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HomeMy WebLinkAbout04-30-14 (3) Family Agreement This Agreement is by and between Laura L Morningstar of 15 Nelson Drive, Carlisle,Pennsylvania 17015; in their capacity as Executrix under the Last Will and Testament dated August 3,2001 of Donald E.Morningstar,Deceased,hereinafter referred to as the "Executrix;" and (i) Laura L Morningstar,Trustee of 15 Nelson Drive,Carlisle, Pennsylvania 17015; in her capacity as Trustee of The Jadelyn D. Morningstar Trust Under Will of Donald E. Morningstar,a beneficiary of the Estate of Donald E. Morningstar; (ii) Laura L Morningstar of 15 Nelson Drive,Carlisle,Pennsylvania 17015; as a beneficiary of the, Estate of Donald E. Morningstar,Deceased; (iii) Bronly E.Morningstar oP8 �. Mountain Lane,Newburg,Pennsylvania 17240,as a beneficiary of the Estateyo onald� rn crni E. Morningstar,Deceased,hereinafter collectively referred to as "legatees"dr7, ia -v " o "beneficiaries." z " —0 "' ;:u rpr w -io z rn m BACKGROUND " x o m o voo 'D rnrn a. Donald E. Morningstar("Decedent") died on January 15,2013;a r side of the 18 Hendel Loop,Carlisle,Pennsylvania 17013,leaving a Will dated Ati 4 t 3, '\) m 2001. o cn o b. Decedent's Will was admitted to probate by the Register of Wills of Cumberland County on February 5,2013,and Letters Testamentary were issued to Laura L. Morningstar as Executrix. C. In his Will,Decedent made no specific bequests and named the above named beneficiaries as his sole residuary legatees. A copy of the Will is attached hereto as Exhibit "A" d. The Executrix advertised the grant of Letters Testamentary,prepared and filed a Pennsylvania Inheritance Tax Return,prepared and filed federal and state year 2012 personal income tax returns,and paid,to the best of the knowledge,information and belief of the Executrix,the appropriate taxes thereon. e. The Executrix has paid all the taxes,debts and expenses of the estate known to her,and she has no knowledge of any unpaid claims,absolute or contingent, which may be asserted against the estate nor does she have any reason to believe that there are any such claims. (Exception: Unpaid Disbursements shown on the hereinafter mentioned Exhibit"B," unsettled inheritance taxes, likely fiduciary income taxes.) f. The Executrix has liquidated the assets of the Decedent,except for an automobile as shown on the hereafter mentioned'Proposed Schedule of Distribution, which is to be distributed in kind. g. An account of the principal and income received by the Executrix,her disbursements to date,and a Proposed Schedule of Distribution is attached hereto as Exhibit"B." The net value of the estate available for distribution to all of the beneficiaries of the estate is estimated to be $323,570.82. Family Agreement—Estate of Donald E. Morningstar L Page 1 of 4 �J h. The Executrix desires to make partial distributions to the legatees as set forth on the Proposed Schedule of Distribution which is attached hereto as a part of Exhibit`B." i. All parties hereto desire that this Family Agreement make unnecessary the filing an accounting in the Orphans' Court Division of the Court of Common Pleas of Cumberland County,although the Executrix desires to eventually file an accounting and obtain final Court conformation. NOW THEREFORE,intending to be legally bound,the parties do hereby: 1. Waive the filing of an account of the administration of the estate in any court,at the discretion of the Executrix,for the maters disclosed on the Account and Proposed Schedule of Distribution attached hereto as Exhibit`B". 2. Declare that the undersigned have examined the Account and Proposed Schedule of Distribution which are attached hereto as Exhibit`B" and find them to be true and correct in all particulars; accept and approve them with the same force and effect as if they had been prepared and filed with,audited,adjudicated and confirmed absolutely by a court of competent jurisdiction; and as if the balance of principal and income had been awarded by the Court in accordance with the Proposed Schedule of Distribution,or as if the partial distributions set forth therein had been awarded by the Court. 3. Warrant that the beneficiaries named in the Proposed Schedule of Distribution are the sole remaining parties in interest in the estate and are entitled to receive the entire distribution thereof in accordance with the Account and Proposed Schedule of Distribution which are attached hereto as Exhibit`B." 4. Warrant that the undersigned know of no outstanding and unsatisfied claims against the estate; and that the undersigned know of no other probate assets owned by Donald E. Morningstar alone and for his own benefit,which are or should be included in the Estate. 5. Approve the partial distributions as set forth in the Proposed Schedule of Distribution and approve the distributions of the balance of principal and income shown in the Account and Proposed Schedule of Distribution which are attached hereto as Exhibit`B" to the persons set forth therein,provided however,that the beneficiaries, while giving such approval to future and final distributions, understand that the Account and Proposed Schedule of Distribution attached as Exhibit"B" is a DRAFT and that the same is subject to change. Among other things,it is noted that inheritance taxes due the Commonwealth of Pennsylvania have not been finally settled as of the date of this Family Agreement. 6. Absolutely and irrevocably release and discharge the Executrix,and her heirs,personal representatives,successors and assigns of and from any and all actions, liabilities,claims and demands relating in any way to their administration of the estate and distribution in accordance with the Account and Proposed Schedule of Distribution which are attached hereto as Exhibit`B" and without a court accounting and adjudication,although with the understanding that the same is subject to change by the Executrix and with the understanding that the Executrix does intend to obtain a court accounting and adjudication. Family Agreement—Estate of Donald E. Morningstar Page 2 of 4 7. Agree to refund to the Executrix any amount of the undersigned distribution which exceeds the amount to which the undersigned are entitled as the Executrix shall determine,and a court shall order. 8. Agree to indemnify and hold harmless,the Executrix,and her heirs, personal representatives,successors and assigns,from and against any claims,liabilities, loss or expense(including costs and counsel fees) arising from any cause whatsoever, which the Executrix may incur as a result of the administration of the estate and its distribution in accordance with this agreement including, but not limited to,any liability for any federal estate taxes, Pennsylvania Inheritance tax or any other death taxes,and any federal or Pennsylvania income taxes,and Pennsylvania personal property 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 law or fact. 9. Agree that this Agreement shall be binding and effective as against each legatee upon execution (signing) by that legatee and the Executrix. IN WITNESS WHEREOF,and with intent tclegally bound hereby,the parties hereto have set their hands and seals this day of4yiy,2013. 2ingstar,Witness: (Seal) Laura L. Execuffi Witness: eal) ura L. Morningstar,Trustee The Jadelyn D. Morningstar Trust r Will of Donald E. Morningstar Witness: I (Seal) Laura L.Morningstar, Benefici Witn/ 0 `� (Seal) Bronl E Morningstar, Beneficiary Family Agreement—Estate of Donald E. Morningstar Page 3 of 4 State of Pennsylvania )ss. County of Cumberland 1 - On this,the 2-4 day of 3uy,2013, before me,the undersigned officer, personally appeared Laura L.Morningstar, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument,and acknowledged that she executed the same for the purposes therein contained,as Executrix,as Trustee of The Jadelyn D.Morningstar Trust Under Will of Donald E.Morningstar,and as Beneficiary of the Estate of Donald E. Morningstar,Deceased. IN WITNESS WHEREOF,I hereunto set my hand and official seal. (SEAL) PERWRWIM �i+raMO�r+ar,�wA Ysmq�aaf*CunEmYtlCasyM Yl�+tlanF�M1AJUn�loN State of Pennsylvania }ss. County of Cumberland On this,the 3o day of July,2013, before me,the undersigned officer, personally appeared Bronly E Morningstar, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument,and acknowledged that he executed the same for the purposes therein contained,as Beneficiary of the Estate of Donald E. Morningstar,Deceased. IN WITNESS WHEREOF,I hereunto set my hand and official seal. (SEAL) ��uttarrow �oeaerQF1MY. fttft Family Agreement-Estate of Donald E. Morningstar Page 4 of 4 LAST WILL AND TESTAMENT OF DONALD E. MORNINGSTAR a I, DONALD E. MORNINGSTAR, of 218 Three Square Hollow Road, Newburg, Cumberland County, Pennsylvania, 17240, make, publish, and declare this to be my Last Will and hereby revoke all Wills and Codicils previously made by me. ITEM I. I direct my Executrix hereinafter named to pay all of my just debts and funeral expenses and the costs of the administration of my estate as soon as practicable after my death. ITEM H. I direct my Executrix hereinafter named to sell, at public or private sale and for whatever price is deemed advisable, my home located at 218 Three Square Hollow Road, Newburg, Cumberland County, Pennsylvania, 17240, together with any and all personal and household goods, and I father direct that the proceeds of said sale or sales become part of my residuary estate. ITEM III. I direct my Executrix,hereinafter named, to sell at public or private sale and for whatever price is deemed advisable any automobiles owned by me at my death, and I further direct that the proceeds of said sale or sales become part of my residuary estate. ITEM IV. All the rest, residue, and remainder of my property and estate of every kind and nature and wheresoever situate, including all lapsed legacies and bequests, and including any property over which I may have a power of appointment at the time of my death, I give, devise, and bequeath as follows: Document k:210633.1 A. One half share to my granddaughter, JADELYN D. MORNINGSTAR or her issue,per stirpes. If Jadelyn D. Morningstar predeceases me, and without issue,then I give, devise, and bequeath said share in one half part to my daughter, LAURA L. MORNINGSTAR of Carlisle, Cumberland County, Pennsylvania, and one half share to my son, BRONZY E. MORNINGSTAR, of Harrisburg, Dauphin County, Pennsylvania, Pennsylvania, absolutely and forever. B. One quarter share to my daughter, LAURA L. MORNINGSTAR, or her issue, per stirpes. If Laura L. Morningstar predeceases me, and without issue, I give, devise, and bequeath said share to my granddaughter, JADELYN.D. MORNINGSTAR, or her issue per stirpes. C. One quarter share to my son, BRONLY E. MORNINGSTAR, or his issue, per stirpes. If Bronly E. Morningstar predeceases me, and without issue, I give, devise,and bequeath said share to my granddaughter, JADELYN D. MORNINGSTAR, or her issue per stirpes. ITEM V. All estate, inheritance, legacy, succession, or transfer taxes, including any interest and penalties.thereon, imposed by any domestic or foreign law with respect to all property taxable under such laws by reason of my death,whether or not such property passes under this Will, by operation of law, by contract, or otherwise, shall be paid without any right of reimbursement from any recipient of any such property, without any right of apportionment, and without postponement. ITEM VI. Should any person entitled to a share of my estate be a minor at the time of distribution to him or her, and should the value of such property be more than the amount which may be paid or delivered to him or her or in his or her behalf without the appointment of a guardian Document k 270635.1 Page 2 of 4 or other fiduciary or the delivery of security, such share shall be paid and distributed to my Trustee hereinafter named to be held IN TRUST and managed, invested, and reinvested, together with the accumulation of income thereon, if any, and the Trustee shall use and apply from time to time such portion of the income and principal thereof as it deems necessary or desirable for the minor's reasonable maintenance, support, and complete education; including preparatory, college, post- graduate, or professional training, or to make such payment for such purposes to the guardian or person with whom such minor resides or directly to or for the benefit of the minor without further responsibility to such minor or any person taking care of such minor, and when such minor attains the age of twenty-one(21) years, any principal or income not so paid or applied shall be distributed to such minor, or if he or she dies prior thereto,to his or her personal representative. ITEM VII. In addition to the powers granted by law, my personal representative shall have the following powers: A. To sell at public or private sale,to exchange,to lease, to pledge,to mortgage, to transfer,or convert or otherwise dispose of, or grant options with respect to any and all property, real or personal, at the time forming a part of my probate or trust estate, in such manner, at such time or times, for such purposes, for such price or prices, and upon such terms, credits, and conditions as shall be deemed advisable or necessary under the circumstances. B. To compromise any claim or controversy. C. To invest in all forms of property without being limited to legal investment. ITEM VIII. I nominate and appoint my daughter, LAURA L. MORNINGSTAR, as the Executrix of this my Last Will, but in the event that she predeceases me, fails to qualify, or ceases to act, I nominate and appoint my son, BRONLY E. MORNINGSTAR, as Executor of this my Last Doaimenl k:710635.1 Pa-e.3 of 4 �,. rn Will. My Executrix or Executor, as the case may be, will serve without bond for the faithful performance of duties in any jurisdiction. ITEM a. I nominate and appoint LAURA L. MORNINGSTAR as the Trustee of all trusts created by this my Last Will, to serve without bond for the faithful performance of duties in any jurisdiction. Should Laura L. Morningstar predecease me, I nominate and appoint BRONLY E. MORNINGSTAR as the Trustee of all trusts created by this, my last Will,to serve.without bond for the faithful performance of duties in any jurisdiction. IN WITNESS WHEREOF, I hereunto set my hand this 3 day of 2001. DONALD E. MORNINGSTAIZ The preceding instrument, consisting of this and three.(3) typewritten pages,was on the date thereof signed, published, and declared by DONALD E. MOM\TINGSTAR, the Testator named therein, as and for his Last Will, in the presence of us, who, at his request, in his presence, and'in the presence of each other,have subscribed our names as witnesses hereto. Witnesses: Name Address If Z- Name Address Do-u enf B:210633.1 Page 4 of 4 � o�w C01101ONNVEALTH OF PENNSYLVANIA SS COUNTY OF ACKNOWLEDGEMENT We, the undersigned witnesses whose names are signed to the attached or foregoing instrument, being duly qualified according to law, do depose and say that we were present and saw Testator sign and execute the instrument as his Last Will; that he signed willingly and the he executed it 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 the time eighteen (18) or more years of age, of sound mind and under no constraint or undue influence. SWORN or affirmed to and acknowledged before me by the above name witnesses this day of 12001. 1 Notary Public My Commission Expires: NOTARIAL SEAL CAROL A.LYTER,NOTARY PUBLIC (SEAL) Harrisburg.Dauphin County My Commission Expires Dec.28 2004 Dommient 4:710635.1 3 m D d N m a N n o o in . N m z z D O x N c N 0 z W r Z 7 \ Z 47 > N y to v m f m J.�K m W ~ 0 CD P 4 FIRST AND FINAL ACCOUNT OF LAURA L.MORNINGSTAR, EXECUTRIX OF THE LAST WILL AND TESTAMENT OF DONALD E.MORNINGSTAR, LATE OF 18 HENDEL LOOP,SO.MIDDLETON TWP., CUMBERLAND COUNTY,PENNSYLVANIA,DECEASED DATE OF DEATH: LETTERS TESTAMENTARY ADVERTISED: 1/15/13 CUMBERLAND LAW JOURNAL March 15,22,29,2013 FILE NO.: THE SENTINEL 21-13-00145 March 6, 13 20,2013 PRINCIPAL RECEIVED - REAL ESTATE Accountant charges herself with the following principal amounts received: Date 2013 None TOTAL PRINCIPAL RECEIVED - REAL ESTATE: 0.00 PRINCIPAL RECEIVED - PERSONAL PROPERTY Accountant charges herself with the following principal amounts received: Date 2013 15-Jan Orrstown Bank Checking Acct.No.: 106002878 2,875.35 Accrued Interest to Date of Death 0.01 15-Jan Orrstown Bank Certificate of Deposit No.4000002157 10,000.00 Accrued Interest to Date of Death 5.94 1st & Final Acct Morningstar 6.26.13.xis DRAFT Page 1 W W M13= 15-Jan Orrstown Bank Certificate of Deposit No.4000010341 6,320.75 Accrued Interest to Date of Death 1.34 15-Jan Bank of America No.7599 - Money Market Savings 1,822.93 Accrued Interest to Date of Death 0.84 15-Jun Dreyfus Funds: Dreyfus Third Century Fund-Class Z-#0035-3360062336 1,655.974 Shares @ $11.40 per share 18,878.10 Dreyfus Municipal Bond Fund#0054-3360062336 2,634.327 Shares @ $11.98 per share 31,559.24 15-Jan Invesco Global Health Care Fund - Class A 604.015 Shares @ $32.02 per share 19,340.56 15-Jan Vanguard Investment Account No: 09849215853 Windsor Fund Admiral Shares 1,680.654 Shares @ $53.10 per share 89,242.73 Long-Term Tax-Exempt Admiral 14,959.352 Shares @ $11.88 per share 177,717.10 15-Jan 2004 Ford Explorer at Kelly Blue Book Value 5,333.00 22-Mar Cumberland County Veterans Benefits 100.00 28-Mar Sale of Household Personal Property Dan Hershey Auction Service,LLC Gross Receipts (See "Disbursements" Section for expenses) 792.00 22-Apr Refund - Family Home Health Care Products 4.70 22-Apr Refund - CMS Medicare Payment 18.80 22-Apr Refund - Pennsylvania -Year 2012 Personal Income Tax 8.00 1 st &Final Acct Morningstar 6.26.13.xls DRAFT Page 2 22-Apr Refund - US Treasury -Year 2012 Personal Income Tax 2,907.00 15-May Refund - CenturyLink 2.00 15-May Refund -The Sentinel - Re Newspaper Delivery 50.97 21-May Purchase to TV by Laura Morningstar 50.00 20-Jun Refund - Highmark Blue Shield 813.37 20-Jun Refund - Highmark Blue Shield 764.77 TOTAL PRINCIPAL RECEIVED - PERSONAL PROPERTY: 368,609.50 INCOME RECEIVED Accountant charges herself with the following income amounts received: Date 2013 5-Feb Close Orrstown Bank Checking Acct. No.: 106002878 Accrued Interest From DOD to Closing 5.95 ($5.94 of Interest would be attributable to CD No.4000002157) 5-Feb Close Off stown Bank Certificate of Deposit No.4000010341 Accrued Interest From DOD to Closing 0.86 15-Feb Orrstown Bank- Interest from CD No.: 4000002157 5.94 19-Feb Gain(Loss) on Liquidation of Vanguard Accounts: Windsor Fund Admiral Shares 3,764.66 1st&Final Acct Morningstar 6.26.13.xls DRAFT Page 3 EXKMIT"00 Long-Term Tax-Exempt Admiral (4.71) 26-Feb Gain (Loss) on Liquidation of Dreyfus Accounts: Dreyfus Third Century Fund-Class Z -#0035-3360062336 910.79 Dreyfus Municipal Bond Fund#0054-3360062336 (57.39) 26-Feb Gain (Loss) on Liquidation of Invesco Account: 815.42 15-Mar Orrstown Bank- Interest from CD No.: 4000002157 5.37 15-Apr Orrstown Bank- Interest from CD No.: 4000002157 5.95 15-May Orrstown Bank- Interest from CD No.: 4000002157 5.75 TOTAL INCOME RECEIVED 5,458.59 DISBURSEMENTS Accoutant claims credit for the following amounts paid: Date 2013 15-Jan Checks Cleared After Death Orrstown Bank Checking Acct. No.: 106002878 None 11-Feb Reimburse Laura L.Morningstar: Comcast 62.91 UGI 53.02 1st& Final Acct Morningstar 6.26.13.xls �DRR�A�F�Trt gj Page 4 6Jif77D9i �R� Cremation Services of PA 1,154.71 11-Feb Reimburse Frey &Tiley Probate Fees paid to Register of Wills 463.50 19-Feb Diakon Lutheran Social Ministries 1,508.06 20-Mar PA Dept.of Revenue -Year 2012 Personal Income Tax 344.00 20-Mar Howard's Accounting - Prepartion of 2012 Personal Tax Returns 150.00 20-Mar PSERS - Partial Reimbursement Retirement Funds 476.02 20-Mar Erie Insurance Group (Additional Premium Renter's Ins.) 14.00 20-Mar Register of Wills,Agent Inheritance Tax On Account 24,000.00 21-Mar Refund - Eri e Insurance Group (Auto Insurance) (21.00) 22-Mar Darryl Guistwite,D.O. 109.20 22-Apr Diakon Lutheran Social Ministries 1,387.00 15-May Reimburse Frey &Tiley Cumberland Law Journal -Advertising 75.00 The Sentinel -Advertising 18954 15-May Dan Hershey Auction Service,LLC 277.20 Sales Commission regarding household personal property 15-May Reimburse Laura L. Morningstar: 1st& Final Acct Morningstar 6.26.13.xis DRAFT Page 5 EXHWOW 1/30/13 Payment to Cumberland Crossings 1,390.00 2/10/13 Payment to CenturyLink 12.27 2/13/13 Payment to UGI 53.02 2/20/13 Payent to First Energy Corp. 15.13 3/15/13 Payment to UGI 70.87 3/20/13 Payment to First Energy 17.40 4/5/13 Payment to First Energy 9.53 4/15/13 Payment to UGI 40.71 4/23/13 Payment to UGI 16.36 5/15/13 Payment to have TV Hauled Away 105.98 21-May Bank Service Fee - Check Printing Charge 1230 26-Jun Register of Wills- Filing Fee for Inheritance Tax Return 15.00 ??? Executor's Fee - Laura L. Morningstar 4,500.00 ??? Frey &Tiley -Attorney's Fees 14,000.00 ??? Register of Wills - Record Family Agreement 20.00 ??? Register of Wills - Filing of Account 415.00 ??? Inheritance Tax Refund Anticipated (439.66) TOTAL DISBURSEMENTS 50,497.27 1st &Final Acct Morningstar 6.26.13.xls DRAFT Page 6 RECAPITULATION Total Principal Received - Real Estate 0.00 Total Principal Received - Personal Property 368,609.50 Total Income Received 5,45859 Total Receipts 374,068.09 Less Total Disbursements 50,497.27 Balance for Distribution 323,570.82 PROPOSED SCHEDULE OF DISTRIBUTION 1 Laura L.Morningstar,Trustee for the benefit of The Jadelyn D.Morningstar Trust Under Will of Donald E. Morningstar 15 Nelson Drive Carlisle,PA 17015 One-Half of Residuary Estate pursuant to Will Items IV(A),VI,and IX. 161,785.41 Trust for Granddaughter Less Partial Distribution July 30 ,2013 (100,000.00) Final Distribution 61,78541 1st & Final Acct Morningstar 6.26.13.xls DRAFT Page 7 2 Laura L.Morningstar 15 Nelson Drive Carlisle,PA 17015 One-Quarter of Residuary Estate pursuant to Will Item IV(B) 80,892.70 Daughter Less "In-Kind" Distribution of 2004 Ford Explorer (5,333.00) Less Partial Distribution July :?0 ,2013 (44,667.00) Final Distribution 30,892.70 3 Bronly E.Morningstar 68 Mountain Lane Newburg,PA 17240 One-Quarter of Residuary Estate pursuant to Will Item IV(C) 80,892.71 Son Less Partial Distribution July=jj9 ,2013 (50,000.00) Final Distribution 30,892.71 1st & Final Acct Morningstar 6.26.13.xis DRAFT Page 8 COMMONWEALTH OF PENNSYLVANIA SS.: COUNTY OF CUMBERALND Before me,the undersigned officer,personally appeared Laura L. Morningstar Executrix of the Last Will and Testament of Donald E. Morningstar,Deceased,who,being duly sworn according to law,desposes and says that the foregoing First and Final Account and Proposed Schedule are true and correct to the best of her knowledge,information and belief. Laura L. Morningstar Sworn to and subscribed before me this day of 1st & Final Acct Morningstar 6.26.13.xls DRAFT Page 9 Na"mom