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Home My WebLink About08-26-14 � Shaun E. O'Toole � a � � r�rt Attorney I.D.#44797 � � � c9 0 , 220 Pine Street �� •� cn � Harrisburg, Pennsylvania 17101 "^'� ;�• f" N '�� F -� rn Attorneyfor, Petitioner, RobertM. Mumma, II �b �� ;�� .... w ��,:: r'.,..� � . .. ,:..�'� C...', � ...p� � ' _ '�;'� �� IN THE COURT OF COMMN PLEAS OF � a, r:. � . CUMBERLAND COUNTY, PENNSYLVANIA ' � �, � ORPHANS' COURT DIVISION ' IN RE: RESIDUAL TRUST UNDER . WILL OF ROBERT M. MUMMA, . NO. 21-86-398 Deceased . OBJECTIONS TO ACCOUNT OF THE RESIDUAL TRUST UNDER THE WILL OF ROBERT M. MUMMA, DECEASED AND NOW comes Robert M. Mumma, II, by and through his attorney, Shaun E. O'Toole, and objects to the Account of the Residual Trust Under the Will of Robert M. 1Vlumma, Deceased for the period of January 1, 2013 through December 31, 2013 ("Account"), and sets forth the following: 1. Objector is Robert M. Mumma, II the son of Decedent, Robert M. Mumma. 2. Objector is the beneficiary of the Residual Trust Under the Will of Robert M. Mumma, Deceased("Trust") and is entitled to a distribution of twenty-five (25%) of the Trust upon the death of Decedent's wife which occurred over four (4) years ago on July 17, 2010. 3. The Trustees of the Trust have previously filed seven(7) Interim Accounts covering the administration of the Trust through December 31, 2013 and Objector has filed Objections to these Interim Accounts. 4. Many of the Objections filed by Objector to the previou>� Interim Accounts have not been fully adjudicated and are currently on appeal to the Superior Cour:. of Pennsylvania. 1 . 5. The Objections to the previous Interim Accounts impact the current Account and Objector hereby incorporates and restates the pending objections to the previous Interim Accounts, especially the objections pertaining to the Trust and the Marital Trust listing as assets of such trust assets that should not have been probated as part of Decedent's estate since neither Decedent, at the time of his death, nor his estate after Decedent's death, owned a valid interest in such assets, including, but not limited to, stock or any ownership interests in the following: Lebanon Rock, Inc., Pennsy Supply Inc. Nine Ninety-Nine, Inc., Bobali Corp., G-A-T Distribution and D-E Distribution. � 6. The $210,636.08 in legal fees paid by the Residual Trust t� at least four(4) law firms are excessive and unreasonable in light of the fact that they were incurred due to the Trustee administering the Trust in a manner that is contrary to the intent of Decedent and in a manner that promotes disharmony between the Trustee and the beneficiaries, as evident by the fact that the Trust was to be terminated and its assets distributed to the beneficiaries upon the death of Decedent's wife which occurred on July 17, 2010. 7. Many of the legal fees Trustee charged against the Trust, although excessive and unreasonable, should have been charged against the Marital Trust in the account for such trust filed contemporaneously with this Account, since such fees were incurred in matters related to the Marital Trust as well as the Residual Trust. 8. The $7,000.00 in trustee commissions paid by the Trust tc the Trustee are excessive in light of the trustee commission paid by the Marital Trust and the fees paid to other service providers such as property managers, attorneys, and accountants to whom much of Trustee's responsibilities was delegated. 2 9. The $7,000.00 in trustee commissions paid by the Trust to the Trustee are excessive in light of the fact that they were incurred due to the Trustee administering the Trust in a manner that is contrary to the intent of Decedent and in a manner that promotes disharmony between the Trustee and the beneficiaries, as evident by the fact that the Trust was to be terminated a�d its assets distributed to the beneficiaries upon the death of Decedent's wife which occurred on July 17, 2010. 10. The Account values the Trust's 14.01% interest of Bobali, Inc. at $32,971.64 which results in an over-all valuation of the Bobali of$235,500.00 which is a minute fraction of the current valuation of the company. By not valuing the Trust's interest in Bobali at its current value, in addition to not providing the beneficiaries with an accurate assessment of the value of the Trust,the Account is in violation of Cumberland County Orphans' Court Rule 6.1 (b)(3) which requires that the accountant provide a separate schedule of the change in holdings of the trust. 11. The Account values the Trust's ownership interest in otl�er assets, namely High Spec, Inc., Mumma Realty Associates I, Mumma Realty Asssociates II_ and G-A-T Distribution at values that are woefully below the current fair market value of these assets thus preventing the beneficiaries from properly assessing the value of the Trust. Moreover, failing to provide the current market value of these assets violates Cumberland County Orphans' Court Rule 6.1 (b)(3) which requires that the accountant provide a separate schedule of the change in holdings of the trust. 12. The Trustee has improperly claimed a liability of the Trust payable to the 1Vlarital Trust in the amount of$2,939,499.10 which, in addition to being improperly allocated, directly 3 benefits the Trustee personally as the beneficiary of the residuary estate of Decedent's wife and adversely impacts the interests of the other beneficiaries. 13. The Trustee has refused to distribute the assets of the Trust upon the death of Decedent's wife, as directed to do under the terms of the Trust document. 14. By refusing to distribute the assets of the Trust upon the death of Decedent's wife as directed to do under the terms of the Trust document, Trustee is denying the beneficiaries of their right to take possession of the Trust assets while continuing to incur unnecessary expenses which would be avoided if the assets of the Trust had been timely distributed as directed by the Trust document. 15. By refusing to distribute the assets of the Trust, in-kind, upon the death of Decedent's wife, Trustee violated paragraph 13 of Decedent's will whi:-�h provided that it was Decedent's desire that the businesses which Decedent had personally directed during his lifetime be continued for the benefit of and under the management and control of his immediate family. 16. By failing to file a statement of proposed distribution for Decedent's estate, Trustee, who also served as one of the two executrices of Decedent's estate, violated Rule 6.9 of the Orphans' Court Rules and has made it impossible to determine exactly how and when many of the assets now purported to be owned by the Trust were conveyed to the Trust; a predicament that is compounded by the fact that Trustee, in her capacity as Executrix of Decedent's estate, failed to include some of the assets now purported to be owned by the Trust, notably the interest in Bobali Corp., in either the estate Inventory filed with the court or on the Pennsylvania Inheritance Tax Return or Federal Estate Tax Return. Wherefore, Petitioner requests that this Court to schedule an evidentiary hearing to address the administration of the Trust; order the distribution of the Tru�t assets in accordance 4 _ _ _. _ _ _ with the terms of the Trust document; surcharge the Trustee for the Trust's excessive and improper expenditures; and grant such other relief which the Court deems appropriate. Respectfully submitted: Dated: OS�ZL�14 � � aun E. O'Toole Attorney I.D. #4'�797 220 Pine Street Harrisburg, Pennsylvania 17101 Attorney for Petitioner 5 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and c�rrect copy of the foregoing Brief was faxed to each of the following attorneys and served by first c'��ss United States mail, postage prepaid, upon the following: Ivo V. Otto, III, Esquire Martson Law Offices 10 East High Street Carlisle, Pennsylvania 17013 (and by facsimile 171-243-1850); Brady L. Green, Esquire Wilbraham, Lawler& Buba 1818 Market Street, 31 st Floor Philadelphia, Pennsylvania 19103; and Richard F. Rinaldo, Esquire Williams Coulson LLC One Gateway Center, 16th Floor ' Pittsburgh, Pennsylvania 15222. Date: 08 ZG� � ` haun E. O'Toole Attorney Registration No. 44797 220 Pine Street Harrisburg, Pennsylvania 17101 (717) 695-0389 Attorney for Objector, Robert M. Mumma, II