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HomeMy WebLinkAbout09-28-12~ + ECKERT SEAMANS CHERIN & MELLOTT, LLC Thomas P. Gacki, Esquire, PA ID #44864 213 Mazket Street, 8th Floor Harrisburg, PA 17108-1248 Ph: (717) 237-6093 Fx: (717) 237-6019 tgacki@eckertseamans.com Attorneys for Petitioners F±~~(CC?~r~~ i ~~r~'~E n0~ «R? S~~ 28 ~`~ $~ 58 C. ~:,; QRFH,~uv'~ vVil~r Cl1MBERlAND CO., PA IN RE: MARGARET B. MASTERS, Living Person IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION NO. a~ `~ ~a _ (~C~~ PETITION TO ALLOW CO-AGENTS UNDER DURABLE POWER OF ATTORNEY TO MAKE ESTATE PLANNING GIFTS NOW COME, CRYSTAL U. HACKETT and GARY E. FRENCH, by their attorneys Eckert Seamans Cherin & Mellott, LLC, and petitions the Court for authority to make estate planning gifts on behalf of a principal, avering as follows: 1. Petitioners are CRYSTAL U. HACKETT (hereinafter "Hackett") and GARY E. FRENCH ("hereinafter "French"), both adult individuals residing in Lebanon County and Dauphin County, respectively. {L0483128.4} f } 2. Hackett and French serve as aitorrieys-in-fact for property management on behalf of Margaret B. Masters (hereinafter "Masters"), an adult individual residing at The Bridges at Bent Creek, 2100 Bent Creek Boulevard, Silver Spring Township, Cumberland County, Pennsylvania. 3. Masters appointed Hackett and French as her attorneys-in-fact under a Durable General Power of Attorney for Property Management dated June 26, 2007. A true and correct copy of said Durable General Power of Attorney is attached hereto as Exhibit "A" and incorporated herein by this reference. 4. Masters is an 86-year-old unmarried female who suffers from dementia. She is permanently disabled both cognitively and physically, and, as a result, is unable to conduct her financial affairs. Although she has not been adjudicated an incapacitated person, Hackett and French believe Masters is "incapacitated" asthat term is defined in 20 Pa.C.S.A. §5501. Attached hereto as Exhibit "B" is a letter executed by Masters' attending physician verifying that she is in fact incapacitated. 5. As attorneys-in-fact for Masters, Hackett and French have managed Masters' assets and liabilities since roughly 2008, including overseeing investments, paying personal bills and making estate planning and charitable gifts consistent with the authority granted by the Durable General Power of Attorney. {L0483128.4} 2 6. Paragraph 18 of Masters' Durable general Power of Attorney grants the following powers to Hackett and French. 18. Gifts. To make gifts to any donee or class of donees (including any individual co-agent designated herein) in such amounts as shall not exceed, when taken in aggregate, applicable exclusions or exemption limits, whether annual or otherwise, under Federal laws for estate and gift taxation, and to do so, as my co-agents may deem appropriate ,through outright gifts under the Pennsylvania Uniform Transfer to Minors or the Uniform Transfers (or Gifts) to Minors Act of any state, and through gifts to short- term or long-term trusts, including, but not limited to, annual exclusion-type trusts. 7. Section 5601.2(b) of the Pennsylvania Estates and Fiduciaries Code, 20 Pa.C.S.A. §5601.2(b), states the following with respect to "limited gifts" by an attorney-in-fact: §5601.2. Special rules for gifts *** (b) Limited gifts. - A principal may authorize an agent to make a limited gift as defined under section 5603(a)(2) (relating to implementation of power of attorney) by the inclusion of: (1) the language quoted in section 5602(a)(1) (relating to form of power of attorney); or (2) other language showing a similar intent on the part of the principal to empower the agent to make a limited gift. 8. Limited gifts are defined in the Pennsylvania Estate and Fiduciaries Code as those which "qualify in their entirety for the annual exclusion from the Federal gift tax permitted under Section 2503 of the Internal Revenue Code of 1986," which exclusion is currently $13,000 annually per donee. 20 Pa.C.S.A. §5603(a)(2). 9. Section 5601.2(c) of the Code, 20 Pa.C.S.A. §5601.2(c), states the following with respect to "unlimited gifts" by an attorney-in-fact: (c) Unlimited gifts. - A principal may authorize an agent to make any other gift only by specifically providing for and defining the agent's authority in the power of attorney. {L0483128.4} 3 10. Hackett and French have made r~~ular annual exclusion gifts to Masters' children and grandchildren in accordance with her regular pattern of gifting while she was competent. The attorneys-in-fact have also maintained Masters' regular pattern of charitable gifting. 11. Additionally, pursuant to Code Section 5601.2(c) having to do with unlimited gifts, and in accordance with Section 18 of Masters' Durable General Power, Hackett and French have made gifts to Masters' three adult children Deborah Elder Masters, William W. Masters and Christian M. Masters, said gifts consisting of money and investment assets totaling roughly $3,980,000 under the Federal lifetime exclusion from gift tax. Prior to her incapacity, Masters personally had gifted $1,000,000 to her three children, and so a total of $4,980,000 in total lifetime exclusion credit has been used as a result of the gifts in excess of the annual exclusion amounts. 12. The total Federal lifetime exclusion for gifting without incurring gift tax currently is $5,120,000 per donor. As of the filing of this Petition, the exclusion amount is scheduled to decrease to $1,000,000 starting January 1, 2013. Additionally, the Federal estate tax rate applied to taxable assets at the date of death is scheduled to increase from 35% to 55% starting January 1, 2013. 13. All gifts made by Hackett and French to date are within the applicable annual, lifetime and/or charitable exclusions from Federal gift tax as set forth in Masters' Durable Power of Attorney. No tax has been paid on any such gifts. 14. Masters continues to own substantial assets and has no debts or obligations that are not paid in full monthly or otherwise in accordance with their terms. {L0483128.4} 4 15. After the gifting referred to in Paragraph 11 above, Masters retains a substantial net worth. Roughly 70% of her total net worth is held in cash and marketable securities invested through a revocable living trust held by BNY Mellon serving as trustee, which assets would not be the subject of gifting under this Petition. Most of the remainder of her net worth is held in investments in closely held real estate and oil and gas royalty interests, which assets are the subject of gifting under this Petition. 16. Hackett and French believe that additional gifting during 2012 is prudent for estate planning purposes because of the scheduled increase in the Federal estate tax rate as outlined in Paragraph 12 above. Given pressures on the federal budget, Hackett and French have concern that the current Estate and Gift Tax rates and exclusions will not be extended into 2013 or beyond, and that there is considerable risk that Masters' estate will be subject to the higher tax rate that is scheduled to take effect for decedent's dying in 2013. Hackett and French aver that Masters did not anticipate this risk when the Durable Power of Attorney was drafted in 2007, as commentators and estate planning practitioners at the time fully anticipated that the current estate tax structure would be extended by Congress into 2013 and beyond. 17. Hackett and French propose to give Masters' interests in the closely held real estate partnership that owns a Nantucket vacation home (Porthcawl Limited Partnership) and in the closely held income producing oil and gas partnership (Baish Limited Partnership) to her three (3) children in equal shares. Masters' estate plan calls for the three children to receive the ownership interests in Porthcawl and Baish in equal one third shares upon her death. 18. Masters' estate plan further calls for the three children each to receive 25% of her residuary estate, with five named charities to share in the other 25%. The five named charities {L0483128.4} 5 are Theatre Harrisburg, Cathedral Church of St. Stephens Episcopal, St. Stephens Episcopal School, Bryn Mawr College and Tri-County Planned Parenthood of Harrisburg. 19. The gifts proposed by Hackett and French to Masters' three children do not directly impact the residuary share of the named charities except that the income flow from the gifted assets will not accrue to the residuary after the gifting is completed. 20. Gift tax on the proposed gifts if completed in 2012 would be due April 15, 2013, and be calculated at the rate of 35%. If the gifts are not undertaken by Hackett and French as proposed, the assets will remain part of Masters' taxable estate and be taxed nine months after the date of death at a rate as yet unknown but possibly as high as the 55% rate scheduled to take effect January 1, 2013. 21. Attorneys-in-fact must request authority to undertake estate planning transfers beyond the scope of authority set forth in the powers of attorney. 22. Under 20 Pa.C.S.A. §5536(b), this Court has authority to undertake estate planning on behalf of incapacitated persons: (b) Estate plan. -The court, upon petition and with notice to all parties in interest and for good cause shown, shall have the power to substitute its judgment for that of the incapacitated person with respect to the estate and affairs of the incapacitated person for the benefit of the incapacitated person, his family, members of his household, his friends and charities in which he was interested. This power shall include, but is not limited to, the power to: *** (1) Make gifts, outright or in trust. {L0483128.4} 6 23. Hackett and French request authority analogous to that provided under 20 Pa. C. S. A. Section 5536 (b) to make gifts beyond the authority granted by the Durable Power of Attorney. 24. Notice of the filing of this Petition has been served on the charitable beneficiaries of Masters' estate plan and the Attorney General pursuant to Pennsylvania Orphans' Court Rule 5.5. WHEREFORE, Hackett and French hereby respectfully request that this Honorable Court enter an Order authorizing them, asattorneys-in-fact for property management for Masters, to enter into and deliver all appropriate documents to gift Masters' interests in Porthcawl Limited Partnership (Nantucket vacation home) and in Baish Limited Partnership (oil and gas interests) in equal shares to her three living children, Deborah Elder Masters, William W. Masters and Christian M. Masters, and to file appropriate gift tax return or returns and pay the gift tax assessed as a result of such gifts. Respectfully submitted, ECKERT SEAMANS CHERIN & MELLOTT, LLC /, B . ~Z y Thomas P. Gacki Attorney I.D. 44864 213 Market Street, 8~' Floor Harrisburg, PA 17101 Ph: (717) 237-6093 Fx: (717) 237-6019 tgacki@eckertseamans.com DATED: August ~ I , 2012 Attorneys for Petitioners { L0483128.4 } 7 VERIFICATION I, Gary E. French, do hereby verify that I am co-attorney-in-fact for Mazgazet B. Masters. The facts set forth in the foregoing Petition are true and correct to the best of my knowledge, information and belief. I understand that false averments aze made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities. Date: August ca2.~ , 2012 Gary E. F ch, Es ire {L0483128.4} GENERAL POWER OF ATTORNEY FOR PROPERTY MANAGEMENT NOTICE ,~ i - Oq wog r= __ ., }'fr _1: - -~ -- -~-~1 _ r~ r: THE PURPOSE OF THIS POWER OF ATTORNEY IS TO GIVE THE PERSON YOU DESIGNATE KNOWN AS YOUR "AGENT") BROAD POWERS TO HANDLE YOUR PROPERTY, THESE MAY INCLUDE POWERS TO SELL OR OTHERWISE DISPOSE OF ANY REAL OR PERSONAL PROPERTY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU. THIS POWER OF ATTORNEY DOES NOT IlvIPOSE A DUTY ON YOUR AGENT TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED., YOUR AGENT MUST USE DUE CARE TO ACT FOR YOUR BENEFIT AND IN ACCORDANCE WITH THIS POWER OF ATTORNEY. YOUR AGENT MAY EXERCISE THE POWERS GIVEN HERE THROUGHOUT YOUR LIFETIME, EVEN AFTER YOU BECOME INCAPACITATED, UNLESS YOU EXPRESSLY LIlVIIT THE DURATION OF THESE POWERS OR YOUR REVOKE THESE POWERS OR A COURT ACTING ON YOUR BEHALF TERMINATES YOUR AGENT'S AUTHORITY. YOUR AGENT MUST KEEP YOUR FUNDS SEPARATE FROM YOUR AGENT'S FUNDS. A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENT )F IT FINDS YOUR AGENT IS NOT ACTING PROPERLY. THE POWERS AND DUTIES OF AN AGENT UNDER A POWER OF ATTORNEY ARE EXPLAINED MORE FULLY IN 20 PA.C.S. CH. 56. IF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAND, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU. I HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE AND I UNDERSTAND ITS CONTENTS. Z~ Q Date ~~~~ MARG B. MASTERS A TRUE COPY PROW! RECOR© In Testimony whera~f, f hersuntp set my hand and the s®al pf saki Court at Carlisle, PA I This ~ day of .,~~ Q ©°( +~Ie of tho Orrtsharts Court _ C~~mi7;,riGrrd Courrtp DURABLE GENERAL POWER OF ATTORNEY FOR PROPERTY MANAGEMENT I, MARGARET B. MASTERS, of the Borough of Wormleysburg, Cumberland County, Pennsylvania, do make and declare this to be my Durable General Power of Attorney for Property Management, hereby revoking all powers of attorney made by me before this date. I hereby appoint CRYSTAL U. RACKETY and GARY E. FRENCH, as my true and lawful co-agents ("my co-agents") with full power of substitution, for me and in my name to transact all my business and to manage all my property and affairs to the fullest extent permitted under Pennsylvania law as I might do if personally present, including but not limited to exercising the following powers: 1. Banking and Financial Transactions. To engage in banking and financial transactions, including, but not limited to collect and receive any money and assets to which I maybe entitled; to deposit cash and checks in any of my accounts; to endorse for deposit, transfer or collection, in my name and for my account any checks payable to my order, and to draw and sign checks forme and in my name, including any accounts opened by my co-agents in my name at any bank or banks, savings society or elsewhere, and to receive and apply the proceeds of such checks as my co-agents deem best. With regard to the power to draw and sign checks, I authorize either of my co-agents to draw and sign checks on my accounts without the need for signatures of both co-agents. 2. Stocks and Bonds. To engage in stock, bond and other securities transactions and to engage in commodity and option transactions, including, but not limited to take custody of my stocks, bonds and other investments of all kinds, to give orders for the sale, surrender or exchange of any such investments and to receive the proceeds therefor; to sign and deliver assignments, stock and bond powers and other documents required for any such sale, assignment, surrender or exchange; to give orders for the purchase of stocks, bonds and other investments of any kind and to settle for same; to give instructions as to the registration thereof and the mailing of dividends and interest; to clip and deposit coupons attached to any coupon bonds, whether now owned by me.or hereafter acquired; to represent me at shazeholders' meetings and vote proxies on my behalf; and generally to handle and manage my investments. 3. Personal Proaerty. To buy or sell at public or private sale for cash or credit or by any other means whatsoever; to acquire, dispose of, repair, alter or manage my tangible personal property or any interests therein. 4. Real Estate. To engage in real property transactions, including, but not limited to lease, sell, release, convey, extinguish or mortgage any interest in any real estate I may own, on such terms as my co-agents deem advisable, and to purchase or otherwise acquire any interest in and acquire possession of real property and to accept all deeds for such property; and to manage, repair, improve, maintain, restore, alter, build, partition and subdivide (and file plans, 2 applications, or other documents in connection therewith) or develop any real property in which I now have or may later acquire an interest. 5. Safe Deposit Boxes. To have access to all safe deposit boxes now or hereafter standing in my name; and to add to and to remove all of the contents thereof; and to enter into leases for such safe deposit boxes or surrender them. 6. Insurance. To procure, change, cant' or cancel insurance of such kind and in such amounts against any and all risks affecting property or persons against liability, damage or claim of any sort, and to sell or transfer ownership of insurance policies on my life. 7. Retirement and Other Benefit Plans. To engage in benefit and retirement plan transactions, including, but not limited to apply for and receive any government, insurance and retirement benefits to which I may be entitled and to exercise any right to elect benefits or payment options; to terminate, to change beneficiaries or ownership, to assign rights, to borrow or receive cash value in return for the surrender of any or all rights I may have in life insurance policies or benefits, annuity policies, plans or benefits, mutual fund and other dividend investment plans and retirement, profit sharing and employee welfaze plans and benefits. 8. Government Benefits. To receive government benefits on my behalf, including, but not limited to prepaze, sign and file any claim or application for Social Security, unemployment, military service or other government benefits on my behalf; to collect and receipt for all government benefits or assistance available to me; and, in general, to exercise all powers with respect to government benefits that I could if present. 9. Taxes. To represent me in all tax matters; to prepare, sign and file federal, state and/or local income, gift and other tax returns of all kinds, including all Internal Revenue Service -forms numbered 1 through 10,000, joint returns, claims for refunds, requests for extensions of time, petitions to the U.S. Tax Court or other courts regarding tax matters, and any and all other tax related documents, including but not limited to, consents and agreements under Section 2032A of the Internal Revenue Code or any successor section thereto and consents to gifts, closing agreements and any power of attorney form required by the Internal Revenue Service, or its equivalent and/or any state and/or local taxing authority with respect to any tax year between the yeazs 1970 and 2020; to pay taxes due, collect and make such disposition of refunds as my co-agents shall deem appropriate; post bonds, receive confidential information and contest deficiencies determined by the Internal Revenue Service and/or any state and/or local taxing authority; to exercise any elections I may have under federal, state or local tax laws; and generally to represent me or to obtain professional representation forme in alI tax matters and proceedings of all kinds and for all periods between the yeazs 1970 and 2020 before all officers of the Internal Revenue Service and state and local authorities; to engage, compensate and dischazge attorneys, accountants and other tax and financial advisors and consultants to represent and/or assist me in connection with any and all tax matters involving or in any way related to me or any property in which I have or may have any interest or responsibility. 3 10. Borrow. To borrow money for my account on whatever terms and conditions my co-agents deem advisable, including the right to borrow money on any insurance policy issued on my life for any purpose; and to pledge, assign, and deliver such policies as security without any obligation whatsoever on the part of such insurance company to determine the purpose for such loan or the application of the proceeds. 11. Emaloyment of Others. To retain attorneys, investment counsel, accountants, custodians, physicians, dentists, nurses, therapists and other persons to render services for or to me or my estate and to pay the usual and reasonable fees and compensation of such persons for their services. 12. Renunciation of Fiduciary and Other Positions. To renounce any fiduciary position to which I have been appointed, including the custodianship of any property held for the benefit of a minor; to resign any fiduciary position in which I may be serving and either file an accounting with a court of competent jurisdiction or settle on receipt and release or other _ _ informal method as my co-agents deem advisable; and to renounce any position as an officer or director of any corporation, or political or governmental body. 13. Claim Elective Share. To elect to take against the will and conveyances of my spouse after his/her death, if appropriate, and disclaim any interest in property which I am required to disclaim as a result of such election; to retain any property which I have the right to elect to retain; to file petitions pertaining to the election, including petitions to extend the time for electing and petitions for orders, decrees, and judgments; and to take all other actions which my co-agents deem appropriate in order to effectuate the election. 14. Disclaimer of Interests. To release or disclaim on my behalf any interest in property. 15. Oaeration of Business. To continue the operation of any business belonging to me, or in which I have a substantial interest, for such time and in such manner as my co-agents may deem advisable, including representing me at shazeholders' meetings and voting proxies; to sell or liquidate any business, or interest therein, at such time and on such terms as my co-agents deem advisable and in my best interest; or to incorporate any business at such time and on such terms as my co-agents deem advisable and in my best interest. 16. Power to Pursue Claims and Litieation. To institute any action or claim, prosecute, defend, compromise or otherwise dispose of any to appear for me in any proceedings at law or in equity or otherwise before any tribunal for the enforcement or for the defense of any claim, either alone or in conjunction with other persons, relating to me or to any property of mine or any other persons, and to obtain, discharge and substitute counsel and authorize appeazance of such counsel to be entered for me in any such action or proceeding; and to compromise or arbitrate any claim in which I may be in any manner interested and for that purpose to enter into agreements or compromise or arbitrate (including the power to waive any privileges and/or conflicts of interests), either through counsel or otherwise to carry on such compromise or azbitration and perform or enforce any award entered in arbitration. 4 17. Power to Withdraw. To demand, withdraw and receive the income or corpus of any trust over which I have the power to make withdrawals; to request and receive the income or corpus of any trust with respect to which the trustee has the discretionary power to make distribution to or on my behalf; and to execute a receipt and release or similaz document for the property so received. 18. Gifts. To make gifts to any donee or class of donees (including any individual co-agent designated herein) in such amounts as shall not exceed, when taken, in aggregate, applicable exclusions or exemptions limits, whether annual or otherwise, under Federal laws for estate and gift taxation, and to do so, as my co-agents may deem appropriate, through outright gifts, through gifts under the Pennsylvania Uniform Transfer to Minors or the Uniform Transfers (or Gifts) to Minors Act of any state, and through gifts to short-term or long-term trusts, including, but not limited to, annual exclusion-type trusts. 19. Power to Create A Trust. To execute a deed of trust, designating one or more persons (including my co-agents) as original or successor trustee and transfer to the trust any or all property owned by me as my co-agents may decide, subject to the following conditions: A. The income and corpus of the trust shall either be distributable to me or to the guardian of my estate, or be applied for my benefit, and upon my death, any remaining balance of corpus and unexpended income of the trust shall be distributed to my estate. B. The deed of trust maybe amended or revoked at any time and from time to time, in whole or in part, by me or my co-agents, provided that any such amendment by my co-agents shall not include any provisions which could not be included in the original deed. 20. Additions to an Existing Trust BeneftinQ Me To add, at any time or times, any or all of the property owned by me to any trust in existence for my benefit when this power was created, provided that the income and principal of the trust shall either be distributable to me or to the guazdian of my estate or be applied for my benefit during my lifetime and upon my death, any remaining principal and unexpended income of the trust is directed to be distributed either to my estate or in a manner consistent with my Last Will and Testament or other final testamentary document. 21. Power to Handle Interests in Estate and Trusts. My co-agents shall have the power to handle interests in estates and trusts. My co-agents: A, may receive a bequest, devise, gift or other transfer of real or personal property to me or as a fiduciary for another and give full receipt and acquittance therefor or a refunding bond therefor; 5 B. approve accounts of any estate, trust, partnership or their transactions in which I may have an interest; and, C. enter into any compromise and release in regazd thereto. 22. General. Generally, to do and perform all matters and things, transact all business, make execute and acknowledge all contracts, orders, writings, assurances and instruments which may be requisite or proper to effectuate any matter or things appertaining or belonging to me, with the same powers, and to all intents and purposes with same validity as if I could be personally present. It is my intention in this paragraph to give my co-agents the broadest possible power, without limitation to any of the kinds or classes of matter or powers specifically enumerated above. My co-agents may delegate any one or more powers granted herein to one or more persons and on such terms as the co-agents may designate and specify. My co-agents shall have such additional incidental powers necessary to effectuate this Durable Power of Attorney and to carry out all decisions pursuant hereto, including but not limited to instituting any action in my name and on my behalf in any court or forum for the purpose of enforcing any and all decisions that my co-agents shall make, and appearing forme and in my behalf before any tribunal or court having jurisdiction of any claims arising out of or relating to my medical treatment and care. This Durable General Power of Attorney for Property Management shall become effective immediately. Prior to the effective date of this power of attorney, I may from time to time execute one or more special powers of attorney in favor of my co-agents herein, or in favor of any other person or entity. This power of attorney shall not be affected by my subsequent disability or incapacity, pursuant to 20 Pa. C.S.A. §5604 or any other law of any jurisdiction which now or hereafter authorizes durable powers of attorney. All acts done by my co-agents pursuant to this power during any period of my disability or incapacity shall have the same effect and inure to my benefit and bind me and my successors in interest as if I were competent and not disabled. Questions pertaining to the validity, construction and powers created under this instrument shall be determined in accordance with the laws of the Commonwealth of Pennsylvania. The powers delegated under this power of attorney are sepazable, so that the invalidity of one or more powers shall not affect any others. This power maybe accepted and relied upon by anyone to whom it is presented until: (a) such person receives actual written notice of revocation by me or a guardian or .similar fiduciary of my estate, or (b) such person has actual knowledge of my death. All actions of my co-agents shall bind me and my heirs, distributees, legal representatives, successors and assigns, and for the purpose of inducing anyone to act in 6 accordance with the powers I have granted herein, I hereby represent, warrant and agree that if this power of attorney is terminated or amended for any reason, I and my heirs, distributees, legal representatives, successors and assigns will hold such party or parties harmless from any loss suffered or liability incurred by such party or parties while acting in accordance with this power prior to that party's receipt of written notice of any such termination or amendment. I hereby nominate my co-agents herein appointed as guardian of my estate in accordance with 20 Pa. Con. Stat. § 5604(c)(2) and any successor section which authorizes me to nominate the guardian of my estate if incompetency proceedings for my estate are hereafter commenced. Should CRYSTAL U. RACKETY be unable or unwilling to act or to continue acting as a co-agent, the accounting firm with. which she is associated or with which she was last associated shall appoint another accountant as her successor. Should GARY E. FRENCH be unable or unwilling to act or to continue acting as a co-agent, the law firm with which he is associated or with which he was last associated shall appoint another attorney as his successor. If either CRYSTAL U. RACKETY or GARY E. FRENCH is unable or unwilling to act or to continue acting as a co-agent, and no successor is appointed by the firm with which she or he was last associated, then I appoint MELLON BANK, N.A., of Harrisburg, Pennsylvania, as substitute agent to serve as such hereunder with all powers of the original co-agent. It is my intention that two co-agents act on my behalf at all times unless bath individuals become unable or unwilling to act, in which case Mellon Bank shall serve as my sole attorney-in-fact hereunder. I have signed this Durable General Power of Attorney for Property Management this ~~°~- day of ~i/ ~ ~- .2007. Witness: G B. MASTERS 7 COMMONWEALTH OF PENNSYLVANIA ) . ss. COUNTY OF CUMBERLAND ) On this ~~ day of 2007, personally appeared before me, a Notary Public in and for the said County and State, the above named MARGARET B. MASTERS, who acknowledged the foregoing Power of Attorney to be her voluntary act and deed for the purposes expressed therein. I have signed my name and affixed my notarial seal on the day and yeaz aforesaid. N tary Pu ~ c N ~~d~ ~ 11Me ~~ q 1 8 ACKNOWLEDGMENT Co-agents shall have no authority to act as co-agents under the power of attorney unless the co-agents have first executed and affixed to the power of attorney an acknowledgment in substantially the following form: We, CRYSTAL U. HACKETT and GARY E. FRENCH, have read the attached power of attorney and are the persons identified as the co-agents for the principal. We hereby acknowledge that in the absence of a specific provision to the contrary in the power of attorney or in 20 Pa.C.S. when we act as co-agents: We shall exercise the powers for the benefit of the principal. We shall keep the assets of the principal separate from our assets. We shall exercise reasonable caution and prudence. We shall keep a full and accurate record of all actions, receipts and disbursements on behalf of the principal. ~~ Date CRYSTAL U. 2~ ~~ ~-~ Date Gay 9 08/01/2012 09;4? 7178408686 7/23/.12 Margaret B. Masters 2100 Bent Creek Blvd Mechanicsburg, Pa 17050 To Whom It May Concern: MD AT HOME PAGE 02f02 I am the primary care physician for Mazgaret $. Masters. We have beem her physicians since 2048. She is an 86~year-old woman who suffers from severe de~nentia.e The dementia has resulted in both physical and cog~xtive impairment such that she is no longer ambulatory and is incapable of managing her financial affairs. To the extent Permitted/ required by law, I am willing to provide an affidavit, supported by medical records, regarding Mrs. Masters' medical condition. ~-sy questions please contact my office. Respectfully, G ~-- Vance Stouffer, 2550 Kingston Road Suite 205 York, Pennsylvania 17402 (717) 840-4646 F,ax (717) 840_8686 1-877-MD-TO.YOU 1$7738-B968 wN-w.mC~/d-apt4-Thome.cam LI~~~D11 ~. r.~wl.. ~._..- - - CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing PETITION TO ALLOW CO- AGENTS UNDER DURABLE POWER OF ATTORNEY TO MAKE ESTATE PLANNING GIFTS upon the person and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States mail, at Harrisburg, Pennsylvania, with first-class postage prepaid as follows: Theatre Harrisburg Samuel Kuba, Executive Director 513 Hurlock Street Harrisburg, PA 17110-1489 Bryn Mawr College Development Office, Helfarian 101 N. Merion Avenue Bryn Mawr, PA 19010-2899 Cathedral Church of St. Stephens Episcopal 221 North Front Street Harrisburg, PA 17101 Tri-County Planned Parenthood Association, Inc. /Planned Parenthood of Northeast, Mid-Penn & Bucks County Headquarters: 1514 North Second Street Harrisburg, PA 17102 St. Stephens Episcopal School 215 North Front Street Harrisburg, PA 17101 Attorney General Office of Attorney General Charitable Trusts and Organizations Section 14th Floor, Strawberry Square Harrisburg, PA 17120 Date: ~ ~3 f /~ ~ / l Thomas P. Gacki, Esqu re Counsel for Petitioner {L0483128.4}