Loading...
HomeMy WebLinkAbout11-25-13 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION In re: Estate of RUTH MARIE APA : File Number 21-06-1138 STATUS REPORT UNDER RULE 6.12 Name of Decedent: RUTH MARIE APA Date of Death: December 7, 2006 File Number: 21-06-1138 Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: I. State whether administration of the estate is complete: Yes X No 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: 3. It the answer to No. I is Yes,state the following: a. Did the personal representative file a final account with the Court? Yes No X b. The separate Orphans' Court No. (if any) for the personal representative's account is: C. Did the personal representative state an account informally to the parties in interest? Yes X No d. Copies of receipts, releases, joinders and approvals of formal or informal accounts may be filed with the Clerk of the Orphans' Court and may be attached to this report. Date: a 1 Q�Ww AAAA A NMq Melhnie Walz Scaringi PA Aupreme Court ID No. 88347 Scaringi& Scaringi, P.C. u 2000 Linglestown Road, Suite 106 cv t_ 0. Harrisburg, PA 17110 �> + cc C? (717)657-7770 office iT- U_ C o ° � Capacity: 0 Personal Representative � q o ac • El Counsel for Personal Representative C\j U Lt W Z J rr x W Q m C3 Uj aw r•-� � ti `✓J FAMILY SETTLEMENT AGREEMENT THIS AGREEMENT entered into this�day of 2013, by and between GLORI A. APA and FRANKLYN G. APA,JR. in their capacity as Co-Administrators of the Estate of their mother, RUTH MARIE APA, Deceased; and GLORI A. APA and FRANKLYN G. APA,JR. intestate heirs of the ESTATE OF RUTH MARIE APA. For purposes of this agreement,the Administrators, Glori A. Apa and Franklyn G. Apa, Jr.,may be described simply as the Co-Administrators when they are acting in their fiduciary capacity for the Estate of Ruth Marie Apa; and when they are acting as heirs of the Estate of Ruth Marie Apa, they may be referred to simply as Heirs. BACKGROUND 1. RUTH MARIE APA("Decedent") died intestate on December 7, 2006, a resident of Cumberland County, Pennsylvania. 2. Decedent was not married at the time of her death. She was survived by her two adult children, namely: GLORI A. APA and FRANKLYN G. APA,JR., who are the Decedent's only two "next of kin"under the laws of Intestacy of Pennsylvania. 3. GLORI A. APA and FRANKLYN G. APA,JR., the "Co-Administrators", were granted Letters of Administration for the Estate of Ruth Marie Apa, on December 21, 2006. 4. The Co-Administrators advertised the Grant of Letters of Administration, filed a County Inventory of the Decedent's property and a Supplemental County Inventory of same; filed a Pennsylvania Inheritance Tax Return and a Supplemental Pennsylvania Inheritance Tax Return, filed Decedent's final income tax returns, filed fiduciary income tax returns as necessary during the pendency of the Estate Administration, and have paid the taxes thereon. 5. Within the next several months,the Co-Administrators will file a second Supplemental County Inventory, a second Supplemental Inheritance Tax Return, and a Final Fiduciary Income Tax Return for the Estate of Ruth Marie Apa. 6. The Co-Administrators and Intestate Heirs of the Estate of Ruth Marie Apa acknowledge that the Ruth Marie Apa Estate would have been insolvent but for the fact that Ruth Marie Apa was a beneficiary and heir of her father's Estate,the Estate of BOYD E. DILLER. The Estate of Boyd E. Diller has taken approximately ten (10) years to administer, which has caused considerable delay in the administration of the Ruth Marie Apa Estate. 7. The Boyd E. Diller Estate, by and through its counsel and its Executor, has indicated to the Co- Administrators and their counsel that the Boyd E. Diller Estate will be adjusting its fiscal year end for tax purposes to December 31, 2012 (it had been January 31 each year prior to now), for the Boyd E. 1 Diller Estate's final tax year(which will now be from February 1, 2012 to December 31, 2012), even though the Boyd E. Diller Estate has not yet made its final distributions to its beneficiaries (including the Estate of Ruth Marie Apa). Said final distributions are anticipated to be made in late June or early July 2013, with K-1 s and PA RK-1 s being distributed to the beneficiaries of the Boyd E. Diller Estate (including the Estate of Ruth Marie Apa) shortly thereafter. 8. The Co-Administrators acknowledge that the Estate of Ruth Marie Apa will not be able to prepare and file its fiduciary income tax returns until the Estate of Ruth Marie Apa receives its K-Is and PA RK-1 s from the Estate of Boyd E. Diller. The Co-Administrators will be requesting a six- month extension of the tax filing deadlines for the Estate of Ruth Marie Apa. 9. The Co-Administrators further acknowledge that once the Fiduciary Income Tax Returns from the Estate of Ruth Marie Apa are prepared, the intestate heirs of the Estate of Ruth Marie Apa will, in turn, receive K-1 s and PA RK-I s from the Estate of Ruth Marie Apa which may impact their personal income tax returns for 2012. 10. Glori A. Apa and Franklyn G. Apa, Jr., as Intestate Heirs of the Estate of Ruth Marie Apa, each acknowledge that he/she will receive a K-1 from the Estate of Ruth Marie Apa, and a PA R-K1 from the Estate of Ruth Marie Apa, which may impact his/her personal income tax returns and tax liability for the 2012 tax year (due by April 15, 2013 unless extended). Each agrees to either request extensions from the taxing authorities and wait to file his or her personal income tax returns until he or she receives the K-1 s and PA RK-1 s from the Estate so that he or she knows the impact that the Estate's Income Tax returns will have on his or her personal income tax returns, OR IN THE ALTERNATIVE, each agrees to amend his or her personal income tax returns if the K-Is and PA R- K1 Is have a tax impact on his or her personal income tax returns, and he or she has already filed his or her personal returns by the time he or she receives the K-1 and PA RK-1 from the Estate. 11. As the sole residual beneficiaries of the Estate, the Co-Administrators decided not take an Administrator's commission from the Estate, as there would not be any financial benefit in doing the same. 12. The Co-Administrators have completed the distribution of the Decedent's limited personal property. 13. The Co-Administrators have paid all bills known to them other than legal fees and costs, and taxes due from the Estate. 14. Prior to March 1, 2013,the Co-Administrators had paid all known outstanding bills and debts other than legal fees and costs, and taxes due, and distributed the remaining sums in the Estate account equally to the two intestate heirs. 15. The Estate of Ruth Marie Apa received a distribution from the Estate of Boyd E. Diller on March 7, 2013, in the amount of Three Hundred Thirty Thousand, Nine Hundred Ninety Seven Dollars and Thirty-Two Cents ($330,997.32). The Co-Administrators acknowledge that this 2 distribution from the Estate of Boyd E. Diller is subject to considerable, but yet unknown, tax liabilities which will be due and payable from the Estate of Ruth Marie Apa. 16. The Co-Administrators have decided to distribute, immediately after the signing of this Agreement, the sum of One Hundred Eighty Thousand Dollars ($180,000) from the March 7, 2013 deposit into the Estate of Ruth Marie Apa, with Ninety Thousand Dollars($90,000) being distributed to Glori A. Apa, and Ninety Thousand Dollars ($90,000) being distributed to Franklyn G. Apa, Jr. The remainder of the March 7, 2013 distribution from the Estate of Boyd E. Diller, will remain in the checking account of the Estate of Ruth Marie Apa, and will later be used by the Estate to pay its legal fees and costs, and to pay its taxes and other valid debts (if any). 17. Because the Estate's Intestate Heirs and the Co-Administrators of the estate, are the same individuals, and have been intimately involved in the administration of the Estate of Ruth Marie Apa, each has been fully and absolutely informed of all the accounting matters of the Estate of Ruth Marie Apa. Accordingly, in order to expedite the estate administration, the Estate's Heirs, as well as the Co- Administrators hereby agree to waive the necessity of an informal and/or formal accounting of the Estate of Ruth Marie Apa, which would reflect all estate receipts, disbursements and distributions of the Estate assets. 18. The Estate of Ruth Marie Apa may receive another distribution from the Estate of Boyd E. Diller in June or July 2013. In the event that after this potential distribution, and after all fees, costs, and taxes have been paid for the Estate of Ruth Marie Apa, then any remaining sums held by the Estate of Ruth Marie Apa will be distributed in equal shares to Glori A. Apa and Franklyn G. Apa,Jr. 19. Any further payments of bills and/or administration expenses such as any balance due of legal fees and costs or taxes owed by the Estate or the heirs of the Estate shall be paid by money in the Estate Checking Account. But, it the Estate checking account has insufficient funds to pay such legal fees, costs, taxes, and/or other expenses and/or debts of the Estate or its heirs as a result of their inheritance, because of distributions that it made to its heirs, Glori A. Apa and Franklyn G. Apa, Jr., those fees, costs, taxes, expenses, etc. shall be entirely the equal responsibility of the two Estate Heirs, Glori A. Apa and Franklyn G. Apa, Jr., who hereby agree to pay the same promptly if and when due and payable. 20. The Co-Administrators and the Estate's heirs desire that this Family Settlement Agreement make unnecessary the filing of a formal and/or informal accounting in the Orphans' Court Division of the Court of Common Pleas of Cumberland County. 21. The Co-Administrators of the Estate and the Estate Heirs have been given the opportunity to review the books and records of the Co-Administrators, and have been given the opportunity to review the Formal Account filed in the Estate of Boyd E. Diller (the distributions from which make up virtually the entire holdings of the Estate of Ruth Marie Apa), and based upon such opportunity of examination, they have determined that they have sufficient information to make an informed decision to waive their right to a formal and/or informal accounting in the Estate of Ruth Marie Apa. 3 ACKNOWLEDGEMENTS AND WAIVERS In consideration of the willingness of the Co-Administrators to distribute and terminate the Estate in accordance with the terms of this Agreement, and without the protection afforded to them by a formal adjudication of an Administrator's Account, GLORI A. APA and FRANKLYN G. APA, JR., the undersigned beneficiaries, individually and with respect to their heirs, personal representatives, successors and assigns, do hereby: 22. Acknowledge that we have read this Agreement and represent that the facts set forth above are true and correct to the best of our knowledge, information and belief. We further acknowledge that we are familiar with the Account filed by the Executor of the Estate of Boyd E. Diller, which Estate's distributions to the Estate of Ruth Marie Apa have made up virtually all of the assets in the Estate of Ruth Marie Apa; 23. Waive the filing of a formal and/or informal account of the administration of the Estate of Ruth Marie Apa, with respect to the income and principal thereof, in any court which has jurisdiction, in particular,the Orphans' Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania; 24. Declare that we have examined the financial documentation kept by the Co-Administrators, and find the same to be true and correct in all particulars; accept and approve it with the same force and effect as if it had been prepared and duly filed with, audited, adjudicated and confirmed absolutely by such court which has jurisdiction over this estate, and, as if the balance of principal and income had been awarded by said court in accordance with this Agreement and the statement of the account; 25. Warrant that we know of no outstanding and unsatisfied claims against the estate (except inheritance taxes, income taxes, capital gains taxes and legal fees and costs for the final administration of the estate) and approve of the immediate distributions of Ninety Thousand Dollars ($90,000) each to Glori A. Apa and Franklyn G. Apa, Jr. Furthermore, if the Estate of Ruth Marie Apa receives additional distributions from the Estate of Boyd E. Diller in the future, we approve of the payment of the legal fees and costs, taxes and other estate debts with said sums. And, once all final debts are paid, we approve the distribution of any remaining sums in equal shares to the heirs of the Estate of Ruth Marie Apa, namely: Glori A. Apa and Franklyn G. Apa, Jr. 26. Absolutely and irrevocably release and discharge the Co-Administrators,their personal representatives, heirs, successors and assigns, and their legal counsel,the Law Firm of Scaringi & Scaringi, P.C., from any and all actions, liabilities, claims and demands, including specifically but not limited to liability arising in connection with any mistake of fact or law, or negligent or careless act or omission in connection with the administration of the Estate of Ruth Marie Apa, the preparation and filing of the various tax returns related to the Estate of Ruth Marie Apa, the payment of taxes thereon, and the distribution of assets to the heirs, without a formal and/or informal court accounting and adjudication; 27. Agree to refund to the Estate of Ruth Marie Apa, or pay for equally themselves on behalf of the Estate, such part or all of the share which has been or is being distributed to us which may at any time 4 be determined to have been an erroneous distribution to us regardless of the cause of such error, even if attributable to negligence; 28. Agree that any period of limitation of actions for the collection for any erroneous distribution to any of us shall commence only at such time as the Co-Administrators have obtained actual knowledge of such erroneous distribution and that in no event shall the obligation to collect any erroneous distribution start earlier than the actual discovery thereof by the Co-Administrators. 29. With respect to any distributions of income or principal, which we have received, or will receive upon execution of this agreement, agree to indemnify and hold harmless the Co- Administrators, their personal representatives,heirs, successors and assigns, and their legal counsel, Melanie Walz Scaringi and the Law Firm of Scaringi, from any liability, loss or expense (including but not limited to costs and counsel fees), arising from any cause whatsoever, which may be incurred by the Co-Administrators as a result of the administration of this estate or distribution in accordance with this agreement including, but not limited to, any liability for any federal estate tax, Pennsylvania inheritance tax or any other death taxes and federal, state and local income and capital gains taxes, together with any interest and costs incidental thereto,relating in any way to the estate and also including, but not limited to, any assets received or payments or distributions made by reason of any negligence or mistake of fact or law; 30. Understand that this Agreement may be signed in counterpart originals, all of which together shall be deemed to constitute one original; and 31. Agree that this agreement shall be governed by the laws of the Commonwealth of Pennsylvania. 32. Agree that this entire agreement from paragraphs 1 through this paragraph are to be taken together as final and binding upon the Co-Administrators and the Heirs of the Estate of Ruth Marie Apa. r IN WITNESS WHEREOF, we agree to be bound hereby and have signed this agreement this t7 f Y'day of 2013. W SS: Witte GLORI A. APA, CO-ADMINISTRATOR AND AS AN INTESTATE HEIR OF THE ESTATE 5 Wi@ess NKL G. A A, CO-ADMI ST RA O AND AS AN INTESTATE HEIR OF THE ESTATE COMMONWEALTH OF PENNSYLVANIA SS.: COUNTY OF On the 1bje, day of r )1(,l,f C_V1 2013,before me,the subscribing witness,a Notary Public, in and for the Commonwealth of Pennsylvania,personally appeared the above-named GLORI A.APA,AS CO-ADMINISTRATOR AND AS INTESTATE HEIR OF THE ESTATE OF RUTH MARIE APA (who signed this Agreement both as an heir and a Co-Administrator) and in due form of law acknowledged the foregoing Family Settlement Agreement to be her act and deed and desired the same to be recorded as such. Witness my hand and Notarial Seal the day and year aforesaid. E NOTARIAL SEAL Q l l 11 I, . do � (SEAL) JULIE M 0000 Newry Public No ry Public M TWA,DAUPHIN COUNTY My Commission Expires: aaloe Exom Jai+11.2018 COMMONWEALTH OF PENNSYLVANIA SS.: COUNTY OF Oa�h�n On the 16+�day of rn((C h 2013,before me,the subscribing witness,a Notary Public, in and for the Commonwealth of Pennsylvania,personally appeared the above-named FRANKLYN G. APA,JR. AS CO-ADMINISTRATOR AND INTESTATE HEIR OF THE ESTATE OF RUTH MARIE APA, (who signed this Agreement both as an heir and a Co- Administrator) and in due form of law acknowledged the foregoing Family Settlement Agreement to be his act and deed and desired the same to be recorded as such. Witness my hand and Notarial Seal the day and year aforesaid. ECanftnW ARIAL 1 l� ll rn dmd (SEAL) IE M GOOD 66��^�" tary Public Qta Public TWP.,DAUPHIN COUNTY My Commission Expires: EWraa Jae 11,2016 6