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HomeMy WebLinkAbout12-07-12Anthony L. DeLuca, Esquire PA Supreme Court ID No. 1$067 113 Front Street Boiling Springs, PA 17007 Ph: (717) 258-6844 IN RE: KATHLEEN M. KNISELY, IN THE COURT OF COMMON PLEAS OF an incapacitated person CUMBERLAND COUNTY, PENNSYLVANIA, ORPHANS' COURT DIVISION N0.21-12-946 PETITION SEEHING CLARIFICATION OF SCOPE OF GUARDIANSHIP POWERS AND RE VESTING THE COURT TO SUBSTITUTE ITS JUDGMENT FOR THAT OF THE INCAPACITATED PERSON PURSUANT TO 20 Pa C.S. ~5536(b) The Petitioners, James G. Knisely and Barbara Lynn Knisely, in their capacities as co- guardians of the person of Kathleen M. Knisely, an incapacitated individual, ("Mrs. Knisely"), and Bryn Mawr Trust Company ("BMTC")' plenary guardian of the Estate of Mrs. Knisely, r.~ jointly file this Petition Seeking Clarification of Scope of Guardianship Pourers and R~rest~~ 3"~ p G~7~ the Court to Substitute its Judgment for that of the Incapacitated Person Pz,~z~i~o 2~a. 7a ~5536(b), as follows: ~ ~ ~ ~ ~, ~ Procedural Background ~ c ~'~ _.W ~-~ ~ c,~ ~ ~~ 1. Petitioner James G. Knisely initiated the above-captioned pr~eeding o~ug'4i~t°Tj 31, 2012 with the filing of an Emergency Petition to Adjudicate Incapacitated and Appoint Temporary Guardian of the Person and Estate seeking, inter alia, an emergency adjudication I James G. Knisely, Barbara Lynn Knisely, and BMTC are collectively referred to herein as the "Petitioners:' 1 r ~ t t that Mrs. Knisely is an incapacitated individual and appointing a guardian over Mrs. Knisely's person and estate. 2. The Court held an initial hearing on August 31, 2012 before the Honorable Edward E. Guido at which time the emergency relief requested was denied. 3. On October 4, 2012, Mrs. Knisely's son, James G. Knisely, filed a Petition for Appointment of Permanent Plenary Guardians of the Person and Estate seeking, inter alia, an adjudication that Mrs. Knisely is an incapacitated person and an appointment of permanent, plenary guardians over Mrs. Knisely's person and estate. 4. The Court held a hearing on October 26, 2012. At the conclusion of the October 26, 2012 proceedings, the Court issued an Order vacating its denial of the emergency request for appointment of guardians and appointing James G. Knisely and Barbara Lynn Knisely as temporary co-guardians of Mrs. Knisely's person. BMTC was appointed as temporary guardian over Mrs. Knisely's estate. The October 26, 2012 Order further scheduled a hearing to be held on November l 5, 2012 to determine whether these guardianship appointments should be made permanent. 5. Mark Bayley, Esquire was appointed to represent Mrs. Knisely. 6. After hearing, on November 15, 2012, the Court found that Mrs. Knisely was indeed an incapacitated person and appointed James G. Knisely and Barbara Lynn Knisely as co- guardians over Mrs. Knisely's person. BMTC was appointed as permanent, plenary guardian of Mrs. Knisely's Estate. Personal Background 7. Mrs. Knisely is 79 years old. 2 8. Mrs. Knisely has five adult children. The names anal addresses of Mrs. Knisely's children are as follows: (a) Samuel Scott Knisely- son 135 Harmon Avenue -Unit 3705 Las Vegas, NV 89109 or P.O. Box 19448 Las Vegas, NV 89132 or 897 Creek Crossing Trail Whitsett, NC 27377 (b) Lee Ann Knisely Cast -daughter 485 Front Street Louisville CO 80027 (c) Barbara Lynn Knisely, M.D. -daughter 3501 Sunset Drive Madison, WI 53705 (d) James Grant Knisely -son 3822 Parmey Drive Mechanicsburg, PA 17050 (e) Kathleen L. Knisely -daughter 9008 Avis Court Vienna, VA 22182 9. Mrs. Knisely is a widow having been predeceased by her husband, Samuel W. Knisely ("Dr. Knisely") on August 18, 1983. 10. T'he events leading up to the Petition for the appointment of guardians are set forth in detail in the August 30, 2012 and the October 4, 2012 Petitions. 3 • ~ ~ 1 ~ t 11. Among the primary concerns was Mrs. Knisely's abduction by her eldest son, Samuel Scott Knisely ("Scott"), in August of 2012 and Scott's attempts to access Mrs. Knisely's finances. 12. The Petitioners submit that in or about January of this yeaz (2012), Mrs. Knisely discovered that Scott had taken approximately $850,000.00 from Mrs. Knisely's funds using his Power of Attorney. 13. Scott suffers from his own mental problems and as a result has not consistently maintained employment since approximately 2002. 14. Without access to his mother's funds it is believed that Scott has become erratic and desperate. He has threatened at various times to remove Mrs. Knisely from her Wormleysburg home and take her to another state, as he did in August of 2012. Mrs. Knisely's Financial Situation Assets 15. As of the date of this Petition, Mrs. Knisely's estate consists of the following: a. Investment Account at Janney Montgomery Scott, LLC with a value of $8,038,204.55; b. Individual Retirement Account at Janney Montgomery Scott, LLC with a value of $92,854.50; c. Stock in Cazlisle Corp, with a share value of $227,320.00; d. Met Life Annuity with a face value of $340,000.00; e. Bank account maintained at M&T Bank with a balance of $4,458.64 (as of November 16, 2012) f. Bank account maintained at M&T Bank with a balance of $42,Ob7.49 (as of December 4, 2012); g. Bank account maintained at Sun Trust Bank with a balance of $839,189.49 (as of November 28, 2012); and 4 ~ i . t I ~ h. Bank account maintained at Sun Trust Bank with a balance of $42,033.22 (as of December 5, 2012). 16. In addition to the foregoing, Mrs. Knisely is the income beneficiary of a trust established by Dr. Knisely by Trust Agreement dated May 25, 1971, as amended January 3, 1978 and January 21, 1982. The Samuel W. Knisely Trust is maintained at Mellon Bank and as of September 1, 2012 had an account balance of $2,001,665.92. 17. Mrs. Knisely resides at 23 West Lawn Circle, Wormleysburg, PA, 17043 (the "Residence") 18. The Residence is owned by the Kathleen M. Knisely Qualified Personal Residence Trust ("QPRT") pursuant to a Trust Agreement dated June 5, 2012. Mrs. Knisely's daughter, Kathleen L. Knisely is the Trustee of the QPRT. Pursuant to the terms of the QPRT Agreement, Mrs. Knisely retained the right to live at the Residence for a period of ten (10) years. Income 19. Mrs. Knisely receives income from the following sources in approximately the following amounts: SOURCE MONTHLY ANNUALLY Bryn Mawr Trust Co. Investment Account $13,333 $160,000 Samuel Knisel Trust 1000 12,000 Social Securi 1355 16,260 Less: 25% of BMTC Fees Allocated to Income (1219) (14,625) Estimated Net Income. Total 14,469 173,635 5 Liabilities 20. Mrs. Knisely is responsible for the maintenance, improvements, real estate taxes, insurance, utilities, etc. on the Residence as well as personal expenses, which include the following in the following estimated amounts: EXPENSE MONTHLY ANNUAL UTILITIES, ETC. PPL Electric 100 $1200 Water 25 300 Gas/Oil 216 2584 Comcast Cable 115 1380 TOTAL UTILITIES, ETC. 456 5464 MEDICAL EXPENSES Doctors 40 480 Prescri tions 250 3000 Health Insurance 450 5400 Misc. Medical 200 2400 TOTAL MEDICAL 940 11,280 HOUSEHOLD/NIISC. EXPENSES Groceries/Food 1000 12,000 Clothin ntertainment 3500 42,000 Lawn Caze 2500 30,000 Life Insurance Premium 7167 86,000 Coun Club Dues 500 6000 Securi 7583 91,000 Care fivers 3500 42,000 TOTAL HOUSEHOLD, MISC 25,750 309,000 ANNUAL EXPENSES Federal Income Taxes 30,400 PA Income Taxes 6,600 Tax re aration 2700 Real Estate Taxes 6,101.95 75% of BMTC Fees Allocated to Princi al 43,875 Homeowner's Insurance 1181 Auto insurance 1263 6 TOTAL ANNUAL 92,120.95 EXPENSES TOTAL ALL 27,146 417,864.96 EXPENSES Request for Clarification of Order of Incapacity 21. 'The Court's order dated November 15, 2012 appoints BMTC as permanent and plenary guardian over Mrs. Knisely's estate. 22. The Court's November 1 S, 2012 appoints James G. Knisely and Barbara Lynn Knisely as co-guardians over Mrs. Knisely's person without stating whether the appointment is plenary or limited. 23. The Petitioners believe that clarification of the scope of James G. Knisely and Barbara Lynn Knisely's co-guardianship is necessary and that a finding of total incapacity warranting permanent, plenary guardians over Mrs. Knisely's person, is warranted under the circumstances. 24. Accordingly, the Petitioners respectfully request that the Court amend its Order dated November 15, 2012 to clarify that Mrs. Knisely is a totally incapacitated person and that James G. Knisely and Barbara Lynn Knisely are the permanent, plenary guardians of Mrs. Knisely's person. Request for Protective Order 25. In order for the Petitioners to effectively caze for Mrs. Knisely'sweh-being, it is crucial that they maintain access to her person. 26. Given the erratic behavior and threats referenced above, the Petitioners contend that it is vital that a protective order be issued directing as follows: 7 a. that Mrs. Knisely shall not be removed from the Commonwealth or any other location where she might be without advance notice of no less than 48 hours to the co-guardians of Mrs. Knisely's person and/or written consent of one or both of the co-guardians, James G. Knisely and Bazbaza Lynn Knisely. b. Scott shall notify both of the co-guardians of Mrs. Knisely's person at least 48 hours prior to any visitation with Mrs. Knisely. c. visitation with Scott, outside of Pennsylvania, shall be as agreed upon and set forth in writing between Scott and one or more of James G. Knisely and/or Bazbaza Lynn Knisely. d. visitation with Scott, inside of Pennsylvania, shall be at a neutral and agreed upon location and shall be supervised by a party to be determined by one or both of the co-guardians of Mrs. Knisely's person. e. during any visitations between Scott and Mrs. Knisely, and the co- guazdians of Mrs. Knisely's person, Mrs. Knisely's other children, grandchildren, relatives, and friends shall have access to Mrs. Knisely by telephone or other means. f. during any visitations between Scott and Mrs. Knisely, Scott shall be responsible for making sure that Mrs. Knisely has an operable cellulaz telephone on her person at all times. g. Scott is prohibited from blocking anyone's access to Mrs. Knisely, in person or by telephone. h. Scott shall not reside with Mrs. Knisely at the Residence. Request for Approval of Maintenance of Personal Checking Account 27. Mrs. Knisely maintains personal bank accounts from which she historically paid general living expenses by herself. 28. Petitioners believe Mrs. Knisely is capable of and should be permitted to maintain a modest balance in a personal checking account to be used by Mrs. Knisely, personally, for the payment of general living expenses, entertainment, etc. 29. BMTC requests court approval to continue allowing Mrs. Knisely to maintain a small checking account and to make discretionary deposits into said bank account. 8 Request for Approval of Principal Expenditures to be used to Renovate Residence 30. As set forth above, Mrs. Knisely resides in the Residence which is owned by the QPRT and retained the right to do so for a period often (10) years, which will expire in 2022. 31. While Mrs. Knisely is not required to pay rent, she is responsible for the maintenance of the Residence, as well as any renovations required by her. 32. Mrs. Knisely lives at the residence alone. 33. The Residence was built in or about 1962. 34. The Residence has not seen any substantial renovations since approximately 1992. 35. In order to make the Residence secure, more comfortable, and more convenient for Mrs. Knisely, given her advanced age and mobile limitations, the Petitioners believe that renovations are both necessary and will increase Mrs. Knisely's quality of life: 36. 'i'he renovations Petitioners propose to undertake include the following at the following estimated costs: DESCRIPTION OF EXPENSE ESTIMATED COST Security system $15,000 Replacement Windows 18,000 Bathroom renovation 40,000 Second Bathroom renovation 17,000 Kitchen renovation 60,000 Bookcase 2500 9 Mold removal 10,000 'I'~T~ 162,500 37. Pursuant to 20 Pa. C.S. §5536, the Court may, for cause shown, authorize the application of principal if any or all of an incapacitated person's income or principal of the estate for the care and maintenance of the incapacitated person 38. The Petitioners request the Court to authorize the distribution of an amount not to exceed $180,000 for the foregoing renovations as well as any additional, unforeseen expenses that may be necessary to complete said renovations. Request for Court to Substitute its Judgment for that of Mrs Knise~ pursuant to 20 Pa. C.S. §5536 39. The late Dr. Knisely and Mrs. Knisely have been long-standing clients of Howell C. Mette, Esquire ("Attorney Mette") and the law firm of Mette, Evans & Woodside. Mr. Mette and his firm have prepared various estate planning documents for Dr. and Mrs. Knisely over the yeazs. 40. In or about January of 2012, Mrs. Knisely made an appointment with Attorney Mette for the purpose of updating her Last Will and Testament. A true and correct copy of the February 3, 2012 Last Will and Testament is attached hereto as Exhibit `A' and made a part hereof by reference. 41. Mrs. Knisely subsequently returned to Mette, Evans & Woodside seeking additional estate and gift planning advice. In connection therewith, Attorney Mette created a slightly modified Last Will and Testament dated April 18, 2012. A true and correct copy of the 10 April 18, 2012 Last Will and Testament is attached hereto as Exhibit `B' and made a part hereof by reference. 42. Mrs. Knisely's goals in creating an estate plan, as expressed to her attorneys at Mette, Evans & Woodside, were to plan for the pre-death and post-death transfers of her assets to her children in as close to equal shares as possible giving due consideration to gifts previously made to Mrs. Knisely's son, Samuel Scott Knisely, and to minimize state and federal death tax liabilities. 43. Mrs. Knisely became incapacitated before she finalized her proposed revisions to her estate plan. 44. The United States Internal Revenue Service imposes estate, gift, and generation- skipping (GST} taxes on transfers of property at death (estate tax), during life (gift tax), and on transfers that skip a generation (GST taxes). 45. With an estate approaching $10 million, Mrs. Knisely's estate will likely be subject to estate tax. 46. The U.S. Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107- 16) ("EGTRRA") prospectively repealed the estate and GST taxes for the estates of decedent's dying after December 31, 2049, See 26 U.S.C. §2210(a), as amended by EGTRRA, while retaining the gift tax in a modified form. 47. EGT'RRA increased the amount excluded from federal transfer taxes, commonly known as the unified credit, to $1 nullion for the years 2002 and 2003. 48. Beginning in 2004, the gift tax exclusion remained at $1 million while the estate tax exclusion gradually increased from 2004 unti12009 when it reached $3.5 million. 11 49. These increases in the exclusion amount were accompanied by significant decreases in the top mazginal tax rates applicable to estate and gift transfer taxes from 55% to 35%. 50. The transfer tax benefits in the form of the increased exchsion amount from $1 million to $3.5 million estate taxes of EGTRRA were scheduled to expire on December 31, 2010 and thereafter return to a $1 million exclusion for both Gift Tax and Estate Tax purposes. 51. However, Congress passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (P.L. 111-312) ("Tax Relief Act of 2010") which further increased the exclusion amount to $5 million and decreased the tax rates applicable to such transfers. 52. Absent further legislation, the EGTRRA and Tax Relief Act of 2010 provisions are scheduled to "sunset" for estates of decedents dying, gifts made, or GSTs made after December 31, 2012. As a result, Internal Revenue Code provisions governing estate, gift and GST taxes in effect prior to EGTRRA's 2001-changes will spring back into life in 2013. The exclusion amount will revert back from $5 million to $1 million for both estate and gift tax purposes and the maximum rate of taxation will increase from 35% to 55%. 53. The sunset provisions in EGTRRA and the Tax Relief Act of 2010 will re"salt in faz less favorable tax consequences to those with sizable estates, including Mrs. Knisely. 54. During their discussions with Mrs. Knisely in early 2012, Attorney Mette and Attorney Jeffrey A. Ernico ("Attorney Ernico"), also of the law firm of Mette, Evans & Woodside, advised Mrs. Knisely of available options for effectuating the goals identified by Mrs. ~-- 12 Knisely with respect to her estate plan in light of the anticipated changes in the tax law which are expected to take effect January 1, 2013. 55. Among the various options discussed was the possible usage of Grantor Retained Annuity Trusts. 56. After multiple discussions, Mrs. Knisely instructed, Attorney Ernico to draft four (4) Grantor Retained Annuity Trusts. 57. The remainder beneficiaries of the four (4) Grantor Retained Annuity Trusts are four (4) of Mrs. Knisely's five (5) adult children, namely Lee Ann Knisely, Barbara Lynn Knisely, James Grant Knisely, and Kathleen L. Knisely. 58. In accordance with Mrs. Knisely's instructions, Mrs. Knisely's fifth adult child, Samuel Scott Knisely, was not identified as a remainder beneficiary of the proposed Grantor Retained Annuity Trusts as a result of prior, lifetime transfers of assets obtained by Samuel Scott Knisely from Mrs. Knisely. 59. It was intended that Mrs. Knisely's Grantor Retained Annuity Trusts be funded on or before December 31, 2012 in order to permit Mrs. Knisely to take advantage of the increased exclusion amount of $5,120,000 for lifetime gifts and the decreased gift tax rates currently in effect. 60. Mrs. Knisely was declared incapacitated before she completed her proposed gift planning. 61. Section 5536(b) of the PEF Code provides a mechanism pursuant to which an incapacitated person's estate planning can be performed after the individual has been declared incapacitated. 13 62. Section 5536(b) provides, in relevant part, as follows: (b) Estate plan.--The court, upon petition and with notice to all parties in interest and for good cause shown, shall have the power to substitute its judgment for that of the incapacitated person with respect to the estate and affairs of the incapacitated person for the benefit of the incapacitated person, his family, members of his household, his friends and charities in which he was interested. This power shall include, but is not limited to, the power to: (1) Make gifts, outright or in trust. (2) Convey, release or disclaim his contingent and expectant interests in property, including marital property rights and any right of survivorship incident to joint tenancy or tenancy by the entirety (3) Release or disclaim his powers as trustee, personal representative, custodian for minors, or guardian. (4) Exercise, release or disclaim his powers as donee of a power of appointment. (5) Enter into contracts. (6) Create for the benefit of the incapacitated person or others, revocable or irrevocable trusts of his property which may extend beyond his disability or life. (7) Exercise options of the incapacitated person to purchase or exchange securities or other property. (8) Exercise all rights and privileges under life insurance policies, annuity contracts or other plans or contractual arrangements providing for payments to the incapacitated person or to others after his death. (9) Exercise his right to claim or disclaim an elective share in the estate of his deceased spouse and renounce any interest by testate or intestate succession or by inter vivos transfer. (10) Change the incapacitated person's residence or domicile. (11) Modify by means of codicil or trust amendment, as the case may be, the terms of the incapacitated person's will or of any revocable trust created by the incapacitated person, as the court may deem advisable in light of changes in applicable tax laws. 14 In the exercise of its judgment for that of the incapacitated person, the court, first being satisfied that assets exist which are not required for the maintenance, support and well-being of the incapacitated person, may adopt a plan of gifts which results in minimizing_current or prospective taxes, or which carries out a lifetime giving pattern. The court in exercising its judgment shall consider the testamentary and inter vivos intentions of the incapacitated person insofar as they can be ascertained. 20 Pa. C.S. §5536(b) (emphasis added). 63. Assets exist in Mrs. Knisely's estate which are not required for the maintenance, support, and well-being of Mrs. Knisely. 64. The Petitioners have identified and are prepared to submit to the Court a potential plan for estate and gift tax savings of in excess of $1.5 million dollars through the usage of certain estate planning vehicles on or before December 31, 2012. 65. In order to take advantage of the more-favorable tax implications of a transfer of assets prior to January 1, 2013, Petitioners request the Court to substitute its judgment for that of Mrs. Knisely pursuant to 20 Pa. C.S. §5536(b) in favor of directing BMTC to execute appropriate gift planning documents and thereafter make taxable gifts in the amount allowed under the available lifetime exclusion as the Court deems appropriate. Concurrence/Consents of Interested Parties 66. Four of Mrs. Knisely's five (5) adult children, Lee Ann Knisely, Barbara Lynn Knisely, James Grant Knisely, and Kathleen L. Knisely consent to the relief requested herein as evidenced by their written consents which are collectively attached hereto as Exhibit `C' and made a part hereof by reference. 67. It is anticipated that Samuel Scott Knisely will not concur in the relief requested herein. 15 68. In order to take advantage of the tax laws in place until December 31, 2012, Petitioners respectfully request that the Court issue a Rule on Samuel Scott Knisely requiring his response within no more than ten (10) days; 69. Mrs. Knisely's appointed attorney, Mazk Bayley, Esquire, consents to the relief requested herein as is evidenced by the written consent attached hereto as Exhibit `D' and made a part hereof by reference. WHEREFORE, Petitioners respectfully request that this Court issue a Rule to Show Cause on Samuel Scott Knisely directing the said Samuel Scott Knisely to show cause within ten days or less, if any he has, why the relief requested in this Petition should not be granted and to thereafter enter an order declaring that Mrs. Knisely is a totally incapacitated person and that James G. Knisely and Bazbaza Lynn Knisely are the permanent, plenary guazdians over her person, addressing Samuel Scott Knisely's interaction with Mrs. Knisely, authorizing the maintenance of a personal checking account by Mrs. Knisely, personally, authorizing BMTC in consultation with the personal guardians to proceed with gift tax planning and to execute such documents as they deem appropriate and is approved by the Court, after hearing, and thereafter to make distributions of principal in accordance therewith. Petitioners further request such other relief as this Court deems just and appropriate under the circumstances. 16 Respectfully submitted, ,~`:;"' By: ` An ony L. De ca, Esquire Sup. Ct. I.D. No. 18607 113 Front Street P.O. Box 358 Boiling Springs, PA 17007 (717) 258-6844 -Phone (717) 258-3902 -Fax Date: December ~, 2012 Attorneys for Petitioners 17 VERIFICATION I, 3AMES G. I~NISELY, have read the foregoing document and verify that the facts set forth herein are true and correct to the best of my knowledge, information and belief. To the extent that the foregoing document and/or its language is that of counsel, I have relied upon counsel in making this Verification. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification 1 DATED: ~ °j 7 t ~ CERTIFICATE OF SERVICE I hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of Pennsylvania Rules of Civil Procedure by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Thomas Flower, Esquire 26 West High Street Cazlisle, PA 17013 Attorney for Samuel Scott Knisely Lee Ann Knisely Cast 485 Front Street Louisville, CO 8002 James Grant Knisely 3822 Pamay Drive Mechanicsburg, PA 17050 Mark F. Bayley, Esquire 17 West South Street Cazlisle, PA 17013 Court appointed attorney for Kathleen M. Knisely Bazbara Lynn Knisely 3501 Sunset Drive Madison WI 53705 Kathleen L. Knisely 9008 Avis Court Vienna, VA 22182 The Bryn Mawr Trust Co. c/o Susan O'Donnell, Esquire Senior Vice Pres. & Trust Advisor Wealth Management Division 10 S. Bryn Mawr Avenue Bryn Mawr, PA 19010 Samuel Scott Knisely- son 135 Harmon Avenue -Unit 3705 Las Vegas, NV 89109 Samuel Scott Knisely 897 Creek Crossing Trail Whitsett, NC 27377 Samuel Scott Knisely P.O. Box 19448 Las Vegas, NV 19448 Respectfully submitted, Date: December ~ , 2012 By: ~ ..u-~.~. Anthony L. DeL Esquire Sup. Ct. I.D. No. 18607 113 Front Street P.O. Box 358 Boiling Springs, PA 17007 (717) 258-6844 -Phone (717) 258-3902 -Fax Attorneys for Petitioners Leo, ~. L~~2 L,~~PN~ .~.®, ~1lleite_Evans ~NooasideyyooDS1D~ bTTORNEVS AT LAW !-lAF2k21513URG, P~n11~tSYl.UAN(A 17110.0950 ...ar _~ No, 0145~~hP, 5~~~ /a 4~...~ anginal Located in Mette, ~va~s & Woodside Safi ~Rosit Box ~,~~~ iXi ~trtd c~~.~#~tmrxt# of ~v~ y j~ `/ z~/2- KATHLEEN M. KNISELY I, KATHLEEN M. KNlSELY, of the Borough of'Wormleysburg, Cumberland County, Pennsylvania, do make, publish anal declare this to be my Last 'W'ill and Testament, hereby revoking all Wills and Codicils by me at any time made. ITEM I: I direct that all inheritance and estate taxes becorni.ng due by reason of my death, whether such taxes may be payable by my estate or by any :recipient of any property, shall be paid by the Executor out of the property passing under ITEM N of this Will, as an e~zpenae and cost of administration of my estate. The Executor shall have no duty or obligation to obtain reimbursement for any such tax so paid, even though on proceeds of insurance or other property not passing under this Will. ITEM II; Y direct the Executor to pay the expenses of my last illness and funeral expenses from the property passing under this Will as an expense and cost of administration of my estate. ITEM I I give and bequeath to my children listed in ITEM IV' living at the time of my death, absolutely and in fee simple, all of my household furniture and furnishings, books, pictures, jewelry, silverware, automobiles, wearing apparel and all other articles of household or personal use or adoxnxaent and all policies of insurance thereon, to be divided among them as they shall agree. EXHIBIT "A" Page 1 Cep, 1. ~Q it ~:?9PfV ivle?te Evans Woodside . No, x,145 P, 6 ITEM N: I give, devise and bequeath all the rest, residue and remainder of my estate, not disposed of in the preceding portions of this Will, to my following named children in equal shares: LEE ANN KNISELY; BARBARA L. KNISELY; JAMES G. KNISELY; and KATHLEEN L. ~1~TISELY. If any of my above-named children is not living at my death, his or her share shall be paid to the then living issue of said deceased child., per stirpes, Provided, however, that if any then living issue of said deceased child has not attained the age of twenty-five (25) years at the time of ray death, his or her share shall be held in trust by my children, KATHLEEN L. KNISELY and JAMES G. KrTISELY, as Trustees (hereinafter collectively referred to a.s "Trustee"), IN TRUST NEVERTHELESS, and shall be administered and distributed as follows: (a) The Trustee shall quarterly pay to or for the benefit of said issue (hereinafter referred to as the "Beneficiary") all of the net income and so much of the principal of said Trust as,'in the discretion of the Trustee, maybe necessary to maintain said Beneficiary in the proper station in life, including proper support, maintenance, medical care anal college ar higher education, (b) Upon the attainment of the age of twenty~five (25) years by the Beneficiary, the Trost shall terminate, and the Trustee shall distribute to the Beneficiary all the assets of the Trust. (c) Should the Beneficiary die before final distribution of the assets of the Trust, but be survived by then living issue, the Trustee shall quarterly pay the net income from said Trust to or for the benefit of said issue, per stirpes, living at each time of quarterly distribution; as soon as any one of said issue attains the age of twenty-one (21) years, Page ~ Dec, 7. 2Ci2 ~,~yP~'~ able±~_e Evans Woodside No, 014 P,, 7 and in no event later than twenty (20) years following the death of the Beneficiary, the Trustee shall pay over all of the then assets in the Trust to the then living issue of such deceased Beneficiary, per stirpes. Should such Beneficiary die before final distribution and not be survived by then living issue, the provisions of subparagraph (d) herein shall obtain. (d) If at any time before final distribution of the assets of any Trust established for issue of a deceased child, there is no living Beneficiary of the Trust, the Trust shall terminate, and its assets shall be paid to my then living issue, per stixpes. Pxovided, the share of any issue of a deceased child for whom a Trust has been established hereunder shall be added to the principal of that Trust, if still in existence. ITEM V; ~ In the settlement of my estate and during the continuance of the foregoing Trusts, the Executor and the Trustee shall possess, among others, the following powers: (a) To retain any investments I may have at my death, including specifically those consisting of stock of a~ bank even if T have named such bank as the Executor or Trustee herein, so long as the Executor or Trustee may deem it advisable to my estate so to do. (b) To vary investments, when deemed desirable by the Executor or Trustee, and to invest in such bonds, stocks, notes, real estate mortgages or other securities or in such othex property, real or personal, as they shall deem wise, without being restricted to so-called "legal investments", and without being limited by any statute or rule of law regarding investments by fiduciaries. (c) In order to effect a division of the principal of a Trust or for any other purpose, including any final distribution of a Trust, the Executor or Trustee is authorised to make said divisions or i Page 3 ~ - Dec. 7. 20'2 ~.~9'N ~~1~erte tvans Woodside No. C14~ P, $ distributions of the personalty and realty, partly or wholly in kind, and to allocate specific assets among beneficiaries and Trusts created hereunder so long as the total market value of any share is not affected by such division, distribution or allocation in kind, Should it appear desirable to partition any real estate, the Executor or Trustee is authorized to make, join in and consummate partitions of lands, voluntarily or involuntarily, including giving of mutual deeds, recognizances or other obligations, with as wide powers as an individual owner in fee simple. (d) To sell either at public or private sale and upon such terms and conditions as the Executor or Trustee may deem advantageous to the estate or Trust, any or all real or personal estate or interest therein owned by the estate or Trust severally or in conjunction with other persons or acquired after my death by the Executor or Trustee, and to consummate said sale or sales by sufficient deeds or other instruments to the purchaser or purchasers, conveying a fee simple title, free and clear of all trust and without obligation or liability of the purchaser or purchasers to see to the application of the purchase money or to make inquiry into the validity of said sale or sales; also, to make, execute, acknowledge and deliver any and all deeds, assignments, options or other writings which maybe necessary or desirable in carrying out any of the powers conferred upon the Executor or Trustee in this paragraph or elsewhere ixi my Will. (e) To mortgage real estate, and to make leases of real estate. (f) To borrow money from any party, including the Executor or Trustee, to pay indebtedness of mine or of my estate, expenses of administration or inheritance, legacy, estate and other taxes, and to assign and pledge assets of my estate therefor. (g) To pay all costs, taxes, expenses an,d charges in connection with the administration of my estate or a Trust. Page 4 ~?e~, 7, 2012 2.~9PM Mette Evans Woodside , No. 0' 45 P. 9 (h) To make distributions of income and of principal to the proper beneficiaries thereof, during the administration of my estate, with or without court order, in such manner and in such amounts ag my E~cecutor deems prudent and appropriate, (i) To vote any shares of stock which form a part of the estate or Trust, and otherwise to exercise all the powers incident to the ownership of such stock. (j) Tn the discretion of the Executor or Trustee, to unite with other owners of similar property in carrying out any plans for the reorganization of any corporation or company whose securities form a part of the estate, (k) To disclaim any interest in property which would devolve to me or my estate by whatever means, including but not limited to the following means: as beneficiary under a will, as an appointee under the exercise of a power of appointment, ag a person entitled to take by intestacy, ae a donee of an inter vivog transfer, and as a donee under a third-party beneficiary contract. (1) To do all other acts in their judgment deemed necessary or desirable for the proper and advantageous management, investment and distribution of the estate or Trust. ITEM VI: Whenever and a.s often as any beneficiary hereunder, to whom payments of income or principal are herein directed to be made, shall be under legal disability, or, in the sole judgment of the Trustee, shall otherwise be unable to apply such payments to his own or her o~vvn best ixiterests and advantages, the Trustee may make all or any portion of such payments in any one or more of the following ways: (a) Directly to such beneficiary; Page 5 Dec. 7. 20i2 2:t~Pf~ Matte tvans Woodside No. C~145 P., 10 , (b) To the Legal Cru.ardian or Conservator of such benefieia:ty; (c) To a relative of such. beneficiary, to be expended by such relative for the benefit o~ such beneficiary; or (d) By itself expending same for the benefit of said beneficiary, ITEIVI VII: Any person who shall have died at the same time as I shall have, or in a common disaster with me, or under such circumstances that the order of our deaths cannot be established by proof, or within thirty (30) days of my death, shall be deemed to have predeceased me. ITEM VIII: I hereby nominate, constitute and appoint KATHLEEN L. KNISELY and JAMES G, KNISELY to be the Executors, herein collectively referred to as "Executor". The Executor and Trustee are specifically relieved from the duty or obligation of filing any bond or other security. I.~T WITNESS WHEREOF, I have set my hand and seal to this, my Last Will and Testament, consisting of this and the preceding five (~) pages, at the end of each page of which I have also set my i i~ial for greater security and better identification this ~,~ day of __~ , 2012. KA HLEEN M. ELY Page 6 Dec, 7. 2C'2 2.~OFM Meti:e Evans Woodside No. 0145 P,. 11 , We, the undersigned, hereby certify that the foregoing Wi11 was signed, sealed, published and declared by the above-named'~'estatrix as and fox her Last'VV'ill and Testament, in the presence of us, who, at her request and in her presence and in the presence of each other, have hereunto set our hands an,d seals the day and year first above written, and we certify that at the time of the execution thexeof, the said Testatrix was of sound and disposing mind and memory. ~~~~~ ~, ~z, 1~ ~ (SEAL) (SEAL) Residing at ~ ~ ~~ ` ~~ / ~ °~ ~ Residing at ~ ~'' ~ ~.~ ~ ~-~~- {'~ Residing ~1$ °~ ~ ~ F1M~`I ~ ~~ 551116v1 Page 7 Dec. 1. 2012 2.~OPM Mette Evans Woodside No, 0145 P, 12 ,, ~lll ~~1z ~'~t~f t[X ~trtd ~~e~~~tm~en~t OF KATHLEEN M. KNISELY I, KATHLEEN M, KNISELY, of the Borough of Wormleysburg, Cumberland County, Pennsylvania, do make, publish and declare this to be my Last Will and Testament, hereby revoking all Wills and Codicils by me at any time made: ITEM I: I direct that all inheritance and estate taxes becoming due by reason of my death with respect to property passing under the provisions of this Will shall be paid by the Executor out of the property passing under ITEM IV of this Will as an expense and cost of administration of xn~,y estate. The Executor shall have no duty or obligation to obtain reimbursement for any such tax so paid. All inheritance and estate taxes becoming due by reason of my death with respect to property passing outside of the provisions of this Will shall be apportioned to, and paid by, the recipient of such property. ITEM II: I direct the Executor to pay the expenses of my last illness and funeral expenses from the property passing under this Will as an expense and cost o£ administration of my estate. ITEM III: I give and bequeath to my children listed in ITEIVI 1V livi~a,g at the time of my death, absolutely and in fee simple, all of my household furniture and furnishings, books, pictures, jewelry, silverware, automobiles, wearing apparel and all other articles of household or personal use or adornment and all policies of insurance thereon, to be divided among them as they shall agree. Page 1 EXHIBIT "B" __ _ fee, 1. 7012 2:~QPM Ule~_r.e Evans Woodside No. 0145 P, 13 ITEM IV: I give, devise and bequeath all the rest, residue and remainder of my estate, not disposed of in the preceding portions of this Will, to my following named children in equal shares: LEE ANN KNISELY; BARBARA L. KNISEL'Y; JAMES G. KNISELY; and KAThLEEN L, KNISELY. If any of my above-named children is not living at my death, his or her share shall be paid to the then living issue of said deceased child, per stirpes. Provided, howevex, that if any then living issue of said deceased child has not attained the age of twenty-five (25) years at the time of my death, his or her share shall be held in trust by my children, KATHLEEN Y.. KNISELY and JAMES G. KN'TSELX, as Trustees (hereinafter collectively referred to as "Trustee"), IN TRUST NEVERTHEZ.ESS, and shall be administered and distributed as follows: (a) The Trustee shall quarterly pay to ox :for the benefit of said issue (hereinafter referred to as the "Beneficiary") all of the net income and so much of the principal of said Trust as, in the discretion of the Trustee, may be necessary to maintain. said Beneficiary in the proper station in life, including proper support, maintenance, medical care and college or higher education. (b) Upon the attainment of the age of twenty-five (25) years by the Beneficiary, the Trust shall terminate, and the Trustee shall distribute to the Beneficiary all the assets of the Trust. (e) Should the Beneficiary die before final distribution of the assets of the Trust, but be survived by then living issue, the Trustee shall quarterly pay the net income from said Trust to or for the benefit of said issue, per stirpes, living at each time of quarterly distribution; as soon as any one of said issue attains the age of twenty-one (21) years, Page 2 Dec, 7. 2012 2.~0PM Mette Evans Woodside No. 0145 P, 14 and in no event later than twenty (20) years following the death of the Beneficiary, the Trustee shall pay aver all of the then assets in the Trust to the then living issue of such deceased Beneficiary, per stirpes. Should such Beneficiary die before final distribution and not be survived by then living issue, the provisions of subparagraph (d) herein shall obtain. (d} If at any time before final distribution of the assets of any Trust established for issue of a deceased child, there is no living Beneficiary of the Trust, the Trust shall terminate, and its assets shall be paid to my then living issue, per stirpes. Provided, the share of any issue of a deceased child for whom a Trust has been established hereunder shall be added to the principal of that Trust, if still in existence. ITEM V: In the settlement of my estate and during the continuance of the forego~"tng Trusts, the Executor and the Trustee shall possess, among other"s, the following powers: (a) To retain any investments I may have at my death, including specifically_those consisting of stock of any baxxk even if I have named such bank as the Executor or Trustee herein, so long as the Executor or Trustee may deem it advisable to my estate so to do. (b) To vary investments, when deemed desirable by the Executor or Trustee, and to invest in such bonds, stocks, notes, real estate inoxtgages or other securities or in such other property, real or personal, as they shall deem wise, without being restricted to so-called "legal investments", and without being limited by any statute or rule of law regarding investments by fiduciaries. (e) In order to effect a division of the principal of a Trust or for any other purpose, including any final distribution of a Trust, the Executor ox Trustee is authorized to make said divisions or Page 3 Dec. 7, ~0'~2 2:~OPM Mette Evans Woodside No, 0145 P, 15 distributions of the personalty and realty, partly ox wholly in kind, and to allocate specific assets among beneficiaries and Trusts created hereunder so long as the total market value of any share is not affected by such division, distribution or allocation. in kind. Should it appear desirable to partition any real estate, the Executor or Trustee is authorized to make, join in and consummate partitions of lands, voluntarily or involuntarily, including giving of mutual deeds, recognizances or other obligations, with as wide powers~as an individual owner in fee simple. (d) To sell either at public or private sale and upon such terms and conditions as the Executor or Trustee may deem advantageous to the estate or Trust, any or all real or personal estate or interest therein owned by the estate or Trust severally or in conjunction with other persons or acquired after my death by the E~reeutor or Trustee, and to consummate said sale or sales by sufficient deeds or other instruments to the purchaser or purchasers, conveying a fee simple title, free and clear of all trust and without obligation or liability of the purchaser or purchasers to see to the application of the purchase money or to make inquiry into the validity of said sale or sales; also, to make, execute, acknowledge and deliver any and all deeds, assignments, options or other writings which maybe necessary or desirable in carrying out any of the powers conferred upon the Executor or Trustee in this paragraph or elsewhere in my Will. ' (e) To mortgage real estate, and to make leases of real estate. (f) To borrow money from any party, including the Executor or Trustee, to pay indebtedness o£ mine or of my estate, expenses of administration or inheritance, legacy, estate and other taxes, and to assign and pledge assets of my estate therefor. (g) To pay all casts, taxes, expenses and charges in connection with the administration of my estate or a Trust. Page ~ sec, 1. 2012 2,~OrM Mette Evans Wooaside , No, 0145 P. 16 (h) To rnake distributions of income and of principal to the proper beneficiaries thexeof, during the administration of my estate, with or without court order, in such manner and in such amounts as my Executor deems prudent and appropriate. (i) To vote any shares of stock which form a part of the estate or Trust, and otherwise to exercise all the powexs incident to the ownership of such stock. (j) Ian the discretion of the Executor or Trustee, to unite with other owners of similar property in carrying out any plans for the reorganisation of any corporation or company whose securities form a part o£ the estate. (k) To disclaim any interest in property which would devolve to me or my estate by whatever means, including but not limited to the following means: as beneficiary under a will, as an appointee under the exercise of a power of appointment, as a person entitled to take by intestacy, as a donee of an inter vivos transfer, and as a donee under a third-party beneficiary contract. (1) To do all other acts in their judgment deemed necessary or desirable for the proper and advantageous management, investment and distribution of the estate or Trust. ITEM VI: Whenever and as often as any beneficiary hereunder, to whom payments of income or principal are herein directed to be made; shall be under legal disability, or, in the sole judgment of the Trustee, shall otherwise be unable to apply such payments to his own ox hex' own best interests and advantages, the Trustee may make all or any portion of such payments in any one or more of the following ways: (a) Directly to such beneficiary; Page 5 Dec. 7. 20'2 2.~OPM PVlette Evans Woodside No. 0145 P, 17 (b) To the Legal Guardian or Conservator of such beneficiary; (c) To a relative of such beneficiary, to be expended by such relative for the benefit of such beneficiary; or (d) By itself expending same for the benefit of said beneficiary. ITEM VII: Any person who shall have died at the same time as I shall have, or in a common disaster with me, or under such circumstances that the order of our deaths cannot be established by proof, or within thirty (30) days of my death, shall be deemed to have predeceased me, ITEM VIII: I hereby nominate, constitute and appoint KATHLEEN L. KNISELY and JAMES G. KNISELY to be the Executors, herein collectively referred to as "Executor". The Executor and Trustee are specifically relieved from the duty ox obligation of filing any bond or other security. IN WITNESS WHEREOF, I have set my hand and seal to this, my Last Will and Testament, consisting of this and the preceding five (5) pages, at the end of each page of v~rhich I have,also set my initials for eater security and better identification this ~~. day of , 2012. (SEAL) THLEEN M. KNISELY Page 6 ~e~, ], 2Ci2 2:~OPM Mute Evans Woodside . No, 0145 P., 18 , We, the undersigned, hereby certify that the foregoing Will was signed, sealed, published and declared by the above-named. Testatrix as and fox her Last Will and Testament, in the presence of us, who, at hex request and in hex presence and in the presence of each other, have hereunto set oux hands and seals the day and yeax first above written, and we certify that at the time of the execution thereof, the said Testatrix was of sound and disposing mind and memory. /~ y /.~ (SEAL) Residing at (.~ (SEAL) Residing at ,(SEAL) Residing 567706v1 Page 7 IN RE: KATHLEEN M. KNISELY, an incapacitated person IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA, ORPHANS' COURT DIVISION N0.21-12-946 CONCURRENCE I, James G. Knisely, am an adult individual and the son of Kathleen M. Knisely. I have reviewed the Petition Seeking Clarification of Scope of Guardianship Powers and Requesting the Court to Substitute its Judgment for that of the Incapacitated Person Pursuant to 20 Pa. C.S. ~5536(b), and concur in the requests for relief set forth therein. Date: December ~, 2012 J S G. KNIS EXHIBIT "C" Dee, 7. 20'21 2.29PM~est~Vlette tvans Woodside ~ (FAx) ~ti~o. U'4~ P,~ 2ozroo2 Ilv RE; KA~FEN 1V~. K1vI~E~;X, :: IN '~~ COU:R.T OF' CONJMOi`i PLEAS OF an ~inaapacitated person .: CUNIBEnLANU :COUNTY, PENNSY~.VAN~, : ORPHAI~TS:' COVRT~DIVL'~ION : N0.21-].~-~46 CONCURRENCE ~ Barb$ta Lyno I~niseLy, aai an:~dult inQividual and the:daughter of Kathleen M. Knisely. ~ lieve. reviewed.the Petitian.Seeking Clarification: o,~'Scope of Gucrrdiarlship Powers and h'equ~sttrtg.the G"ourt to Substitute itS Judgment for that of the Incapacitated Person Pursrumt to20 ~'a: C'S ;~S536ro), and concur~3n the requests for ialief set forth therein Date: Aecamber _ 5 ,'20.12 HAI2B ~ iC<17SE~Y Dec. 7. 2C'2 2:~~~'M Mette tvans Woodside ~ ~~~ > No. X145 P., 4 , IN I2.E: ~.A~'I~LEEN M. ~NTSEI::Y, : IN THE COURT pF COMA+iON PI.~F 4S OF an inca~a~citated~ person CUMBIRTAI~ CAUI~T~TY, PENNSYLVANIA., S ORPHANS.' GOI.TRT DIVISION NO. ~ 1-12~9~6 CONCURRENCE I, Lee Ann: Knisely Cast; am an adult individual, and ~~ daughtez Qf' ICatiilee~ M. I~niscly. i have neviewcd the Petition ~eeki~g Cluri, ftcaf fob of Scope .vf Getarc~Yanship Pavers and Requesting the Cpurt to 5'~bstilute:irsJudg~rre-~t,for.thut;4, fthe.IncapacitutedPerson Par4uamt. to ZO Pa. C S: ~SS36(b); and~concur in the requests, for relied set :fartlt tlaexein. bate: I7ecem6er , 3012 ~: ) ~ ~ ~ ~, i ~/ . ~T n A~~L~Y~~S ~ ~ Fram: ~~ • ~ ~ 12/07/2012 15:40 #643' P.00'1/001 1N RE: KATHLEEN M. KNISELY, : IN THE COURT OF COMMON PLEAS OF an incapacitated person :CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. 21-12-946 POSITION OF ATTORNEY FOR INCAPACITATED PERSON The undersigned has no objection to the Petitioners' prayers for relief in relation to the following: 1) Request for Clarification of Order of Incapacity 2) Request for Protective Order 3) Request for Approval of Maintenance of Personal Checking Account 4) Request for Approval of Principal Expenditures to be used to Renovate Residence The undersigned defers taking a position with regard to Petitioners' Request for Court to Substitute its Judgment for that of Mrs. Knisely pursuant to 20 Pa. C.S. Section 5536 until after a hearing has been conducted regarding the matter. lZ-7~1 Mark F. Bayley, Esq re Attorney for Kathleen M. Knisely