HomeMy WebLinkAbout08-07-12J 1505611188
REV-1500 EX (02-11)(Fq
pennsytvania OFFICIAL USE ONLY
PA Department of Revenue """"'ptt1°""~
County Code Year File Number
Bureau oflndividualTaxes INHERITANCE TAX RETURN ,~~
Harrisburg, PA 17128-0801
PoBOx2eosol RESIDENT DECEDENT ~ r ~ 0~ ~ ~~J.J
ENTER DECEDENT INFORMATION BELOW
Social Security Number Date of Death MMDDYYYY Date of Birth MMDDYYYY
04 08 ~-o-~ 12 17 1934
Decedent's Last Name Suffix Decedent's Frst Name MI
Lund Nelson D
(If Applicable) Enter Surviving Spouse's Information Below
Spouse's Last Name Suffix Spouse's Frst Name MI
Lund Mary M
Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
FILL IN APPROPRIATE OVALS BELOW
~ 1. Original Return O 2. Supplemental Return Q 3. Remainder Return (Date of Death
Prior to 12-13-82)
O 4. Limited Estate O 4a. Future Interest Compromise (date of i~ 5. Federal Estate 'Tax Return Required
death after 12-12-82)
~ 6. Decedent Died Testate D 7. Decedent Maintained a Living Trust 8. Total Number of Safe Deposit Boxes
(Attach Copy of Will) (Attach Copy of Trust)
C~ 9. Litigation Proceeds Received O 10. Spousal Poverty Credit (Date of Death Q 11. Election to Tax under Sec. 9113(A)
Between 12-31-91 and 1-1-95) (Attach Schedule O)
CORRESPONDENT -This section must be completed. Atl Correspondence and Confidential Tax Information Should be Directed to:
Name Daytime Telephone Number
Elyse E. Rogers, Esquire 717 612 5801
REGISTER OF WILLS USE ONLY
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Frst Line of Address ` -+7 ra '1„~
Saidis, Sullivan & Rogers ~• JAI -.
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Second Line of Address t
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635 North 12th Street, Suite 400 .
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City or Post Office State ZIP Code D~.~. ED -" '~,t
Lemoyne PA 17043 D --,
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Correspondent's a-mall address: erogers@ssr-attorneVS.com
Under penalties of perjury, I declare that I have examined this return, including accompanyingscheduies and statements, and tothe bestof my knowledgeand belief,
it is true, correct and complete. Declaration of the preparer other than personal representative is based on all information of which preparer ha:. any knowledge.
SIGNATUR FPERSO~N~~RES~PONSIBLEFOR~INGRET N DATE
Side 1
1505611188 1505611188
r~~r+~c vac vr'fllalrvAL tUFSM ONLY
J
1505611288
Rev-1500 EX (FI)
Decedent's Social Security Number
Decedent's Name: N e l s o n D Lund
RECAPITULATION
1.
........................................
Real Estate (Schedule A)
.
1. D • D D
2. Stocks and Bonds (Schedule B) ................................... . 2. D ' D D
3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ... ~ . . 3. D • D D
4. Mortgages and Notes Receivable (Schedule D) ........................ . 4. D • D D
5. Cash, Bank Deposits and Miscellaneous Personal Property (Schedule E) ...... . 5. 2 , D 71 • D 4
6. Jointly Owned Property (Schedule F) O Separate Billing Requested ..... . 6. D • D D
7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property
(Schedule G) O Separate Billing Requested ..... . 7. 4 8 2, 0 6 4. 4 3
8. Total Gross Assets (total Lines 1 through 7) ........................... . 8. 4 8 4 ,13 5 • 4 7
9. Funeral Expenses and Administrative Costs (Schedule H) ......
...........
. 9. D ' D D
10. Debts of Decedent, Mortgage Liabilities, and Liens (Schedule I) ............ . 10. D • D D
11. Total Deductions (total Lines 9 and 10) ............................. . 11. D • D D
12. Net Value of Estate (Line 8 minus Line 11) ............................ . 12. 4 8 4 ,13 5 • 4 7
13. Charitable and Governmental Bequests/Sec 9113 Trusts for which
an election to tax has not been made (Schedule J) ...................... . 13. D • D D
14. Net Value Subject to Tax (Line 12 minus Line 13) ...................... . 14. 4 8 4 ~ 13 5 • 4 7
TAX CALCULATION -SEE INSTRUCTIONS FOR APPLICABLE RATES
15. Amount of Line 14 taxable
at the spousal tax rate, or
transfers under Sec. 9116
(a)(1.2) x .o0 4 8 4 ,13 5. 4 7 1s. D• 0 0
16. Amount of Line 14 taxable
at lineal rate X .045 0 •0 0 16, 0.0 0
17. Amount of Line 14 taxable
at sibling rate X .12 0. 0 0 17 D• 0 0
16. Amount of Line 14 taxable
at collateral rate X .15 0. 0 0 1 e D• O D
19. TAX DUE
...................................................
. 19. 0 • D O
20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT 0
Slde 2
150561],288 1505611288
Rev-1500 EX (FI) Page 3
Decedent's Complete Address:
0.00
DECEDENTS NAME
Nelson D. Lund
STREET ADDRESS
867 Hillto Road
CITY
Lemo ne STATE ZIP
PA 17043
Tax Payments and Credits:
1. Tax Due (Page 2 Line 19)
2. Credits/Payments
A. Prior Payments
B. Discount 0.00
Total Credits (A + B) (2)
File Number
3. Interest
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Fill in oval on Page 2, 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.
(3)
(4)
(s>
Make check payable to: REGISTER OF WILLS, AGENT.
(1) 0.00
0.00
0.00
0.00
PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" tN THE APPROPRIATE BLOCKS
1. Did decedent make a transfer and: Ye:; 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 .................................................. .
d. receive the promise for life of either payments, benefits or care? .......................... .
2. If death occurred after Dec. 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.
For dates of death on or after July 1, 1994 and before Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse
is 3 percent [72 P.S. Sect. 9116(a)(1.1)(i)].
For dates of death on or after Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent
[72 P.S. Sect. 9116(a)(1.1)(ii)]. The statue does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure
of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary.
For dates of death on or after July 1, 2000'
• The tax rate imposed on the net value of transfers from a deceased child 21 years of age or younger at death to or for the use of a natural parent,
an adoptive parent or a stepparent of the child is 0 percent [72 P.S. Sect. 9116(a)(1.2)].
• The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5 percent, except as noted in
[72 P.S. Sect. 9116(a)(1)j.
• The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12 percent [72 P.S. Sect. 911E>(a)(1.3)]. A sibling
is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption.
REV-1508 EX+(11-10)
^~,~i ~: pennsylvania SCHEDULE E
IIf F'AN7 NPN7 t)r~ Rr 4i~NJE
CASH, BANK DEPOSITS, & MISC.
INHERITANCE TAX RETURN PERSONAL PROPERTY
RESIDENTDECEDENT
ESTATE OF: FILE NUMBER:
Nelson D. Lund
Include the proceeds of litigation and the date the proceeds were received by the estate.
Ali property jointly owned with right of survivorship must be disclosed on Schedule F.
if more space is needed, insert additional sheets of the same size
REV-t5to EX+(oa-og)
pennsylvania
t~ IJf NAH IMr~N' i), N~VtNS+!
INHERITANCE TAX RETURN
RESIDENTDECEDENT
SCHEDULE G
INTER-VIVOS TRANSFERS AND
MISC. NON-PROBATE PROPERTY
ESTATE OF FILE NUMBER
Nelson D. Lund
This schedule must be completed and filed if the answerio any of questions 1 through 4 on page three of the REV-1500 is yes.
ITEM
NUM DESCRIPTION OF PROPERTY
INCLUDE NAMEOFTRANSFEREE, RELATIONSHIPTO DECEDENT&
DATE OF TRANSFER. ATTACHCOPYOFDEEDFORREALESTATE
DATE OF DEATH
VALUE OF ASSET
% OF oecD's
INTEREST
EXCLUSION
(IFAPPUCABLE)
TAXABLE
VALUE
1 Wells Fargo IRA Account 1540899749 482,064.43 100 482,064.43
Beneficiary: Decedent's surviving spouse,
Mary M. Lund
TOTAL (Also enter on Line 7, Recapitulation) ~ 482,064.43
If more space is needed, use additional sheets of paper of the same size.
REV-1513 EX+(01-10)
`~, pennsytvania SCHEDULE J
~~~~~H,..:~, ~:, u,~:~.,,.~
INHERITANCETAX RETURN BENEFICIARIES
RESIDENT DECEDENT
ESTATE OF: FILE NUMBER:
Nelson D. Lund
NUMBER
NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY RELATIONSHIP TO DECEDENT
Do Not List Trustees AMOUNT OR SHARE
OF ESTATE
? TAXABLE DISTRIBUTIONS [Include outright spousal distributions
and
,
transfers under Sec. 9116(a)(1.2).]
Mary M. Lund Surviving spouse 484,135.47
867 Hilltop Road
Lemoyne, PA 17043
ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15THROUGH 180E REV-1500 COVER SH EET, AS APPROPRIATE.
iz NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN:
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS:
TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET.
If more space is needed, use additional sheets of paper of the same size.
LAST WILL AND TESTAMENT
OF
NELSON D. LUND, AIKIA N. DONALD LUND
I, NELSON D. LUND, A/K/A N. DONALD LUND, of Lemoyne, Cumberland County,
Pennsylvania, being of sound and disposing mind, memory and understanding, do
hereby make, publish and declare this as and for my Last Will and Testament, hereby
revoking all other Wills and Codicils heretofore made by me.
FIRST
I direct the payment from my estate of my just debts and the expenses of my
last illness and funeral as soon after my death as conveniently may be done. If there
be no cemetery lot available for my interment owned by me at the time of my death, I
authorize my personal representative to purchase such cemetery lot with a contract for
perpetual care, using therefor funds from my estate in such amount as my personal
representative shall consider necessary and desirable, and I authorize my personal
representative to cause title to or ownership of such lot so purchased to be vested in
such person as my personal representative shall designate. FurthE~r. I authorize my
personal representative to expend funds from my estate, in such amount as my
personal representative shall consider necessary and desirable for the purchase,
erection and inscription of a suitable marker for my grave.
SECOND
All my personal effects, clothing, furniture, furnishings, je+rvelry, automobiles,
other tangible personal property of every kind, and insurance thereon, I give to my
wife, Mary, if she survives me by thirty (30) days. If she shall not so survive me, then 1
give the same in accordance with a written list made by me during my lifetime. In the
absence of such a list, or if such list shall make no mention of any items of my tangible
personal property, then I give the same in equal shares to my daughters, Stacy and
Linda, who survive me, to be divided between them as they may agree or, if they are
unable to agree, such items may be sold by my personal reprE~sentative and the
proceeds added to my residuary estate.
THIRD
1. To each of my daughters, Stacy and Linda, who survive me, I give
the amount of $50,000, plus appropriate interest if not fully distributed within twelve
(12) months of the date of my death.
2. If my wife, Mary, fails to survive me, then to my daughter, Stacy, I
give and devise my home at 867 Hilitop Road, Lemoyne, Pennsyivania, and to my
daughter, Linda, I give and bequeath an amount equal to the fair market value of said
residence at the time of my death.
FOURTH
1. If my wife, Mary, survives me, I give to my trustee hereinafter
named, without deduction for estate or inheritance taxes, the minimum amount which
must be added to the value of all other property in my gross taxable estate for which
the marital deduction is allowed in order to give my estate a marital deduction that will
reduce federal estate tax on my estate to the lowest possiblE~ amount (subject,
however, to limitation or adjustment, as applicable, under the terms of the following ¶ 2
of this Article FOURTH). Such minimum amount shall be determined after first taking
into account the aggregate amount of the deductions allowed under IRC Sections
2053 and 2054. The size of this trust shall be determined as though my personal
representative elected to qualify it for the marital deduction in accordance with IRC
Section 2056(b)(7), regardless whether my personal representative in fact so elects.
2. Provided, however, that -
(i} if my wife survives me by six months, the amount set aside for this Marital
trust shall not be less than one-half (1/2) of my adjusted gross estate; and
(ii) if my wife survives me but dies within six months of my df=ath, the share set
aside for this Marital trust shall not exceed that fractional share of my estate which will
produce for my estate a marital deduction which would result in the lowest combined
total of federal estate tax on my estate and my wife's estate; and
(iii) if my wife and I should die under circumstances that render the order of our
deaths uncertain, for the purposes of this Marital trust it shall be conclusively
presumed that my wife survived me and that her estate was valued as of the same
date, and in the same manner, as my estate was valued for federal estate tax
purposes; and
(iv) except as provided by subparagraph (i) above. if the federal estate tax
exemption equivalent amount at the time of my death is less than $1.5 million, the
amount I give my trustee to fund this Marital trust, as provided under the preceding ¶ 1
of this Article Fourth, shall be reduced by an amount necessary to cause the
Residuary trust created herein to equal $1.5 million, notwithstanding the resulting
estate tax liability upon my estate in excess of the "lowest possible ;amount" otherwise
provided for under the preceding ¶ 1.
3. My personal representative shall select and distribute to my
trustee the cash, securities and other property that shall constitutE~ the Marital trust,
employing for the purpose of valuation the adjusted basis of the assets for federal
estate tax purposes; provided, that the assets distributed shall be selected in such
manner that they shall have an aggregate fair market value fairly representative of the
appreciation or depreciation in the value to the date or dates of distribution of all
assets then available for distribution.
4. My trustee shall pay from this Marital trust the distribution amount
set forth below to or for the benefit of my wife, Mary, during her life, in no less frequent
than quarter-annual installments.
5. The distribution rate from the Marital trust shall be three (3%)
percent.
6. The trustee shall pay to my wife in each tax year of the trust
during her fife an amount equal to the distribution rate multiplied by the average of the
fair market values of the trust as of the close of the last business day of the trust's
three previous tax years (or such lesser number of tax years as arE~ available for the
first three tax years of the trust). In the case of a short tax year, the distribution shall
be calculated as set forth in subparagraph A below. In the case of contributions to or
4
distributions from the trust, including initial funding, the distribution amount shall be
determined as set forth in subparagraph B below.
A. For a short tax year, the distribution amount shall be based upon
a pro-rated portion of the distribution amount set forth above, comparing the
number of days in the short tax year to the number of days in the calendar year
in which the short tax year is a part.
B. In a tax year in which assets are added to or distributed from the
trust (other than the distribution amount) (hereinafter "adjustment year"), the
distribution amount shall be increased (in the case of a contribution) or
decreased (in the case of a distribution) by an amount equal to the distribution
rate for that trust times the fair market value of the assErts contributed or
distributed (as of the date or dates of the contribution or distribution), multiplied
by a fraction, the numerator of which is the number of days from the
contribution or distribution to the end of the calendar year anci the denominator
of which is the days in the calendar year. Further, the year end values for the
two tax years preceding the adjustment year (or such lesser number of tax
years as are available for the first three years of the trust) shall be increased by
the amount of such addition, or decreased by the amount of such distribution,
for purposes of determining the distribution amount for years following the
adjustment year.
7. All computations of the trust's fair market value, or the value of
any contributions or distributions as set forth above, shall include accounting income
and principal, but no accruals shall be required.
5
8. If in any tax year of the Marital trust the net accounting income
earned in the Marital trust exceeds the distribution amount, such excess net income
shall be distributed to my wife at least annually.
9. In addition to the distribution amount as determined above for the
Marital trust, the pro-rata share of income earned in my estate pric-r to the complete
funding of the Marital trust, equal to the average income return on all of the estate
assets during the applicable period, shall be distributed either to my wife directly or to
my trustee for distribution to my wife, in my personal representative's discretion.
10. The distribution amounts for the Marital trust shall be paid first
from net accounting income. If the net accounting income is insufficient to satisfy the
distribution amount, the trustee shall allocate to income such net rE~alized short term
capital gains as are needed to satisfy the distribution amount, and if still insufficient,
the trustee shall allocate to income such net realized long term capital gains as are
needed to satisfy the distribution amount. If, after allocating said short term and long
term capital gains to income, the income is still insufficient to pay the distribution
amount, the balance needed shall be paid from principal, applying first the principal of
the non-exempt share of the Marital trust, before expending the GST-exempt share.
11. If any property that is part of the Marital trust shall be or become
unproductive of income consistent with its value, my wife may requiire my trustee to
make it productive or convert it to productive property within a reasonable time.
12. In addition to the distribution amounts as set forth above, my
trustee shall distribute such additional amounts, if any, of accounting income, capital
gain or principal to my said wife as the trustee deems advisablE: for her health,
6
maintenance, and support in her accustomed manner of living, taking into account
other assets and income otherwise available to her. Provided, further, that my trustee
shall first utilize assets of the non-GST-exempt share of the Marital trust, prior to
distributing any such sums from the GST-exempt share.
13. In making a determination concerning discretionary distributions in
addition to the distribution amount, my trustee may wish to take into account that the
welfare and support of my wife is the most important goal of this trust, with the
preservation and building of wealth for the next generations of secondary importance.
14. My personal representative shall, in its absolute discretion,
determine whether to elect under IRC Section 2056(b)(7) to qualify any portion of the
Marital trust for the federal estate tax marital deduction. Generally, I anticipate that my
personal representative will elect to minimize the estate tax payable by my estate.
However, I would expect that some consideration be given to the estate tax payable in
my wife's estate upon her death, especially if she should die prior to the time the
election is made. The determination of my personal representative with respect to the
exercise of the election shall be conclusive upon all affected persons.
15. I authorize my personal representative to exercise the special
election provided by IRC Section 2652(a)(3) [the "Reverse QTIP Election") as to any
portion of this Marital trust which equals the federal generation-skipping tax exemption,
reduced by the amount, if any, of my federal generation-skipping tax exemption
allocated to my lifetime transfers and to my other testamentary gifts, including my
Residuary trust. If my personal representative exercises the special election as to all
or part of this trust, I direct my trustee, at any time prior to the funding of this trust, by
an instrument filed with the trust records, to divide the trust property into two fractional
share trusts, one based on my generation-skipping tax exemption allocated to the
GST-exempt Marital trust and the second being the balance of the marital trust
property (the "nonexempt Marital trust"). Payments of principal, if any, to my wife
made pursuant to the terms of this Marital trust as hereinabove provided shall first be
made from the non-exempt Marital trust for generation-skipping tax purposes.
16. In dividing the Marital trust into the GST-exempt and the non-
exempt Marital trust shares, (1) the values as finally determined for estate tax
purposes shall be conclusive and (2) the trustee must select property in such a
manner that the assets, including cash, of each such trust snare will have an
aggregate fair market value fairly representative of each share's proportionate share of
the appreciation or depreciation in the value to the date or dates of allocation of all
property then available for allocation to the respective GST-exempt and non-exempt
shares.
17. The GST-exempt Martial trust shall be composed of the maximum
fractional share of principal which, after accounting for that portion of my GST
exemption (IRC Section 2631) allocated to the GST-exempt Residuary trust, can be
paid to the GST-exempt Marital trust without causing the Inclusion Ration (IRC Section
2642(a)) with respec# to such trust to be greater than zero. The ~~formula contained
herein shall be determined after taking into consideration the directions to my personal
representative under this Will as to how to allocate my available GST exemption at my
death. The GST-nonexempt Marital trust shall be composed of the balance of the
marital share.
8
18. Upon the death of my wife, if she survives men, my trustee shall
pay the remainder of this the Marital trust into the Residuary trust (preserving the zero
and one Inclusion Ratios of the GST-exempt and nonexempt trust shares), to be
managed under the same terms and conditions as hereinafter provided for the
Residuary trust, as applied to circumstances then existing.
19. Except as otherwise provided by a specific reference to such trust
or trusts in my wife's will, on the death of my wife, my trustee shall deduct and pay to
her personal representative an amount equal to any additional administration
expenses and estate and inheritance taxes assessed against her estate by reason of
the inclusion for tax purposes of the then remaining principal of either or both of the
GST-exempt Marital trust and the GST-nonexempt Marital trust, as the case may be,
such payment to be made first from the non-exempt Marital trust prior to applying
funds from the GST-exempt Marital trust for that purpose.
20. Any provision of this Will which may appear to conflict with my
intention to qualify the marital trust for the Federal Estate Tax marital deduction shall
be construed so as to accomplish that intention. All property allocated to or held in
any such trust shall be the type of property which qualifies for the marital deduction.
FIFTH
I give the balance of my residuary estate, including any part of my estate not
distributed under the foregoing provisions hereof, to my trustee, to hold and distribute
under the following terms and conditions:
9
1. This Residuary trust shall be divided into separate GST-exempt
and -nonexempt shares. The GST-exempt Residuary trust shall be composed of the
maximum fractional share of the residuary principal which can be paid to such trust
without causing the Inclusion Ration with respect to such trust to be greater than zero.
The formula contained herein sha-I be determined after taking into consideration the
decisions of my personal representative whether and to what extent to allocate the
unused portion of my GST exemption as of my death to the GST-exempt Marital trust
created herein. The GST-nonexempt Residuary trust shall be composed of the
balance of the residuary principal.
2. My trustee shall pay from the Residuary trust the distribution
amount set forth below to or for the benefit of my daughters, Stacy and Linda, (or the
survivor or them), during their lives, in no less frequent than quarter-annual
installments. The distribution amount payable to each of my daughtc=rs during her life
shall be an amount equal to the greater of $50,000 per year as adjusted annually to
reflect any increase in the consumer price index from the date of this instrument to the
first day of the calendar year in which the distribution is paid, or fivE~ (5%) percent of
the average of the fair market values of the trust as of the close of the last business
day of the trust's three previous tax years (or such lesser number of tax years as are
available for the first three tax years of the trust). In the case of a short tax year, the
distribution shall be calculated as set forth in subparagraph A belowr. In the case of
contributions to or distributions from the trust, including initial funding, the distribution
amount shall be determined as set forth in subparagraph B below.
10
A. For a short tax year, the distribution amount shall be based upon
a pro-rated portion of the distribution amount set forth above, comparing the
number of days in the short tax year to the number of days in the calendar year
in which the short tax year is a part.
B. In a tax year in which assets are added to or distributed from the
trust (other than the distribution amount) (hereinafter "adjustment year"), the
distribution amount shall be increased (in the case of a contribution) or
decreased (in the case of a distribution) by an amount equal to the distribution
rate for that trust times the fair market value of the assf~ts contributed or
distributed (as of the date or dates of the contribution or distribution), multiplied
by a fraction, the numerator of which is the number of days from the
contribution or distribution to the end of the calendar year and the denominator
of which is the days in the calendar year. Further, the year end values for the
two tax years preceding the adjustment year (or such lesser number of tax
years as are available for the first three years of the trust) shall be increased by
the amount of such addition, or decreased by the amount of such distribution,
for purposes of determining the distribution amount for years following the
adjustment year.
3. All computations of the trust's fair market value, or the value of
any contributions or distributions as set forth above, shall include accounting income
and principal, but no accruals shall be required.
4. In addition to the foregoing distributions to my daughters during
their lives, and after taking into account their required distribution amounts, life
11
expectancies and the value of the principal of the trust, my trustee may, from time to
time, distribute from the Residuary trust such additional amounts, if any, of accounting
income, capital gain or principal to my grandchildren as my trustee, acting alone,
deems advisable for their health, maintenance, and support, specifically including
education expenses, and taking into account other assets and income otherwise
available to them.
5. In addition, should the principal of the Marital trust be completely
withdrawn or exhausted, my trustee shall from time to time pay to my wife, or shall
apply directly for her benefit, as much of the principal of this Residuary trust as my
trustee may consider desirable for her health, maintenance and sup~,port, but only after
considering all resources otherwise available to her. Provided, further, that such
additional distributions shall be made first from the GST-nonexempt share of the
Residuary trust to the extent possible prior to the distribution of such amounts to my
wife from the GST-exempt share of the Residuary trust.
6. In additional to the distribution amount to my daughters as
determined above for the Residuary trust, the pro-rata share of income earned in my
estate prior to the complete funding of the Residuary trust, equal to the average
income return on all of the estate assets during the applicable period, shall be
distributed either to my daughters directly or to my trustee for distribution to my
daughters, in my personal representative's discretion.
7. The distribution amounts for my daughters from the Residuary
trust shall be paid first from net accounting income. If the net accounting income is
insufficient to satisfy the distribution amount, the trustee shall allocate to income such
12
net realized short term capital gains as are needed to satisfy the distribution amount,
and if still insufficient, the trustee shall allocate to income such net realized long term
capital gains as are needed to satisfy the distribution amount. If, after allocating said
short term and long term capital gains to income, the income is still insufficient to pay
the distribution amount, the balance needed shall be paid from the principal of the non-
GST-exempt share of the Residuary trust, prior to applying funds from the principal of
the GST-exempt Residuary trust for that purpose.
8. Upon the death of the survivor of my daughters, I direct my trustee
to distribute the remaining balance of the Residuary trust to my then living
grandchildren, per capita, and to the issue per stirpes of any deceased grandchild.
9. If a federal generation-skipping transfer tax would be imposed on
any trust hereunder upon the death of the survivor of my daughters, at a rate higher
than the marginal federal estate tax rate which would be imposed on her estate,
assuming the trust were includible in her taxable estate, then my said daughter, by
specifically referring to this testamentary power of appointment, may by Will appoint
such non-GST-exempt portion of this trust, provided that no interest so appointed to
the spouse of such surviving daughter shall exceed an income interest for life.
SIXTH
1. Any trust created under this Will, which otherwise would be
partially exempt from federal generation-skipping transfer tax, shall be divided
fractionally so that my federal GST exemption which has not been allocated may be
allocated exactly to one or more trusts. If my trustee allocates any of my GST
13
exemption to qualified terminable interest marital deduction property as described in
IRC Section 2056(b)(7), my trustee shall divide said trust into aGST-exempt trust
equal to the amount of the exemption so allocated, and aGST-nonexempt trust. The
purpose of this provision is to have trusts which are either entirely GST-exempt or
entirely GST-nonexempt. If separate trusts are created, my trustee may, at any time
prior to the formal creation of such trusts, (i) make different tax elecl:ions, including the
allocation of my available GST exemption with respect to each :separate trust, (ii)
expend principal and exercise any other discretionary powers with respect to such
separate trusts differently, (iii) invest such separate trusts differently, and (iv) take all
other actions consistent with such trusts being separate entities. I exonerate my
trustee from any liability arising from the good-faith exercise or noriexercise of these
powers.
2. I suggest to my trustee, although I do not so require, that, in
determining how to exercise its discretion to distribute from any trust created under
this instrument, my trustee consider ways to reduce federal transfc~r taxes upon the
property in the trust, to increase the amount of property ultimately passing to the
remaindermen of the trust. In particular I suggest that my trustee consider (i)
distributing property, including income, to or for the benefit of my wife or daughters
("non-skip persons"), from a trust which does not have a zero inclusion ration; (ii)
distributing property, including income, for the benefit of my grandchildren, from a trust
which does not have a zero inclusion ratio, for medical and tuition expenses directly to
the provider of the services, which distributions will be excluded frorn the definition of
generation-skipping transfer by IRC Section 2611(b)(2); and (iii) distributing property,
14
including income, for purposes other than qualified medical or tuition payments to or
for the benefit of my grandchildren, from a trust which has a zero inclusion ration. I
exonerate my trustee from any liability for its good-faith exercise or nonexercise of
these powers.
3. In addition to the powers conferred by law, I authorize any
personal representative or trustee acting under this instrument, in its absolute
discretion:
(a) To retain in the form received, or to sell either <~t public or private
sale any real or personal property;
(b) To exercise any options to subscribe for stocks, bonds, or other
investments.
(c) To join in any plan of lease, mortgage, consolidation, exchange,
reorganization or foreclosure of any corporation in which my estate or any trust
may hold stocks, bonds or other securities;
(d) To sell, transfer, convey, mortgage, pledge, lease or exchange
any property, real or personal, which at any time may form part of my estate, for
the payment of debts or taxes, or for any purpose of administration or
distribution, for such prices and upon such terms as they, in their sole
discretion, may deem wise, and to execute and deliver deeds of conveyance or
transfer thereof;
(e) To make settlements and compromises on such terms as they, in
their sole discretion may deem wise without the necessity of obtaining any court
approval thereof;
15
(f) To make distribution hereunder either in cash or kind, as they, in
their discretion may deem wise;
(g) To combine, without prior court approval, any trust herein with any
other trust which has substantially similar provisions;
(h) To deduct administration expenses upon either the federal estate
tax return or fiduciary income tax return, without adjustment between principal
and income as my personal representative shall deem most beneficial to my
estate;
(i) To allocate any GST tax exemption to any property to which I am
deemed transferor under IRC Section 2653(a), to the extent necessary to cause
the inclusion ratios applicable to such transfers to be zero; anti
Q) If my trustee should determine that the size o~f any trust herein
does not warrant the cost of continuing it, to terminate the trust and pay the
principal, without further responsibility, to the income beneficiary or
beneficiaries.
4. All payments of principal and income hereby given shall be free
from anticipation,. assignment, pledge or obligations of beneficiaries, and shall not be
subject to any execution or attachment.
5. I direct that no fiduciary hereunder shall be required to furnish
bond for the faithful performance of its duties in any jurisdiction, and if any bond is
necessary, no surety shall be required.
16
SEVENTH
1. My executor and trustee shall pay from the residue of my estate
all estate, inheritance and generation-skipping transfer taxes, together with interest
and penalties, that shall be payable with respect to property subject to taxation by
reason of my death.
2. Except as otherwise provided by specific referE~nce to such trust
or trusts in my wife's will, on the death of my wife my trustee shall deduct and pay to
her personal representative an amount equal to any additional administration
expenses and estate and inheritance taxes assessed against her estate by reason of
the inclusion for tax purposes of the then remaining principal of the marital trust, such
payment to be apportioned between the GST-exempt and non-exempt shares of such
trust, in my trustee's sole discretion.
EIGHTH
I appoint my wife, Mary M. Lund, and the Hershey Trust Company, of Hershey,
Pennsylvania to act as Co-executors of this my Last Will and Testament. Provided,
however, that if the Hershey Trust Company is unwilling to limit its fee for the
administration of my estate to the lesser of two (2%) percent of the value of the
probate estate or Forty Thousand ($40,000) Dollars, then I authorize my wife, Mary, to
appoint instead any trust company or law firm to act with her as Co-executor.
17
NINTH
I appoint the Hershey Trust Company, of Hershey, Pennsylvania as trustee of
any trust created under this Will.
IN WITNESS WHEREOF, I, Nelson D. Lund, a/k/a N. Donald Lund, have
hereunto set my hand and seal to this my Last Will and Testament, consisting of
eighteen (18) typewritten pages, the first seventeen (17) of which bear my initials in
the margin for identification, this 16th day of October, 2001.
1
~~ ~ ~ ~
Nelson D. Lund a/k/a ~ N. Donald Lund, Testator
Signed, sealed, published and declared by the above-named Testator, Nelson
D. Lund, as and for his Last Will and Testament in the presence of us, who have
hereunto subscribed our names at his request as witnesses thereto, in the presence of
said Testator and of each other.
~~'f ~' ~ ADDRESS
l
_,
,~/ ADDRESS
18
COMMONWEALTH OF PENNSYLVANIA
ss.
COUNTY OF CUMBERLAND :
WE, Nelson D. Lund, and ,the Testator and
witnesses, respectively whose names are signed to the foregoing or attached
instrument, being first duly sworn, do hereby declare to the undersigned authority that
the Testator signed and executed the instrument as his Last Will and Testament and
that he signed willingly and that he executed as his free and voluntary act for the
purposes therein expressed, and that each of the witnesses, in the presence and
hearing of the Testator signed the Will as witness and that to the best of their
knowledge the Testator was at the time 18 or more years of age, off sound mind and
under no constraint or undue influence.
Nelson D. Lund, Testator
Witness
Witness
Subscribed, sworn to and acknowledged before me by Nelson D. Lund, the
Testator, and subscribed to and sworn or affirmed to before me by
and witnesses, this day of
2001.
Notary Public
19
Law Offices of
SAIDIS, SULLIVAN & ROGERS
A PROFESSIONAL CORPORATION
635 NORTH 12TH STREET, SUITE 400
ROBERT C. SAIDIS LEMOYNE, PENNSYLVANIA 17043
DANIEL L. SULLIVAN TELEPHONE: (717) 612-5800 - FACSIMILIE (717) 612-5805
ELYSE E. ROGF,RS EMAIL: attorneyQssr-attorne sy com
JOHN A. FEICHTEL www.ssr-attorneys.com
DEAN E. REYNOSA
TODD F. TRUNTZ
MARYLOU MATAS
SEAN M. SHULTZ
ROBERT B. HAMILTON
HANNAH WHITE-GIBBON August 3, 2012
CERTIFIED MAIL R/R/R
Register of Wills of Cumberland County
One Courthouse Square
Carlisle, PA 17013
Re: Estate of Nelson D. Lund
Date of Death: 04/08/2012
Social Security No: 204-26-9218
Dear Madam:
CARLISLE OFFICE:
26 WEST HIGH STREET
CARLISLE, PA 17013
"CELEPHONE: (717)243-6222
FACSIMILE: (717)243-6486
Of Counsel
JOHN E. SLIKE
STEPHEN L. GROSS
REPLY TO LEMOYNE
717-612-5801
eroee rs@ssr-attornevs. com
Enclosed for filing with your office is an original and one copy of the
Pennsylvania Inheritance Tax Return for the above-referenced decedent. Please
note this is anon-probate return. Also enclosed is a check in the amount of $15
representing your filing fee.
If you have any questions or require additional information, please do not
hesitate to contact me.
Sincerely yours,
.10
Elys E. Rogers
c~ r
Enclosures
cc: Mary M. Lund
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