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Rosemary R. Ferrino, Esquire r 2
Attorney ID #46773 r '' r- r r°
1501 Lower State Road 4
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North Wales PA 19454 ° o
phone (215) 283-444 o c
fax (866) 906-6091 z7 —z7i F~' ;= rn
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IN RE: ESTATE OF : IN THE COURT OF COMMON PLEAS
SARAH MCCREA CHAPMAN JONES : CUMBERLAND COUNTY, PENNSYLVANIA
TRUST UNDER WILL f/b/o : ORPHANS' COURT DIVISION
CHAPMAN LODGE
NO. 21-2009-0329
OBJECTIONS
AND NOW, Henry L. Chapman, guardian of Alfred McCrea Chapman, an incapacitated
person by and through his counsel and Henry L. Chapman individually objects to the Supplement
to the Third and Final Account and Petition for Adjudication/Schedule of proposed distribution
of Manufacturers and Traders Trust Company, Successor to Farmers Trust Company, Co-Trustee
(hereinafter "M&T") for the Trust Under the Will of Sarah McCrea Chapman Jones f/b/o
Chapman Lodge filed in this Court for the following reasons:
1. Accountant's supplement provides for a$28,034.52 "reimbursement"to M&T as
attorney in fact f/b/o Alfred M. Chapman which is the subject matter of an identical
pending objection and exception in the Court of Common Pleas of Philadelphia
County which has exclusive jurisdiction over all of Mr. Chapman's person and estate,
a fact already expressly recognized by the Honorable Albert H. Masland of this court
in his consideration and acceptance of the Report filed by his Auditor Michael Bangs
which concluded (without objection by M&T) that Philadelphia County has assumed
control over ALL matters involving Alfred McCrea Chapman and his estate including
all of the trusts established for his benefit by his late mother under the above estate
caption of 421-09-0329 and No 21-78-0442. See Order of court Dated March 4, 2014
IN RE: First and Final Account of M&T, Agent for Attorney in- fact Under POA
Dated 5/3/1977 f/b/o/Alfred McCrea Chapman, Court of Common Pleas Cumberland
County #21-2013-0563 and auditor's report dated February 7, 2014 (at page 6) [a
true and correct copy of which is attached hereto as Exhibit"A".]
2. Venue and jurisdiction of the Supplemental Account is exclusively within the
jurisdiction of the Court of Common Pleas of Philadelphia County under Orphans
Court Docket No 1061 of 2009.
3. Objection is made to the "Claimed" co-trustee fee of John McCrea, III as said fee
is unwarranted and excessive. Even though the court has previously directed
distribution of the trust's assets to the residuary charitable beneficiary said fee causes
harm to objectant herein in legitimizing the conduct of the co-trustee which has been
disputed in the Philadelphia litigation since 2009.
4. Objector incorporates herein as set forth in full the objections filed to the
accounting of the POA account originally filed under Cumberland County File #21-
2013-0563 and transferred to Philadelphia CCP Orphan's Court Docket No 1961 of
2009.
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WHEREFORE,Objector,Henry,Chapman,:Guardian of Alfred,McCrea Chapman,
respectfully request that this Court:
(1)Transfe Lthe audit of this.Supplement,to,-the,Third-and iFinal.Account to,thq,Court
of Common Pleas of Philadelphia County under Orphans Court Control No 1061
of 2009;
(2) Require Accountant to provide answers to the questions raised in the Objections;
and,
(3).Surcharge the Accountant for all losses caused by-the improper-filing.
- Respectifully'siibmitted,
ROSEMARY R. FERRINO, ESQ.
DATEDC/i
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IN RE: FIRST AND FINAL ACCOUNT ) IN THE COURT OF COMMON PLEAS
OF MANUFACTURERS AND TRADERS ) OF CUMBERLAND COUNTY,
TRUST COMPANY, SUCCESSOR TO ) PENNSYLVANIA
KEYSTONE FINANCIAL BANK,NA, )
SUCCESSOR TO FINANCIAL TRUST ) NO. 21-2013-0563
SERVICES COMPANY, SUCCESSOR )
TO FARMERS TRUST COMPANY, ) ORPHANS' COURT
AGENT FOR THE ATTORNEY IN FACT )
UNDER POWER OF ATTORNEY )
DATED 5/3/1997 F/B/O ALFRED )
McCREA CHAPMAN )
AUDITOR'S REPORT
PROCEDURAL HISTORY
On May 16,2013, Manufacturers' and Traders Trust Company("M&T")filed a First and
Final Account and Petition for Adjudication/Statement of Proposed Distribution as Agent for
Alfred McCrea Chapman. On May 3, 1977,Alfred McCrea Chapman executed a durable Power
of Attorney appointing Farmers Trust Company as his Agent,a true and correct copy of which is
attached hereto and marked as Exhibit A. M&T, as the successor to Keystone Financial Bank,
NA,successor to Financial Trust Services Company, successor to Farmers Trust Company,
succeeded as the Agent for Alfred McCrea Chapman under the Power of Attorney. The
Accounting filed was for the period from February 18, 1976 to April 30, 2013.
Exceptions to the Accounting were filed by Henry L. Chapman,both in his capacity as
guardian of Alfred McCrea Chapman and Henry L. Chapman individually. The Exceptions
raised both substantive claims as to the details of the Accounting but also raised improper
jurisdiction and venue.
On June 18, 2013, the Court entered an Order deferring appointing of an Auditor for a
period of two weeks to afford the parties an opportunity to discuss alternative resolutions or
1
request the Court to take other action. By Order of July 3,2013, Michael L. Bangs was
appointed Auditor.
A pre-hearing conference was held on October 10, 2013. Pursuant to the pre-hearing
conference, the parties agreed that the Auditor would first make a recommendation as to the
Exceptions that raised an issue as to the subject matter jurisdiction, personal jurisdiction and
proper venue of the Court of Common Pleas of Cumberland County over the matter. The parties
were instructed pursuant to the pre-hearing conference to provide the Auditor with legal briefs on
the issues raised by December 2, 2013. Subsequently,the Auditor was notified by counsel that
they had entered into a Stipulation that the Orphans' Court Division of the Court of Common
Pleas has jurisdiction to hear the case leaving the issue as to the proper venue of the case as the
only matter in dispute. The parties filed legal briefs with the Auditor on December 2,2013.
Henry L. Chapman suggests that the proper venue for the Exceptions is in the Court of
Common Pleas of Philadelphia County, Orphans' Court Division,as a result of a Final Decree
dated 24 September 2009 wherein Alfred McCrea Chapman was adjudicated a totally
incapacitated person and Henry L. Chapman was appointed his plenary guardian. Attached
hereto and marked as Exhibit B is a true and correct copy of the Final Decree. M&T claims
proper venue is in the Court of Common Pleas of Cumberland County.
FINDINGS OF FACTS
1. On May 13, 1977, Alfred McCrea Chapman executed a durable Power of Attorney
appointing Farmers Trust Company as his Agent, a copy of which is attached hereto and marked
as Exhibit A.
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2. Farmers Trust Company had a number of successors and ultimately it was succeeded
by M&T, a New York corporation, with local offices in Carlisle, Cumberland County,
Pennsylvania.
3. Farmers Trust Company and its successors, including M&T, served as Alfred McCrea
Chapman's Agent under the Power of Attorney until September 24, 2009.
4. On September 24, 2009, the Honorable Anne Lazarus, of the Court of Common Pleas
of Philadelphia County, issued a Final Decree adjudicating Alfred McCrea Chapman
incapacitated and appointed Henry L. Chapman,his son,as plenary guardian of the person and
the estate of his father,Alfred McCrea Chapman. (Previously identified as Exhibit B attached
hereto).
5. Judge Lazarus made a specific finding that Alfred McCrea Chapman was domiciled in
Philadelphia, Pennsylvania.
6. On the same date, September 24,2009,Judge Lazarus also entered a Decree requiring
that M&T and John McCrea, III, Co-Trustees, file an accounting of the Charitable Remainder
Uni-Trust established under the will of Alfred McCrea Chapman's mother, Sarah Jones,within
forty-five(45)days in the Court of Common Pleas of Philadelphia County. Attached hereto and
marked as Exhibit C is a true and correct copy of the Decree.
7. Alfred McCrea Chapman has resided in Philadelphia since at least the creation of the
Power of Attorney on May 13, 1977.
8. Alfred McCrea Chapman's mother established a Charitable Remainder Uni-Trust
("CRUT") in Cumberland County which has remained the situs of the trust ever since.
9. The Power of Attorney account was comprised of distributions from Sarah Jones,
Alfred McCrea Chapman's mother, while she was alive and from her estate after her death. This
3
included distributions from the Trust to the Power of Attorney account all of which essentially
paid for Alfred McCrea Chapman's care.
10. The majority if not all of the assets which have funded the account during its thirty-
six(36)year existence originated in Cumberland County and were managed in Cumberland
County.
DISCUSSION
The Pennsylvania Probate Estates and Fiduciaries Code ("PEF Code"), provides explicit
instruction as to the appropriate venue in matters involving the issues raised and are subject to
the disposition of this matter. Section 721 is entitled "Venue of decedents', minors' and
incapacitated persons' Estates"while Section 722 is entitled"Venue of trust estates." The
question is which Section applies to the facts in this case. Henry L. Chapman argues that Section
721 is controlling while M&T argues that Section 722 is controlling. The Auditor agrees with
Henry L. Chapman that Section 721 controls the disposition of this matter and that venue is
proper in Philadelphia County and as such the matters raised in this dispute should be transferred
to Philadelphia County.
Section 721 initially says, in pertinent part:
When a Pennsylvania court has jurisdiction of a decedent's, a minor's, or
an incapacitated person's estate, except as otherwise provided by law, venue for
all purposes shall(emphasis added) be as follows:
(1) Decedent's estate — ...
(2) Minors' and incapacitated persons' estates.—In the case of a guardian
of a minor or incapacitated person appointed by the court, in the county whose
court appointed the guardian [emphasis added]. In the case of a guardian of a
4
minor or incapacitated person not appointed by the court, or when there is a
minor's or incapacitated person's estate but no guardian, in the county whose
court at the time proceedings are first initiated would have jurisdiction to appoint
a guardian of the estate.
20 Pa. C.S.A. Section 721.
Judge Lazarus, in her Final Decree dated September 24, 2009, specifically ordered and
decreed that Alfred McCrea Chapman was adjudged totally incapacitated requiring a plenary
guardian of his person and estate for the foreseeable future. She then appointed Henry L.
Chapman,his son,as the plenary guardian of the person and the estate of Alfred McCrea
Chapman. As such, all matters involving the incapacitated person,Alfred McCrea Chapman, or
his estate,are under the jurisdiction of the Orphans' Court in Philadelphia County per that Order.
Concurrently, Judge Lazarus, on the same date, entered an Order requiring M&T to
provide an accounting for the CRUT of which M&T was a Co-Trustee. While that is not the
subject of this current dispute, it is certainly is another indication that the Court of Common
Pleas of Philadelphia County assumed jurisdiction over all matters involving the incapacitated
person, Alfred McCrea Chapman.
M&T's reasoning is that since the matters raised in the Exceptions to the Accounting
implicate the operation of the trust, then those matters are under the exclusive jurisdiction and
venue of the Court of Common Pleas of Cumberland County under Section 722 of the PEF
Code. M&T's argument in this regard is misplaced.
M&T cannot ignore the mandates of Section 721. Section 721 specifically provides that
venue is proper and shall be placed in the Court of Common Pleas where the court appointed the
guardian of the incapacitated person and his estate. This is in Philadelphia County. While the
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trust arguably is located in Cumberland County and the Power of Attorney account apparently
has been handled exclusively in Cumberland County,that cannot cause us to ignore that the
Court of Common Pleas of Philadelphia County entered a specific Decree on September 24,
2009 assuming control over the incapacitated person and his estate.
Clearly it is in the best interest of this matter that one court determine all issues in dispute
between the parties as it relates to Alfred McCrea Chapman. The Court of Common Pleas of
Philadelphia County by virtue of its Order of September 24,2009 assumed control over all
matters involving Alfred McCrea Chapman and his estate. By Order of the same date, it
assumed control of the accounting by M&T of the CRUT. Not only does the PEF Code then
require that the proper venue for the resolution of all matters occur in Philadelphia County, it
makes sense for that to occur.
CONCLUSIONS OF LAW
1. Alfred McCrea Chapman is domiciled in Philadelphia County.
2. The Court of Common Pleas of Philadelphia County assumed jurisdiction of all
matters involving Alfred McCrea Chapman as a result of its Order of September 24;2009
appointing Henry L. Chapman, his son, as plenary guardian of the person and the estate of his
father,Alfred McCrea Chapman.
3. Pursuant to the Probate Estates and Fiduciaries Code, 20 Pa. C.S.A. Section 721, the
proper venue for all matters involving Alfred McCrea Chapman, including but not limited to the
matters raised in the First and Final Account and Petition for Adjudication filed by M&T,
properly lies in Philadelphia County.
It also should be noted that the incapacitated person,Alfred McCrea Chapman,who is the subject of this dispute,
has been domiciled and resided in Philadelphia County in excess of thirty years.
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RECOMMENDATION
The Auditor recommends that the proper venue is in the Court of Common Pleas of
Philadelphia County and that the Court enter an Order transferring the matter to the Court of
Common Pleas of Philadelphia County docketed to O.C. No. 1061 of 2009, Control No. 091893.
Respectfully submitted,
BANGS LAW OFFICE, LLC
CHAEL L. BANGS
429 South 18th Street
Camp Hill, PA 17011
(717) 730-7310
Supreme Court ID #41263
7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this day served the foregoing Auditor's Report by
depositing a copy of the same in the United States mail,postage prepaid, at Camp Hill,
Pennsylvania, addressed to the following:
Rosemary R. Ferrino, Esquire
1501 Lower State Road, Suite 205
North Wales, PA 19454-1216
Seth T. Mosebey, Esquire
Martson Deardorff Williams Otto Gilroy& Faller
10 East High Street
Carlisle, PA 17013
DATE:_
WEMY K. S' UB
Paralegal
8
POWER OF ATTORNEY
KNOW ALL h+EN BY TF'.£.S' PRES—BNT5, That I, ALFRED McCREA CI+.APMAN,
have made, constituted and appointed, and by 'c'r,ese presents do sake,
constitute and appoint FARMERS TRUST 'IMPMi , cf the Borough of
Carlisle, Cumberland County, Pen:nsyivania,.mv true and lawful
attoiney,• for me and in my name and on my behalf:
1. To ask, demand, recover end receive ail and any sums of
money, debts and rents due or payable• coming or belonging, or which
may-at any time be due and payable and.belunging to me, from any
person., firm, corporation or legal. entity whatsoever, including
the Commonwealth of Pennsylvania, the United States Of America,
the Social Security Administration and any other agency of the State
of Pennsylvania or of the United States of America;
2. To enter any safe deposit box of which I am renter.in, my
own right or jointly with others; _
3. To deposit funds in and withdraw fUmds from any eccount
that I-may have in'dny bank, trust 'company, tual savings bank "
savings ena :.oen association:; inc'<udiac ants i ma}•..'"o�d .
jointly with other persons; be , fund n and withdraw
,funds from any account in an1 stitution which MY said
attorney may create for that 4.. TO -endorse notes, c fts and bills of exchange,
which may require my en eposit, for cashing or for
collection;
5. To sell, tranaf assign any personal property, stook,
bond or other security or evidence of debt which I am now
possessed or in which I may have or hereafter acquire an interest
end t^ axccute e^.; and :'_1 lam{,r=n LYr s, ;t.a=ssar}' to make such
sale, transfer or assignment;
6. To mortgage, sell, transfer, and convey any and all
real estate which I may now own or in which I may have any interest
Ail
and may hereafter acquire or have any interest wheresoever situate,
, ,...and to execute and-acknowledge on my behalf any such mortgage;
deed, release or assignment whatsoever to exercise the authority
herein given;
7. To borrow money for my sccount and upon the security of
my estate and to pledge and hypothecate as security for such loan -
or loans any or all of my property and estate, and to execute,
acknowledge and deliver to the lender or lenders such notes, bonds,
and assignments as my said attorney may deem necessary or advisable
for such.purposes;
S. To invest any funds received by said attorney as maybe -
deemed proper for such investment, in the exercise of prudent
Judgment, in said attorney's absolute and sole discretion;
9. In the absolute discretion of said attorney* to apply any
principal and income to the payment of the cost of my maintenance ..
and care, in any hospital, nursing home, public or private
institution, or at my residence, and to the payment .of- sriy medical,
surgical, dental, or nursing care which may or is required
10. This Power of Attorney shall t acted by my
disability or incapacity, physical via I,. but the authority s ,
hereby conferred shall be.exerc aid attorney notwithstanding
my disability or incapacity.
11. 1 grant to my s power and authority to make
and.substitute in and nee .the premises .an attorney or
attorneys under it and a to.revoke. -
12. I give and grant unto my said attorney, or any. substitute
_. or substitutes; full power and'authority to do. and perform all
and every act and thing whatsoever requisite and necessary to be dome
in and about the premises, as fully to all intents and purposes as I
might or could do if personally present; hereby ratifying and
confirming all that the said attorney, or any substitute or.
substitutes, $hall lawfully do or cause to be done therein by
virtue of these presents, '. .
IN WI7FESS WFEREOP, I have hehereunto sat my hand and seal
this �. .day oY /fir ZI U
e O/J
� i ctn� (SEAL)
Al d McCrea Chapman
COMMONWEALTF OF PENNsyLYANIA)
COUNTY OF )
On this, the day of f.{, 1 ' 7 before
me, the undersigned officer, parsons lye appear MCCREA CPAPMAN, .
known to me (or satisfactorily proven) to be the person whose name .
is subscribed to the within Power of Attorney, and acknowledge
that he executed the same for the purposes .therein ccntairad, . . ..
IN WITNESS WF—vREOF, I hereunto set my hand and 34ficial
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seal. j 1
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(SEALY
J"CS PRIG
tlaUt/Pk'PI4a<ato�t.Ph g9 .
Mf(µant5fi]n f,Piit4�>�,tnt
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IN THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY
ORPHANS' COURT DIVISION
O.C. No.1061 of 2009
Control No.091893
Estate of ALFRED MCCREA CHAPMAN,
an Alleged Incapacitated Person
FINAL DECREE
bG
AND NOW,this day of SEPTEMBER,2009, upon consideration
of the annexed petition and after hearing held following due notice,this Court finds
by clear and convincing evidence that:
1. Alfred McCrea Champman- is 73 years of age and is domiciled in
Philadelph la,Pennsylvanla.
2. He suffers from Paranoid Schizophrenia and hernia which
Impairs his capacity to receive and evaluate information
effectively and to make decisions regarding management of his
financial affairs.
3. He is so severely mentally Impaired that he is unable to make,
communicate or participate in any decision relating to his estate
or person.
4. His physical and mental health is such that his presence at the
hearing would be possibly harmful to his health and as a result
he was not present and was not represented.
Accordingly, it is hereby ORDERED and DECREED that Alfred McCrea
Champman Is adjudged totally incapacitated and he requires a plenary guardian of
his person and estate for the foreseeable future.
Henry L.Chapman Is appointed plenary guardian of the person and the
estate of Alfred McCrea Chapman, an incapacitated person. Bond is waived. The
Accondbuov,counsel for Petitioner shad cause to be served upon and
read to Alfred UcCm Chapman a copy of this Decree and the Statement of Rights
attached henfo as Exhibit°A°,and file proof of same with the Court within ten(f 0)
days from the data hereof.
Alfred McCrea Chapman has twenty (20) days from the date of this
deem to file exceptions. Failure to file exceptions within that time will result In this
decree becoming final. Alfred McCrea Chapman has been advised of his right to
appeal and to petition to modify or terminate the guardianship by copy of this decree
and by the Statement of Rights attached hereto.
Lazar",J.
Rosemary Ferrino, Esquire
COPIESSEWT
PURSUANT M PaR.C.P.2t8t41
SEP 2 4 249
FIRSTJUDIC
{USER I '
IM TW COURT OF COMMON PLEAS OF PHILADELPHIA
ORPHANS' COURT DIVISION
O. C No. 1081 IC of 2009
Estate of ALFRED MCCREA CHAPMAN,
An incapacitated Person
DECREE
AND NOW, this oZ �! .l1 day of SEPTEMBER,2009, after a hearing on
the Petition for Adjudication of Incapacity,it appearing that the Trustees of the two
Charitable Remainder Trusts under which the Incapacitated Person is a lifetime
beneficiary have not filed an accounting since the inception of the trusts,It Is hereby
ORDERED and DECREED that Manufacturers&Traders Trust Co and John McCrea,
III,Co-Trustees,shall file an account of the Charitable Remainder Trusts established
under the will of the Incapacitated Person's mother in the Cumberland County
Orphans' Court within forty-five (45) days of service of this order upon them by
counsel for petitioner.
Lazarus J.
Rosemary R.Fenno, Esquire FURSUACOPPI SSE
SEP 2 4 2009
RRSTJODICIAR OF A
USER I.D:
CERTIFICATE OF SERVICE
I do hereby certify that I have served a true and correct copy of the foregoing
by placing same in the United States Mail, first class,postage prepaid, at Harrisburg,
Pennsylvania, addressed as follows:
No V. Otto, I1I, Esquire
10 East High Street
Carlisle, PA 17013
Attorneys for Manufacturers and Traders
Trust Company
Mr. John McCrea, III. Co-Trustee
221 Doubling Gap Road
Newville, PA 17241
St. John's Episcopal Church
P.O. Box 612
1-A North Hanover Street
Carlisle, PA 17013
Karen E. Chapman
1858 San Lorenzo Avenue
Berkley, CA94707
Katherine C. Michalka
250 Loche Lloyd Parkway
Belton, MO 64042
Michael T. Foerster, Esquire
Office of the Attorney General
14'h Floor- Strawberry Square
Harrisburg, PA 17120
By:
Dated: