Loading...
HomeMy WebLinkAbout10-15-13 1505611185 REV-1500 EX(D2-1 1)(FI) OFFICIAL USE ONLY PA Department of Revenue Bureau or Individual Taxes County Code Year File Number PO BOX 280601 INHERITANCE TAX RETURN 20 13 767 Harrisburg,PA 17128-0601 RESIDENT DECEDENT . ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death MMDDYYYY Dale of Birth MMDDYYYY 315-20-3288 05272013 04151926 Decedent's Last Name Suffix Decedent's First Name M I - HIPPENSTEEL JOHN H (If Applicable)Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI - HIPPENSTEEL SHIRLEY M Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE 204-26-7678 REGISTER OF WILLS FILL IN APPROPRIATE BOXES BELOW ® 1.Original Return 2. Supplemental Return �- 3. Remainder Return(Dale of Death Prior to 12-13-82) ❑ 4.Limited Estate ® 4a. Future Interest Compromise(date of ❑ 5. Federal Estate Tax Return Required death after 12-12-82) ❑ B. Decedent Died Testate ❑ 7. Decedent Maintained a Living Trust — 8. Total Number of Safe Deposit Boxes (Attach Copy of Will) (� (Attach Copy of Trust.) ❑ 9. Litigation Proceeds Received ❑ 10.Spousal Poverty Credit(Date of Death ® 11. Election to Tax under Sec.9113(A) Between 12-31.91 and 1.1-95) (Attach Schedule 0) CORRESPONDENT- THIS SECTION MUST BE COMPLETED.ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number JOSEPH K. GOLDBERG, ESQ - 717-540-91-70 _ r- _ 1'17 f,l REGISTEROFWILLS' SEONLY�'' GC1 tT First Line of Address SUITE 106 >: e Second Line of Address n1 2080 LINGLESTOWN ROAD F r= y DaTE FILED r City or Post Office State ZIP Code co O HARRISBURG PA 17110 Correspondenf'se-magaddress: JGOLDBERG@SSBC—LAW- COM Under p lies of perjury.I declare that I have examined this return,Including accompanying schedules and statements,and to the beat or my knowledge and belief, b is tr orrect and compiets.Dade ation of prep__t_rer other than the personal representative is based on all Information of which preparer has any knowledge, SI RE OF P R RESP E FOR PILING RETURN DATE s 1800 BRENTWOOD DRIVE MIDDLETOWN, PA 170577 J SiGNATURE�OFj��AN PRESENTATIVE L �r ADDRESY / 2080 LINGLESTOWN RD. , SUITE 106 HARRISBURG, PA 17110 PLEASE USE ORIGINAL FORM ONLY Side 1 1505611165 OM4047 3,000 1505611185 J 1505611285 REV-1500 EX(FI) Decedent's Social Security Number 315-20-3288 Decedmfs Name HIPPENSTEEL JOHN H RECAPITULATION 1. Real Estate(Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 . 00 2. Stocks and Bonds(Schedule B) . . . . . . . . . . . . . . . . . . . . . . . . . 2 810,787 - 00 3. Closely Held Corporation,Partnership or Sole-Proprietorship(Schedule C), , , , , 3 0 • 00 4. Mortgages and Notes Receivable(Schedule D) . . . . . . . . . . . . . . . . . 4 0 . 00 5. Cash, Bank Deposits and Miscellaneous Personal Property(Schedule E) , , , , , 5, 111255 • 00 6. Jointly Owned Property(Schedule F) F-1 Separate Billing Requested , , , . g 0 • 00 7. Inter-Vivos Transfers&Miscellaneous Non-Probate Property (Schedule G) ❑ Separate Billing Requested . . . . 7. 0 • 00 8. Total Gross Assets(total Lines 1 through 7) , , , , , , , , , , , , , , , , , 8. 822 ,042 • 00 9. Funeral Expenses and Administrative Costs(Schedule H). . . . . . . . . . . . . 9. 25,618 • 00 10. Debts of Decedent, Mortgage Liabilities,and Liens(Schedule 1) , , , , , , , . . 10. 11 615 • 00 11. Total Deductions(total Lines 9 and 10), , , , , , , , , , , , , , , , , , , , , 11 271233 •00 12. Net Value of Estate(Line 8 minus Line 11) , , , , , , , , , , , , , , , , , , , 12 794 ,809 • 00 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made(Schedule J), , , , , , , , , , , , , , , , 13. 0 • 00 14. Net Value Subject to Tax(Line 12 minus Line 13) , 14. 7941809 - 00 TAX CALCULATION - SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable - at the spousal tax rate,or transfers under Sec.9116 (a)(1.2)X.0- 67,714 . 00 15. 0 . 00 16. Amount of Line 14 t xable at lineal rate-0 49 717,095 - 00 16. 321269 . 00 17. Amount of Line 14 taxable at sibling rate X.12 51000 - 00 17. 600 - 00 18. Amount of Line 14 taxable at collateral rate X.15 51000 . 00 18. 750 - 00 19. TAX DUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. 331619 . 00 20. FILL IN THE BOX IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT X❑ Side 2 L 1505611285 1505611285 OM4648 3.000 REV-1500 EX(FI) Page File Number Decedent's Complete Address: 20 13 767 DECEDENTS NAME STREETADDRESS L20 SUTTON DRTVF CUMBERLAND CITY STATE ZIP ICARLISLE p Tax Payments and Credits: 1. Tax Due(Page 2,Line 19) (1) 33,619 .00 2. Credits/Payments A. Prior Payments 32,000- 00 B. Discount 1,674 - nn Total Credits(A+B) (2) 331674 - 00 3. Interest (3) 0 . 00 4. If Line 2 is greater than Line 1 +Line 3,enter the difference.This is the OVERPAYMENT. Fill in box on Page 2,Line 20 to request a refund. (4) 55 - 00 5. If Line 1 + Line 3 is greater than Line 2,enter the difference.This is the TAX DUE. (5) 0 - 00 Make check payable to: REGISTER OF WILLS, AGENT, PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and Yes No a retain the use or income of the property transferred . . . . . . . . . . . . . . . . . . . . . . . . El erty b. retain the right to designate who shall use the prop transferred or its income . . . . . . . . . . ❑ ❑X c. retain a reversionary interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❑ d. receive the promise for life of either payments,benefits or care? . . . . . . . . . . . . . . . . . . ❑ 2. If death occurred after Dec. 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❑ 3. Did decedent own an"in trust for"or payable-upon-death bank account or security at his or her death? . ❑ 4. Did decedent own an individual retirement account, annuity, or other non-probate property,which contains a beneficiary designation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❑ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994, and before Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent[72 P.S.§9116(a)(1.1)(1)]. For dates of death on or after Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent [72 P.S.§9116 (a) (1.1)(ii)].The statute does not exempt a transfer to a surviving spouse from tax,and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1,2000: • The tax rate imposed on the net value of transfers from a deceased child 21 years of age or younger at death to or for the use of a natural parent, an adoptive parent or a stepparent of the child is 0 percent[72 P.S.§9116(a)(1.2)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5 percent,except as noted in[72 P.S.§9116(a)(1)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12 percent[72 P.S.§9116(a)(1.3)]. A sibling is defined, under Section 9102,as an individual who has at least one parent in common with the decedent,whether by blood or adoption. OM4671 2.000 REVA 50 EXi(`12) pennsylvania SCHEDULE B DEPARTMENT OF REVENUE INHERITANCE TAX RETURN STOCKS & BONDS RESIDENT DECEDENT ESTATE OF FILE NUMBER JOHN H. HIPPENSTEEL 20 13 767 All property jointly owned with right of survivorship must be disclosed on Schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1. 2,230.914 Shares PIMCO TOTAL RETURN FUND (CETERA BROKERAGE) HELD AS TENANTS IN COMMON WITH SPOUSE. TOTAL VALUE: $56,183.00 ONE HALF TAXABLE VALUE: $28,091 28,092 2 140.5 Shares ALLIANZGI NFI INTERNATIONAL FUND (CETERA BROKERAGE) HELD AS TENANTS IN COMMON WITH SPOUSE. TOTAL VALUE: $6300 ONE-HALF TAXABLE VALUE: 2934 3,150 3 2,835.721 Shares ALLIANZ FD NFJ INSTI (ED JONES ACCOUNT) 41,444 4 3,970.047 Shares AMERICAN CENTURY T/F BD (ED JONES ACCOUNT) 46,311 5 4,260.741 Shares FRANKLIN FED T/F INC (ED JONES ACCOUNT) 53,898 6 3,540.142 Shares FRANKLIN HIGH YIELD T/F INC. (ED JONES ACCOUNT) 38,658 7 1,722.418 Shares HARTFORD DIV & GROWTH (ED JONES ACCOUNT) 41,381 8 1,829.317 Shares INVESCO INTL' GROWTH (ED JONES ACCOUNT) 55,794 9 1,305.617 Shares JOHN HANCOCK INTL CORE (ED JONES ACCOUNT) 40,337 10 4,315.246 Shares MFS MUNICIPAL INC (ED JONES ACCOUNT) 38,514 11 1,070.694 Shares MUNDER MID CAP CORE GROWTH (ED JONES ACCOUNT) 41,024 12 1,256.177 Shares MUTUAL GLOBAL DISCOVERY (ED JONES ACCOUNT) 41,046 Total from continuation schedules 341,138 TOTAL (Also enter on Line 2,Recapitulation) $ 810,787 2w4696 2.000 If more space is needed,insert additional sheets of the same size A `) Estate o£: JOHN H. HIPPENSTEEL 20 13 767 Schedule B (Page 2) Item Value at Date No. Description of Death 13 3,960.307 Shares NEUBERGER BERMAN (ED JONES ACCOUNT) 32,950 14 1,337.84 Shares PERKINS MID CAP VALUE (ED JONES ACCOUNT) 32,730 15 781.114 Shares T. ROWE BLUE CHIP GRWTH (ED JONES ACCOUNT) 41,028 16 3,240.019 Shares T. ROWE SUMMIT MUNI (ED JONES ACCOUNT) 38,637 17 4,126.435 Units TAX EXEMPT BOND FD (ED JONES ACCOUNT) 54,180 18 4,753.677 Shares THORNBURG LMTD TERM MUNI (ED JONES ACCOUNT) 69,618 19 2,494.523 Shares WASATCH LRG CAP VALUE (ED JONES ACCOUNT) 41,135 20 3,082.939 Shares WELLS FARGO ADV S/T MUNI (ED JONES ACCOUNT) 30,860 Total (Carry forward to main schedule) 341,138 REV-5508 E%.;0,842) pennsylvania SCHEDULE E DEPARTMENTOF TAX RETURN TURN CASH, BANK DEPOSITS & MISC. RESIDENTDECEDENTURN PERSONAL PROPERTY ESTATE OF: FILE NUMBER: JOHN H. HIPPENSTEEL 20 13 767 Include the proceeds of litigation and the date the proceeds—a received by the estate. All proper Llnt owned with ri ht of survIV "hi must be disclosed on Schedule F. REM VALUE AT DATE NUMBER DESCRIPTION OF DEATH t. ED JONES MONEY MARKET 886 2 T. ROWE TAX—EX b2dKT (ED JONES ACCOUNT) 10,369 TOTAL(Also enter on line 5,Recapitulation) $ 11,255 2w46AD 2.000 If more space is needed,use additional sheets of paper of the same size. REV-1511 EX.(1409) pannsylvania SCHEDULE H DEPARTNUff OF REVENUE FUNERAL EXPENSES AND INHERITANCE TAX RETURN ADMINISTRATIVE COSTS RESIDENTDECEDENT ESTATE OF FILE NUMBER JOHN H HIPPENSTEEL 20 1 767 Decedent's debts must be reported on Schedule 1. REM NUMBER DESCRIPTION AMOUNT A. FUNERALEXPENSES: 1. EWING BROTHER FUNERAL HOME, INC. 10,559 2 BPO ELKS #578 444 B. ADMINISTRATIVE COSTS: 7. Personal Representative Commissions: Name(s)of Personal Representative(s) Street Address City State ZIP Year(s)Commission Paid: 2. Attorney Fees: 5,000 3. Family Exemption:(If decedent's address is not the same as claimant's,attach explanation.) 3,500 Claimant SHIRT Y HIPPENSTEEL Street Address 620 SUTTON DRIVE City CARLISLE State PA ZIP 17013 Relationship of Claimant to Decedent 4. Probate Fees: 634 5. Accountant Fees: 5,000 6. Tax Return Preparer Fees: 7. 1 KRISTA L BARRICK, APPRAISER 325 2 CUMBERLAND LAW JOURNAL 75 3 THE SENTINEL 61 TOTAL(Also enter on Line 9,Recapitulation) $ 25 618 9 W46AG 2 000 If more space is needed, use additional sheets of paper of the same size. REV-1312 EX.(12-12) pennsylvania SCHEDULE I DEPARTMENTOF REVENUE DEBTS OF DECEDENT, WHERRANDE EDENT URN MORTGAGE LIABILITIES & LIENS WHERIMDEOEDENT ESTATE OF FILE NUMBER JOHN H. HIPPENSTEEL 20 13 767 Report debts incurred by the decedent prior to death that remained unpaid at the date of death,including unreimbursed medical expenses. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1. HOMESTEAD SENIOR CARE 80 2 MILLENNIUM PHARMACY SYSTEMS 67 3 HAZEN ELDER LAW (OUTSTANDING BILLING) 1,468 TOTAL(Also enter on Line 10,Recapitulation) $ 1,615 2w46AH 2.000 If more space is needed, insert additional sheets of the same size. REVa1513 EX.([81-10) SCHEDULE J Pennsylvania DEPARTMENT OF REVENUE BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF: FILE NUMBER: JOHN H. HIPPENSTEEL 20 13 767 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S)RECENING PROPERTY Do Not List Trustee(s) OF ESTATE I TAXABLE DISTRIBUTIONS[Include outright spousal distributions and transfers under Sec. 9116(a)(1.2).] 1. JOHN H. HIPPENSTEEL CREDIT SHELTER TRUST U/W 100% of Residue: 684,809 Credit Shelter T 684,809 2 LESLIE A. 13URCHFIELD 400 CROSSROAD SCHOOL ROAD CARLISLE, PA 17015 General Bequests: 25,000 Daughter 25,000 3 MARTHA S. HENEGAR 60 OLIVER DRIVE PALMYRA, PA 17078 General Bequests: 5,000 Sister 5,000 ENTER DOLLARAMOUNiS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15THROUGH 18 OF REV-1500 COVER SHEET,AS APPROPRIATE. II NON-TAXABLE DISTRIBUTIONS A SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN: i. 5.CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS: 1. TOTAL OF PART II-ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET. $ 0 9W4eAl 2.000 If more space is needed,use additional sheets of paper of the same size. Estate o£: JOHN H. HIPPENSTEEL 20 13 767 Schedule J Part 1 (Page 2) Item No. Description Relation Amount 4 LEROY L. HIPPENSTEEL, II 1184 GREENFIELD DRIVE MECHANICSBURG, PA 17055 General Bequests: 5,000 Nephew 5,000 5 CAROLYN L. ACKER 1800 BRENTWOOD DRIVE MIDDLETOWN, PA 17057 General Bequests: 25,000 Daughter 25,000 6 JOHN D. HIPPENSTEEL 105 FLINTSTONE DRIVE NEWVILLE, PA 17241 General Bequests: 25,000 Son 25,000 7 LISA S. MAYBERRY 121 RIDGE ROAD CARLISLE, PA 17015 General Bequests: 25,000 Daughter 25,000 REV-1647 EX.(02-10) SCHEDULE M pennsylvania FUTURE INTEREST COMPROMISE DEPARTNEW OF REVENUE INHERITANCE TAX RETURN RESIDENT DECEDENT Check Box 4a on REV-1500 ESTATE OF FILE NUMBER JOHN H. HIPPENSTEEL 20 13 767 This schedule is appropriate only for estates of decedents who died after Dec.12,1982. This schedule is to be used for all future interests where the rate of tax that will be applicable when the future interest vests in possession and enjoyment cannot be established with certainty. Indicate below the type of instrument that created the future interest and attach a copy to the tax return. ❑ X Will ❑Trust ❑ Other I. Beneficiaries NAME OF BENEFICIARY RELATIONSHIP DATE OF BIRTH AGE TO NEARESTBIRTHDAY 1.BURCHFIELD, LESLIE A Daughter 4/3/1956 57 2.HIPPENSTEEL SHIRLEY M Surviving Spouse 2/22/1934 79 3.ACKER CAROLYN L Daughter 4/3/1960 53 4.HIPPENSTEEL JOHN D Son 9/10/1962 50 5.MAYBERRY LISA S Dau hter 7/29/1964 48 IL For decedents who died on or after July 1, 1994, if a surviving spouse exercised or intends to exercise a right of withdrawal within nine months of the decedent's death, check the appropriate box below and attach a copy of the document in which the surviving spouse exercises such withdrawal right. Unlimited right of withdrawal Limited right of withdrawal III. Explanation of Compromise Offer: Pursuant to the Last Will and Testament of John H. Hippensteel, Shirley Hippensteel, his wife, was to receive all tangible personal property. In addition, specific bequests and/or distributions to named beneficiaries totaled $110,000. The residue of the Estate was to pass to the Credit Shelter Trust with distributions to Wife for life as detailed in the Will. Upon the death of Wife, distribution of the remaining Trust shall be distributed to the decedent's children. The date of death value of all assets are $822,042. The assets ($822,042) , less specific bequests ($110,000) and less fees and costs attributable to the Estate (27,233) are to be allocated to the Trust. The residue allocated to the Trust is $684,809. It is requested that the determination of the Department be made by an actuarial formula without the need for subjective review. IV. Summary of Compromise Offer: 1.Amount of future interest , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 684,809 2.Value of Line 1 exempt from tax as amount passing to charities,etc. (Also include as part of total shown on Line 13 of REV-1500.) . , , . . . $ 0 3. Value ofU I Rassing tos ouse,a,—tt �;propriate tax rate Check one. u6%, �3%, UO% , , , , , , , , , , , , , , , $ 67,714 (Also include as part of total shown on Line 15 of REV-1500.) 4.Value of Line 1 taxable at lineal rate Check one. ❑—X 6%, []4.5% . . . . . . . . . * . . . . . . . . , $ 617,095 (Also include as part of total shown 1 f 500.) 5. Value of Line 1 taxable at sibling rate(12%) (Also include as part of total shown on Line 17 of REV-1500.) , , , , , , $ 0 6. Value of Line 1 taxable at collateral rate(15%) (Also include as part of total shown on Line 18 of REV-1500.) . . . . . . $ 0 7. Total value of future interest(sum of Lines 2 thru 6 must equal Line 1) . . . . . . . . . . . . . . . . . . . . $ 684,809 If more space is needed, use additional sheets of paper of the same size. 9W46AN 1000 Estate of: JOHN H. HIPPENSTEEL 20 13 767 Schedule M Part 3 (Page 2) Value of fund from which life estate is payable: $684,809 Actuarial factor per appropriate table: 0.09888 Value of life estate: $67,714 Annuity, Life Estate, and Remainder Factors 9/1 712 01 3 Transfer Date: 5/1/2013 §7520 Rate: 1.20% Calculation Type: Life Principal: $684,809 Lives: 1 Age(s): 79 Life Estate Remainder Factor: 0.09888 0.90112 Value: $67,713.91 $617,095.09 „REV-1649 P+(09-12) pennsylvania SCHEDULE O DEPARTMENT OF REVENUE ELECTION UNDER SEC. 9113(A) INHERITANCE TAX RETURN (SPOUSAL TRUSTS) RESIDEMDECEDENT ESTATE OF FILE NUMBER JOHN H HIPPENSTEEL 20 13 767 PART A-DEFERRING STATEMENT For all trust assets reportable for Pennsylvania inheritance tax purposes for which a deferral of tax is being elected under Section 9113(a), the personal representative responsible for filing the return and the trustee(s) of the trust in question hereby acknowledge the department's Statement of Policy set forth at 61 Pa. Code§94.3 concerning any potential termination of the trust under 20 Pa.C.S. §7710.1 that occurs after the return was filed. Specifically,the signatories recognize each individual's assumption of liability for inheritance tax consequences that result from any termination of the trust under 20 Pa.C.S.§7710.1 that occurs after a return has been filed. Signature of Person Responsible for Filing Return Signature(s)of Trustee(s) PART B -ELECTION TO TAX AMOUNTS Complete this section only if making the election to tax available under Section 9113(a)of the Inheritance& Estate Tax Act. If the election applies to more than one trust or similar arrangement, a separate form must be filed for each trust.This election applies to the CREDIT Trust(marital, residual A, B. by pass, unified credit,etc.). Enter the description and value of all interests for which the Section 9113(a) election is made. DESCRIPTION VALUE (SEE SCHEDULE M) 684,809 Total 684,809 zwasez Z000 If more space is needed, insert additional sheets of the same size. I I I Last Will and Testament OF JOHN H. HIPPENSTEEL I I, JOHN H. HIPPENSTEEL, of the Borough of Carlisle, Cumberland County, Pennsylvania, do make, publish and declare this to be my Last Will and Testament, hereby revoking all Wills and Codicils by me heretofore made. ITEM I: Family Information. I am married to SHIRLEY M. HIPPENSTEEL, and all references to my wife in this Will are to her. I have four children: LESLIE A. BURCHFIELD, CAROLYN L. ACKER, LISA S. MAYBERRY and JOHN D. HIPPENSTEEL. These are described in this Will as "my children," or as "a child of mine." Any person born to or adopted by issue of mine is to be included as issue of mine. Provided, however, no adopted person shall benefit under this Will unless the order or decree of adoption is entered before the adopted person attains the age of twenty-one (21) years. ITEM II: Death Taxes. I direct that all inheritance i and estate taxes becoming due by reason of my death, whether payable by my i estate or by any recipient of any property, shall be paid by the Executor out of the residue of my estate, as an expense and cost of administration of my estate, except that no taxes shall be charged against any gift qualifying for the marital or charitable deduction in 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 III: Debts and Final Expenses. I direct the Executor to pay the expenses of my last illness, my legally enforceable debts, and my funeral expenses from the residue of my estate as an expense and cost of administration of my estate. I Page 1 l�K I i i I I ITEM IV: Cash Gifts. If I predecease my wife, I make i the following cash gifts: (i) To each of my children who survive me, the sum of i TWENTY-FIVE THOUSAND ($25,000) DOLLARS, to be paid in two (2) installments. The first installment, in the amount of THIRTEEN THOUSAND ($13,000) DOLLARS, shall be paid as soon as practical after my death. The second installment, in the amount of TWELVE THOUSAND ($12,000) DOLLARS, shall be paid on or near the first anniversary of my death. I (ii) To my sister, MARTHA HENEGAR, if she survives me, the sum of FIVE THOUSAND ($5,000) DOLLARS; and (iii) To my nephew, LEROY HIPPENSTEEL, if she survives me, the sum of FIVE THOUSAND ($5,000) DOLLARS. ITEM V: Tangible Personal Property. (a) Written List. I may leave a written list in my safe deposit box or elsewhere disposing of certain items of my tangible personal property. The Executor shall dispose of items of my personal property as specified in the written list. If no written list is found in my safe deposit box or elsewhere and properly identified by the Executor within thirty (30) days after the probate of my Will, it shall be presumed that there is no other statement or list. Any subsequently discovered list shall be ignored. (b) If Wife Survives. If I die before my wife, SHIRLEY M. HIPPENSTEEL, I give to her all my tangible personal property not set forth in the written list referenced in paragraph (a), including but not limited to, all of my household furniture and furnishings, books, pictures, jewelry, silverware, automobiles, wearing apparel and all Page 2 I i I I other articles of household or personal use or adornment and all policies of insurance thereon. (c) If Wife Predeceases. If I survive my wife, I give any property of the type described in paragraph (b) and not set forth in a written list to my children, to be divided among them as they shall agree. Should there be no agreement, the Executor shall divide this property among them in as nearly equal portions as the Executor, in the discretion of the Executor, deems appropriate, having due regard to the personal preferences of the beneficiaries. ITEM VI: Residue. I give the residue of my estate, not disposed of in the preceding portions of this Will, as follows: (a) Credit Trust. To my daughter, CAROLYN L. ACKER and ING NATIONAL TRUST as Trustees, herein collectively referred to as "Trustee," IN TRUST, to be administered and distributed as provided in ITEM VII, a fraction of my residuary estate. The numerator shall be a sum equal to the largest amount that can pass free of Federal estate tax under my Will by reason of the applicable credit amount and the state death tax credit (provided that the use of this credit does not require an increase in state death taxes) allowable to my estate but no other credit and after taking account of dispositions under other items of this Will and property passing outside of this Will which do not qualify for the marital or charitable deduction and after taking account of charges to principal that are not allowed as deductions in computing my Federal estate tax. The denominator shall be the value of my residuary estate. For purposes of establishing this fraction, the values finally fixed in the Federal estate tax proceeding relating to my estate shall be used. I recognize that the numerator of such fraction may be zero (0), in which case no property shall pass to this Trust. I also recognize that the numerator may be affected by the action of the Executor in exercising certain tax elections. Page 3 I I i If, at the time of my death, the federal estate tax and the I federal generation skipping transfer tax do not exist or do not apply to my estate, the provisions of my Will shall be interpreted as if I had died in 2009, so that The Hippensteel Family Credit Trust is funded and administered as would have been the case had I died in 2009. (b) Marital Gift. The balance of my residuary estate shall be paid to my wife, SHIRLEY M. HIPPENSTEEL, if she survives me. If she does not survive me, the residue shall be distributed as provided in ITEM VII. ITEM VII: Applicable Credit Trust. The following provisions shall apply to the Trust established by ITEM VI (a): (a) Name of Trust. This Trust shall be known as The Hippensteel Family Credit Trust. (b) Income to Spouse. The Trustee shall pay to or for the benefit of my wife, SHIRLEY M. HIPPENSTEEL, all of the net income of this Trust in convenient installments, but not less frequently than annually. (c) Principal to Spouse. The Trustee shall pay to my wife, SHIRLEY M. HIPPENSTEEL, so much of the principal of this Trust as may be necessary in the discretion of the Trustee for the reasonable support, maintenance, education and health care of my wife. (d) Death of Spouse. Upon the death of my wife, the Trustee shall divide the principal into as many equal parts as there are then living children of mine and then deceased children of mine represented by then living issue. The Trustee shall distribute one (1) share to each living child and one (1) share to the then living issue of each deceased child, per stirpes. However, if any issue of a deceased child has not attained the age of thirty-five (35) years at the time of distribution, the Page 4 I i i share of the beneficiary who has not attained that age shall be held by the Trustee, IN TRUST, for his or her benefit in accordance with paragraph (e) of this Item. ! i (e) Trust for Issue. In each Trust established for a beneficiary under the age of thirty-five (35) years (each the "Beneficiary" of his or her Trust): i (i) Net Income. The Trustee shall pay to the Beneficiary in convenient, at least annual, installments so j much of the net income as the Trustee, in the discretion of the Trustee, considers necessary for the proper support, maintenance, health care and education,including college or other post-secondary education, of the Beneficiary. Income not distributed shall be accumulated and added to principal. (ii) Principal. The Trustee shall also pay to or for the benefit of the Beneficiary so much of the principal as is necessary, in the discretion of the Trustee, for the proper support, maintenance, health care and education, including college or other post-secondary education, of the Beneficiary. (iii) Termination of Trust. Upon the attainment of the age of thirty (30) years by the Beneficiary, the Trustee shall pay to the Beneficiary one-half of the principal of his or her Trust. Upon the attainment of the age of thirty-five (35) years by the Beneficiary, the Trust shall terminate and the Trustee shall pay to the Beneficiary the remaining assets of the Trust. (iv) Death before Termination. Should the Beneficiary die before final distribution of the assets of Page 5 I I his or her Trust, the Trust shall terminate and the Trustee shall pay the assets of the Trust to the then living issue of the Beneficiary, per stirpes. However, if any issue has not attained the age of twenty-five (25) years at the time of distribution, the Trustee shall continue to hold the share for that issue as Custodian under the Pennsylvania Uniform Transfers to Minors Act for the benefit of that issue. (f) Trust Without Beneficiaries. If before final distribution of the assets of any Trust established for my issue, there is no living beneficiary of that Trust, it shall terminate. The assets of the Trust shall be paid to the then living issue, on a per stirpital basis, of the nearest deceased ancestor (with issue living at the time of distribution) of the Beneficiary who is me or my issue. However, if there is then in existence any trust created under this Will for the benefit of that issue, the share which would have been distributed to that issue shall be added to the principal of his or her trust, to be administered and distributed as provided in this Will. (g) Failure of Issue. In the event I am not survived by my wife or any issue, or if there are no issue of mine surviving upon the termination of any trust, the residue (or principal) shall be divided in two (2) equal parts. One part shall be paid to those persons who would then be entitled to my estate under the intestate laws of Pennsylvania then in effect as if I had died at that time intestate. One part shall be paid to those persons who would then be entitled to my wife's estate under the intestate laws of Pennsylvania then in effect as if my wife had died at that time intestate owning that part of my estate. ITEM VIII: Spendthrift Clause. No part of the income or principal of any Trust created by this Will shall be subject to attachment, levy or seizure by any creditor, spouse, assignee or trustee or receiver in bankruptcy of any beneficiary prior to his or her actual receipt of income or principal distributed. The Trustee shall pay the net income and the principal to the beneficiaries specified by Page 6 — I I i I me, as their interests may appear, without regard to any attempted anticipation, j pledging or assignment, and without regard to any claim or attempted levy, attachment, seizure or other process against the beneficiary. I ITEM IX: Administrative Powers. In addition to the powers granted at law, the Executor and the Trustee shall each possess the following powers, each of which shall be construed broadly and may be exercised without court approval, but in a fiduciary capacity only: I (a) Retain Investments. To retain any investments I have at my death, including specifically those consisting of stock of any bank even if I have named that bank as the Executor or Trustee. (b) Vary Investments. To vary investments, to make loans, and to invest in bonds, stocks, notes, real estate mortgages or other securities or in other property, real or personal, without being restricted to so-called "legal investments", and without being limited by any statute or rule of law regarding investments by fiduciaries. (c) Division of Assets. In order to divide the principal of a Trust or for any other purpose, including final distributions, the Executor and Trustee are authorized to divide and distribute personal property and real property, partly or wholly in kind, and to allocate specific assets among beneficiaries and Trusts so long as the total market value of each share is not affected by the division, distribution or allocation in kind. The Executor and Trustee are each authorized to make, join in and consummate partitions of lands, voluntarily or involuntarily, including giving of mutual deeds, or other obligations, with as wide powers as an individual owner in fee simple. (d) Sell Assets. To sell either at public or private sale real and personal property severally or in conjunction with other persons, and to consummate sale(s) by deed(s) or other instrument(s) to the purchaser(s), conveying a fee simple title. No purchaser shall be obligated to see to the application of the purchase money or to make Page 7 ftf� I inquiry into the vaLidity.of any sale{s). The Executor and Trustee are t 'V [.,i•'V 1.7111. r t' G w y r1 ._ ,y authorized to execute, acknowledge and deliver deeds, assignments, . .- , .- a ..s...a; ara .: e,*v .,r i•: :;.[!U!x:'!'ciY7r,rTll. L_ • r&C.rx options or otherlwritrings.as necess�ary�or convenient n to ane of he tDii power conferred upon the Executor and Trustee. (e) Encumber Real Estate. To mortgage real estate, and to i � _ ..,.• :��. :. .., r.,,r..rc•. �xt.cas,a- xtlil R• t�X rrtxsrn.. cr make leases of real estate. t tiDQ t Lix,T_Out 1timty ,' bi `Ill ng ,- ,• :#;-s i~'i. isrt *r.t4 aIy Kure 3vllz�_ s�ttttgL_ anrf tr> msf�f> tL12 L1X. .(f)autiBorrow Money. To borrow money from any person, including the Executor or Trustee, to pay indebtedness of mine or of my estate, expenses of administration or inheritance, legacy, estate 1'L:.'.'7 J' . -'r.,,l,: "f l. : .1 •'t•"1?, Jt CUS'-nn.^'k.' it rrrMvF ,+t. and other taxes, and to assign and pledge assets of my estate or any 1. ., ,.c au txt't 'a, ...ttiL.w.t1L,`7 '11() ":L"{.il`?St:VL It fht -.Trust established by this Will. • ..,. -- _ . . .... ...a. 1a..:.w,:. ssr�}'.',tSj : j '"n' t.•, +1 i'. s"t 4i. .r)' t%t 1, f or t` wi , x,Lhoat rXK-tin q 1..t"! y _(g) . ,Pay Costs. To pay all costs, taxes, expenses and charges _ _ .1},_ in connection with the administration of my estate-or any Trust established under this Will.; an LfiIFr it -vhmw �'"vk)29' od ez :IljTsf)w- ol SAI OJ baluftiAy Mr, "ursext) 9.rft 141bau Sol xk �,fu I 1,3f ILI POviv 'I.elf r---s to 6 as F&as (,,j L atvvq -Vr 99� xin q q J, t O'T d Jud -gcd-Fulini wif sifjsoi.fqqB rf):t esi,r�ifj joa zu; lbi ,):lee of bar, .�wjoqp tgoi livimV ,rjra iffivi a=,le-i gut httioi A ,,pt ago,' Ao artrubwau i volqm-i .)'F' �j!a��t/ - !A A,)�Mi.qn o-0,C) e-fn, -o O'l bak wiparfr'TO T13-4flaera zis pi 'lo wf3j8or rmlo al 'cm Vzoll %ar.wl"q o-'m bas -lOw,"--aslfj J`akdw 03 fuAltmao4filoo RWIV ;^ull ar, bolRon J�:,, vf;0, fibivib �)T .PP,HP 4y 'vc -�mf I q,;'l-rq !Of. Oita-, I I aflt rya Waver -?To(a -40 Owl aj a" rei &aw.Lo Glth 'Irpliiia ad lhulaxoj -icleas--f 3ull:37a2 kf,-1")JrFT 'Ifft-,,(j owiloop, -lo'ZIF noilnob a!3 JA " Lno 10 -00 W ' 'xxj 3'T f'J 7. 4).ow I I -,CAM sbo'N mbn 93r,,,xJfjG r3T 'XTu")f4y"l 911' an Ol -1.: wrtws-�, fl lUiria qrnaoali c�,-, ov, -vwewoll —4,tahqO-,qqp, le ff unolfi !Aj n; lotltw be, Ji ox,ws',) (�a eizollwod X-1- odi lo jue'fte falickm ZY11 rolsjs"5 Ea8d (>.I gt y. ys,h T, a�,pplj;f* jn� ca-iorn of bstaiii o y-P I Ak -d ffa.�, rrojatq 'E'A -; F,3 10 pqeGcf Af!., 'l-'Ada -ld ip, ,fofffs "m J400, s li .,o 'ira Az �mq '0-uAl 0�1 -4ap Ij >,J i.wia r1 `_71 ' bf)-JmoC u A R y I assets which pass as part of my probate estate as opposed to other property for which a basis adjustment is allowable. The Executor shall allocate basis increase equitably among those beneficiaries receiving property as a result of my death, but shall not be liable to any person, nor subject to removal or surcharge, for any reasonable allocation of basis increase. (q) Compromise Claims. To compromise claims. (r) Terminate Trust. To terminate any trust, if in the j opinion of the Trustee, the expense of administration of the trust is not justified. Upon termination, the Trustee shall distribute the trust property to the person(s) then entitled to receive or have the benefit of the income therefrom. If there is more than one current income beneficiary, the Trustee shall distribute trust assets to the income beneficiaries in the proportion in which they receive income, or if no proportion is designated, in equal shares to the income beneficiaries. This power may only be exercised by a Trustee who is an independent Trustee, and this power shall be ineffective to the extent that the effect of the power is to vest in any Trustee or beneficiary a general power of appointment. (s) Other Acts. To do all other acts in his or her judgment necessary or desirable for the proper and advantageous management, investment and distribution of the estate and Trusts established under this Will. ITEM X: Accounting. The Trustee, on an annual basis, shall provide each income beneficiary who has attained the age of eighteen (18) years, and the Guardian of the person of any income beneficiary who has not attained the age of eighteen (18) years, statements showing transactions of each Trust established for the benefit of that beneficiary. The beneficiary, or the Guardian of the person of such beneficiary, may waive this right to receive an annual accounting. The Trustee may, at any time, settle any account, or questions concerning the administration of any Trust established under this Will, by Page 10 J/�i/ i i I I agreement with the then qualified beneficiaries (as defined in the Pennsylvania Uniform Trust Act) of the Trust, if legally competent, or if not legally competent, with the Guardian of the person of the beneficiary, the legally competent spouse of i the beneficiary, or the oldest legally competent relative of the beneficiary who would take a portion of the estate of the beneficiary were the beneficiary to die at that time intestate under the laws of the Commonwealth of Pennsylvania. Any settlement made in accordance with this Item shall bind all persons who have an interest in the Trust, and shall constitute a release and discharge of the Trustee with respect to transactions specified in the settlement. I ITEM XI: Distributions to or for Beneficiaries. The i Trustee is authorized to distribute principal and/or income in any one or more of the following ways if the Trustee, in the discretion of the Trustee, considers the beneficiary unable to apply distributions to the beneficiary's own best interests, or if the beneficiary is under a legal disability: (a) To Beneficiary. Directly to the beneficiary; (b) To Guardian or Conservator. To the legal guardian or conservator of such beneficiary; I (c) To Custodian. To the Trustee, or to another person selected by the Trustee, as custodian under the Pennsylvania Uniform Transfers to Minors Act as to a beneficiary under the age of twenty- five (25) years; (d) To a Relative. To a relative of the beneficiary, to be expended by that relative for the benefit of the beneficiary; or (e) Direct Expenditure. By directly applying distributions for the benefit of the beneficiary. ITEM XII: Merger of Trusts. Should my wife, SHIRLEY M. HIPPENSTEEL, by Will or Agreement of Trust, establish Trusts similar to the Trusts I have established for the benefit of my issue, the Trustee of Page 11 /f i I i I each Trust created in this Will shall have the right to merge it with the similar Trust created by my wife for the same beneficiaries. If merged, the Trustee shall operate the merged Trusts as a single Trust. ITEM XIII: Survival. Any person, other than my wife, who has died within thirty (30) days of my death, or under such circumstances that the order of our deaths cannot be established by proof, shall be deemed to have predeceased me. If my wife and I die simultaneously, or under such circumstances that the order of our deaths cannot be established by proof, my wife shall be deemed to have survived me. Any person (other than myself) who has died at the same time as any then beneficiary under this Will or in a common disaster with that j beneficiary, or under such circumstances that the order of deaths cannot be established by proof, shall be deemed to have predeceased that beneficiary. ITEM XIV: Trust Situs. The initial situs of each Trust created under this Will shall be the county where I am domiciled at the time of my death. The Trustee may determine, from time to time, to change the situs of any Trust established under this Will. However, no change in situs shall be effective until written notice is provided to the living beneficiaries of the Trust. ITEM XV: Executors and Trustees. I make the following provisions with respect to Executors and Trustees: (a) Initial Executor and Trustee. I appoint my daughter, CAROLYN L. ACKER, to serve as Executor. I appoint my daughter, CAROLYN L. ACKER and ING NATIONAL TRUST to serve as Trustees, herein collectively referred to as "Trustee". (b) Successor Executor. In the event that my daughter is unable or refuses to serve as Executor, I appoint my sister-in-law, ESTHER MOONEY, to serve as Executor. I (c) Co-Trustees and Successor Trustees. Each person serving as a sole Trustee shall have the power to appoint a Co-Trustee. Each Trustee shall have the power to appoint his or her successor in office. I I (d) Power to Remove Trustee. Any Trustee or Co-Trustee I appointed by a Trustee may be removed by that Trustee. My daughter, CAROLYN L. ACKER, and any other individual serving as Trustee shall have the power to remove any institutional Trustee, provided she first appoints another institutional Trustee which accepts the appointment. (e) Method of Appointment and Removal. Each appointment or removal of a Trustee shall be in writing and shall be filed with the court in the jurisdiction which is the situs of the Trust. The written instrument shall be signed by the person having the power to make the appointment or removal. (f) Temporary Trustee. Each Trustee shall have the power to designate a temporary Trustee by an instrument in writing delivered to such temporary Trustee. The temporary Trustee shall serve as such only during the legal incapacity of the appointing Trustee, or, during such period of time as the appointing Trustee in writing designates, and upon the expiration of that time, or at such time as the legal incapacity of the appointing Trustee ceases, the appointing Trustee shall once again become the Trustee. (g) Resignation. Any Trustee may resign upon ninety (90) days written notice to the then income beneficiary and each adult sui juris remainder beneficiary of the Trust; provided, however, that the resignation shall not become effective until and unless at least one person is then serving as Trustee of the affected Trust. (h) Delegation. Any Trustee may delegate investment and related management functions to another Trustee, provided the other Trustee accepts the delegation in writing. To the extent accepted, the delegating Trustee shall be relieved of responsibility for the investment decisions of the Trustee to whom investment and related management functions were delegated. Page 13 _ i A I (i) Responsibility. No Trustee shall be responsible for the acts or omissions of any other Trustee. i (j) Duty to Investigate. In the absence of actual knowledge of a breach of trust, or information concerning a possible breach of trust that would cause a reasonable person to inquire, a successor Trustee is under no duty to examine the accounts and records of any predecessor Trustee, or to inquire into the acts or omissions of such predecessor, is not liable for any failure to seek redress for any act or omission of such predecessor, shall have responsibility only for property which is actually delivered to the Trustee by such predecessor and shall have all of the powers conferred upon a Trustee hereunder. (k) Compensation. The Executor and Trustee shall have the right to receive reasonable compensation for services rendered and reimbursement for reasonable expenses. (1) Standard of Care. The Trustee shall not be liable or accountable for any loss that may result from the good faith exercise of the authority granted in this Will. This shall specifically include decisions of the Trustee with respect to discretionary distributions of income and/or principal to any beneficiary. (m) Security. The Executor and Trustee are specifically relieved from the duty of filing bond or entering security. IN WITNESS WHEREOF, I have set my hand and seal to this, my Last Will and Testament, consisting of this and the preceding thirteen (13) pages, at the end of each page of which I have also set my initials for greater security and better identification this /S' day of 20/G. IN H. HIP N TEEL (SEAL) I We, the undersigned, hereby certify that the foregoing Will was signed, sealed, published and declared by the above-named Testator as and for his Last Will and Testament, in the presence of us, who, at his request and in his presence and in the presence of each other, have hereunto set our hands and seals the day and year first above written, and we certify that at the time of the execution thereo=(SEAL)und and disposing mind and memory. Residing at �'rr LAC Oro (SEAL) Residing at a� I I I i ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ) ) SS: COUNTY OF CUm k1'lAj7-Jt ) I, JOHN H. HIPPENSTEEL, Testator, whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do i hereby acknowledge that I signed and executed the instrument as my Last Will and Testament; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. '(SEAL) J H. HIPPED EEL Sworn to and subscribed before me this day of , 20/6 . N blic My Commission Expires: /nit I tly 10 )1?102- (SEAL) Novit" $t Nowt' h"C my CanwAsdon MoY at, 2012 I i AFFIDAVIT i i COMMONWEALTH OF PENNSYLVANIA ) SS: � COUNTY OF ) j We, r « Q �v�4. and (9 �2 i the Witnesses whose names are signed to the attached or foregoing instrument, i being duly qualified according to law, do depose and say that we were present and I saw Testator, JOHN H. HIPPENSTEEL, sign and execute the instrument as his Last Will and Testament; that Testator signed willingly and that he executed said Will as his free and voluntary act for the purposes therein expressed; that each of us in the hearing and sight of the Testator signed the Will as Witnesses; and that to the best of our knowledge the Testator was at that time eighteen (18) or more years of age, of sound mind and er no constraint or undue influence. Witness Witness Sworn to and subscribed before me this J,� day of �U , 20/0. N a ublic ry My Commission Expires: 1 (SEA NMEAR SEAL 0p4kALM iM�f1►OKINAAM MM CMW48*n Dom U"".4012 I I