee may retain, sell, acquire, and continue any farm or ranching operation whether as a sole proprietorship, partnership, or corporation. 17-1 It may engage in the production, harvesting, and marketing of both farm and ranch products either by operating directly or with management agencies, hired labor, tenants, or sharecroppers. It may engage and participate in any government farm program, whether state or federally sponsored. It may purchase or rent machinery, equipment, livestock, poultry, feed, and seed. It may improve and repair all farm and ranch properties; construct buildings, fences, and drainage facilities; acquire, retain, improve, and dispose of wells, water rights, ditch rights, and ~;'" ;' p,,~,r,tles of any nature. Our "r., ~,^~ · u~L~ may, in ...... i ~" ~' '" 'M~ ~u~u,,~ry or desirable to operate a farm or ranch operation for the benefit of the beneficiaries of the various trusts created under this agreement. b. Business Powers Our Trustee may retain and continue any business in which one or both of us have or had an interest as a shareholder, partner, sole proprietor, or as a participant in a joint venture, even though that interest may constitute all or a substantial portion of the trust property. It may directly participate in the conduct of any such business or employ others to do so on behalf of the beneficiaries. It may execute partnership agreements, buy-sell agreements, and any amendments to them. ' ' It may participate in the incorporation of any trust property; any corporate reorganization, merger, consolidation, recapitalization, liquidation, dissolution; or any stock redemption or cross purchase buy-sell agreement. It may hold the stock of any corporation as trust property, and may elect or employ directors, officers, employees, and agents and compensate them for their services. It may sell or liquidate any business interest that is part of the trust property. 17-2 It may carry out the provisions of any agreement entered into by one or both of us for the sale of any business interest or the stock thereof. Our Trustee may exercise all of the business powers granted in this agreement regardless of whether our Trustee is personally interested or an involved party with respect to any business enterprise forming a part, of the trust property. c. Environmental Powers Our Trustee shall have the power to inspect any trust property to determine compliance with any environmental !aw affecting such property or to respond to any environmental law affecting property any federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment or of human health. Our Trustee shall have the power to refuse to accept property if our Trustee determines that there is a substantial risk that such property is contaminated by any hazardous substance or has previously, or is currently, being used for any activities directly or indirectly involving hazardous substances which could result in liability to the trust assets. "Hazardous substance" shall mean any substance defined as hazardous or toxic by any federal, state, or local law, rule, regulation, or ordinance. Our Trustee shall have the power to take any necessary action to prevent, abate, clean up or otherwise respond to any actual or threatened violation of any environmental law affecting trust property prior to or after the initiation or enforcement of any action by any governmental body. Our Trustee may disclaim or release any power granted to it or implied by any document, statute, or rule of law which the Trustee determines may cause the Trustee to incur liability under any environmental law. Our Trustee may charge the cost of any inspection, review, prevention, abatement, response, cleanup, or remedial action authorized under this power against the trust property. Our Trustee shall not be liable to any beneficiary or to any other party for any decrease in value of the trust property by reason of 17-3 our Trustee's compliance with any environmental law, specifically including any reporting requirement under such law. d. Common Fund Powers For the purpose of convenience with regard to the administration and investment of the trust property, our Trustee may hold the several trusts created under this agreement as a common fund. Our Trustee may make joint investments with respect to the funds comprising the trust property. Our "~"' · A u,~nso~.dolt ,~uulOn.~u by this usLe~ may enter into any · .... "- .... ~- .'-~-' Article with fiduciaries of other trusts or estates in which any beneficiary hereunder has an interest, even though such fiduciaries are also Trustees under this agreement. e. Compensation Powers Our Trustee shall pay from income or principal all of the reasonable expenses attributable to the administration of the respective trusts created in this agreement. Our Trustee shall pay itself reasonable compensation for its services as fiduciary as provided in this agreement, and shall reasonably compensate those persons employed by our Trustee, including agents, auditors, accountants, and attorneys. f. Distribution Powers Our Trustee is specifically authorized to make divisions and distributions of the trust property either in cash or in kind, or partly in cash and partly in kind, or in any proportion it deems advisable. It shall be under no obligation or responsibility to make pro rata divisions and distributions in kind. Our Trustee may allocate specific property to any beneficiary or share although the property may differ in kind from the property allocated to any other beneficiary or share. 17-4 The foregoing powers may be exercised regardless of the income tax basis of any of the property. g. Funeral and Burial Expenses Our Trustee may in its sole discretion pay the funeral and burial expenses, expenses of the last illness, and valid claims and expenses of an income beneficiary of any trust created under this agreement. Funeral and burial expenses shall include, but not be limited to, the cost of memorials of all types and memorial services of such kind as our Trustee shall approve. Valid claims and expenses shall include, but not be limited to, all state and federal death taxes. The payments shall be paid from the assets of the trust or trusts from which the beneficiary was receiving income. h. Income and Principal Powers Our Trustee may determine in a fair, equitable, and practical manner how all Trustee's fees, disbursements, receipts, and wasting assets shall be credited, charged, or apportioned between principal and income. Our Trustee may set aside from trust income reasonable reserves for taxes, assessments, insurance premiums, repairs, depreciation, obsolescence, depletion, and for the equalization of payments to or for the beneficiaries; it may select any and all accounting periods with regard to the trust property. i. Investment Powers in General Our Trustee may invest and reinvest in such classes of stocks, bonds, securities, commodities, options, metals, or other property, real or personal, as it shall determine. It may invest in investment trusts as well as in common trust funds. 17-5 It may purchase life, annuity, accident, sickness, and medical insurance on the behalf of and for the benefit of any trust beneficiary. j. Life Insurance Powers Our Trustee shall have the powers with regard to life insurance as set forth in this Paragraph j, except as otherwise provided in this agreement. Our Trustee may purchase, accept, hold, and deal with as owner policies of insurance on our individual or joint lives, the life of any trust beneficiary, or on u,u ,I,u of any' person in whom any' LI U~L beneficiary has an insurable interest. Our Trustee shall have the power to execute or cancel any automatic premium loan agreement with respect to any policy, and shall have the power to elect or cancel any automatic premium loan provision in a life insurance policy. Our Trustee may borrow money with which to pay premiums due on any policy either from the company issuing the policy or from any other source and may assign any such policy as security for the loan. Our Trustee shall have the power to exercise any option contained in a policy with regard to any dividend or share of surplus apportioned to the policy, to reduce the amount of a policy or convert or exchange the policy, or to surrender a policy at any time for its cash value. Our Trustee may elect any paid-up insurance or any extended- term insurance nonforfeiture option contained in a policy. Our Trustee shall have the power to sell policies at their fair market value to the insured or to anyone having an insurable interest in the policies. Our Trustee shall have the right to exercise any other right, option, or benefit contained in a policy or permitted by the insurance company issuing that policy. 17-6 c. Per Stirpes Distributions Whenever a distribution is to be made to a person's descendants, per stirpes: The distributable assets are to be divided into as many shares as there are then living children of such person and deceased children of such person who left then living descendants. Each then living child shall receive one share and the share of each deceased child shall be divided among such child's then living descendants in the same manner. d. Education As used in this trust, "education" shall include: Any course of study or instruction at an accredited college or university granting undergraduate or graduate degrees. Any course of study or instruction at any institution for specialized, vocational, or professional training. Any curriculum offered by any institution that is recognized for purposes of receiving financial assistance from any state or federal agency or program. Any course of study or instruction which may be useful in preparing a beneficiary for any vocation consistent with the beneficiary's abilities and interests. Distributions for education may include tuition, fees, books, supplies, living expenses, travel, and spending money to the extent that they are reasonable. e. Personal Representative For the purposes of this agreement, the term "personal representative" shall include an executor, administrator, 18-2 guardian, custodian, conservator, Trustee, or any other form of personal representative. f. Disability Except as otherwise provided in this agreement, any individual may be treated as disabled, incompeteni, or legally incapacitated if: The individual has been declared or adjudicated as such by a court of competent jurisdiction, or A guardian, conservator, or other representative of such individual's person or estate has I~,:,~,-, ~,-,,-,,-,;,~-~,4 COUrt Of ...... ~, ....... by a ..... +,-,,,+ ~, JUl IO~J I~,LIUI The individual has been certified as such in writing by at least two licensed physicians, or The individual has disappeared or is absent for unexplained reasons, or the individual is being detained under duress where the individual is unable to effectively manage his or her property or financial affairs. Section 2. Dissolution of Our Marriage If our marriage is dissolved at any time, each spouse shall be deemed to have predeceased the other for purposes of distributions under this agreement. It is our intent that our respective property held in our trust shall not be used for the benefit of the other spouse upon the dissolution of our marriage. Section 3. The Rule Against Perpetuities Unless sooner terminated by the express provisions of this agreement, each trust created in this agreement shall terminate twenty-one years after the death of the last survivor of the group composed of the both of us and those of our descendants living at the time the first one of us dies. At that time, the property held in trust shall be discharged of any further trust, 18-3 and shall immediately vest in and be distributed to those persons entitled to receive or have the benefit of the income from the respective trust. For purposes of distributions under this Section only, it shall be presumed that any person then entitled to receive any discretionary payments of the income of a separate trust is entitled to receive all of the income, and it shall be presumed that any class of persons entitled to receive discretionary payments of income is entitled to receive all of such income. Section 4. Protective Clause To the fullest extent' permitted by law, the interests of ail of the beneficiaries in the various trusts and trust property subject to this agreement, except for our interests in the various trusts or trust property subject to this agreement, shall not be alienated, pledged, anticipated, assigned, or encumbered unless specifically authorized by the terms of this agreement. Such interests shall not be subject to legal process or to the claims of any creditors, other than our creditors to the extent of each of our respective interests in the trusts or trust property, while such interests remain trust property. · Section 5. Maintaining Property in Trust If, on the termination of any separate trust created under this agreement, a final distribution is to be made to a beneficiary for whom our Trustee holds a trust created under this agreement, such distribution shall be added to such trust rather than being distributed. The property that is added to the trust shall be treated for purposes of administration as though it had been an original part of the trust. Sectio_n'6, Survivorship Presumptions the order of our deaths cannot be established by proof, the wife Trustmaker shall be deemed to have survived the husband Trustmaker. 18-4 Section 7. Contest Clause If any person, including a beneficiary, other than one of us, shall in any manner, directly or indirectly, attempt to contest or oppose the validity of this agreement, including any amendments thereto, or commences or prosecutes any legal proceedings to set this agreement aside, then in such event such person shall forfeit his or her share, cease to have any right or interest in the trust property, and shall be deemed to have predeceased both of us. Should any person disclaim his or her interest, in whole or in part, in any trust created for his or her benefit in this trust agreement, the result of which would be for that Person to receive trust property free of trust earlier than provided by the terms of the trust, then the disclaiming person shall forfeit his or her interest in the trust, shall cease to have any right or interest in the trust property, and shall be deemed to have predeceased both of us. In the event the surviving Trustmaker successfully elects to take a statutory share of the deceased Trustmaker's estate as provided under state law, then the surviving Trustmaker's interest in the deceased Trustmaker's property in this trust shall terminate and any of the deceased Trustmaker's property previously held in trust for the benefit of the surviving Trustmaker as provided in this agreement shall be held and distributed as though the surviving Trustmaker had predeceased the deceased Trustmaker, notwithstanding any provision in this agreement to the contrary. Section 8. Changing the Trust Situs After the death or disability of one of us, the situs of this agreement may be changed by the unanimous consent of all of the beneficiaries then eligible to receive mandatory or discretionary distributions of net income under this agreement. If such consent is obtained, the beneficiaries shall notify our Trustee in writing of such change of trust situs, and shall, if necessary, designate a successor corporate fiduciary in the new situs This notice shall ~ A. , ' " ' ~,on~titu~e removal of the current Trustee, if appropriate, and any successor corporate Trustee shall assume its duties as provided under this agreement. 18-5 A change in situs under this Section shall be final and binding, and shall not be subject to judicial review. Section 9. General Matters The following general matters of construction shall apply to the provisions of this agreement: a. Construction ,~,~ ~-O[~t~,~L requires OLhe~w[se, words denoting the singular may be construed as denoting the plural, and words of the p'ural may be construed as denoting the singular. Words of one gender may be construed as denoting another gender as is appropriate within such context. b. Headings of Articles, Sections, and Paragraphs The headings of Articles, Sections, and Paragraphs used within this agreement are included solely for the convenience and reference of the reader. They shall have no significance in the interpretation or construction of this agreement. c. Notices All notices required to be given in this agreement shall be made in writing by either: Personally delivering notice to the party requiring it, and securing a written receipt, or Mailing notice by certified United States mail, return receipt requested, to the last known address of the party requiring notice. The effective date of the notice shall be the date of the written receipt or the date of the return receipt, if received, or if not, the date it would have normally been received via certified mail, provided there is evidence of mailing. 18-6 d. Delivery For purposes of this agreement "delivery" shall mean: Personal delivery to any party, or Delivery by certified United States mail, return receipt requested to the party making delivery. The effective date of delivery shall be the date of personal delivery or the date of the return receipt, if received, or if not, the date it would have normally been received via certified mail, provided there is evidence of mailing. Law The validity of this trust shall be determined by reference to the laws of the State of Pennsylvania. Questions with regard to the construction and administration of the various trusts contained in this agreement shall be determined by reference to the laws of the state in which the trust is then currently being administered. f. Duplicate Originals This agreement may be executed in several counterparts; each counterpart shall be considered a duplicate original agreement. g. Not Contractual We are executing our wills at or about the same time, but even though our wills are similar, they are not intended to be, and shall not be construed to be, contractual or reciprocal. h. Severability If any provision of this agreement is declared by a court of competent jurisdiction to be invalid for any reason, such invalidity shall not affect the remaining provisions of this agreement. The remaining provisions shall be fully severable, and this agreement 18-7 shall be construed and enforced as if the invalid provision had never been included in this agreement. We have executed this agreement the day and year first written above. We certify that we have read our foregoing revocable living trust agreement, and that it correctly states the terms and conditions under which our trust property is to be held, managed, and disposed of by our Trustee. We approve this revocable living trust in all particulars, and request our Trustee to execute it. ELLIS W. HARNED, Tru~tmaker :g,,,~,., f[ LLIS W. HARNED,-Trustee STATE OF PENNSYLVANIA COUNTY OF DAUPHIN BARA E. HARNED, Trustmaker BARBARA E. HARNED, Trustee The foregoing living trust agreement was acknowledged before me on ,~'~"",-'-z /2,,/5'¢~ , by ELLIS W. HARNED, as Trustmaker and Trusfee; and by BARBARA E. HARNED, as Trustmaker and Trustee. Witness my hand and official seal. My commission expires: NotadaJ Seat Robert J. Kreidler, Notap/Public Susquehanna Twp., Dauphin County My Commission Expires Oct. 14, 2002 Member, Pennsylvania Association of Notaries' 18-8 IN RE: : ESTATE OF ELLIS W. HARNED, : deceased : DISCLAIMER and RENUNCIATION WHEREAS, Ellis W. Harned died on January 17, 2004, a resident of Lower Allen Township, Cumberland County, Mechanicsburg, Pennsylvania. WHEREAS, Ellis W. Hamed, deceased, and his wife, Barbara E. Hamed, established a Revocable Trust Agreement known as the Ellis W. & Barabara E. Harned Living Trust dated February 12, 1999. WHEREAS, upon the death of Ellis W. Harned, the assets of the Ellis W. & Barabara E. Harned Living Trust were divided between the Marital Trust and the Family Trust created in accordance with Article Eight, Sections 1, 2, 3 and 4 of such trust agreement. WHEREAS, Article Ten, Section 3 of the Ellis W. & Barbara E. Harned Living Trust dated February 12, 1999, provides as follows: Articles Ten The Family Trust Section 3 Principal Distributions in our Trustee's Discretion Our Trustee may distribute to or for the benefit of our descendents as much of the principal of the Family Trust as our Trustee, in its sole and absolute discretion, shall consider necessary or advisable for their education, health, maintenance, and support. Our Trustee shall, at all times, give primary consideration to the income requirements of the surviving Trustmaker, and only thereafter to our descendants. WHEREAS, the Settlors have two descendants: Ellis Michael Harned & Ann Harned Reisinger. WHEREAS, less than nine (9) months have elapsed since the date of death of Ellis W. Hamed and the undersigned disclaimant has not accepted any of the property of the Ellis W. & Barbara E. Harned Family Trust, nor has she exercised any control as beneficial owner over any such property or any interest therein; WHEREAS, the Disclaimant acknowledges that the affect of the execution of this Disclaimer and Renunciation is that the property that otherwise could have been distributed to her will now be held in accordance with the provisions of Article Ten of the Ellis W. & Barbara E. Hamed Living Trust dated February 12, 1999. WHER_EAS, upon the Disclaimer by A3,,~ HA~,NED REISINGER of her interests in the Family Trust during the lifetime of Barbara E. Harned, Barbara E. Harned will be the sole beneficiary of the net income from the Family Trust. In accordance with the provisions of Article 10, Section 2, Barabara E. Hamed, the surviving Trustmaker is not entitled to withdraw from the principal of the Family Trust. NOW, THEREFORE, I, ANN HARNED REISINGER, an adult beneficiary residing at 101 Whitney Drive, Cranberry Township, Pennsylvania 16066, do hereby exercise the rights granted to me in the Pennsylvania Probate, Estate and Fiduciaries Code, 20 Pa. C.S.A. 6201 et seq., to DISCLAIM AND RENOUNCE certain of my interests as a beneficiary of the ELLIS W. & BARBARA E. HARNED Family Trust under agreement dated February 12, 1999, as follows: 1. I hereby renounce and disclaim during the lifetime of Barbara E. Hamed, all right, titled and interest to and in the assets held by or passing into the Family Trust. 2. I understand that as a result of this Disclaimer I will have no right, titled or beneficial interest in or to the assets of the Family Trust during the lifetime of Barbara E. Hamed. IN WITNESS WHEREOF, intending to be legally bound hereby, I have hereumo set my hand this /~7 day of [_J&5!~ ,2004. ANN HARNED~REiSi~ ACKNOWLEDGEMENT COMMONWEALTH OF PENNSYLVANIA: ~o~¥ o~ ,-,~ ~-/¢3/'--s~ On this, t ~',~-75&~!~.,&~J', before me a notary public, the undersigned officer, personally appeared ANN HARNED REISINGER, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that she executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal (sEAL) Notarial Seal Susan K. Laskey, Notary Public Zelicnople Boro, Butler County My Com-missi°n Expires Aug, 23, Member, Pennsylvania Association otNotanes BUREAU PO BOX P'813~_!~'_*:'~ OF STE ZZ6 HMG PA 17109 COMMONWEALTH OF PENNSYLVANZA DEPARTMENT OF REVENUE NOT/CE OF ZNHERZTANCE TAX APPRAZSENENT, ALLOHANCE OR DZSALLOHANCE OF DEDUCTIONS AND ASSESSMENT OF TAX DATE 12-27-200~ ESTATE OF HARNED DATE OF DEATH 01-17-ZOOR FILE NUMBER Z1 0~-09Z9 COUNTY CUMBERLAND ACN 101 Amount Remitted REV-15~7 EX AFP (09-0~) ELLIS W MAKE CHECK PAYABLE AND REN'rT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THZS LZNE ~ RETAZN LOWER PORTZON FOR YOUR RECORDS ~,~ REV-1547 EX AFP (01-03) NOTZCE OF ZNHERZTANCE TAX APPRAZSEMENT, ALLOWANCE OR DZSALLO#ANCE OF DEDUCTZONS AND ASSESSMENT OF TAX ESTATE OF HARNED ELLIS WFZLE NO. 21 0~-0929 ACN 101 DATE 1Z-ZT-ZO0~ TAX RETURN HAS: (X) ACCEPTED AS FZLED ( ) CHANGED RESERVATZON CONCERNZNG FUTURE ZNTEREST- SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estate (Schedule A) (1) 2. Stocks end Bonds (Schedule B) 3. Closely Held Stock/Partnership Interest (Schedule C) (3) q. Hortgagas/No~as Receivable (Schedule D) E. Cash/Bank Deposits/Hisc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) (6) 7. Transfers (Schedule G) (7) 8. Total Assets APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adm. Costs/Misc. Expenses (Schedule H) (9) 10. Debts/Hortgage Liabilities/Liens (Schedule Z) (10) 11. Total Deductions 12. Net Value of Tax Re~urn 11z267.15 .00 8~230. O0 .00 .00 NOTE: To insure proper credit ~o your account, subei~ the upper portion .00 of this form with your tax payment. ~80~869.Z3 (8) 15,970.50 100.00 13. NOTE: 500,366.38 (11) 16.070.;0 (1:,) q8~,Z95.88 Charitable/Governmental Bequests; Non-elected 9113 Trusts (Schedule J) (15) Net Value of Estate Subject to Tax (14) Zf an assessment ~as issued previously, 1/nas 1~, 15 and/or 16, 17, reflect figures that /nclude the total of ALL returns assessed to date. ~RZ,~8.27 ~1,8~7.61 18 and 19 will IF PAZD AFTER DATE ZNDZCATED, SEE REVERSE FOR CALCULATZON OF ADDITZONAL ZNTEREST. ( ZF TOTAL DUE ZS LESS THAN $1, NO PAYMENT ZS RE~UZRED. ZF TOTAL DUE ZS REFLECTED AS A "CREDIT" (CR), YOU NAY BE DUE ,~ A REFUND. SEE REVERSE SIDE OF THIS FORH FOR INSTRUCTIONS.) <~'~-~ .00 .00 .00 .00 ASSESSMENT OF TAX: 15. Amount of L/ne 14 at Spousal rate 16. Amount of Line 14 taxable et Lineal/Class A rate 17. Amount of Line 14 et Sibling rata 18. Amount of Line 14 taxable a{ Collateral/Class B rate 19. Principal Tax Due TAX CRED/TS: PAYHENT RECE/PT DZSCOUNT (+) DATE NUHBER ~NTEREST/PEN PA~D (-) TOTAL TAX CREDZT BALANCE OF TAX DUE ZNTEREST AND PEN. TOTAL DUE AMOUNT PAZD (l;) ql,8~7.61 x O0 = .00 (16) .00 X 0~5 = .00 (17) .00 X 1Z = .00 (18), .00 x 15 = .00 (19)= . O0 \ ~ ~ ! ~ ....~ ~ ~ ~ ~~~~ "..~ ~~ ~~rflr- ~ u ~ ~ ~~;~ ~~O~ o -~ ~ ".. ~~~ ~ ~ ~ rIl ~~~~ ~.-- 0 ~ -ell U ~ ~~ ___oU ~~~ cr- ~ C- O 1 --.r ...:..J \ ~ ~ :7 u1 ...- z :::> ...- o ~Tho, ~ 3"*i -to ~ % .i. (J)~"- '7 'J: ~~%~ <!. 0<&% ~~~~ 4 ~O- ~ ~ \ \ \ \\,':\ ., )J .~v ....-. ~ .~ '?< I - 01../ - OC-l 2 q STEWART AND McGOWAN JOSEPH P. McGOWAN ATTORNEYS AT lAW 6221 RISING SUN AVENUE lAWNCREST REALTY BLDG. PHilADELPHIA, PA 19111 (PAl 215-338-2800 (NJ) 856-829-2500 (FAX) 215-742-0313 PRACTICE LIMITED TO WillS, DECEDENT'S ESTATES AND REAL PROPERTY lAW PA & NJ JOHN D. STEWART OF COUNSEL May 5, 2006 Register of Wills, Agent PA Inheritance Tax Department 1 Courthouse Square Carlisle, PAl 7013 Re: Estate of Ellis W. Harned" Deed. Dear Sir or Madam: I represent Mark E. Hamed, the representative of the Estate of Ellis W. Hamed, Deceased. Ellis W. Hamed died January 17, 2004. I enclose herewith the Supplemental Inheritance Tax Return in duplicate, verification form and check to your order in the amount of $2,085.18 representing additional inheritance tax due in the captioned estate. Kindly acknowledge receipt of the enclosed check by your stamping and dating the enclosed copy of my letter and your returning the same to me. Thank you. JPM/kt Enclosures .;::..- \)'. COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128-0601 REV-1162 EX(11-96) RECEIVED FROM: PENNSYLVANIA INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT HARNED MARK EDWARD 35 POPLAR LANE PAOLI, PA 19301 nu____ fold ESTATE INFORMATION: SSN: 161-28-0370 FILE NUMBER: 2104-0929 DECEDENT NAME: HARNED ELLIS W DATE OF PAYMENT: 05/17/2006 POSTMARK DATE: 05/15/2006 COUNTY: CUMBERLAND DATE OF DEATH: 01/17/2004 NO. CD 006708 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 I $2,085.18 I I I I I I I I TOTAL AMOUNT PAID: $2,085.18 REMARKS: CHECK# 1003 SEAL INITIALS: JA RECEIVED BY: REGISTER OF WILLS GLENDA FARNER STRASBAUGH REGISTER OF WILLS REV - 1:0~EX + (6-01", . W I- ~~U) OO::~ Wo..O zOO 00::-' o..m 0.. c( . I OFFICIAL US," ONe Y IALENUII~E~ 04 0 'j d '1 I COUNTY CODE YEAR NUMBER I SOCIAL SECURITY NUMBER I 161-28-0370 REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT I- Z W C W o w c COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT, 280601 __________~_~_I~l'l(~_, PA 17128-0601 ---rDECEDENT;S NAME (LAST, FIRST, AND MIDDLE INITIAL) I . ! Hamed, EllIs W. I tOATE OF DEA TH-(MM~DO=YEAR) ! THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS ~----_.- SOCIAL SECURITY NUMBER DATE OF BIRTH (MM-DD-YEAR) l 0 !!LZ~~~04___ ! 06/19/1933 (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST AND MIDDLE INITIAL) 1. Original Retur~------- --~-2. Supplement~1 Return o 6. Decedent Died Testate (Attach copy 0 of Will) 9. Litigation Proceeds Received 0 I- I o 3. Remainder Return (date of death prior to 12-13-82) o 5. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes 4a. Future Interest Compromise (date of death after 12-12-82) 7. Decedent Maintained a Living Trust (Attach copy of Trust) 1 Q. Spousal Poverty Credit (date of death between 12-31-9 -1- i 6221 Rising Sun Avenue Philadelphia, P A 19111 ) .\ 4. Limited Estate '1- U)Z Ww O::c O::z 00 00.. FIRM NAME (If applicable) Stewart & McGowan (1 ) None (2) None (3) None ~- (4) None (5) None (6) None --- (7) 44,504.20 OFFICIAL USE ONLY TELEPHONE NUMBER 215/338-2800 (8) 44,504.20 (9) 1,885.00 1 . Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Corporation, Partnership or Sole-Proprietorship z o i= ~ ::) I- ~ c( o w 0:: 4. Mortgages & Notes Receivable (Schedule D) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) D Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) 9. Funeral Expenses & Administrative Costs (Schedule H) (11 ) 1,885.00 42,619.20 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 11. Total Deductions (total Lines 9 & 10) 12. Net Value of Estate (Line 8 minus Line 11) (12) (13) 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made (Schedule J) 14. Net Value Subject to Tax (Line 12 minus Line 13) SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES (14) 42,619.20 15. Amount of Line 14 taxable at the spousal tax rate, x .00 (15) or transfers under Sec. 9116(a)(1.2) z 42,619.20 .045 (16) 0 16.Amount of Line 14 taxable at lineal rate x ~ c( I- ::) 0.. 17. Amount of Line 14 taxable at sibling rate x .12 (17) ~ 0 ------ 0 ~ 18. Amount of Line 14 taxable at collateral rate x .15 (18) I- --~----------- 19. Tax Due (19) 1,917.86 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. 1,917.86 Copyright 2000 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00) ,. h-ecedent's Complete Address: STREET ADDRESS 35 Poplar Lane -- CITY ! STATE PA 171--------- 1 ZIP 19301 I Paoli Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1 ) 1,917.86 Total Credits (A + 8 + C) (2) 0.00 3. Interest/Penalty if applicable D. Interest E. Penalty 167.32 Total Interest/Penalty (0 + E) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. A. Enter the interest on the tax due. 8. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (3) (4) (5) (5A) (58) 167.32 2,085.18 2,085.18 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: Yes No a. retain the use or income of the property transferred;.................................................................................. ~ ~ ~: ~:::~ :~e~:~~i:Dn:~:~~;~S;::~.~~~I~.~~~.t~~.:.r~~~.~.t.~n.s~~rr~~.~r.i~.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 receiving adequate consideration?.................................................................................................................... .. D D D 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation?..................................................................................................................... ~ ~ ~ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. 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 prEp~r~9!her!~_~_t~eJ>!lrso~u:~presen!ati:-'e is based o,!a~linforrnation of which preparer hEis any knowledge. --~----- SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN ADDRESS DATE ~:rlJ/(ii!BN'pov;J,~ ADDRESS ~~Jip,P~x 1W3~J\ -1405 0 ~ - t; ~ DATE SIGNATURE OF PREPARER';:{THER HAN R"'. RESENTATIVE . b P. McG _ /4 t~/ ~~ ADDRESS 6221 Rising Sun Avenue PhiladelphIa, P A 19111 s- - c;-- () For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P.S. 99116 (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% [72 P.S. 99116 (a) (1.1) (ii)]. The statute does not exemot 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 twenty-one 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% [72 P.S. 99116 (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%, except as noted in 72 P.S. 99116 1.2) [72 P.S. 99116 (a) (1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. 99116 (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. .. SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ~-----~---- --_._-~. ------ .----..--------.------ ------ ,------- Hamed, Ellis W. FILE NUMBER 21 - 04 - ESTATE OF ITEM NUMBER T!~!~u~chedul4!l!1u~1~e completecl!nd filed if the answer t~~ny ofquestio!1~ 1 th~ough 4~~~g~~~~es. I DESCRIPTION OF PROPERTY i I % OF I I Include the name of the transferee, their relationship to decedent and the date of transfer. ' DATE OF DEATH I DECO'S ! EXCLUSION TAXABLE VALUE ! Attach a copy of the deed fo, real estate. . . :V ALUE OF ASSET I INTEREST i (IF APPLlCAB:J-_ Twenty-five (250/;) Perce~1:I~t';-r~st-;;;: the-land ~d--- -1-- 44,504:2d!OOO/O - --0.00! .. 44,504.20 i improvements known as 35 Poplar Lane, Paoli, PA. The I i I property was titled as of September 29, 1984 in the name of I I, Mark E. Hamed an undivided one-half interest and in the i I named of Mark E. Hamed and Central Penn National Bank I (now known as Wachovia Bank) Co-Trustees of the Ellis Eugene Hamed (father of the deceased) and Virginia Slater Hamed Trust dated 12-12-1968 as to the other one-half interest. The Trust provided for the use of the property for the benefit of Eugene R. Hamed (son of the settlors) for his life with the remainder, at the death of Eugene R. Hamed, to I vest in Mark E. Hamed and Ellis W. Hamed (the decedent I herein). The Trust provided that the share of Ellis W. I Hamed would go to the children of Ellis W. Hamed: Ann E. Reisinger and Michael Hamed. Eugene R. Hamed died 1-20-2005. Using the 4.20/0 Tables, we have calculated that the value of the interest of Ellis W. Hamed as of 1-17-04 was $44,504.20. Calculated as follows: 2004 County assessed value + $185,000.00 x elr 1.35 = $249,750.00 I 1$249,750.00 div. by 4 = $62,437.50 1$ 62,437.50 X .71278 = $44,504.20 TOTAL (Also enter on line 7, Recapitulation) 44,504.20 ESTATE OF .. , *' SCI-E[)lU: H FlJt.ERAL EXPENSES & ADVINSlRAllVE COSTS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT FILE NUMBER 21 - 04- Hamed, Ellis W. -~------~..--_._-~-~~ Debts of decedent must be reported on Schedule I. -~-----~----------~~------_.~~--~~-.--l----~- ---- DESCRIPTION AMOUNT ITEM NUMBER A. -------- --..------"----. FUNERAL EXPENSES: B. ADMINISTRATIVE COSTS: Personal Representative's Commissions 1. Social Security Number(s) / EIN Number of Personal Representative(s): 2. Street Address City Year(s) Commission paid Attorney's Fees Joseph P. McGowan 1,700.00 State _ Zip 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City Relationship of Claimant to Decedent 4. Probate Fees State Zip 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 1 Deed Recording Fees 75.00 2 Courier Fees 110.00 I _~____~------L----_._-----.- TOTAL (Also enter on line 9, Recapitulation)! 1,885.00 I REV-1513 ex; ('.00) ..- COMMONWEALTH OF PENNSYLVANIA \ INHERITANCE TAX RETURN _ ___. .__ u___R~~-~E!'J~DECE~~.!-_~---- -----,--~--_._._--------~------_..._-~-~---~- SCHEDULE J BENEFICIARIES I. i, FILE NUMBER Ha:e~~l1is W______. ____ _ ___---- _ _,- _J--2~=-~.=- ____ NAME AND ADDR!SS OF PERSON(S) RECEIVING PROPERTY _1 R:f~?~€~~[:o _1_~og~~~:A~~A:E. ... TAXABLE DISTRIBUTIONS (include outright spousal distributions) Ann E. Reisinger 29 Royal Palm Drive Mechanicsburg, P A 17050 ESTATE OF NUMBER Daughter 21,309.60 2 Michael Hamed 3321 Humboldt Street West Lafayette, IN 47906 Son 21,309.60 Enter dollar amounts for distributions shown above on lines 15 through 18, as appropriate, on Rev 1500 cover sheet II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS I I TOTAL OF PART 11_ ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET[ _.___._ ____ _._____._______~.-----..--------------~---.-- __ n~______ ---- 08-07-2006 HARNED 01-17-2004 21 04-0929 CUMBERLAND 101 APPEAL DATE: 10-06-2006 ( See reverse side under Objections) Amount Remitted I I MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE ... RETAIN LOWER PORTION FOR YOUR RECORDS +-- ------------------------------------------------------------------------------------------- REV-1547 EX AFP (03-05) NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ELLIS W FILE NO. 21 04-0929 ACN 101 BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION PO BOX 280601 HARRISBURG PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA nr~~"P'~TMENT OF REVENUE '. i; : ; ..._..!t."~ ',- '.':::"'. ~T:ICE OF INHERITANCE TAX '~*PPRAI$EKENr, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX 12: \ 4 [liref nH1"1 . ,_.; '.';; ,~, I',} DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN JOSEPH P MCGOWAN STEWART & MCGOWAN 6221 RISING SUN AVE PHILA PA 19111 ESTATE OF HARNED .v REV-1547 EX AFP (06-05) ELLIS W TAX RETURN WAS: (X) ACCEPTED AS FILED ( ) CHANGED DATE 08-07-2006 NO. 01 I~ an assessment was issued previously, lines 14, 15 and/or 16, 17, 18 and 19 will r~lect ~igures that include the total o~ ~ returns assessed to date. ASSESSMENT OF TAX: 15. '-aunt of Line 14 at Spousal rate (15) 16. Amount of Line 14 taxable at Lineal/Class A rate (16) 17. ABount of Line 14 at Sibling rate (17) 18. ABount of Line 14 taxable at Colleteral/Class B rate (18) 19. Principal Tax Due RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: SUPPLEMENTAL RETURN 1. R..l Estate (Schedule A) (1) 2. Stocks and Bonds (Schedule B) (2) 3. Closely Held Stock/Partnership Interest (Schedule C) (3) 4. ItortgageslNotes Receivable (Schedule D) (4) 5. CashlBank Deposits/Misc. Personel Property (Schedule E) (5) 6. Jointly Owned Property (Schedule F) (6) 7. Transfers (Schedule G) (7) 8. Totel Assets .00 .00 .00 .00 .00 .00 44,504.20 (8) APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/AdB. Costs/Misc. Expenses (Schedule H) 10. Debts/Mortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Return 13. Charitable/Governmental Bequests; Non-elected 9113 Trusts 14. Net Value of Estate Subject to Tax 1,885.00 (9) (10) .00 (11) (12) (13) (14) (Schedule .J) NOTE: 41,847.61 X 42,619.20 X .00 X .00 X AMOUNT PAID 2,085.18 DATE 05-15-2006 NUHBER CD006708 INTEREST/PEN PAID (-) 161.44- TOTAL TAX CREDIT BALANCE OF TAX DUE INTEREST AND PEN. TOTAL DUE . IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. 00 = 045 = 12 = 15 = (19)= NOTE: To insure proper credit to your account, sublii t the upper portion of this for. with your tax pay.ent. 44,504.20 1.88~ 00 42,619.20 .00 84,466.81 .00 1,917.86 .00 .00 1,917.86 1,923.74 5.88CR .00 5.88CR ( IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) REV - 1$0C"~X + (8.01", . *' OFTICIAL. USE:: ONLY REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT FILE NUMBER 21 COUNTY CODE 04 0 9 02 9 YEAR NUMBER COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 . _ _______~___~RISBURG,~A__1_~~ 28-0601 w ... ::.:::!!;CI) 00::::':: WD..8 %:0-, Ofm D.. < SOCIAL SECURITY NUMBER -------;DECEDENT;SNAME (LAST, FIRST, AND MIDDLE INITIAL) Hamed, Ellis W. ~~_ A ;~~~~; ~.;;~:b~YEA: _ i::~ ~~ ~';; ;;M-DD-YEARI , ______ .n_ _ ..._ _. _ (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST. FIRST AND MIDDLE INITIAL) ... z W c W o W c 161-28-0370 I THIS RETURN MUST BE FILED IN DUPLICATE WITH THE h. REGISTER OF=_WI~~~_____ , SOCIAL SECURITY NUMBER no - - ----rr---1~--O~ig-inal Ret-u-r~'------- o 4. Limited Estate o 6. Decedent Died Testate (Attach copy of Will) o 9. Litigation Proceeds Received .~- 2. Supple~~~I-R~t~----- o o o o 5. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes o 11. Election to tax under Sec. 9113(A) (Attach Sch 0) ~-'----D~-Rem-ainderReturn (date of death priOrt012-13-82)- 4a. Future Interest Compromise (date of death after 12-12-82) 7. Decedent Maintained a Living Trust (Attach copy of Trust) 10. Spousal Poverty Credit (date of death between 12- - 'TELEPHONE NUMBER : 215/338-2800 -:-:..-c:.::.:.:-_-cc:--==+--:- _ __-==--=-==--===--=:------ - 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Corporation, Partnership or Sole-Proprietorship .... Cl)z Ww O::c O::z 00 OD.. FIRM NAME (If applicable) I Stewart & McGowan I ---------------------------- 6221 Rising Sun Avenue Philadelphia, P A 19111 (1 ) None OFFiCIAl.. USE ONLY (2) None (3) None (4) None (5) None (6) None ~~ (7) 44,504.20 (8) 44,504.20 --..--. ---~--- (9) 1,885.00 (10) (11 ) 1,885.00 (12) 42,619.20 --- ----- .- (13) (14) 42,619.20 -- ---------- (15) -- --.------- (16) 1,917.86 --- (17) (18) (19) 1,917.86 ---------- 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made (Schedule J) 14. Net Value Subject to Tax (Line 12 minus Line 13) z o ~ :3 ::::) ... a:: < o W 0:: 4. Mortgages & Notes Receivable (Schedule D) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) D Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) 9. Funeral Expenses & Administrative Costs (Schedule H) SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES x .00 42,619.20 x .045 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) 11. Total Deductions (total Lines 9 & 10) 12. Net Value of Estate (Line 8 minus Line 11) 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116(a)(1.2) z o ~ ~ ::::) D.. ~ o o ~ ... i 16. Amount of Line 14 taxable at lineal rate 17. Amount of Line 14 taxable at sibling rate 18. Amount of Line 14 taxable at collateral rate x .12 19. Tax Due x .15 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. Copyright 2000 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00) (. b!ecedent's Complete Address: STREET ADDRESS 35 Poplar Lane -~--"----~-------r=::------'----~--~---~~-- [STATE PA !ZIP 19301 CITY Paoli Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit 8. Prior Payments C. Discount (1) 1,917.86 Total Credits (A + 8 + C) (2) 0 .00 3. InteresVPenalty if applicable D. Interest E. Penalty 167.32 TotallnteresVPenalty (D + E) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. A. Enter the interest on the tax due. 8. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (3) (4) (5) (5A) (58) 167.32 2,085.18 2,085.18 Make Check Payable to: REGISTER OF WILLS, AGENT " ,~; J!~~~~': ~~\ ' { {~ " 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?........ 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation?................................................................................................................. .... PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred;.................................................................................. ~ ~ ~~ ~:~::~ ~~e~;~~i:~:~s:~~;=s~~~. ~~~.I~. ~~~ .~~~. :.~~~.~.~.~.~~.~.~.~~~~~~. ~~ .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 receiving adequate consideration?................................................................................................................... ... D D D ~ ~ ~ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. --~-~~~~------_.~-~~-- -- - --- _______n___.._______ 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 p~Ep.!r~ o.!h~r_t~/03..n~!tley~r~o..~lrepresentative is based on all information of which preparer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN ADDRESS Si:?IJJ{iiI11l1spo(f I ,. FOR Fill ADDRESS ~~JiePJX 1W3~ 1-1405 DATE 0- y~cJ~ DATE ADDRESS DATE 6221 Rising Sun Avenue PhiladelphIa, P A 19111 s-- -- 7-- () For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P.S. 99116 (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% [72 P .5. 99116 (a) (1.1) (ii)]. The statute does not exemot 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 twenty-one 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% [72 P.S. 99116 (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%, except as noted in 72 P.S. 99116 1.2) [72 P.S. 99116 (a) (1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P .S. 99116 (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. -. SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Hamed, Ellis W. I FILE NUMBER 21 - 04 - ESTATE OF This schedule must be completed and filed if the answer to any of questions 1 throu~h40npage 2 is yes. _m____-_______~____________ ~; ----- _1_ - - ---I - - I DESCRIPTION OF PROPERTY I % OF i ITEM '.,. Include the name of the transferee, their relationship to decedent and the date of transfer. , DATE OF DEA T~ DECO'S EXCLUSION TAXABLE VALUE NUMBER I Attach a copy of the deed for real estate iV ALUE OF ASSET (IF APPLICABLE) - p __J,_.'_ ----------, m'____m____m___________ ----'---------~----------t' INTEREST ~----- -- -- -. -- --- I I Twenty-five (25%) Percent Interest in the land and 44,504.20, 100%' 0.00 44,504.20 I improvements known as 35 Poplar Lane, Paoli, PA. The i property was titled as of September 29,1984 in the name of Mark E. Hamed an undivided one-half interest and in the named of Mark E. Hamed and Central Penn National Bank (now known as Wachovia Bank) Co-Trustees of the Ellis i Eugene Hamed (father of the deceased) and Virginia Slater I Hamed Trust dated 12-12-1968 as to the other one-half interest. The Trust provided for the use of the property for the benefit of Eugene R. Hamed (son of the settlors) for his life with the remainder, at the death of Eugene R. Hamed, to i vest in Mark E. Hamed and Ellis W. Hamed (the decedent herein). The Trust provided that the share of Ellis W. Hamed would go to the children of Ellis W. Hamed: Ann E. Reisinger and Michael Hamed. Eugene R. Hamed died 1-20-2005. Using the 4.2% Tables, we have calculated that, the value of the interest of Ellis W. Hamed as of 1-17-04 was $44,504.20. Calculated as follows: ! 2004 County assessed value + $185,000.00 x elr 1.35 = I $249,750.00 $249,750.00 div. by 4 = $62,437.50 $ 62,437.50 X .71278 = $44,504.20 TOTAL (Also enter on line 7, Recapitulation) 44,504.20 .. e . '" COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDlI..E H FlN:RAL. EXPENSES & AIlVINSlRATIVE COS1S m_ __~ ESTATE OF Hamed, Ellis W. I FILE NUMBER ! 21 - 04 - Debts of decedent must be reported on Schedule I. ITEM NUMBER A. FUNERAL EXPENSES: B. ADMINISTRATIVE COSTS: Personal Representative's Commissions 1. DESCRIPTION _+-AMOUNT Social Security Number(s) / EIN Number of Personal Representative(s): 2. Street Address City Year(s) Commission paid Attorney's Fees Joseph P. McGowan State _ Zip 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City Relationship of Claimant to Decedent 4. Probate Fees State Zip 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. 1 Other Administrative Costs Deed Recording Fees 2 Courier Fees 1,700.00 75.00 110.00 1,885.00 I J TOTAL (Also enter on line 9, Recapitulation) REV-1513 EX~ (9~O) . SCHEDULE J BENEFICIARIES COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT I FILE NUMBER , 21 - 04 - ESTATE OF Hamed, Ellis W. j' RELATIONSHIP TO DECEDENT On Nnt I i!llt Tru!IltAf!(!Il) I Daughter I A, ,MOUNT OR SHARE OF ESTATE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY I. TAXABLE DISTRIBUTIONS (include outright spousal distributions) Ann E. Reisinger 29 Royal Palm Drive Mechanicsburg, P A 17050 21,309.60 2 Michael Hamed 3321 Humboldt Street West Lafayette, IN 47906 Son 21,309.60 Enter dollar amounts for distributions shown above on lines 15 through 18, as appropriate, on Rev 1500 cover sheet II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET