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HomeMy WebLinkAbout08-06-14 , � RIN A IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA c� = ORPHANS' COURT DIVISION �-`-�-' �� �-=-7��� .J.1 3� �:-i C_� ��'; � '....)C_i �.7��-„ ' 'C") i:�:' _:'t.: IN RE: �'��. vo , -- ) � C�:; � , .. � - , T � ��� -_-� �-, ESTATE OF NICHOLAS L. TOYAS, ) No. 21-12-1031 b -~ ``} ���� -� ) cr, A MINOR ) PETITION TO TERMINATE GUARDIANSHIP AND TO ESTABLSH A SPECIAL NEEDS TRUST Petitioners, Patricia A. Toyas, George N. Toyas and Jeffrey C. Goss, Esq, guardians of the estate of Nicholas L. Toyas, a minor, file the instant Petition to Terminate Guardianship and To Establish a Special Needs Trust, and in support thereof, state the following: 1. Petitioners, Patricia A. Toyas and George N. Toyas are the parents and natural guardians of Nicholas L. Toyas, a minor, and reside at 923 Maplewood Lane, Enola, Cumberland County, Pennsylvania. 2. Petitioner, Jeffrey C. Goss, Esq., is an attorney licensed to practice in the Commonwealth of Pennsylvania, with a business address of 480 New Holland Avenue, Suite 6205, Lancaster, Lancaster County, Pennsylvania 3. Nicholas L. Toyas, the minor, was born on April 12, 1999 and resides with his parents. Nicholas has been diagnosed with spastic diplegia and significant cognitive delays as result in a number of inedical errors and/or omissions at the time of his birth. 86223/1149-001 4. As a result of those errors, Patricia A. Toyas and George N. Toyas, represented by counsel, filed a medical malpractice action in the New York State Supreme Court (Queens County). The matter was eventually settled, with a lump sum of$1,056,176.51 being paid to and for the benefit of Nicholas. 5. For ease of settlement and to ensure the ability to accept the proceeds of the settlement, Petitioners filed a Petition to Appoint a Guardian for the estate of Nicholas. 6. This Court entered an order granting the Petition on November 5, 2012 appointing Petitioners guardians of the estate of Nicholas. A copy of the Court's Order is attached hereto as Exhibit A. 7. Currently, is approximately $1,0555,608.00 in the guardianship estate. A copy of the inventory filed on April 3, 2014 is attached hereto as Exhibit B. 8. After discussion and consultation, the Petitioners have determined that it is in the best interest of Nicholas that the proceeds of the guardianship estate be placed into a Special Needs Trust (hereinafter the "Trust") to provide for his care and maintenance currently and in the future. A copy of the proposed Special Needs Trust Agreement is attached hereto as Exhibit C. 9. Nicholas is entitled to and will receive, for the remainder of his nature life, medical care payment and reimbursement through the New York Medical Indemnity Fund, as administered by the New York Department of Financial Sexvices, pursuant to Article 29- D of the New York Public Health Law. Accordingly, it is not anticipated that Nicholas will ever require assistance through the Pennsylvania Department of Public Welfare, or any 86223/1149-001 2 other state's public welfare system. Therefore, the Trust does not have a payback provision and is not a trust that quali_fies as a disregarded asset under the applicable provisions of Title XVI of the Social Security Act, and more specifically 42 U.S.C. §1396p(d)(4)(A), as amended by the Omnibus Budget Reconciliation Act of 1993 (and any federal or state regulations or other rules promulgated pursuant to that provision) and 62 P.S. §1414. 10. Accordingly, it is not anticipated that the Trust and notice thereof will be given to the Pennsylvania Department of Public Welfare. At such time as Nicholas would need assistance through the Pennsylvania Department of Public Welfare, the Trustees will give the Pennsylvania Department of Welfare and the SSI Program Support Team notice and obtain approval of the Trust as an exempt asset at that time and the Trustees would amend the Trust accordingly. 11. Pursuant to the terms of the Trust, and to afford maximum protections for Nicholas, the Trustees cannot and shall not make any distributions of principal without the approval of this Court. See Exhibit C (Paragraph First, B). 12. Moreover, the Trust provides that each year, the Trustees must provide a statement to this Court showing the transactions for the preceding year and a list of the Trust's holdings. See Exhibit C (Paragraph Seventh, H). 13. It is anticipated that this Trust will remain in existence beyond Nicholas' 18th birthday on April 12, 2017. The Trustees understand and agree that Court approval will be needed to extend the Trust indefinitely at that time. 14. It is believed that the termination of the guardianship estate and the establishment of the Trust are in the best interest of Nicholas because it is anticipated 86223/1149-001 3 that Nicholas will require financial assistance throughout his life for his health, safety and welfare. It is not anticipated that Nicholas will be able to reside on his own, or to gain employment which will provide him su�cient assets for his daily and special needs. The Trust will enable Nicholas to have such funds as are necessary to supplement any other assistance or funds he earns or receives and to ensure that his needs are met into the future. 15. Also, Petitioners have utilized the services of Dana C. Panagopoulos, Esquire, to assist them since the initial setup of the guardianship estate and to prepare the trust and this Petition. Attorney Jeffrey C. Goss of the same firm has not billed for any of his time as guardian as reflected in the itemized bill attached hereto as Exhibit D. Petitioners hereby request the Court approve the payment of the attached itemized bill from the principal of the guardianship estate. Accordingly, for the reasons set forth above, Petitioner, as guardians of the estate of Nicholas L. Toyas, a minor, respectfully request that the Court terminate the guardianship of the estate of Nicholas L. Toyas, a minor, and authorize the establishment of the Nicholas L. Toyas Special Needs Trust, in the form appended hereto as Exhibit C. Respectfully Submitted, BRUBAKER CONNAUGHTON GOSS & LUCARELLI LLC Date: By� a C. Panagopoulos, orney I.D. No. 89491 0 New Holland Avenue, Suite 6205 Lancaster, PA 17602 86223/1149-001 4 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION IN RE: ) ) ESTATE OF 1vICHOLAS L. TOYAS, ) No. 21-12-1031 ) A MINOR ) CONSENT AND VERIFICATION OF GEORGE N. TOYAS I, George N. Toyas, of 923 Maplewood Lane, Enola, Pennsylvania, father of Nicholas L. Toyas, a minor, having reviewed the foregoing Petition and the facts set forth therein, do hereby consent to the filing of the foregoing Petition and the establishment of the Nicholas L. Toyas Special Needs Trust in which I shall serve as a co-trustee. I further verify that I am the Petitioner in the within action; that the attached Petition is based upon the facts of which I have personal knowledge or information furnished to me by counsel; that the language of the document is that of counsel and not my own; and that the facts set forth in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that the statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. / s �'l- � George . Toyas 86223 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVAIVIA ORPHANS' COURT DIVISION IN RE: ) ) ESTATE OF TTICHOLAS L. TOYAS, ) No. 21-12-1031 ) A MINOR ) CONSENT AND VERIFICATION OF PATRICIA A. TOYAS I, Patricia A. Toyas, 923 Maplewood Lane, Enola, Pennsylvania, mother of Nicholas L. Toyas, a minor, having reviewed the foregoing Petition and the facts set forth therein, do hereby consent to the filing of the foregoing Petition and the establishment of the Nicholas L. Toyas Special Needs Trust OF which I shall serve as a co-trustee. I further verify that I am the Petitioner in the within action; that the attached Petition is based upon the facts of which I have personal knowledge or information furnished to me by counsel; that the language of the document is that of counsel and not my own; and that the facts set forth in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that the statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. 3 �, �� Patrici�A. Toyas 86223 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION IN RE: ) ) ESTATE OF NICHOLAS L. TOYAS, ) No. 21-12-1031 ) A MINOR ) CONSENT AND VERIFICATION OF JEFFREY C. GOSS, ESQUIRE I, Jeffrey C. Goss, Esquire, having reviewed the foregoing Petition and the facts set forth therein, do hereby consent to the filing of the foregoing Petition and the establishment of the Nicholas L. Toyas Special Needs Trust of which I shall serve as a co-trustee. I further verify that I am the Petitioner in the within action; that the attached Petition is based upon the facts of which I have personal knowledge or information furnished to me by counsel; that the language of the document is that of counsel and not my own; and that the facts set forth in the foregoing document are true and correct to the best of my knowledge, information and belie£ I understand that the statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. � , OS Jeffrey C.�Goss, Esquire 86223/1149-001 . r • � ' IN RE: . IN THE COURT OF COMMON PLEAS OF . CUMBERLAND COUNTY, PENNSYLVANIA ESTATE OF NICHOLAS L. . NINTH JUDICIAL DISTRICT TOYAS, • A minor . 2012-1031 IN RE: PETITION FOR APPOINTMENT OF GUARDIAN OF THE ESTATE OF A MINOR UNDER THE AGE OF 14 PURSUANT TO PENNSYLVANIA CONSOLIDATED STATUTE SECTION 5111 ORDER OF COURT AND NOW, this 5th day of November, 2012, upon consideration of the petition of Patricia A. Toyas and George N. Toyas, parents and natural guardians of Nicholas L. Toyas, a minor, it is hereby ordered and directed that Jeffrey C. Goss, Esquire, Patricia A. Toyas, and George N. Toyas are appointed co-guardians of the estate of Nicholas L. Toyas, a minor. Security is waived. The funds to be distributed shall be placed in restricted accounts, specifically FDIC insured accounts restricted in the minor' s name indicating no distribution without Court approval. Proof of establishing these accounts shall be filed with the Court within 60 days. It is further ordered that the co-guardians are authorized to expend upon receipt principle in the amount of $2, 617 for the payment of counsel fees and costs associated with establishing this estate. The co-guardians are further ordered to comply with the reported requirements in the provisions of Title 20 of the Pennsylvania Consolidated Statute Section 5142 . �j�., � � By the Court, ,�;, -- �;.:� ._� _� - - ,-: �. -;,� . � .� � - A TRUE C�PY FROM RECORD ��' wherof.I hereun :i . ;=, -=_�_;-� 1�TeStitrt0� Rd ihA g1 homa s A. 1 a c ey C.P.J. ��� - .._ :�'="= set r'�Y a ��PA � "_ ._.. `'� a�s�id CouR at Ca�l �. :� th,� 1� i� h � _ � ��,; ��a����coi,rc t�e�+t�r Q ' . �M�� "�� ^ P-T.""^. �^,.. ' � GUARDIAN'S INVENTORY �.�.,� , �%;' '4.. ' '�� �:.:�.' r i �� �;-;� , COURT OF COMMON PLEAS OF Cumberland COUNTY, PENNSYLVANIA � ORPHANS' COURT DIVISION Estate of Nicholas L. Toyas t�an Incapacitated Person 'f�a Minor No.21-12-1031 1. Real Estate: (Location, by whom occupied and rental Estimated Value: terms,if applicable) Not applicable. Sub-Total for Real Estate: o.00 2. Personal Property: Estimated Value: Orrstown Bank 214,089.48 Susquehanna Bank 210,405.36 Metro Bank 210,385.04 Member's First Credit Union ' 210,394.01 AmeriChoice Federal Credit Union 210,334.99 3. Jointly Held Property: Estimated Value: (Set forth real and persona!property owned by the Incapacitated Person JOlNTLY with any o other person(sJ. State whether held as tenants by the entireties;if not,whether the righr of n s � � survivorship exists.) C O n'7 �'�j Jointly Held Properry W � � � c� Not applicable. � s n � �`' � --� � r. � rr� �"�� rn —� � �- =.� o z . � ,:�� a � o � -n -n � Q-�9___�_—-... -n o � �, "� c� �v'�.� ~ � rn � o � Form G-04 rev. 10.13.06 Page 1 of 2 . < . e w i �:. . � i i�]an Inca�acitated Person Estate of Nicholas L Toyas --�l�a Minor 4. Anticipsted Assets: • Estimated Value: (5etjorth propertyofeayTdnd especled to be acr�rrtredhereafter,+ogerherwith anuctpored date afacquisi�fox.) p��, AnNdpoeedDote ojAcquis+Hon Su6-Total for Personal Estale: 1,055,608.69 (Attach additiona!sheets r�necessary) _ 1,055,608.88 � TOTAL OF 1TEMS i,2�,3,aQd 4: .... .... .. .... ...... . ....... Commonwealth of Pennsylvania . :SS. County of Cumberland . . Patrzcia A.Toyas says that the foregoing is a fu11, � , Guardian � true a�nd complcte In�entcxy of the Estate of�x�o��L.Toyas I �aforesaid Incapa�itated Person ur Ntinor;and that all of the information set forth herein is � �rue amd correct to the best of the Guardian's icnowledge and belief. � � I vesify tbat the statements made in this } ` rnventory are true and correc� I under- ) ' stand that false s�atemer�ts herein are ) l - ' .�-- made subject tA the peaalties of ) ���'� 18 Pe.C.S.§4904 relating to ur�sworn ) falsification to authorities. ) � Attomey for Guardian: D�C-P�gopovlos Sur�eme Court I.D.No.: $9491 ` Address: 480 New Holland Avenwe,Suite 6205 � Lancaster,PA 17602 Telephone: �717)�45-5745 i � � Page 2 of 2 1' Fpm G.pI rex 10.13.06 RECEIPT FOR PAYMENT LISA M. GRAYSON, ESQ. Receipt Date : 4/03/2014 Cumberland County - Orphans Court Receipt Time : 11 :29 : 36 One Courthouse S quare Receipt No. : 1054458 Carlisle, PA 17613-3387 TOYAS NICHOLAS L File Number: 2012-01031 Paid By Remarks : BRUBAKER CONNAUGHTON ET AL DMB --- - ----- -- -- --------- -- Receipt Distribution -------- ---------------- Fee/Tax Description Payment Amount Payee Name INVENTORY 15 . 00 CUMBERLAND COUNTY GENERAL FUN ---------------- Check# 5180 $15 . 00 Total Received. . . . . . . . . $15 . 00 SPECIAL NEEDS TRUST OF 1VICHOLAS L. TOYAS This Declaration of Trust (the "Trust") is established by Order dated ("Order") of the Orphans' Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania("Court"),for the sole benefit of Nicholas L.Toyas("Nicholas"), a minor born on April 12, 1999, who is a disabled individual as defined in Title XVI of the Social Security Act (the "Act"), 42 U.S.C. §1382(c)(a)(3). Nicholas is the son of Patricia A. Toyas and George N. Toyas with whom he currently lives in Cumberland County, Pennsylvania. Pursuant to Court Order dated November 5, 2012 at docket number 21-12-1013, Nicholas has assets, in the approximate amount of$1,056,000 in a guardianship estate, of which Patricia A. Toyas, George N. Toyas and Jeffrey C. Goss, Esquue are co-guardians. Such assets are damages resulting from a personal injury award from a case filed with Supreme Court of the State of New York, Queens County. This Trust, which shall be known as the "Nicholas L. Toyas Special Needs Trust,"is established in accordance with a provision of Title XIX of the Act, specifically 42 U.S.C. §1396p(d)(4)(A), as amended by the Omnibus Budget Reconciliation Act of 1993 (and any federal or state regulations or other rules promulgated pursuant to that provision) and 62 P.S. §1414, which exempts the assets held in Trust from being considered in the determination of Nicholas' eligibility for, or amount of, medical benefits under a State Plan under the Act, and therefore, the property directed to this Trust shall in no way be deemed to have been or to be available to Nicholas. Nicholas is entitled and will receive, for the remainder of his nature life, medical care payment and reimbursement through the New York Medical Indemnity Fund, as Doc 53225.2 Page 1 administered by the New York Department of Financial Services, pursuant to Article 29-D of the New York Public Health Law. Accordingly, it is not anticipated that Nicholas will ever require assistance through the Pennsylvania Department of Public Welfare, or any other state's public welfare system. Accordingly, this Trust and notice thereof has not been given to the Pennsylvania Department of Public Welfare. At such time as Nicholas would need assistance through the Pennsylvania Department of Public Welfare, the Trustees shall be required to give the Pennsylvania Department of Welfare and the SSI Program Support Team notice and obtain approval of this Trust as an exempt asset at that time and the Trustees would amend the Trust accordingly. PATRICIA A. TOYAS, GEORGE N. TOYAS and JEFFREY C. GOSS, ESQ shall serve hereunder as co-Trustees(hereinafter"Trustee"), all must act in concert, and hold the sums distributable to Nicholas in settlement of the aforementioned personal injury case, in accordance with the Order of that Court, and any other property ac�eptable to the Trustee which is added to the Trust, and shall manage, invest and reinvest said property, shall collect the income therefrom and shall distribute the net income and principal in accordance with the following provisions of Items FIRST through FIFTH. FIRST: Distributions. A. Upon funding, Trustee shall use trust principal to fund either an irrevocable burial account or a prepaid funeral arrangement for Nicholas in an amount not to exceed the limit established by law and/or the limit after which Nicholas' medical benefits, if ever necessaxy, may be jeopardized. Trust assets shall not be used for this purpose after the death of Nicholas until repayment has been made under Item FIRST, Doc 53225.2 Page 2 Paragraph C below. B. During Nicholas' lifetime, the Trustee shall distribute for Nicholas' benefit such parts or all or none of the net income (as defined in Item SECOND below) and principal as the Trustee shall determine in the Trustee's sole discretion, subject to the provisions regarding Trustee Discretion below, for the special needs of Nicholas; provided, however, no principal distribution shall be made without approval of the Court. Distributions from this Trust shall be solely for the payment of expenses outside of those incurred by parents for the usual care and maintenance of a minor. Any income which is not distributed shall be accumulated and may be, but is not required to be, added to principal. C. To the extent permitted by the laws, regulations, or policy provisions pertaining to any state or federal public benefit program for which Nicholas may be eligible: (i) the Trustee is authorized to purchase, maintain, improve, or replace a residence or any interest in a residence in which Nicholas may reside, whether by purchase, lease, or purchase of an interest in any such residence, including any portion of a residence that may be owned by a family member. If the Trust shall at any time own such realty, the Trustee may permit Nicholas' occupancy or use without charge in such manner as, in the opinion of the Trustee, best serves Nicholas' needs, without the necessity of turning such property into cash or generating an income therefrom. (u) the Trustee is authorized to pay out of trust income or principal any taxes, insurance, and maintenance expenses needed to keep the residential or replacement property in suitable repair, or any portion thereof and to collect rent from other occupants of the property, as the Trustee deems proper. These powers may be exercised for the benefit of Nicholas, even if Nicholas is residing with any family member who also may be serving as a Trustee; (iu) the Trustee may acquire furnishings, make home Doc 53225.2 Page 3 improvements, and provide for regular household assistance to Nicholas; (iv) the Trustee is expressly authorized, in its absolute discretion, to permit any family member of Nicholas, who is residing now or at any time in the future upon any real property forming a part of the Trust Estate to continue residing there on such terms as the Trustee shall deem proper, whether rent free or in consideration of payment of taxes, insurance, maintenance, and ordinary repairs, or otherwise; (v) the Trustee is authorized, in its absolute discretion, to pay for therapeutic services including color therapy and horseback riding therapy. D. The Trust shall terminate upon Nicholas' death (if not earlier terminated under the Administrative Provisions below) and the Trustee shall distribute any principal and income remaining in the�ust outright to or in further trust for such one or more individuals or organizations as Nicholas shall designate and appoint by specific reference to this power of appointment in his valid will. To the extent that Nicholas fails effectively to exercise his power of appointment, the Trustee shall distribute any unappointed principal and income to the then-living heirs at law of Nicholas as determined in accordance with the laws of the state in which Nicholas is domiciled at his death, as if Nicholas had died intestate at that time owning such property. SECOND: Definition of Income. For all purposes of trust administration hereunder: A. The term "income" as used herein shall mean an annual amount (also referred to in this Item as the "unitrust" amount) equal to greater of: (i) trust accounting income, or (ii) four percent (4%) of the net fair market value of the Trust's assets, whether such assets would be considered income or principal, averaged over the Doc 53225.2 Page 4 lesser of (a) the three (3) preceding years of Trust administration, or (b) the period during which the Trust has been in existence. B. The Trustee may, in the Trustee's discretion, from time to time determine all of the following: (1) The provisions for prorating a unitrust amount for a short year in which Nicholas'right to payments commences or ceases. (2) The effect of other payments from or contributions to the Trust on the Trust's valuation. (3) The frequency of distributions of the unitrust amount during the year. (4) Whether to value the trust's assets annually or more frequently. (5) What valuation dates to use. (6) How frequently to value non-liquid assets and whether to estimate their value. (7) Whether to omit from the calculations Trust property occupied or possessed by a beneficiary. (S) Any other matters necessary for the proper calculation of the unitrust amount and functioning of the Trust. C. Nicholas will likely be required to include in his gross income for tax purposes all the taxable income earned by this Trust during his lifetime (including realized capital gains), to report such income on his personal income tax return, and to pay the Doc 53225.2 Page 5 income tax due with respect to such income,because this Trust is a"grantor trust"under the Internal Revenue Code of 1986, as amended. To the extent that Nicholas is required to include in his taxable income any portion of the income earned by this Trust and pay the income tax due with respect to such income, the Trustee shall pay to Nicholas, the guardian of his estate, if any, or to the tax authorities, from principal, without further court approval, an amount equal to the increase in income taxes, interest and penalties thereon, payable because of such inclusion. After Nicholas' death, income taxes shall be paid by the beneficiary and/or Trustee under ordinary fiduciary income t� rules. The amount of any tax refunds shall be paid directly to the Trustee to the extent such refund is attributable to amounts previously paid by Trustee. For purposes of determining whether an amount is attributable to any such prior payments, any refund including any interest thereon, shall be attributed to amounts previously paid by the �ustee to the extent the Trustee made any tax payments for the relevant year which has not been previously refunded. For purposes of determining whether an amount previously paid has been previously refunded, any interest included as part of the refund shall not be used to offset a previous payment by Trustee. If any tax refund attributable in whole or in part to a prior payment by Trustee is paid directly to Nicholas or any guardian or other representative, the recipient of such refund shall have no interest in or right to such refund, and the recipient shall hold the amount which is attributable to a prior payment by Trustee as an agent of the Trustee and shall immediately forward such amount to Trustee. THIRD: Trustee Discretion. The Trustee shall be guided by the following when exercising discretion hereunder: Doc 53225.2 Page 6 A. Wherever the Trustee has the discretion to determine whether or to what extent principal or income shall be distributed to or used for the benefit of Nicholas hereunder, the Trustee shall consider the resources and sources of funds available to Nicholas through any state or federal public assistance program. In making this determination, the Trustee shall consider that the purpose of this Trust is not to supplant any benefits received by Nicholas from the New York Medical Indemnity Fun, or otherwise, but to supplement those benefits by providing only for Nicholas' special needs, in such manner that Nicholas will not be disqualified from any local, state or federal benefits. Any expenditure from the Trust must have a reasonable relationship to Nicholas' needs. B. The term "special needs" refers to the maintenance of Nicholas' good health, safety and welfare when, in the discretion of the Trustee, such needs are not provided, or not provided in a timely or desirable manner, by any public assistance agency or other public or private source. Such needs may include, but are not limited to, extra and supplemental medical and dental care, physical and mental health care, nursing and custodial care, vocational and other tra.ining, case management and guardianship fees, equipment and supplies, therapies, nutrition, transportation, maintenance, education, therapeutic travel and recreation, and the like. FOURTH: Protective Provision. This is a discretionary, non-support trust. No principal or income of the Trust shall be anticipated, assigned, or encumbered. The Trust shall not be liable for any debt, contract or engagement of Nicholas nor subject to any legal process. No part of this �rust estate shall be construed as being subject to the Doc 53225.2 Page 7 claims of the Nicholas' voluntary or involuntary creditors. The Trustee shall deny any request by any public or private entity to disburse Trust funds for support or other care that such entity has the obligation to provide to Nicholas. FIFTH: Debts, Taxes and Ext�enses after the Death of the Beneficiar� A. Upon Nicholas' death, the Trustee may thereafter in the sole discretion of the Trustee and without court approval, pay the following expenses from the principal and/or income of the trust: (1) All taxes and any interest and penalties thereon due from the trust to the State or Federal Government because of Nicholas' death. (2) All reasonable fees for administration and/or termination of the trust estate, such as preparing and filing an accounting of the trust with a court B. Upon Nicholas' death, the Trustee may thereafter in the sole discretion of the Trustee and without court approval, pay any part or all of the following from the remaining principal and/or income of this Trust: (1) The outstanding debts and expenses of the Trust to the extent not already paid under Paragraph A above. (2) Nicholas' debts, funeral expenses, and expenses of the administration of his estate, if Nicholas' testamentary estate, exclusive of his residence and tangible personal property, shall be insufficient to pay such debts and expenses, but none of said debts or expenses shall be enforceable against the Trustee by reason of this provision. (3) Such taxes, and interest and penalties thereon, on the Doc 53225.2 Page 8 balance of Nicholas' gross estate for t� purposes as the Trustee may determine to be appropriate in order to facilitate the settlement of Nicholas' estate, but none of the said taxes, interest and penalties shall be enforceable against the Trust by reason of this provision. No beneficiary shall be required to refund any part of such taxes, interest or penalties. SIXTH: Fiduciary Powers. The Trustee shall have the following powers, in addition to any powers given the �ustee by law which, anything to the contrary herein notwithstanding, the Trustee may exercise in the sole discretion of the Trustee and without court approval unless otherwise specifically provided in this Item: A. To retain and invest in all forms of real and personal property in accordance with and as authorized by the Prudent Investor Rule, 20 Pa. C.S.A. § 7201, et seq., as amended from time to time, including any real property used as a residence suitable for Nicholas' needs, notwithstanding the fact that it may be non-income producing. B. To join in any merger, consolidation, reorganization, voting trust plan or similar action, and to delegate discretionaxy powers or duties with respect thereto. C. To sell at public or private sale for cash or credit, to exchange, or to lease for any period of time, any real or personal property, to give options for sales, exchanges or leases and to allocate premiums from the sale of options to income or principal. D. To take any and all action which the fiduciary deems necessary to prevent, abate, "clean up" or otherwise respond to any actual or potential violation of any Doc 53225.2 Page 9 federal, state or local law, rule or ordinance affecting any property held in this Trust related to the generation, use, treatment, storage, disposal, release, discharge of, or contamination by, any materials or substances that are prohibited or regulated by federal, state or local law or that pose a hazard to the environment or human health, and to charge the expense thereof to principal or to income or partly to each. E. To borrow money from anyone, including a Trustee hereunder, and to mortgage or pledge any assets as security therefore. F. To compromise or settle claims without obtaining any beneficiary's consent provided the approval of the Court is obtained. G. To make distribution in kind and to cause any share to be composed of cash, property or undivided fractional shares in property different in kind from any other share, giving consideration to such extent as the Trustee determines to the federal income t�basis of such property. H. To apply any payment of income or principal to which Nicholas is entitled hereunder directly for his benefit or to pay it to his natural guardian or legally appointed conservator or guardian of the estate or person or such other person as the Trustee selects to disburse it for Nicholas' benefit. The receipt of the person so selected shall be a complete discharge of the Trustee therefore. I. To repair and maintain any real or personal property and to charge the expense to income or principal. J. To determine whether any receipt or any portion thereof including premiums from the sale of options, and any corporate distribution which is described or Doc 53225.2 Page 10 designated by the corporation as a stock dividend or as a distribution that may be received in cash or in shares of the corporation at the option of the holder, should be charged or credited to income or to principal where the allocation is not clearly prescribed by governing law, and expressly may allocate short term capital gains to income or principal regardless of governing law. Notwithstanding the foregoing, no Trustee who is a beneficiary shall participate in deciding whether short term capital gains may be allocated to principal or income. K. To arrange for the services of any public or private organization established to assist disabled persons, to monitor a beneficiary's living conditions, evaluate his or his needs, determine whether a given distribution to Nicholas is for his special needs, and identify available social, financial, developmental, or other programs, with appropriate reasonable diminution of compensation otherwise properly payable to the Trustee and to charge the e�ense thereof either to principal or to income partly to each without liability for any act or omission of any such individual or organization or for any act or omission made in reliance on the advice of such individual or organization,provided such person or organization was retained with reasonable care and prudence. L. To retain legal or professional assistance outside the expertise of the Trustee in establishing, maintaining, defending, administering and terminating this Trust and accomplishing its purpose, with appropriate reasonable diminution of compensation otherwise properly payable to the Trustee and to charge the expense thereof either to principal or to income or partly to each and without liability for any act or omission of any such individual for any act or omission made in reliance on the advice of such individual Doc 53225.2 Page 11 provided such person or organization was retained with reasonable care and prudence. M. To register investments in nominee name or to hold investments in bearer form. SEVENTH: Administrative Provisions. A. Situs. The situs of this Trust is Pennsylvania and all questions pertaining to the validity, construction, interpretation and administration of this Trust shall be determined in accordance with the laws of Pennsylvania and the applicable laws of the United States. B. Jurisdiction. This Trust shall be subject to the continuing jurisdiction of the Court of Common Pleas of Cumberland County, Pennsylvania, Orphans' Court Division. C. Additional Property. The Trustee is expressly authorized to receive additional property from Nicholas or any other person and to administer and distribute it as a part of this Trust, provided that no additions may be made after Nicholas attains age sixty-five. D. Irrevocabilitv. This Trust shall be irrevocable. Notwithstanding any common law or statutory provision to the contrary, neither Nicholas nor any legal representative acting for Nicholas shall have the right to alter, amend or revoke any provision of this Trust (except as provided below), or to withdraw any funds from this Trust E. Amendment. Trustee may amend this Trust, without the approval of Doc 532252 Page 12 said Orphans' Court Division, as needed so that it conforms with 42 U.S.C. §1396p (d) (4) (A), and/or 62 P.S. §1414, Supplemental Security Income statutes and regulations, and any other similar or related statutes or regulations including state statutes and regulations governing public assistance eligibility, consistent with a primary goal of this Trust, which is to preserve Nicholas' eligibility for public assistance benefits, if.later necessary. Trustee may amend or revoke this Agreement for any other purpose with approval of said Orphan's Court Division. F. Modification or Termination. In addition, anything hereinbefore to the contrary notwithstanding, the said Orphans' Court Division shall have the discretion to moclify or terminate this Trust at any time for cause shown if it determines that the continuance of the Trust is impractical, uneconomical or for other reasons unwise or not in Nicholas' best interests. Upon any such early termination, the Trustee shall distribute any principal and income to or for Nicholas' benefit in accordance with a Decree of the said Orphan's Court Division. G. Accrued Income. All income derived from assets received as principal of this Trust during Nicholas' lifetime which has accrued when such assets become subject to this Trust but which is received by the Trustee thereafter, whether the same is legally principal or income, shall be applied in accordance with the provisions herein set forth for the distribution of income. H. Accountin�. The Trustee shall keep records of account with regard to the administration of the Trust and all transactions involving the Trust, and shall furnish to Nicholas (or if he is an incapacitated person, then to Nicholas' guardian) Doc 53225.2 Page 13 _ _ _ statements on at least a quarterly basis showing all receipts and disbursements of income and principal of the trust, and a list of assets held in the Trust. Furthermore, within sixty (60) days after the close of each calendar year, Trustee shall provide to the Orphans' Court of Cumberland County, Pennsylvania an annual statement for the Trust showing the transactions for the preceding year and a list of the Trust's holdings. EIGHTH: Fiduciary Provisions A. The guardian of Nicholas' person, with the approval of the Orphans' Court Division, may at any time remove a Trustee, and replace them with a corporate or individual Trustee. Any such successor Trustee may likewise be removed and replaced. The Trustee shall be required to file with the Clerk of the Orphans' Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania. B. Any Trustee shall have the right to resign as Trustee, provided that an appropriate successor Trustee is simultaneously appointed by Nicholas, or his duly appointed Agent, in its place. C. A corporate Trustee shall receive reasonable compensation for the performance of its functions as Trustee hereunder and may charge the expense thereof to principal, income, or partly to each. Any individual Trustee shall be entitled to such compensation for his or her services as such as shall be reasonable under all the circumstances, except if such a Trustee is a parent or natural guardian of Nicholas. A parent or natural guardian of Nicholas shall not be compensated for his or her services. Both the individual �ustee and any corporate Trustee shall be entitled to prompt reimbursement of any expenses incurred by them in the performance of their duties Doc 53225.2 Page 14 hereunder. D. No Trustee shall be required to enter bond or other security in any jurisdiction. Doc 53225.2 Page 15 IN WITNESS WHEREOF, the Trustee and the Court by its Order creating and approving this Trust, a copy of which is attached, have caused this Declaration of Trust to be executed as of , the date of the aforementioned Order. BRUBAKER CONNAUGHTON GOSS & LUCARELLI LLC Date: By: Jeffrey C. Goss, Esquire Attorney I.D. No. 78732 Dana C. Panagopoulos, Esquire Attorney I.D. No. 89491 480 New Holland Avenue, Suite 6205 Lancaster, PA 17602 Doc 53225.2 Page 16 _ . ___ IRREVOCABLE 1VICHOLAS TOYAS SPECIAL NEEDS TRUST Assets to be added to the trust: $ Doc 53225.2 Page 17 ��� 480 New Holland Avenue -J Suite 6205 � v Lancaster,PA 17602 «� (717) 945-5745 Invoice Date: 8/4/2014 BRUBAKER CONNAUGHTON Invoice #:6716 G O 5 S & L U C A R E L L I Billing T`hrough: 8/4/2014 AiiOFNEYS AT LAW Client#: 1149-001 George N. and Patricia A. Toyas Total Now Due: $1,746.40 923 Maplewood Lane Enola, PA 17025 In re:Nicholas Lloyd Toyas Guardianship Estate Professional Services Rendered �� �LC��IYg Hours 12/24/2012 Correspondence to James Baydar re: settlement; prepare correspondence to Court re: 0.3 settlement 12/27/2012 Review of correspondence from Attorney Baydar re: settlement; revise letter to Judge 0.3 Placey regard'mg settlement O1/3 U2013 Correspondence to Attorney Baydar re: settlement; review of correspondence from 0.3 Attorney Baydar re:settlement 02/25/2013 Telephone call to Judge Placey re:request; correspondence from Patti Toyas re: 0.3 accounts; correspondence to Attorney Baydar re:accounts 02/26/2013 Prepare motion for extension to file proof of account 0.8 02/27/2013 Revise motion to eactend deadline for proof of establishment of account 0.3 02/27/2013 Correspondence with Clerk of the Orphans Court 0.3 03/06/2013 Correspondence to Ms. Toyas re:court's order,review of correspondence from Mr. 0.3 Baydar re:NY court 04/03/2013 Review of correspondence from Ms. Toyas re:settlement of action 0.2 04/09/2013 Correspondence to Mrs. Toyas re: settlement 0.2 OS/15/2013 Correspondence to Attorney Baydar re: settlement 0.2 OS/16/2013 Review of court order approving settlement 0.2 06/13/2013 Review of file,review order,correspondence to Attorney Beydar re: settlement(x2); 0.6 correspondence to Court 06/14/2013 Letter to Judge Placey 0.3 07/O1/2013 Telephone conference with Ms. Toyas,review correspondence from Attorney Baydar, 0.8 correspondence to Attorney Baydar regard'mg payment,research regarding FDIC msurance 07/03/2013 Conferences re:establishing guardianship account; Telephone conference with Patricia 1.6 Toyas re:establishmg guardianship account; Telephone conferences with Susquehanna Bank re:establishing guardianship account Toyas,George N.and Patricia A. Page 2 07/03/2013 Telephone conference with Ms. Toyas regard'mg accounts,telephone call to Orrstown 0.9 regard'mg accounts (�c2); correspondence to Ms. Toyas regarding account 07/03/2013 Correspondence with Prothonotary of Cumberland County re:cert�ed copies of Order 0.3 07/03/2013 Letter to Orphans' Court re:certified copies of Orders 0.3 07/15/2013 Prepare forms for signature and correspondence with Ms. Thompson at Orrstown 0.2 Bank 07/24/2013 Telephone call to Mrs. Toyas regard'mg accounts (x2),telephone to court regard'mg 0.8 accounts; correspondence to Mrs. Toyas regard'mg accounts,prepare correspondence to Orrstown Bank regarding approval of withdraw 07/25/2013 Telephone call from court regard'mg deposits,correspondence to Ms. Toyas regarding 0.3 deposits 07/29/2013 Review correspondence from Members First Credit Union 0.2 07/31/2013 Telephone call from Members lst regard'mg customer ageement 0.2 08/01/2013 Review of account information from Susyuehanna Bank 0.2 08/O1/2013 Review of court order regarding deposit of funds into credit union,correspondence to 0.3 Ms. Toyas regarding order 08/06/2013 Telephone call from Ms. Toyas regard'mg accounts,telephone call to Ms. Toyas 0.3 regard'mg accounts 08/19/2013 Correspondence to Ms. Toyas regard'mg accounts 0.2 08/21/2013 Prepared establishment of accounts 0.4 08/27/2013 Revise affidavit,correspondence to Mrs. Toyas regard'mg affidavit 0.2 09/Ol/2013 Correspondence to Ms. Toyas regard'mg affidavit; review of correspondence from Ms. 0.2 Toyas regarding affidavit 09/16/2013 Correspondence to Ms. Toyas regard'mg Affidavit and Supplemental Needs Trust 0.3 09/24/2013 Conference re:supplemental needs trust 0.6 O1/17/2014 Review of correspondence from Mrs. Toyas regard'mg trust 0.2 O1/21/2014 Prepare guardian's inventory 0.2 O1/29/2014 Correspondence to Ms. Toyas regarding inventory 0.3 O1/30/2014 Conference regarding SNT; research regard'mg perpetuity of trust,work on trust 1.9 02/28/2014 Correspondence to Ms. Toyas regard'mg mventory 0.2 03/24/2014 Correspondence to Ms. Toyas regarding same,review guardian's inventory and prepare 0.4 for filing. 03/26/2014 Correspondence with Lisa Grayson, Register of Wills - Clerk of the Orphans' Court 0.3 04/02/2014 Correspondence with Danielle Beaverson re: filing fee for Guardian Report 0.3 OS/30/2014 Review of Correspondence from Ms. Toyas re trust,correspondence to Ms. Toyas re 0.3 trust and petition to court 07/14/2014 Revise petition,revise trust,prepare petition for filing 0.7 08/04/2014 Finalize Petition to Terminate Guardianship and Establish Special Needs Trust; prepare 0.9 correspondence to Cumberland County Register of Wills enclosing petition for filing; telephone conference with Register of Wills re:petition fee,copies and serving process Toyas,George N.and Patricia A. Page 3 Total Hours and Fees: 18.6 hours $3,115.50 Costs I�� ��-�n 1Zui� �at Ol/02/2013 FederalExpress 1.00 32.28 O1/04/2013 Federal Express 1.00 16.05 03/O1/2013 Filing Fee 1.00 15.00 03/07/2013 Federal Express 1.00 51.48 03/07/2013 Federal Express 1.00 51.48 07/03/2013 Filing Fee 1.00 10.00 07/03/2013 Federal Express 1.00 54.00 09/09/2013 Federal Express 1.00 19.27 04/02/2014 Filing Fee 1.00 15.00 08/14/2013 Postage 1.00 0.46 Sub-total Expenses: 265.02 Payme nts Date Ty� Descri�tion Amount 08/06/2013 Payment Ck#086685 2,617.00 Sub-total Payments: $2,617.00 Total Current Billing: $3,380.52 Previous Balance Due: $982.88 Total Payments: $2,617.00 Total Now Due: $1,746.40 We now accept payments by Visa, MasterCard and Discover. To pay one or more bills by any of these cards, please complete the form below and return the entire bill copy to our office. Check one: Visa MasterCard Discover Card Number: Expiration Date: Amount to be Charged: $ Bills to be Paid: Signature of Card Holder