HomeMy WebLinkAbout11-20-12
1505610143
J REV-7500 Ex(°'-'°'
PA Department of Revenue Pennsylvania
Bureau of Individual Taxes °E'"p1`XiOf-ppp1°
Po Box.2BOSOt INHERITA!
Harrisburg, PA 17128-0601 RESIDE
ENTER DECEDENT INFORMATION BELOW
Social Security Number Date of Death
28 2012
Decedent's Last Name Suffix
NAUGLE
(If Applicable) Enter Surviving Spouse's Information Below
Spouse's Lasl Name Suffix
OFFICIAL USE ONLY
County Coda Veer File Number
TAX RETURN 21 12 0312
)ECEDENT
Data of Birth
O1 07 1925
Decedent's First Name MI
BETTY V
Spouse's First Name
MI
Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
FILL IN APPROPRIATE OVALS BELOW ^ 3 Remainder Return (date of tleath
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7. Original Retum ^ emen
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2. Supp
prior to 12-13-82)
^ 4. Limited Eslale ^ 4a. Future Interest Compromise ^ 5. Federal Estate Tax Retum Required
(tlete or death attar 12-12A2) -
a Decadent Died testate ® 7, (Attach RGOP-iW~rus) Living Trust ~ FL Total Number of Safe Deposit Boxes
(At1eM Copy of Vdlp
^ 9. Litigation Proceeds Received ^ iD~35~°~eesnipi~1~~an~><d 95N deem ^ ~It~~A~ hSCh~O)ntler Sec. 9113(A)
CORRESPONDENT -THIS SECTION MUST 8E COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL 1'AX INFORMA N SHOULD B~iIRECTED TO:
Name Daytime TelepNumberN 7O
AARON C JACKSON ESQ 717 23~i~121 ~'
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REGISTER WILLS USBLNLY - t,1
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First line of address ~ -- ~ s
2 LEMOYNE DRIVE ~ o ` ~
rn i
Second line of address
SUITE 200
DATE FILED
City or Poat Office State ZIP Code
LEMOYNE PA 17043
Correspondent's a-mail address: aJ84RifVn`W aus,nser ra.ee.ov...
Under penalties of perjury, I tleclare that I have examined this return, inclutling accompanying schedules and statements, and to the best of my knowledge and belief, -
it is hue, correct and complete. DeGerebon of prepare ther than the personal representative Is based on all information of which preparer has any knowledge.
SIGNATURE OF PERSON RESP ISLE F FILING N~ D TE
eM _j`r William R Nau le III ~~ ~~~
ADDRESS
32 Ridgeway Drive Mechanicsburg PA 17050
~frll ~^ ~z Aaron C. Jackson Es "`/ JCCC
SIGNATURF~OF PREPARER OTHER THAN REPRESENTATIVE q /' /' D~E~
2 Lemoyne Drive Lemoyne PA 17043
Side 1
L 15D5610143 1505610143 J
__..~
1505610243
REV-1500 EX
°e~'""~'°"ama Naugle, Betty V
Decedent's Social Security Number
RECAPITULATION
1. Real Estate (Schedule A) .................................................................................... ... 1.
2. Stocks and Bonds (Schedule B) .......................................................................... ... 2. 4 , 728.00
3. Closely Held Corporatiqn, Partnership or Sole-Proprietorship (Schedule C)...... ... 3.
4. Mortgages 8 Notes Receivable (Schedule D) ..................................................... ... 4.
5. Cash, Bank Deposits 8',Miscellaneous Personal Property (Schedule E) ............. .. 5. 58 , 8 68.90
6. Jointly Owned Propertyi(Schedule F) ^ Separate Billing Requested........... . 6.
7. Inter-Vivos Transfers 8 ,Miscellaneous f~{oq-Probate Property
(Schedule G) a Separate Billing Requested........... . 7. 282 , 403.08
8. Total Gross Assets (tonal Lines i through 7)..........._ ............................... 8
.......... ..
. 345 , 999.98
9. Funeral Expenses and Administrative Costs (Schedule H) .................................. . 9. 17 , 194.33
10. Debts of Decedent, Mortgage Liabilities and Liens (Schedule p .......................... .. 10. 1 , 97 9.15
11. Total Deductions (total! Lines 9 and 10) .................._.......................................... .. 11. 19 , 173.48
12.
13.
14. Nat Value of Estate (Line 8 minus Line 11) .......................................................
Charitable and Governrrrental Bequests/Sec 9113 Trusts for which
an election to tax has nqt been made (Schedule J) ..............................................
Net Value Subject to T8x (Line 12 minus Line 13) ............................................. . 12.
. 13.
.. 14. 32 6 , 82 6 - $ 0
32 6 , 82 6.50
TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES
15. Amount of Line 14 tazab~e
at the spousal tax rate, qr
transfers under Sec. 91116
(a)(1.2) X .00 15. 0.00
i 6. Amount of Line 14 taxab~e
at linealrateX .045 326,826.50 16. 14,707.19
17. Amount of Line 74 taxable
at sibling rate X .12 0.00 17. 0.00
18. Amount of Line 14 taxabPe
at collateral rate X .15 0.00 16. 0 , 00
19. TAX DUE ............................................................................................................... . 19. 14 , 707.19
20. FILL IN THE OVAL IF YtbU ARE REQUESTING A REFUND OF AN OVERPAYMENT.
Side 2
' 15056102',43
1505610243 J
REV-1500 EX Page 3
Decedent's Complete Address:
Flle Number 21-12-031;t
DECEDENT'S NAME
Naugle, Betty V
STREETADDRESS
32 Ridgeway Drive
CITY STATE ZIP
Mechanicsburg PA 17050
Tax Payments and Credits:
1. Tax Due (Page 2, Line 19)
2. Credits/Payments
A. Prior Payments
B. Discount
13,000.00
684.21
Total Credits (A + g) (2)
14,707.19
13,684.21
3. Interest
4. If Line 2 is greater than Line 1 + Dine 3, enter the difference. This is the OVERPAYMENT.
Check box on Page 2, Line 20 do request a refund
(3)
(4)
1. Dia de a transfer and: Yes No
etain the u ~
or income of the property transferred :............................................................................... ~ ^
9
b. retain the ri t to designate who shall use the property transferred or its income :.................................. ~ ^
c. retain a reve sionary interest; or.._ ......................................_................................................................._ ^x ^
d. receive the romise 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
receivin ade uat
9 q consideration? ......................................_...................................................................__..... ^
3. Did decedent own ~ pn "in trust for" or payable upon death bank account or security at his or her death?,..,... ^
4. Did decedent own n individual retirement account, annuity, or other non-probate property which
contains a benefici ry designation? ......................................._..........................................._..._....................... ^x ^
IF THE ANSWER TO ANY OF THE ~18OVE 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, f 994 and before Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving
spouse is 3 percent [72 P.S. §9116 (~) (1.1) (i)].
For dates of death on or after Januaph 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent
[72 P.S. §9116 (a) ('1.1) (ii)]. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of
assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary.
For dates of death on or after July 1, 000:
The tax rate imposed on the net v lue 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 o~the child is 0 percent [72 P.S. §9116 (a) (1.2)].
The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4~.5 percent, except as noted in
[?z P.S. §s1 is (a> (1>].
The tax rate imposed on the net v lue of transfers to or for the use of the decedent's siblings is 12 percent [72 P.S. §9116 (a) (1.3)]. A
sibling is defined under Section 912, as an individual who has at least one parent in common with the decedent, whether by blood or adoption.
° ' • ' ' PA Estate Tax gt1
Date of Death Tue, Feb 28, 2012 Optimal Discount Paymen 13,971.83
3 Months After DOD Mon; Ma 28;2012
Click here
if Paid
at Discount
Total Paid al: Not Paid at
_ o..:w Tev Pnid Discount DIaCOUnt
® Fri, Ma_25, 2012 13,000.00 13,000.00
~ ~ Tax Discount
A. Tax Paid at Discount (jper above) ~~~i . 0, ,: x 5195 =
B. ^ Tax Due if Entire B'plance paid onlbefore Mon. May 28. 2012 ~~ x 5195 =
C. Total NET Tax PaidRo be Paid at Discount ~,_,~„3,~QQ x 5195 = 1'
D. Discount C. 13,000.00 x 5195 = ~~ (1I*
F. '14'!`07.19 x 5°/a = ~~'~ (2)*
Lesser of(1)or(2)above 21.
E. Tax Credit (C + D) 13 .21
F. GROSS Tax Due (eagle 1, Line 19) 14 707.tg
G. Balance of Tax Due 1.,022.98
• The calculations in (1) and (2) are intentionally different. Item (1) computes the amount of discount
based upon an assumed NET',payment. Item (2) computes the maximum potential discomfit based upon an
actual GROSS principal tax dice. Thus, a discount always equals the NET payment x 5 / 95, or the GROSS tax x 5%.
Rbv-159J EX* re-9a)
SCHEDULE B
STOCKS & BONDS
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TA%RETURN
RESIDENT DECEDENT
ESTATE OF
V
All property lolntly-owned with right of eurvivanhip moat ba tlleclosed on Schetlula F.
FILE NUMBER
21-12-0312
(If more space Is neegeg, aam9onal pages m me amiio _~•~~
Copyright (c) 2002 form sottware dnly The Lackner Group, Inc. Forth PA-1500 Schedule B (Rev. 6-98)
Rev-1508E%Mltt-10) gCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
COMMON W EALTH OF PENNSYLVNNIN
INHERITPNCE Th%RENRN
RESIDEINT DELEOENT
ESTATE OF FILE NUMBER
Naugle Betty V 21-12-0312
Indutle the prorsetls of litiggation antl lha tlele the proceatls ware receivetl by the estate.
All propartylolntly~ownatl wlth the right of survivorship must be dlaclosetl on schedule F.
VALUE AT DATE
ITEM I DESCRIPTION OF DEATH
NUMBER
5,047.30
1 Cash on hand ''~.
2 Members FirstCh~cking -Account#179140-11 11,571.00
valuation based o letter attached as part of exhibit "D"
stment Savings -Account #179140-05
s First Inv
b
M 12,082.09
3 e
em
er
Valuation based o letter attached as part of exhibit "D"
4 Members First Sayings -Account #179140-00 227.09
Valuation based o letter attached as part of exhibit "D"
875.00
5 Personal Property) -Miscellaneous
6 Health Care Servi~e Corporation -Refund for Final Medical Expense 9,326.42
7 John Hancock - Additional Assets -Reimbursement of medical expenses covered by
11,340.00
insurance
8 John Hancock -Additional Assets -Reimbursement of medical expenses covered by
1,960.00
insurance
9 John Hancock -?ldditional Assets -Reimbursement of medical expenses covered by 6.440.00
insurance
TOTAL (Also enter on Line 5, Recapitulation) I 58,868.90
(If more space is needed, additional pages of the same size)
Copyright (c) 2010 form software olnly The Lackner Group, Inc. Fonn PA-1500 Schedule E (Rev. 11-10)
Rev-1610 EYE Ia-aa)
COMMONV.£ALTH OF PENNSYLVANIA
INNERITMILE TA%RETURN
pFBIDENT DECEDENT
ESTATE OF
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
FILE NUMBER
21-12-0312
This schedule must be wmpletgtl entl fled d the answer to any at questions 1 through 4 on Ne reverse eqe of the REV-0500 CCVER SHEET is yea.
ITEM
NUMBER D
THE DATED TRCAFNSF~ER. SCRIPTION OF PROPERTY
ATfACNTA COPY OFTTHE DEIED ~OR REAI ESTATE. DATE OF DEATH
VALUE OF ASSET %OF DECD'S
INTEREST ( Fxcwslon
IF APPLICABLE) TAXABLE
VALUE
1 Individual Retire ant Account -LPL Financial 79,693.18 79,893.18
Account #4667.2 84
Held at Stout Joy a and Associates, Ltd.
2 ount -Non Retirement -LPL
Insured Cash Ac 6,021.58 6,021.58
~
Account#1818-4 13
Held at Stout Jo ce and Associates, Ltd.
valuation based ~n Portfolio Appraisal part of exhibit
„c„
3 Investment Acc unt in the Betty V. Naugle 26,688.34 28,888.34
- LPL Account #5272-8261
Irrevocable Trus
~
Held at Stout Jo ce and Associates, Ltd.
valuation based n Portfolio Appraisal paR of exhibit
„c., ',
4 in the Betty V. Naugle Irrevocable
Real Property H 170,000.00 170.000.00
~
Trust - 32 Ridge y Drive, Mechanicsburg, PA 17050
Tax Parcel#38-2 -0571-300
TOTAL (Also epter on Line 7, Recapitulation) I 282,403.08
(If more space is needed, additional pages of the same size)
Copyright (c) 2002 form software ~nly The Lackner Group, Inc. Fonn PA-1500 Schedule G (Rev. 6-98)
REV-1151 9r+i10-09)
COM~-I I ~gF~F~Y~ANIA
SCHEDULE H
FUNERAL EXPENSES &
-DMINISTRATIVE COST;
ESTATE OF FILE NUMBER
Naugle Bevy V 21-12-0312
Debts of decedent must be reported on Schedule I.
ITEM DESCRIPTION AMOUNT
1A~~UNERAL EXPEWSES:
See continuation schedule(s) attached 7,305.22
B. ADMINISTRATIV COSTS:
1. Personal Represe tative's Commissions
Name of Personal~tepresentative(s)
Street Address
Clty State ~_ ZID _
Year(sl Cammis~ion oaid
2, Attomev's Fees '~, Tucker Ar@nsbeirg, P.C. 8,890.08
3. Family Exemption (If decedent's address is not the same as claimant's, attach explanation)
~
Claimant
~'
Street Address
City State ZiD _
Relationship f Claimant to Decedent
4. Probate Fees ' 173.50
5. Accountant'sFee$ 215.00
6. Tax Return Prepaker's Fees
Z GtherAdministrativeCosts 610.53
See continuation schedule(s) attached
TOTAL (Also enter on line 9, Recapitulation) 17,194.33
Copyright (c) 2009 form software only The Lackner Group, Inc. Forth PA-1600 Schedule H (Rev. 10.06)
' SCHEDULE H
FWNERAL EXPENSES AND ADMINISTRATIVE COSTS
continued
ESTATE OF (FILE NUMBER
Naugle. Betty V 21-12-0312
DESCRIPTION AMOUNT
NUM ER
1 Cocklin Funeral ome - 30 N. Chestnut Street 6.972.87
Dillsburg, PA 17 19
2 Naugl$ -Reimbursement for additional funeral expenses
William R 332.35
.
~{_A 7,305.22
3 Other Admini II five Costs
ROBC Limited PBRnership • Nursing Home Personal Care Expenses
115.42
4 Township of Silv~r Springs -Real Estate Tax 495.11
H-B7 610.53
Copyright (c) 2002 form software Only The Lackner Group, Inc.
Form PA-1500 Schedule H (Rev. 6-98)
R§v-1512E%ty12-Da) gCHEDULE 1
DEBTS OF DECEDENT,
MORTGAGE LIABILITIES AND LIENS
COMMONWEALTH OF PENNSYLVANIP
INHERITi,NCE TPX RETIIHN
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
Naugle Bevy V 21-12-0312
Report dabtc incurretl b the tlecstlent pnor to death that remained unpaid at the data of death, inelutlinp unrcimbureetl medlcel eapenass.
ITEM '. VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1 Alert Pharmacy Services Inc -Medicine 30.72
2 Alpha Diagnostics) 156.38
3 RehabCare Group East, Inc -Medical 700.00
4 Silver Springs To nship -Per Capita Tax for 2012 9.80
5 State Farm Insure ce -Return Retirement Overpayment 1,082.25
I, TOTAL (Also enter on Line 10, Recapitulation) I 1,979.15
(If more space is needed, additional pages of the same size)
Copyright (c) 2008 form software o~rly The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 12-OS)
REV-151 ~ E%~ t01-10)
SCHEDULE J
COMM~r~e~f~4'~Ti pF~E~N~R~AN~A BENEFICIARIES
`Y~E'~~~5 S~~)h,))ff''TEECCEE^^~~ FILE NUMBER
ESTATE OF
Nau le, Bett V' 21-12-0312
RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE
NAM AND ADDRESS OF pECEDENT Jords) (885)
NUMBER PERSON( 1 RECEIVING PROPERTY (v
TAXABLE DISTRIBU IONS [include outright spousal
I. distributions, and transfers
under Sec. 9116 a 1.2
t Betty V. Naugle I revocable Trust Trust 326,826.50
NON-TAXABI
II. A. SPOUSAL
Total I 326,825.50
;ions shown above on lines 15 throw h 78 on Rev 1500 cover sheet as a ro riate.
S:
UNDER SECTION 9113 FOR WHICH AN ELECTION TO TPJC IS NOT TAKEN
CHARITABLE A~ D GOVERNMENTAL DISTRIBUTIONS
TOTAL OF PART II - E TER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET
Copyright (c) 2010 form software o ly The Lackner Group, Inc. Form PA-1500 Schedule J (Rev. 01.10)
Estate of Betty V. Naugle, deceased
Estate No. 21-12-0312
Re: PA Inheritance Tax Return
List of Exhibits
A. Death Certificate
B. Lette s Testamentary issued by Cumberland County Register of Wills on
Marc 14, 2012, including Last Will & Testament of the Decedent dated
Nov tuber 5, 2009
C. Stow Joyce Account Valuations
D. Members First Valuations
E. Real (Estate Tax Bill
F. Betty V. Naugle Irrevocable Trust
HBGD8:127371-~ 027761-155303
I
HU. •p_ 4t: J,iii
LOCAL R1=GI~TRAR'S C1=RTiF~CAT101*I OF t3~ATH
WARNING; It is illegal to duplicate this copy by photostat or photograph.
Fee for this certificate, $6.00 tm> Is to certrzy coat me mtu^nauuu uclc g,vm,
correctly copied from au original Certificate of Dea
dul}i 51ed with me as Local Registrar. The origin
certificate will be forwarded to the State Vit
Records Office for permanent filing.
FEB 2 `2011
P 18242536 ~~"`~ '~ /_ _L
Certification Number Local Regist Date Issued
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REGISTER OF WILLS
CUMBERLAND COUNTY
PENNSYLVANIA.
CERTIFICATE OF
GRAINY OF LETTERS
No . 2012- 00312 PA No . 21- 12- 0312
Estate Of: BETTY V NAUGLE
lF4st Midtlle, Castl
Late Of: SILVER SPRING TOWNSHIP
CUMBERLAND COUNTY
Deceased
Social Security No: 201-14'5133
WHEREAS, n the 14th day of March 2012 an instrument dated
November 5th 009 was admitted to probate as the last will of
BETTY V NAUGLE
late of S/LVER~SPR/NG TOWNSH/P, CUMBERLAND County,
who died on t e 28th day of February 2012 and
WHEREAS, ~ true copy of the will as probated is annexed hereto.
THEREFORE, I, GLENDA EARNER STRASBAUGH Register of Wills in and
for CUMBERLAND County, in the Commonwealth of Pennsylvania, hereby
certify that have this day granted Letters TEST,4MENTARYto:
WILLIAM R OGLE 111
who has duly ualified as EXECUTOR(R/X1
and has agree to administer the estate according to law, all of which
fully appears of record in my office at CUMBERLAA/D COUNTY COURT HOUSE,
CARLISLE, PENN YLVANIA.
I.N TESTIM NY WHEREOF, I have hereunto set my hand and affixed the seal
of my office ~n the 14th day of March 2012.
**NOT~** ALL NAMES ABOVE APPEAR (FIRST, MIDDLE, LAST)
Last Will ~~
-i i 2 ~"~
'T __
of ~ -' ~ -
J-~~~ ~-,
`.~CiT ~ -
BETTY V. NAUGLE _> ~ ~' ' - ^'
a- <~=~
I, BET'1~Y V. NAUGLE, of Cumberland County, Pennsylvania, make this Will
and revddke all of my prior wills and codicils.
Article One
Distribution of My Property
1. Pour-Over to My Irrevocable Trust
All of ~y property of whatever nature and kind, wherever situated, shall be
distribu ed to my irrevocable trust. The name of my trust is:
V. NAUGLE, Trustee
ABLE TRUST, dated
nts thereto.
of the BETTY V. NAUGLE
November 5, 2009, and any
2. Alternate Disposition
If my i evocable trust is not in effect at my death for any reason whatsoever, then
all of y property shall be disposed of under the terms of my irrevocable trust as
if it we a in full force and effect on the date of my death.
Page 1
Article Two
My
the State
Powers of My Personal Representative
nal representative shall have the power to perform all acts reasonably
to administer my estate, as well as any powers set forth in the statutes in
~f Pennsylvania relating to the powers of fiduciaries.
Article Three
Payment of Expenses and Taxes
and Tax Elections
1. Cooperating with the Trustee of My Irrevocable Trust
I direct~y personal representative to consult with the TrustE;e of my revocable
living t st to determine whether any expense or tax shall be paid from my trust or
from my probate estate.
2. Tax Elections
My pers pal representative, in its sole and absolute discretion, may exercise any
availabl elections with regard to any state or federal tax laws.
My pers pal representative, in its sole and absolute discretion., may elect to have
all, non , or part of the property comprising my estate for federal estate tax
purpose qualify for the federal estate tax marital deduction as qualified
termina le interest property under Section 2056(b)(7) of the Internal Revenue
Code.
My pers~nal representative shall not be liable to any person for decisions made in
good fai under this Section.
Page 2
Section 3. Apportionment
All expenses and claims and all estate, inheritance, and death taxes, excluding any
generation-skipping transfer tax, resulting from my death and which aze incurred
as a res{rlt of property passing under the terms of my irrevocable trust or through
my prot}ate estate shall be paid without apportionment and without reimbursement
from an~ person. However, expenses and claims, and all estate, inheritance, and
death t es assessed with regazd to property passing outside of my irrevocable
trust or outside of my probate estate, but included in my gross estate for federal
estate t~x purposes, shall be chargeable against the persons receiving such
Article Four
I
Appointment of My Personal Representative
the following to be my personal representatives:
WILLI~M R. NAUGLE, III, or if WILLIAM R. NAUGLE, I1:I is unwilling or
unable t serve, I appoint DEBRA L. NAUGLE. If DEBRA I,. NAUGLE is
unwilli g or unable to serve, I appoint AARON C. JACKSON.
I direct hat my personal representatives not be required to furnish bond, surety, or
other se unity.
I have signed this Will on November 5, 2009.
The fo going Will was, on the day and year written above, published and
declare by BETTY V. NAUGLE in our presence to be her Will. We, in her
present and at her request, and in the presence of each othf;r, have attested the
same an have signed our names as attesting witnesses.
Page 3
We declare that at the time of our attestation of this Will, BETTY V. NAUGLE
was, according to our best knowledge and belief, of sound mind and memory and
under r!o undue duress or constraint.
STAT)~OF PENNSYLVANIA )
ss.
COUN Y OF CUMBERLAND )
We, ETTY V. NAUGLE, ti..l~+--tk ~, S,a,c;tE.o,,3 and
~"flrs r •~. ~~Nrv ,the Testatrix and the witnesses, respectively,
whose ames aze signed to the foregoing Will, having been sworn, declazed to the
undersi ed officer that the Testatrix, in the presence of the witnesses, signed the
ins ent as her last Will, that she signed, and that each of the witnesses, in the
presen a of the Testatrix and in the presence of each other, signed the Will as a
v
V.
S
l and sworn before me by BETTY V~ NAUG~,E, the Testatrix, and by
M . c ~:t <~ f~c{4 and arl'k l~ ~f{p~ n ,the
on November 5, 2009. ~-
/ COIvAtONWEALTH OF PENNSYLVANIA
~~ NOTARIAL SEAI.
Y PUBLIC Aaron C. Jackson, Notary Public
Upper Allen Township, Cun~erltuul C'ceMy
M commission ex irM,.+Ia ti7 2.q !
Page 4
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MEMBERS 1s1
PBDERAL CABDrf UNION
Account Number/S
Date Account Estal
Principal Balance 2
Accrued Interest to
Total Principal and
Interest Earned OU
Name of Joint Own
Date of Death
)ate of Death
,ccrued Interest
1 /2012 - 01 /31 /2012
179140-00
10/05/1998
$227.05
$.04
$227.09
$.05
None
Account Number/S
Date Account Estal
Principal Balance a
Accrued Interest to
Total Principal and
Interest Earned 01~
Name of Joint Owr
Account NumbedS
Date Account Estal
Principal Balance a
Accrued Interest to
Total Principal and
Interest Earned 01l
Name of Joint Own
Date of Death
)ate of Death
,ccrued Interest
1 /2012 - 01 /31 /2012
Date of Death
)ate of Death
accrued Interest
1 /2012 - 01 l31 /2012
179140-11
1 0/0 511 9 9 8
$11,569.99
$1.01
$11,571.00
$1.27
None
179140-OS
04102/2002
$12,079.41
$2.68
$12,082.09
$3.08
None
E BERS 1sT FEDF~ ~ED~
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nielle A. Kline
Lending Insurance Support Specialist
May 31, 2012
Estate of: BETTY I•IAUGLE
Date of Death: 02/ 8/2012
Social Security Number: 201-14-5133
~Y
5000 Louise Drive P.C~. Box 40 Mechanicsburg, Pennsylvania 17055 (800) :Z83-2328 wwwmemberslst.org
Cumberland County Pennsylvania
I . .- . .
TAX COLLECTOR COPY -RETURN WITH PAYMENT FOR PROPER CREDIT
NAUGLE, BETTY V IRR TR 32 RIDGEWAY DRIVE
32 RIDGEWAY DRIVE Acres 0.14
MEGHANICSBURG, PA 17050-7974 EVERGREEN
LOT 390 PH 1 PB 76 PG 69
Payable To:
DEBRA BASEHORE WIEST
269 WOODS Df21VE
MEGHANICSBURG, PA 1705Q-2635
PHONE (717) 697-1294
Payable To: DEBRA BASEHORE
269 WOODS DRIVE
PHONE (717) 897-1
MAP NO: 38-23571300.
Desc: 32 RIDGEWAY DRI
Acres 0.14
EVERGREEN '
LOT 390 PH 1 PB 76 G 69
IIII II IIIN IVII NII I~ IIIII IIIN NIN INII INI VI I~
~~
BI~D~Y€ 371'/12 ~ -
Control No: 3838005139
NIAP NO: 38-23-0571-300.
Assessed Value: Land: 34,700 Improvement: 142,600 Total: 177,300
Discount Face Penalty
County RE 1.902 $330.48 $337.22 $370.94
County Lib .143 $24.84 $25.35 $27.89
Twp/Boro 0.8045 $139.79 $142.64 $156.90
TAX AMOUNT DUE
If Date O( Payment Is On $495.'11
3/1/12 thru 4/30YI2 5505.21
5/1/12 thru 6/30/12 5555.73
7/1/12 or Later
Office Hours: MONDAY 9-12; TUESDAY 9-11 AM Bill No: 4151
ALSO 4/18 84/25,5-7 PM Bill Date: 3!1/12
CALL FOR HOURS AFTER JUNE 28 Control No:3838005139
17050-2635
Assessed Value: Land: 34,700 Improvement: 142,6()0 Total: 177,300
Discount Face Penalty
County RE 1.902 $330.48 $337.22 $370.94
County LIb .143 $24.534 $25.35 $27.89
Twp/Boro 0.8045 $139.79 $142.84 $158.90
TAX AMOUNT DUE
If Date Of Payment Is On 3495.11
3/1 /12 thru 4!30/'12 5505.2'1
5/1/12 thru 6/30/12 5555.73
7/1 /12 or Later
Tax Payer. I /
NAUGLE, BETTY V IRR TR 1 (x ~ /~
MECHANIOSBURG'VPA 1]056]974 ~ ~ /~~ L/ 3d 1 x, l \ 17' / /1W\
TAXPAYER'S COPY -KEEP THIS PORTION FOR YOUR RECORDS
DEBRA BASEHORE WEST
269 WOGDS DRIVE '
MECHANI.CSBURG, P!~ 170 50-2635
TEMP - RETURN SERVICE
u'FOR THE ESTATE OF
. aErrr v NAUGLE
"WILLIAM R, NAUGLE EXECUTOR
3 1007
I 2 RIDGEWAY DRIVE \ ea-tesvto¢
'i MEGHANICSBURG, PA 17060 ~ ~ ~ (01 SL0a1
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BE~TY V.
NAUGLE IRREVOCABLE TRUST
November 5, 2009
,~,
e;'
JACKSON LAW FIRM
4076 MARKET STREET
CAMP HILL, PENNSYLVANIA 17011
(717) 76i-3535
d
Betty V. Naugle Irrevocable Trust
Table of Contents
Article One Establishing My Trust ................................................1-1
Section 1.01 Identifying My Trust ....................................................... ....... 1-1
Section 1.02 Third-Party Reliance on Affidavit or Certification of
Trust ................................................................................. ...... 1-1
Section 1.03 An Irrevocable Trust ........................................................ ...... 1-1
Section 1.04 ~~ Transfers to the Trust ....................................................... ...... 1-1
Section 1.05 ' Statement of My Intent .................................................... ......1-2
Section 1.06' My Lifetime Beneficiaries ............................................... ...... l-2
Article Two Trustee Succession and Trust Protector
L Provisions ...................................................................2-1
Section 2.01 ', Resignation of a Trustee .................................................. ...... 2-1
Section 2.02 ' Trustee Succession ...........................:............................... ...... 2-1
Section 2.03 ' Removal and Replacement of Trustees ............................ ...... 2-1
.'
Section 2.04 j Appointment of a Cotrustee ............................................. ...... 2-2
Section 2.05 ! Provisions for Trust Protector .......................................... ...... 2-2
,~~^ Article Three Administration While I am Living .............................3-1
Contributions Held in a Single Trust ............................... ...... 3-1
Section 3.02
~! Administration Upon My Death ...................................... ...... 3-1
Article Fou~ Administration of Remaining Trust Property ..... .....4-1
Article Fivel Remote Contingent Distribution .......................... .....5-1
Article Six !, Supplemental Needs Trust ................................... .....6-1
Section 6.01 i
Distributions of Income and Principal .............................
...... 6-1
Section 6.02 I
Definition of "Supplemental Needs" ...............................
...... 6-2
Section 6.03 'i Objective to Promote Independence of Beneficiary ........ ...... 6-3
Section 6.04 I, Not Available Resource to Benefici
ary ........................... 6-3
......
Section 6.05 ' Distribution Guidelines ...............:.................................... ...... 6-3
Section 6.06 ' No Seeking of Order to Distribute ................................... ...... 6-4
Section 6.07 ~, Indemnification of Trustee When Acting in Good Faith . ...... 6-5
Section 6.08
Distribution Upon the Death of Beneficiary ....................
...... 6-5
Section 6.09 '' Limitation on Power to Remove and Replace Trustee .... ...... 6-5
Section 6.10 Application of Article ...................................................... ...... 6-5
Betty V. Naugle Irrevocable Trust
i
Article Seven Administration of Trusts for Underage and.
Incapacitated Beneficiaries............. ...........................7-1
Section 7.01 Distributions for Underage and Incapacitated
Beneficiazies .......................................................................... 7-1
Section 7.02 Methods of Distribution ......................................................... 7-1
Article Eight
Section 8.01
Section 8.02
Section 8.03
Section 8.04 !I
Section 8.05
'iection 8.06
Section 8.07
Section 8.08
Section 8.09
Section 8.10 !I
Section 8.11 ~,
Article Nine
Section 9.01 i
Section 9.02
Section 9.03
Section 9.04
Section 9.05 it
Section 9.06
Article Ten
Section 10.011
Section 10.02
Section 10.031
Section 10.041
Section 10.05
Section 10.06
Trust Administration .................................................. 8-1
No Bond ........................................................................ ......... 8-1
Exoneration of My Trustee ........................................... ......... 8-1
Trustee Compensation .................................................. ......... 8-1
Employment of Professionals ....................................... ......... 8-1
Exercise of Testamentary Power of Appointment ........ ......... 8-2
Determination of Principal and Income ........................ ......... 8-2
Trust Accounting .......................................................... ......... 8-2
Authority to Merge or Sever Trusts .............................. ......... 8-3
Certificate by Trustee .................................................... ......... 8-3
Generation-Skipping Transfer Tax Provisions ............. ......... 8-3
Grantor Trust Provisions ............................................... ......... 8-4
My Trustee's Powers ................................................. 9-5
Introduction to Trustee's Powers ...............:........................... 9-5
Investment Powers in General ............................................... 9-5
Business Powers ..................................................................... 9-5
Insurance Powers ................................................................... 9-5
No Loans to Me ..................................................................... 9-6
Limitation on My Trustee's Powers ...................................... 9-6
General Provisions ..................................................10-1
Maximum Term for Trusts .................................
Spendthrift Provision .........................................
Contest Provision ...............................................
Changing the Governing Law and Situs of
Administration ...................................................
Definitions ..........................................................
General Provisions and Rules of Construction..
Betty V. Naugle Irrevocable Trust
ii
..................10-1
.................. 10-1
..................10-1
................ 10-2
................10-2
................10-6
Betty V. Naugle Irrevocable Trust
Article One
Establishing My Trust
7"he date of this Irrevocable Trust Agreement is November 5, 2009. The parties to the
agreement ar@ Betty V. Naugle (the "Grantor") and William R. Naugle, III (my "Initial
Trustee"). ',
Section 1.01 Identifying My Trust
My trust is ailed the "Betty V. Naugle Irrevocable Trust." However, the following
format shoul be used for taking title to assets: "William R. Naugle, III, Trustee of the
Betty V. Nau le Irrevocable Trust dated November 5, 2009."
Section 1.0~ Third-Party Reliance on Affidavit or Certification of Trust
My Trustee ay provide an affidavit or certification of trust to third parties in lieu of
providing a c py of this agreement. Third parties are exonerated. from any liability for
acts or orris ions in reliance on the affidavit or certification of trust, and for the
application th t my Trustee makes of funds or other property delivered to my Trustee.
Section 1.0~ An. Irrevocable Trust
This Trust is irrevocable, and I may not alter, amend, revoke, or terminate it in any way.
Section 1.0 Transfers to the Trust
I transfer to y Trustee the property listed in Schedule A, attached to this agreement, to
be held on th terms and conditions set forth in this instrument. I retain no right, title or
interest in the income or principal of this trust or any other incident of ownership in any
twist property1
(a) ', Trustee Acceptance
By ex cution of this agreement, my Trustee accepts and agrees to hold the
trust roperty described on Schedule A. All property, including life
insur ce policies, transferred, to my trust after the date of this agreement
must a acceptable to my Trustee. My Trustee may refuse to accept any
propeii[y. My Trustee shall hold, administer and dispose of all trust
prope y accepted by my Trustee for the benefit of my beneficiaries in
accor ance with the terms of this agreement.
(b) ~ No Distributions of Income or Principal
My Triustee shall have no right, power, privilege or authority to invade or
distrib}rte income or principal of the trust to or for my benefit.
Betty V. Naugle Irrevocable Trust
1-1
Section 1.05 Statement of My Intent
I am creating this trust as part of my estate plan to ensure efficient management,
administratiors and protection of the trust assets for my beneficiaries. It is my express
intent that the principal and income of this trust will not be available to me for any
purpose, including Medicaid.
Section 1.0$ My Lifetime Beneficiaries
While I am living, William R. Naugle, III is the beneficiary of this trust.
Betty V. Naugle Irrevocable Trust
1-2
Article Two
Trustee Succession and Trust Protector Provisions
Section 2.01 Resignation of a Trustee
A Trustee may resign by giving written notice to me. If I am deceased, a resigning
Trustee will dive written notice to the income beneficiazies of the trust and to any other
Trustee then nerving.
Section 2.02 Trustee Succession
This Section ~overns the succession of my Trustees.
(a) I I May Not Serve as Trustee
Notwi standing any provision of this agreement to the contrary, under no
circ stances may I serve as Trustee at any time.
(b) Successors to Initial Trustee
If Wiliam R. Naugle, III fails to serve as Initial Trustee, I appoint the
follow ng, in the order named, to serve as successor Trustee:
First: Debra L. Naugle
~! Second: Aazon C. Jackson
Section 2.0~ Removal and Replacement of Trustees
(a) I Removal and Replacement by Me
I mays remove any Trustee, with or without cause azid appoint an
indivi ual (other than me) or a corporate Trustee successor.
(b) Removal by Beneficiaries
After y death, a Trustee of any trust created under this agreement maybe
remov d, with or without cause, by a unanimous decision of the income
benefi iazies of the trust.
The ri ht to remove a Trustee under this subsection will not be deemed to
grant t~ the person holding that right any of the powers of that Trustee.
If a neficiary is a minor or is incapacitated, the pazent or legal
repres ntative of the beneficiary, other than me, may act on behalf of the
(c) (Default of Designation and Appointment of Trustee
If the ~ffice of Trustee of a trust created under this agreement is vacant
and no, designated Trustee is able and willing to act, I must appoint an
individ~ral (other than me) or corporate successor Trusl;ee. If I am
incapacitated or deceased, my Trust Protector shall appoinl:an individual
or corporate successor Trustee. If my Trust Protector fails to act, the
Betty V. Naugle Irrevocable Trust
2-1
primary beneficiary may appoint an individual or corporate fiduciary that
is not related or subordinate to the person or persons making the
appointment within the meaning of Section 672(c) of the Internal Revenue
Code to serve as successor Trustee. In the case of a minor or incapacitated
beneficiary, the pazent or legal representative of such beneficiary, other
than rrAe, may act on behalf of such beneficiazy.
Any beneficiazy or his or her legal representative may petition a court of
comp8tent jurisdiction to appoint a successor Trustee to fill any vacancy
remairhing unfilled after a period of 30 days. By making such
appointment, such court shall not thereby acquire any jurisdiction over the
trust, $xcept to the extent necessary for making such appointment.
Section 2.O~1 Appointment of a Cotrustee
Any individual Trustee may appoint an individual or a corporate fiduciary as a Cotrustee.
A Cotrustee '~so named shall serve only as long as my Trustee; who appointed such
Cotrustee (orb if such Cotrustee was named by more than one Trustee acting together, by
the last to s rve of such Trustees) serves, and such Cotrustee shall not become a
successor T stee upon the death, resignation, or incapacity of my Trustee who appointed
such Cotrust e, unless so appointed under the terms of this agreement. Although such
Cotrustee ma exercise all the powers of the appointing Trustee, the combined powers of
such Cotrust a and the appointing Trustee shall not exceed the powers of the appointing
Trustee alon~. The Trustee appointing a Cotrustee may revoke t:he appointment at any
'~" time with or without cause.
~'_ ~.'~
Section 2.0~ Provisions for Trust Protector
The function pf the Trust Protector is to direct my Trustee in matters concerning the trust,
and to assist, irf needed, in achieving my objectives as manifested by the other provisions
of my estate ~lan.
In order to serve, any Trust Protector named or appointed under this Section must be a
corporate fiduciary or an individual who is not related or subordinate to a transferor or
any beneficiary within the meaning of Section 672(c) of the Internal Revenue Code.
(a) ii Designation of Trust Protector
I app rut an individual or corporate fiduciary named by a majority of the
benet~ciaries to serve as Trust Protector of each trust creeated under this
The s~lerving Trust Protector may appoint a successor Tnrst Protector in
writi~lg. The appointment will take effect upon the resignation, incapacity,
or de~th of the appointing Trust Protector, but only if all 'T'rust Protectors
that I gave named fail to qualify or act.
Under no circumstances may I serve as Trust Protector.
Betty V. Naugle Irrevocable Trust
2-2
(b) Resignation of Trust Protector
A Trust Protector may resign by giving notice to me. If I am deceased, a
resigning Trust Protector must give notice to the income beneficiazies of
the trust and to my Trustee then serving.
A resigning Trust Protector will not be liable or responsible for the acts or
omissions of any successor Trust Protector.
(c) .Default of a Designated Trust Protector
If the, office of Trust Protector for a trust is vacant and there is no
effecf vely named successor Trust Protector, any beneficiary may petition
a cou of competent jurisdiction to appoint a successor Trust Protector to
fill an vacancy remaining unfilled after a period of 30 drays. The court
makir3lg the appointment will not acquire any jurisdiction over the trust,
except; to the extent necessary for making the appointment.
If a beneficiary is a minor or is incapacitated, the pazent or legal
repres ntative of the beneficiary may act on behalf of the b<;neficiary.
(d) I Rights of Successor Trust Protectors
Any s~ccessor Trust Protector has all of the authority of any predecessor
Trust rotector, but will not be responsible for the acts or omissions of its
(e) I Power to Remove and Appoint Trustees
After ~Imy death, my Trust Protector may remove any Tnstee of a trust
created under this agreement.
When~ver the office of Trustee of a trust is vacant and no successor
Trustee is effectively named, my Trust Protector may appoint an
indivi}iual or a corporate fiduciazy to serve as Trustee.
A T~st Protector may not appoint itself as a Trustee and a Trust Protector
may of simultaneously serve as both Trust Protector and Trustee.
(f) !, Good Faith Standard Imposed
The uthority of my Trust Protector is conferred in a nonfiduciary
capac ty, and my Trust Protector is not liable for any good-faith act or
omiss~on. My Trust Protector will be reimbursed promptly for any costs
incurt~ed in defending or settling any claim brought against it in its
capac~ty as Trust Protector unless it is conclusively established that the act
or om~ssion was motivated by an actual intent to harm the beneficiazies of
the tryst or was an act ofself-dealing for personal benefit.
(g) Power to Amend Trust Agreement
My Trust Protector may amend any provision of this agreement as it
applies to any trust for which the Trust Protector is sf;rving as Trust
ProtecEtor to do any of the following:
Betty V. Naugle Irrevocable Trust
2-3
(i) alter the administrative and investment powers of my Trustee;
(ii) reflect tax or other legal changes that affect trust administration;
(iii) correct ambiguities, including scrivener errors, that might
otherwise require court construction or reformation; and
(iv) grant a beneficiary of any trust created under this agreement the
', testamentazy power to appoint all or part of the beneficiary's trust
or trust shaze to the creditors of the beneficiary's estate.
Any endment made by my Trust Protector to correct a scrivener's error
in ac~rdance with this Section is effective as of the original date of the
trust. II Any other amendment made by my Trust Protector as authorized
above is effective as of the date of the trust, or the date of t:he amendment,
in the sole and absolute discretion of my Trust Protector. 'The decision of
my T st Protector as to the effective date of any such amendment must be
set fo in the amendment.
In gr ting a testamentary power of appointment, my Trust Protector may
requir , as a condition for the beneficiary's exercise of the power, that the
benefciazy first obtain the consent of my Trust Protector. My Trust
Prote for may revoke the power at any time during the lifetime of the
benef ciary to whom it was given. I suggest, but do not require, that my
Trust rotectot exercise this authority to subject trust property to estate tax
instea of the generation-skipping transfer tax when it appeazs that it may
reduc overall taxes.
standing the foregoing, my Trust Protector may not amend this
:nt in any manner that would make trust corpus available to me for
d eligibility or Medicaid estate recovery purposes.
my Trust Protector may not limit or alter the rights of a
ary in any trust assets held by the trust before the amendment.
Any endment made by my Trust Protector must be in a signed written
inst ent and delivered to the income beneficiaries of the trust and to my
Trust e then serving.
(h) i, Not a General Power of Appointment
My rust Protector may not participate in the exercise of a power or
discre ion conferred under this agreement that would cause my Trust
Prote for to possess a general power of appointment within the meaning of
Secti ns 2041 and 2514 of the Internal Revenue Code. Specifically, my
Trust Protector may not use such powers for his or her personal benefit,
nor f r the dischazge of his or her financial obligations.
(i) Release of Powers
My Trust Protector, acting on its own behalf and on behalf of all successor
Trust !Protectors, may at any time, by a written instrument delivered to my
Betty V. Naugle Irrevocable Trust
2-4
Trustee, irrevocably release, renounce, suspend, or reduce any or all
powers and discretions conferred on my Trust Protector by this agreement.
(j) No Duty to Monitor
My Trust Protector has no duty to monitor or supervise any Trustee or
trust Created under this- agreement. Further, my Trust Protector has no
duty to be-informed as to the acts or omissions of others or to take any
action to prevent or minimize loss. Any exercise or non-exercise of the
powers and discretions granted to my Trust Protector is in the sole and
absolrpte discretion of my Trust Protector.
(k) 'Compensation
Any `)'rust Protector serving under this agreement is entitled to receive
reasonable compensation for services as determined by my Trustee. My
Trust ~iProtector is enfitled to reimbursement for all expenses incurred in
the pq~rformance of its duties as Trust Protector, including travel expenses.
Servi g in the capacity of Trust Protector does not prevent my Trust
Prote for from also providing legal, investment or accounting services on
behal of the trust or the trust beneficiaries. If my Trust Protector is
provi ing professional services, my Trust Protector may charge its typical
fees ~or professional services, and may also be compensated for its
services as Trust Protector.
(1) ' Right to Examine
- The ~ooks and records of each trust created under this agreement,
including all documentation, inventories and accountings, must be open
and available for inspection by my Trust Protector at all reasonable times.
Betty V. Naugle Irrevocable Trust
2-5
Article Three
Administration While I am Living
While I am liiving, my Trustee shall administer the trust as provided in this Article.
Section 3.0!t Contributions Held in a Single Trust
While I am liNing, my Trustee shall retain all contributions to my trust in a single trust for
the benefit of the lifetime beneficiazies. For purposes of this Article, "contribution"
means any cash or other assets transferred to my Trustee to be held as part of the trust
i ands, in a umer that constitutes a gift for Federal gift tax purposes. The amount of a
contribution ils its Federal gift tax value. My Trustee shall administer the trust as follows:
(a) 'i Distribution of Income and Principal to William R.
,Naugle, III
My 1~rustee may distribute to William R. Naugle, III ais much of the
incorr#e and principal of the common trust as my Trustee determines is
neces ary or advisable for his health, education, maintenazice and support.
In m ing distributions under this Section, my Trustee may, but need not,
take i to consideration any income or other resources that aze available to
Willi R. Naugle, III outside of the trust and are known to my Trustee.
A distribution to or for the benefit of William R. Naugle, III shall be
~~s;:, chazg~d to the trust as a whole rather than against William R. Naugle, III's
ultim to shaze.
My Tprustee shall have no right, power, privilege or authority to invade or
distribute income or principal of the trust to or for my benefit.
(b) ', Discharge of a Legal Obligation
No p yment or distribution shall be made by my Trustee for the discharge
of any of my legal obligations or otherwise for my monetary benefit.
Section 3.0~ Administration Upon My Death
Upon my de~th, my Trustee will administer the remaining trust property as provided in
,Article Four.!
Betty V. Naugle Irrevocable Trust
3-1
Article Four
Administration of Remaining Trust Property
Section 4.0!1 Specific Distribution to My Grandchildren
BAs soon as ptacticable after my death, my Trustee shall distribute an amount of $1,000 to
each of my then living grandchildren, outright and free of trust.
]:f any benefuciary is deceased, my Trustee shall distribute the property subject to this
distribution t~ that beneficiary's descendants, Per Stirpes.
]?roperty pas~ing under this Section will pass free of any administrative expenses or death
taxes.
Section 4.0~ Specific Distribution to William R. Naugle, III
gas soon as practicable after my death, my Trustee shall distribute my real property at the
address of 3 Ridgeway Drive, Mechanicsburg, Pennsylvania along with all its contents
to William R~ Naugle, III, outright and free of trust.
]f William R~ Naugle, III is deceased, my Trustee shall distribute the property subject to
this distribut'on to Debra L. Naugle. If Debra L. Naugle is deceased, my Trustee shall
distribute the property subject to this distribution to William R. Naugle, III's descendants,
]'er Stirpes.
Iroperty passing under this Section will pass free of any administrative expenses or death
taxes.
Section 4.O~i Distribution of Tangible Personal Property by Memorandum
I reserve the #ight to make dispositions of items of tangible personal property by a signed
written mem random executed after I sign this agreement that refers to my trust and lists
items of tan ible personal property and designates the beneficiary of each item. If I
execute a m morandum, the memorandum is to be incorporated by reference into this
agreement to he extent permitted by law.
I direct that on my death, my Trustee distribute the items of tangible personal property
listed in the emorandum, together with any insurance policies covering such property
and claims der such policies, as provided in the memorandum. Should I leave multiple
written mem randa that conflict as to the disposition of any item of tangible personal
property, the memorandum with the most recent date shall control as to those items that
are in conflic .
If the memor dum with the most recent date conflicts with a provision of this agreement
z~s to the spe ific distribution of any item of tangible personal property, the provisions of
the memoran um with the most recent date shall control as to those items that aze in
conflict.
If the memorandum can not legally be incorporated by reference, the memorandum shall
then be treatrrd as an amendment to my trust and I request that my Trustee follow my
Betty V. Naugle Irrevocable Trust
4-1
wishes and distribute the items of tangible personal property listed in the memorandum
according to its terms.
Section 4.Oi1< Division and Distribution of Remaining Trust Property
My Trustee shall divide the remaining trust property into shares as follows:
Name Relationship Share
William R. Naugle, III Son 80%
Kristine E. Gilbert Daughter 20%
My Trustee s~all administer the shaze of each beneficiary as provided in the Sections that
follow.
iVotwithstan 'ng the preceding pazagraph, unless a shaze is distributed to an existing trust
for the benefciary, during any period that a beneficiazy is a Supplemental Needs Person,
my Trustees all administer the beneficiary's shaze as provided in Article Six.
Section 4.0~ Distribution of the Share for William R. Naugle, III
My Trustee s~all distribute the share set aside for William R. Naugle, III to him outright,
liee of trust, ~xcept as provided in Article Seven.
If William .Naugle, III is deceased, my Trustee shall distribute William R. Naugle,
III's shaze t Debra L. Naugle. If Debra L. Naugle is deceased, my Trustee shall
distribute Wi liam R. Naugle, III's share to William R. Naugle, III's descendants, per
stirpes. If illiam R. Naugle, III has no living descendants, my Trustee shall distribute
William R. augle, III's shaze pro rata to the other beneficiazies named in this Article. If
there aze no ther named beneficiazies my Trustee shall distribute the remaining property
as provided i~ Article Five.
Section 4.0~ Distribution of the Share for Kristine E. Gilbert
My Trustee s~all distribute the share set aside for Kristine E. Gilbert to her outright, free
of trust, exce t as provided in Article Seven.
If Kristine E!, Gilbert is deceased, my Trustee shall distribute Kristine E. Gilbert's shaze
to her descendants, per stirpes. If Kristine E. Gilbert has no living descendants, my
"Crustee shall) distribute Kristine E. Gilbert's share pro rata to the other beneficiazies
named in th~s Article. ' If there aze no other named beneficiazies my Trustee shall
distribute the remaining property as provided in Article Five.
Betty V. Naugle Irrevocable Trust
4-2
Article Five
Remote Contingent Distribution
If, at any time, there is no person or entity qualified to receive fnal distribution of the
trust estate or any part of it, then my Trustee shall distribute the portion of my trust estate
with respect tb which the failure of qualified recipients has occurred to those persons who
would inherit., it had I then died intestate owning the property, as determined and in the
proportions provided by the laws of Pennsylvania then in effect.
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Article Six
Supplemental Needs Trust
Trust property will be administered pursuant to the terms of this Article when:
(i) anot~rer Article of this agreement directs that the property is to be
administered as provided in this Article; or
(ii) the beneficiary of the property under another Article of this agreement is
a Supplemental Needs Person, unless the other Article directs the
ben ficiary's interest to be distributed to an existing trust.
"Beneficiazy"' under this Article refers to the beneficiary of the property under the other
Article. The rovisions of the other Article shall continue to apply to the extent they do
not conflict 'th the provisions of this Article; specifically, the provisions of this Article
shall control t~e distributions of income and principal.
Section 6.0'~ Distributions of Income and Principal
The Trustee s~rall collect income and, after deducting all charges and expenses attributed
thereto, shall pply for Beneficiary's benefit, in-kind, or in cash, :.o much of the income
and principal (even to the extent of the whole) as the Trustee deems advisable in the
T'rustee's sol and absolute discretion, subject to the limitations set forth below. The
Trustee shall add the balance of net income not paid or applied to the principal of the
`: Supplemental Needs Trust.
(a) i~ Maximize Benefits
Consi tent with the purpose of the Supplemental Needs'. Ttust, before
expen ing any amounts from the net income and/or principal of this trust,
the T stee shall consider the availability of all benefits from government
or pri ate assistance programs for which Beneficiary may be eligible. The
Truste ,where appropriate and to the extent possible, shrill endeavor to
maxi ize the collection and facilitate the distribution of these benefits for
Benefioiarv's benefit.
(b) ', No Reduction in Benefits
None ~f the income or principal of the Supplemental Needs Trust shall be
applie in such a manner as to supplant, impair or diminish any
Bove ental benefits or assistance for which Beneficiary may be eligible
or which Beneficiary may be receiving, unless, in the sole and absolute
discret on of the Trustee, such use of income and/or principal is beneficial
to Ben ficiary.
(c) ! No Assignment
Beneficiary shall not have the power to assign, encumber, direct, distribute
or auth'iorize distributions from the Supplemental Needs Trust.
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(d) Discretionary Distributions
Notwithstanding the above provisions, the Trustee may make distributions
to meat Beneficiazy's need for food, shelter, health caze, or other personal
needs,. even if those distributions will impair or diminish Beneficiary's
receipt or eligibility for government benefits or assistance, but only if the
Trustee determines that the distributions will better meet Beneficiary's
needs; and it is in Beneficiary's best interests, notwithstanding the
consequent effect on Beneficiary's eligibility for, or receipt of, benefits.
(e) ,Supplemental Needs Trust Savings Clause
In the~ievent that the mere existence of the authority to make distributions
that ill impair or diminish Beneficiary's receipt or eligibility for
government benefits or assistance, as specified in subsections (b) and (d),
above will result in a reduction or loss of Beneficiary's entitlement
progr~m benefits, regardless of whether the Trustee actually exercises the
authority, then such authority specified in subsections (b) and (d), above,
shall Abe null and void, and the Trustee's authority to make these
distri utions shall terminate. If such authority is terminated, then the
Trust e's authority to make distributions shall be limited to distributions
for B neficiary's Supplemental Needs, in a manner that will not adversely
affect Beneficiazy's government benefits.
Notwithstanding any provision to the contrary, in the event that the
Supplemental Needs Trust is challenged or faces imminE;nt invasion by
``" ` any overnmental department or agency in such a way as to affect
Bene ciary's eligibility for benefits available under any governmental
progr ,the Trustee is empowered to amend the trust so as to maintain
Bene ciary's eligibility for benefits under such governmental program.
Section 6.0~ Definition of "Supplemental Needs"
"`Supplemental needs" refers to the requisites for maintaining the good health, safety, and
welfare of B'~neficiary when, in the sole and absolute discretion of the Trustee, such
requisites aze'inot being provided by any public agency, office, or department of any state
or of the United States.
"`Supplemental needs" shall also include, but not be limited to, medical and dental
expenses, amiual independent checkups, clothing and equipment., programs of training,
education, treatment and rehabilitation, private residential care, transportation (including
vehicle pure ases), maintenance, insurance, and essential dietary needs. "Supplemental
needs" may nclude spending money; additional food; clothing.; electronic equipment
such as radii, recording and playback, television and computer equipment; camping;
vacations; at~letic contests; movies; trips; and money to purchase appropriate gifts for
relatives and riends.
'Che Trustee shall have no obligation to expend trust assets for such needs, but if the
"Crustee, in i( sole and absolute discretion, decides to expend trust assets, under no
circumstancefi should any amounts be paid to, or reimbursed to, t:he federal government,
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any state, or any governmental agency for any purpose, including; for the care, support,
and maintenance of Beneficiary.
Section 6.0$ Objective to Promote Independence of Beneficiary
\While action$ aze in the Trustee's sole and absolute discretion, the Trustee should be
mindful that it is my wish that Beneficiary live as independently, productively, and
happily as possible.
Section 6.O~t Not Available Resource to Beneficiary
It is my inte to create a Supplemental Needs Trust that conforms to Pennsylvania law,
in order to pr vide for Beneficiary's Supplemental Needs. I intend that the trust assets be
cised to supp ment, not supplant, impair or diminish, any benefits or assistance of any
Federal, slat ,county, city, or other governmental entity for which Beneficiary may
otherwise be ligible or which Beneficiary may be receiving. Consistent with that intent,
it is my desir that, before expending any amounts from net income and/or principal of
the trust, the rustee consider the availability of all benefits from government or private
assistance pr grams for which Beneficiazy may be eligible and that, where appropriate
and to the a tent possible, the Trustee endeavors to maximize the collection of such
benefits and o facilitate the distribution of such benefits for the benefit of Beneficiary.
All actions q'f the Trustee shall be directed toward carrying out this intent and the
discretion grapted the Trustee under this agreement to carry out thus intent is absolute.
F'or purposes of determining Beneficiary's eligibility for any such benefits, no part of the
principal or distributed income of the Supplemental Needs Tnst shall be considered
available to eneficiary for public benefit purposes.
The Trustee shall hold, administer, and distribute all property allocated to the
Supplerenta Needs Trust for the exclusive benefit of Beneficiary during his or .her
lifetime. All distributions from the trust aze in the sole and absolute discretion of the
Trustee.
In the event ~he Trustee is requested to release principal or income of the Supplemental
Needs Trust o or on behalf of Beneficiazy to pay for equipment, medication, or services
that any gov rnment agency is authorized to provide, or in the event the Trustee is
requested to etition a court or any other administrative agency for the release of trust
principal or i come for this purpose, the Trustee is authorized to deny such request and is
authorized in its sole arid absolute discretion to take whatever administrative or judicial
steps may b necessary to continue Beneficiary's eligibility for benefits, including
obtaining leg 1 advice about Beneficiazy's specific entitlement to public benefits and
obtaining ins ctions from a court of competent jurisdiction ruling that neither the trust
corpus nor a trust income is available to Beneficiary for eligibility purposes. Any
expenses of ~he Trustee in this regard, including reasonable attorney's fees, shall be a
proper chazg to the Supplemental Needs Trust.
Section 6.0~ Distribution Guidelines
T'he Trustee shall be responsible for determining what discretionazy distributions shall be
made from the Supplemental Needs Trust. The Trustee may distribute discretionazy
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aunounts of income and principal to or for the benefit of Beneficiary for those
'supplemental Needs not otherwise provided by governmental financial assistance and
benefits, or 6y the providers of services. Any undistributed income shall be added to
principal.
In making disitributions, the Trustee will:
(i) conyider any other known income or resources of Beneficiary that aze
reasonably available;
(ii) take' into consideration all entitlement benefits from any government agency,
such as Social Security Disability payments (SSDI), Medicaid, Supplemental
Sec~ty Income (SSI), and any other special purpose benefits for which
Ben ficiary is eligible;
(iii) take's into consideration resource and income limitations of any such assistance
(iv) make expenditures so that Beneficiary's standazd of living will be comfortable
and enjoyable;
(v) not ~e obligated or compelled to make specific payments;
(vi) not ay or reimburse any amounts to any governmental agency or department,
unless proper demand is made by such governmental agency and reimbursement
is required by the state; and
(vii) not ~e liable for any loss of benefits.
Section 6.0~ No Seeking of Order to Distribute
For purposes ~,of determining Beneficiary's state Medicaid prograni equivalent eligibility,
no part of the) principal or undistributed income of the Supplemental Needs Trust may be
considered available to Beneficiary. The Trustee will deny any request by Beneficiary to:
(i) rele~se principal or income of the trust to or on behalf of Beneficiary to pay for
equi ment, medication, or services that the state Medicaid program equivalent
woglld provide if the trust did not exist; or
(ii) pets ion a court or any other administrative agency for the release of trust
prin~ipal or income for this purpose.
The Trustee ay, in its sole and absolute discretion, take necessary administrative or
legal steps o protect Beneficiary's state Medicaid program eligibility, including
obtaining a ling from a court of competent jurisdiction that the trust principal is not
available to eneficiazy for purposes of determining eligibility. Expenses for this
purpose, incl ding reasonable attorney's fees, aze a proper chazge to Beneficiazy's
Supplemental) Needs Trust.
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:iection 6.07 Indemnification of Trustee When Acting 'in Good Faith
The Trustee shall be indemnified from the trust property for any loss or reduction of
public benefits sustained by Beneficiazy as a result of the Trustee exercising, in good
faith, the authority granted to the Trustee under this Article.
Section 6.OS Distribution Upon the Death of Beneficiary
iJpon the death of Beneficiary, the Trustee shall distribute or retain the remaining
Supplemental Needs Trust property according to the other Article of this agreement that
directed the property to be held pursuant to this Article.
If the other article does not provide for distribution upon the death of Beneficiazy, then
the Trustees all distribute or retain the remaining Supplemental Needs Trust property as
though Bene iciary had predeceased me.
Section 6.0~ Limitation on Power to Remove and Replace Trustee
iVotwithstand~ing any other provision of this agreement, Beneficiary has the power to
remove and ~eplace the Trustee of the Supplemental Needs Trust, but may not appoint
tumself or he self as the replacement Trustee.
Section 6.1p Application of Article
Any decision} made by the Trustee under this Article shall be final, controlling and
binding upon) all beneficiaries subject to the provisions of this Article.
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Article Seven
Administration of Trusts for Underage and Incapacitated
Beneficiaries
,` ,
Section 7.Oh Distributions for Underage and Incapacitated Beneficiaries
1.f under anot~rer provision of this agreement any part of the trust property is directed or
required to b$ distributed outright to a person (other than me) who has not yet attained the
age of 21 ye s or is incapacitated, then my Trustee may distribute or retain that part of
the trust proerty as described in Section 7.02, unless the provisions of Article Six,
Entitled "Sup lemental Needs Trust," apply.
'When makin~ a distribution, I request, but do not require, that my Trustee consider the
ability that th~ beneficiary demonstrated in managing prior distributions.
All decision made by my Trustee under this Article are final, controlling and binding
upon all bengficiazies subject to the provisions of this Article.
Section 7.0 Methods of Distribution
Property to hich this Article applies may be:
(i) dist ibuted directly to the beneficiary;
(ii) dis ibuted to the beneficiary's guardian, conservator, patent, family member, or
oth r person-who has assumed responsibility for his or her care;
(iii) dis ibuted to any person or entity, including my Trustee, as custodian for the
ben ficiazy under the Uniform Transfers to Minors Act, or similar statute;
(iv) distributed to other persons or entities for the benefit of the beneficiary;
(v) dist 'buted to an agent authorized to act for the beneficiary under a power of
alto ey for property;
(vi) reta ned in trust, distributing income and principal for any purpose, in any
am unt, using any of the methods described above, all iri my Trustee's sole and
abs lute discretion, and upon the beneficiary's death distributing the remainder
as pointed by the beneficiazy, and if not appointed, as though the beneficiary
had predeceased me; or
(vii) distributed or retained in any combination of one or more of the above
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Article Eight
Trust Administration
Section 8.01 No Bond
No Trustee is required to furnish any bond for the faithful performance of my Trustee's
duties, unless required by a court of competent jurisdiction and only if the court finds that
a bond is needed to protect the interests of the beneficiaries.. No surety will be required
on any bond required by any law or rule of court, unless the court specifies that a surety
is necessazy.
Section 8.OR Exoneration of My Trustee
No successor Trustee is obligated to examine the accounts, records or actions of any
previous Trustee or of the personal representative of my estate. No successor Trustee
shall be in any way or manner responsible for any act or omission to act on the part of
any previous'Trustee or the personal representative of my estate. Unless my Trustee has
received notit;e of removal, my Trustee shall not be liable to me or to any beneficiary for
the consequepces of any action taken by my Trustee that would have been, but for the
prior removal of my Trustee, a proper exercise by my Trustee of the authority granted to
my Trustee under this agreement. Absent bad faith on the part of my Trustee, my Trustee
is exonerated from any and all liability for the acts or omissions of acts by my Trust
1?rotector.
Section 8.Oki Trustee Compensation
An individual serving as Trustee shall be entitled to fair and reasonable compensation for
the services tendered as a fiduciary. A corporate fiduciary serving as Trustee shall be
compensated',by agreement with an individual Trustee or, in the absence of an individual
"frustee or in:, the absence of an agreement, in accordance with the corporate fiduciary's
published schedule of fees in effect at the time the services aze rendered.
My Trustee may charge additional fees for services it provides that aze not comprised
within its duties as Trustee such as fees for legal services, tax return prepazation and
corporate finance or investment banking services.
]:n addition to receiving compensation, my Trustee may be reimbursed for reasonable
costs and expenses incuried in carrying out its duties under this agreement.
Section 8.Oi4 Employment of Professionals
My Trustee imay appoint, employ and remove, at any time and from time to time,
investment a4lvisors, accountants, auditors, depositories, custodians, brokers, consultants,
attorneys, expert advisers, agents, and employees to advise or assist my Trustee in the
performance of its duties. My Trustee may act upon the recommendations of the persons
or entities errlployed with or without independent investigation. My Trustee may pay the
usual compensation for services contracted for under this Section out of principal or
income of the trust as my Trustee may deem advisable.
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Section 8.05 Exercise of Testamentary Power of Appointment
A testamentary power of appointment granted under this agreement may be exercised by
a~ valid will or living trust that specifically refers to the power of appointment.
The holder of a testamentary power of appointment may exercise the power to appoint
property among the permissible appointees in equal or unequal proportions, and on such
_. terms and conditions, whether outright or in trust, as the holder of the power designates.
The holder of a testamentary power of appointment may grant further powers of
appointment to any person to whom principal may be appointed, including a presently
exercisable limited or general power of appointment.
My Trustee unay conclusively presume that any power of appointment granted to any
beneficiary cf a trust created under this agreement has not been exercised by the
beneficiary if my Trustee has no knowledge of the existence of a valid will or living trust
exercising the power within 30 days after the beneficiary's death, and my Trustee shall
then be released from any liability for any distributions made in good faith.
Section 8.05 Determination of Principal and Income
The provisions of Pennsylvania law related to the allocation of principal and income shall
govern beneficiazies' rights among themselves in matters concerning principal and
income. If Tennsylvania law contains no provision concerning a particular item, my
Trustee shall determine in a fair, equitable and practical manner what shall be credited,
chazged, and apportioned between principal and income.
r '~~ Section 8.Oq Trust Accounting
Except to the extent required by law, my Trustee is not required to file accountings in any
jurisdiction. 'Upon the written request of an income beneficiary of a trust created under
this agreement, my Trustee must render an accounting to the income beneficiaries of that
trust during tlhe accounting period that includes the date of the written request.
The accounting must include the receipts, expenditures, and distributions from the trust
for which the accounting is prepazed occurring during the accounting period. If a tax
return is prepazed for a trust during a period for which a trust accounting is made, my
Trustee's accounting must include a copy of that tax return. If' there is no tax return
prepared for the accounting period, my Trustee's accounting must include a balance sheet
itemizing the trust property and my Trustee's reasonable estimation of the value of the
assets held in'the trust as of the date the accounting is completed.
A beneficiazy may object to an accounting rendered by my Trustee only if the beneficiazy
gives written notice to my Trustee within 60 days a$er my Trustee renders the
accounting. alny beneficiary who does not submit a written objection to the accounting is
deemed to assent to the accounting.
My Trustee must make the trust's financial records and documentation available to
beneficiaries at reasonable times and upon reasonable notice for inspection by the
beneficiazies. My Trustee is not required to furnish any information regarding my trust to
anyone other, than a beneficiary. My Trustee may exclude any information that my
Trustee determines is not directly applicable to the beneficiary receiving the information.
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Section 8.08 Authority to Merge or Sever Trusts
My Trustee may merge and consolidate a trust created under this agreement with any
other trust, if the two trusts contain substantially the same terms for the same
beneficiaries 2nd at least one Trustee in common.
My Trustee may sever any trust on a fractional basis into two or more sepazate and
identical trusts or may segregate a specific amount or asset from the trust property by
allocation to a sepazate account or trust. My Trustee shall hold and administer each
sepazate trust upon terms and conditions substantially identical to those of the trust from
which it was severed.
Section 8.09 Certificate by Trustee
A written statiement of my Trustee may always be relied upon by, and shall always be
conclusive evjdence in favor of, any transfer agent or any other person dealing in good
faith with my Trustee in reliance upon the statement.
Section 8.10 Generation-Skipping Transfer Tax Provisions
Notwithstandip~g any other provision of this agreement to the contrazy, if a trust created
under this agreement would be partially exempt from generation.-skipping transfer tax
after the intended allocation of a GST exemption to the trust then:
(a) Division into Exempt and Nonexempt Trusts
My Trustee may divide the property of the trust into two separate trusts so
that the allocation of GST exemption can be made to a trust that will be
entirely exempt from generation-skipping transfer tax (the "exempt trust").
The exlempt trust shall consist of the largest fractional share of the total
trust assets that will permit the exempt trust to be entirely exempt from
generation-skipping transfer tax. The "nonexempt trust" shall consist of
the balance of the total trust assets. For purposes of computing the
fractional shaze, asset values as finally determined for federal estate tax
purposts shall be used. The fraction shall be applied to the assets at their
actual value on the effective date or dates of distribution so that the actual
value of the fractional shaze resulting from the application of such fraction
will include fluctuations in the value of the trust property.
(b) Administration of the Trusts
The trusts created under this Section shall have the same terms as the
original trust. To the extent possible, distributions to a non-skip person as
defined by Section 2613 of the Internal Revenue Code shall be made from
a nonexempt trust and distributions to a skip person as defined by Section
2613 shall be made from an exempt trust.
My Trustee shall administer each exempt and nonexempt trust as a
sepazate and independent trust.
Any exiempt or nonexempt trust established under this agreement may be
referred to by the name designated by my Trustee.
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8-3
If an exempt trust and a nonexempt trust are further divided under the
terms of this agreement, my Trustee may allocate property from the
exempt trust first to the trust from which a generation skipping transfer is
more likely to occur.
(c) My Intent; Trust Additions
My intent is to minimize the application of the generation-skipping
transfer tax to the trust property but not to affect the total amount of trust
property to which any beneficiary may be entitled under this agreement.
This agreement shall be so construed and interpreted to give effect to this
intent.
If at any time any property that has an inclusion ratio greater than zero for
generation-skipping transfer tax purposes would be added to a trust with
property that has an inclusion ratio of zero, then my Trustee shall instead
hold such property in a separate trust on the same terms and conditions as
the or¢ginal trust.
Section 8.1'1 Grantor Trust Provisions
I intend that this trust be a grantor trust for federal income tax purposes for those periods
of time during which I or any other person holds one or more of the powers described in
Sections 6711679 of the Internal Revenue Code, the effect of which is that I will be taxed
on the income of my trust. To carry out this intent, the following provisions apply to the
administration of my trust.
(a) Power to Add Charities as Beneficiaries
Whila I am living, the Trust Protector may add beneficiaries to this trust
by designating any charitable organization described in Section 170 of the
Interc~al Revenue Code as an additional beneficiary of the net income or
prince al of the trust. Afrer designating any additional charitable
beneft~ciary, my Trustee may, but is not required to, distribute net income
or principal to the additional charitable beneficiary, in amounts and
proportions determined by my Trustee.
(b) Nonfiduciary Capacity
The powers described in this Section aze exercisable solely in a
nonfiduciary capacity without approval or consent of any person acting in
a fiduciary capacity. No claim for breach of fiduciary duty may be
imposed upon my Trust Protector, my Trustee or any other person as a
result of the exercise or nonexercise of the powers granted under this
Section.
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8-4
Article Nine
My Trustee's Powers
Section 9.01 Introduction to Trustee's Powers
Except as otherwise specifically provided in this agreement, my Trustee may exercise,
without prior approval from any court, all the powers conferred by this agreement and
any other powers conferred by law, including, without limitation, those powers set forth
under the common law or statutory law of Pennsylvania or any other jurisdiction whose
law applies to this trust. The powers set forth in Pennsylvania law related to fiduciary
powers aze specifically incorporated into this trust agreement. 'The powers conferred
upon my Trustee by law, including those powers conferred by Pennsylvania law related
to fiduciary powers, shall be subject to any express limitations or contrazy directions
contained in this agreement.
The Trustee o;f a trust may have duties and responsibilities in addition to those described
in this agreement. I encourage my Trustee to obtain appropriate legal advice if my
Trustee has any questions concerning its duties and responsibilities as Trustee.
Section 9.02 Investment Powers in General
My Trustee may invest in any type of investment that my Trustee determines is consistent
with the investment goals of my trust, whether inside or outside the geographic borders of
,~.:A the United Stites of America and its possessions or territories, taking into account my
trust s overall' investment portfolio. My Trustee may delegate its discretion to manage
trust investments to any registered investment adviser or corporate fiduciary.
Section 9.03 Business Powers
My Trustee is authorized to serve as an officer, director, manager, or in any other
capacity of an~ proprietorship, partnership, joint venture, corporation, or other enterprise
in which the must has an interest. My Trustee may receive compensation for services.
If' any trust crated under this agreement is funded with subchapter S stock, my Trustee
may either elect to qualify the trust as a qualified subchapter S trust ("QSST") under
Section 1361(4)(3) of the Internal Revenue Code or as an electing small business trust
under Section 1361(e)(1) to administer the trust in accordance with the requirements of
the corresponding Section.
Section 9.04 Insurance Powers
My Trustee may purchase, accept, hold, and deal with as owner, policies of insurance on
my life, the life of any beneficiazy, or on the life of any person in whom any beneficiary
has an insurable interest. It is my intent that life insurance policies be considered proper
investments of, trust principal.
My Trustee may purchase disability, medical, liability, long-term health caze and other
insurance on biehalf of and for the benefit of any beneficiazy. My 'Crustee may purchase
annuities and s~milaz investments for any beneficiazy.
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9-5
The provisions of this Section shall supersede the principles of general trust law with
respect to my Trustee's duties and obligations relating to any life insurance policies
owned or acquired by my trust.
Section 9.05 No Loans to Me
My Trustee may not make loans of any type to me at any time.
Section 9.06 Limitation on My Trustee's Powers
All powers granted to my Trustee under this agreement or by applicable law shall be
limited as set forth in this Section, unless explicitly excepted by reference to this Section.
(a) No Distributions in Discharge of Certain Legal
Obligations
My Trustee may not exercise or participate in the exercise of discretion
with respect to the distribution of income or principal that would in any
manner dischazge a legal obligation of my Trustee, including the
obligajtion of support.
If a beneficiary or any other person has the power to remove a Trustee,
that Trustee may not exercise or participate in the exercise of discretion
with respect to the distribution of income or principal that would in any
manner dischazge a legal obligation of the person having the power to
remove my Trustee, including that person's obligation of support.
~_:^
~:;~>, ,
'a~;-
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9-6
Article Ten
General Provisions
Section 10.01 Maximum Term for Trusts
Pursuant to Pennsylvania law, the rule against perpetuities does not apply to .any trust
created under this agreement. However, if for any reason the Wile against perpetuities
does apply, then this Section controls the maximum term for trusts.
Notwithstanding any other provision of this agreement to the a~ntrary (except for the
preceding pa>tagraph), unless terminated eazlier under other provisions of this agreement,
each trust crejated under this agreement shall terminate upon the expiration of the longest
period that property may be held in trust under this agreement: without violating the
applicable ru)e against perpetuities.
If the maxirrmm term for trusts under the applicable rule against perpetuities is
determined by reference to the death of the last to die among a group of individuals, the
group of individuals shall consist of the descendants of my matema] and paternal
I,~andpazents, who aze alive at the relevant time.
At that time, the remaining trust property shall vest in and be distributed to the persons
then entitled to receive mandatory distributions of net income of the trust and in the same
proportions tp which they aze entitled to receive the net income. If no beneficiary is
entitled to receive mandatory distributions of net income, then the remaining trust
::;~' property shalil vest in and be distributed to the beneficiaries then entitled to receive
discretionary'distributions of net income of the trust, in equal shares.
Section 10.02 Spendthrift Provision
Neither the ittcome nor the principal of any trust created under this agreement may be
assigned, antycipated, encumbered, alienated, or otherwise voluntazily transferred in any
manner by aqy beneficiary. In addition, neither the income nor the principal of any trust
created unded this agreement is subject to attachment, bankruptcy proceedings or any
other legal pYocess, to the interference or control of creditors ar others, or otherwise
subject to any involuntary transfer.
This section does not restrict a beneficiary's right to disclaim any interest or the exercise
of any power of appointment granted in this agreement.
Section 10.b3 Contest Provision
If, after receiving a copy of this Section, any person, in any manner, directly or indirectly,
attempts to cdntest or oppose the validity of this agreement, (including any amendment to
this agreemert), or commences, continues, or prosecutes any legal proceeding to set this
agreement aside, then such person shall forfeit his or her shaze, cease to have any right or
interest in the property, and shall, for purposes of this agreement be deemed to have
predeceased me.
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Section 10.04 Changing the Governing Law and Situs of Administration
DQy Trust Protector may, at any time, change the governing law of the trust, remove all or
any part of the property or the situs of administration of the trust from one jurisdiction to
another, or both. My Trust Protector may elect, by filing an instrument with the trust
records, that the trust will thereafter be construed, regulated and governed as to
administration by the laws of the new jurisdiction. My Trust Protector may take action
under this Section for any purpose my Trust Protector deems appropriate, including the
minimization of any taxes in respect of the trust or any beneficiary of such trust, and may
do so with or without providing notice to any beneficiary.
If necessazy, or if deemed advisable by my Trust Protector, my Trust Protector will
appoint an Independent Trustee to serve as trustee in the new situs.
If necessary, and if my Trust Protector does not appoint an Independent Trustee within 30
days of my Trust Protector's action to change the governing law or situs of the trust, the
beneficiaries entitled to receive distributions of net income under the trust may, by
majority consent, appoint a corporate fiduciary in the new situs. If a beneficiary is a
minor or is irucapacitated, the parent or legal representative of the beneficiary may act on
behalf of the beneficiazy.
Section 10.05 Definitions
For purposes of this agreement, the following terms have the following meanings:
(a) Adopted and Afterborn Persons
A legally adopted person in any generation and his or her descendants,
including adopted descendants, has the same rights and shall be treated in
the same manner under this agreement as natural children of the adopting
parent, provided such person is legally adopted prior to attaining the age
of 18 years. A person is deemed to be legally adopted if the adoption was
legal ip the jurisdiction in which it occurred at the time that it occurred.
A fetus in utero that is later born alive shall be considered a person in
being during the period of gestation.
(b) Agreement
The term "this agreement" means this trust agreement and includes all
trusts created under the terms of this trust agreement.
(c) Available GST Exemption
An individual's "available GST Exemption" means the (iST exemption
provided in Section 2631 of the Internal Revenue Code in effect at the
time reduced by the aggregate of:
(i) the amount, if any, of GST exemption allocated to lifetime
transfers; and
Betty V. Naugle Irrevocable Trust
10-2
(ii) the amount, if any, of allocations of GST exemption made or
deemed made to transfers other than allocations to transfers
under this agreement.
If, at the time, the individual has made a gift with an inclusion ratio of
greater than zero but has not filed a gift tax retum and the due date for the
gift tax return has not yet passed, that individual's GST exemption is
deemed to have been allocated to this gift to the extent necessary and
possible to exempt the gift from generation-skipping transfer tax.
(d) Descendants
The tejrm "descendants" means the lineal descendants of all. generations of
the id$ntified person.
(e) Education
The term "education" is intended to be an ascertainable standazd in
accordance with Section 2041 and Section 2514 of the Internal Revenue
Code end includes, but is not limited to:
(i) enrollment at private elementary, junior and senior high school
including boazding school;
(ii) undergraduate and graduate study in any field at a college or
university;
~~ (iii) specialized, vocational or professional training or instruction at
"'~`'' any institution, including private instruction; and
(iv) any other curriculum or activity that my Trustee may deem
useful for developing the abilities and interests of a beneficiary
including, without limitation, atliletic training, musical
instruction, theatrical training, the arts and travel.
The term "education" also includes distributions made by my Trustee for
expenses such as tuition, room and boazd, fees, books and supplies,
tutoring, transportation, and a reasonable allowance for living expenses.
(17 Grantor
The term "Grantor" has the same legal meaning as "Settlor," "Trustor,"
"Trustknaker," or any other term referring to the maker of a trust.
(g) Incapacity
Except as otherwise provided in this agreement, a person is deemed
incapaicitated in any one of the following circumstances.
(1) The Opinion of Two Licensed Physicians
An individual is deemed incapacitated whenever, in the
opinion of two licensed physicians, the individual is unable
to effectively manage his or her property or fnnancial
affairs, whether as a result of age, illness, use of
Betty V. Naugle Irrevocable Trust
10-3
prescription medications, drugs or other substances, or any
other cause.
An individual is deemed restored to capacity whenever the
individual's personal or attending physician provides a
written opinion that the individual is able to effectively
manage his or her property and financial affairs.
(2) Court Determination
An individual is deemed incapacitated if a court of
competent jurisdiction has declazed the individual to be
disabled, incompetent or legally incapacitated.
(3) Disappearance, Absence, or Detention
An individual is deemed incapacitated whenever, in my
Trustee's sole and absolute discretion, he or she cannot
effectively manage his or her property or financial affairs
due to disappeazance, absence, or detention (including
incazceration).
A person's disappeazance, absence, or detention (including
incarceration),. may be established by an affidavit of my
Trustee describing the relevant circumstances. A third
party dealing in good faith with my Trustee may rely on the
y~g;~; affidavit as conclusive evidence of incapacity.
(h) Income Beneficiary
The term "income beneficiary" means any beneficiary wha is then entitled
to receive distributions of the net income of the trust, whether mandatory
or discretionary.
(i) Independent Trustee
The term "Independent Trustee" means a Trustee who is not an Interested
Trustee as defined in subsection (j). Whenever a power is granted
exclusively to an Independent Trustee or the phrase "other than an
Interested Trustee" is used (or similar prohibitive language), then the
power or discretion may be exercised only by an Independent Trustee.
(j) Interested Trustee
The term "Interested Trustee" means a Trustee who (1) is a transferor or
beneficiary; (2) is related or subordinate to a transferor or beneficiary;
(3) cam be removed and replaced by a transferor with either the transferor
or a party who is related or subordinate to the transferor; or (4) can be
removed and replaced by a beneficiazy with either the beneficiazy or a
party who is related or subordinate to the beneficiary.
For purposes of this subsection, (1) "transferor" means a person who
transferred property to the trust, including a person whose disclaimer
Betty V. Naugle Irrevocable Trust
10-4
resulted in property passing to the trust; (2) "beneficiary" means a person
- who is or in the future may be eligible to receive income or principal from
the trust pursuant to the terms of the trust, even if such person has only a
remote contingent remainder interest in the trust, but not if the person's
only interest is as a potential appointee under a power of appointment; and
(3) "related or subordinate" means related or subordinate within the
meaning of Section 672(c) of the Internal Revenue Code.
(k) Lifetime Beneficiary or Lifetime Beneficiaries
The term "lifetime beneficiary" or "lifetime beneficiaries" means those
individuals that are identified in Section 1.06 and provided for in Article
Three.
(I) Per Stirpes
Whenever a distribution is to be made to a person's descendants "per
stirpes," the distribution will be divided into as many shares as there aze
then living children of the person and deceased children of'the person who
left then living descendants. Each then living child will receive one shaze
and the shaze of each deceased child will be divided among such child's
descendants in the same manner.
(m) Primary Beneficiary
The primary beneficiary of a trust created under this agreement is the
oldest income beneficiary of that trust unless some other individual is
specifically designated as the primary beneficiary of that sepazate trust.
(n) Supplemental Needs Person
The term "Supplemental Needs Person" means a person who:
(i) is disabled; or
(ii) is receiving, or is eligible to receive, assistance or other benefits
under ameans-based government program (such as, Medicaid or
Supplemental Security Income).
As used above, the term "disabled" means disabled as defined in United
States Code Title 42, Section 1382c(a)(3), or under Pennsylvania law
related to means-based government programs.
As used above, the term "assistance" means assistance or medical
assistance as defined in United States Code Title 42, Section 1396d(a), or
under Pennsylvania law related to means-based government programs.
(o) Trust
The terms "trust," "my trust," "this trust," "this agreement," and similaz
terms refer to this agreement and all trusts created under the terms of this
agreement.
Betty V. Naugle Irrevocable Trust
10-5
(p) Trustee
The terms "Trustee" and "my Trustee" refer to the Trustees named in
Article One, entitled "Establishing My Trust," and to any successor,
substikute, replacement, or additional person, corporation or other entity
that is from time to time acting as the Trustee of any trust created under
the teems of this agreement. The term "Trustee" refers to singulaz or
plural) as the context may require.
(q) 'Trust Estate and Trust Property
The t rms "trust estate" and "trust property" mean all property (income
and p incipal) held by my Trustee under this agreement, including all
prope y that my Trustee may acquire from any source.
Section 10.Q6 General Provisions and Rules of Construction
The followin~ general provisions and rules of construction apply to this agreement:
(a) I, Singular and Plural; Gender
Unles the context requires otherwise, words denoting the singular may be
const ed as plural and words of the plural may be constned as denoting
the si gular. Words of one gender may be construed as denoting another
gende as is appropriate within the context.
(b) I Headings of Articles, Sections, and Subsections
The eadings of Articles, Sections, and subsections used within this
agree ent are included solely for the convenience and reference of the
reader They have no significance in the interpretation or construction of
this a reement.
(c) Governing Law
Unles the Situs of Administration is changed as proviiied in Section
10.04, Pennsylvania law governs the validity and construction of this
(d)
The
not
I have e
Trust Ai
Trustee.
Severability
lity or unenforceability of any provision of this agreement shall
the validity or enforceability of any other provision of this
this agreement on the day and yeaz first above written. This Irrevocable
t shall be effective when signed by me, whether or not now signed by my
Betty V. Naugle Irrevocable Trust
10-6
T certify that I have read this Irrevocable Trust Agreement, that I understand it, and that it
correctly states the provisions under which my trust property is to be administered and
distributed by my Trustee.
~y ~
Bet .Naugle, Grantor
William R. Naugle, III, Trust ~
COMMONWEALTH OF PENNSYLVANIA )
LL ) ss.
COUNTY Oak CUMBERLAND )
On this day, November 5, 2009, before me personally appeaze~i Betty V. Naugle and
William R. Naugle, III, personally known to me (or proved to me on the basis of
satisfactory ~vidence) to be the individuals whose names are subscribed to the foregoing
instrument, g4nd acknowledged that they executed the same as their voluntary act and
deed for the urposestherein contained.
Witness my and and official seal.
[Seale
~--'"
`"~~
Notazy Public
COMMONWE THOFPENNSYLVAMA
NO'lARIALSEAL My commission expires: _
Aaron C. J knon, Notnry Public
UpperAllenT ehip,CumberlnndCounty
Betty V. Naugle Irrevocable Trust
10-7
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~~ ~:
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'Cen Dollars "ash
Schedule A
Betty V. Naugle Irrevocable Trust
A-1