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HomeMy WebLinkAbout10-23-14 rV C.. s .o rn ?" � c:a Mn Rosemary R.Ferrino, Esquire � MontcoElderLaw a z -; Attorney ID#46773 1 _ F' w 1.501 Lower State Road -, North Wales PA 19454 phone (215)283-444 fax (866)906-6091 0 " rn r-- IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS CY) SARAH MCCREA CHAPMAN JONES CUMBERLAND COUNTY, PENNSYLVANIA CHARITABLE REMAINDER TRUST ORPHANS' COURT DIVISION UNDER WILL DATED 9/8/76 F/B/O ALFRED MCCREA CHAPMAN NO. 21-2009-0329 PETITION TO TRANSFER SITUS OF THE SARAH MCCREA CHAPMAN JONES CHARITABLE REMAINDER TRUST UNDER WILL DATED 9/8/76 F/B/O ALFRED McCREA CHAPMAN TO PHILADELPHIA COUNTY AND NOW, Henry L. Chapman, guardian of Alfred McCrea Chapman, an incapacitated person and Henry L. Chapman, individually by and through his counsel, in support of the transfer of situs of the above named trust to Philadelphia County avers as follows: 1. On May 3, 1977 Alfred McCrea Chapman ("Mr. Chapman") executed a durable power of attorney appointing Farmers Trust Company as his agent in a document that granted discretion to "apply any principal and income to the payment of cost of my maintenance and care in any hospital, nursing home,public or private institution, or at my residence, and to the payment of any medical surgical dental or nursing care which may be or is required for me." At the time, Mr. Chapman resided in the Philadelphia area. 2. Mr. Chapman currently resides at the"Greystone Residence" on the campus of Friends Hospital, located at 4641 Roosevelt Blvd., Philadelphia County, PA where he has safely lived since April 1984. 3. Alfred McCrea Chapman was the only son of widow Sarah McCrea Chapman Jones who was diagnosed with serious mental illness in 1966 4. Mrs. Jones an had created in her detailed testamentary plans dated September 20, 1975 a total maintenance trust for her son, which shortly before her demise was changed to create two charitable remainder trusts ("CRT") of which her son was lifetime beneficiary. 5. After pecuniary gifts of almost $100,000. One CRT was funded with real estate (The Lodge Trust) and$35,000. to maintain that real estate and the other CRT was funded with eighty percent of her residuary estate amounting to $571,003. 6. The scrivener of the will and codicil was John McCrea, her nephew and at that time an attorney. A true and correct copy of the Will and codicils are attached hereto as Exhibit"A." 7. The co-trustees and co-executors identified in the estate plans of Mrs. Jones were John McCrea and Farmers Trust Co. 8. Farmers Trust Company was succeeded by Manufacturers' and Traders Trust Company (hereinafter"M&T") a New York corporation with a local offices in both Cumberland and Philadelphia Counties. 9. On July 28, 1978 Mrs. Jones died in Cumberland County and her estate was administered by M&T and John McCrea under Cumberland County docket at#21-78-0442. 10. Cumberland County has remained the situs of both trusts since 1978 and all financial disbursements for the benefit of Mr. Chapman and also to maintain the real estate had been exclusively through the POA account from the time of its initial funding up to April 2012. 11. The POA account has also received all of the CRT distributions since the time the CRT was first created up to the present day. 12. Co-Trustee John McCrea, an attorney at the time he acted as scrivener, no longer practices in this Commonwealth due to disbarment in 1987. Upon information and belief Mr. McCrea resides in Newville, Cumberland County as mail is accepted for his name at a post office box located there. • J 13. Henry L. Chapman, has resided in the greater Philadelphia area for the last 27 years. 14. In the Spring 2009 Henry L. Chapman was approached by his father's caretakers at Friends Hospital who suggested the necessity that he act as a guardian of his father as there was no communication between the Co- Trustees and their patient who was in need of surgery and could not consent to it, and whose health insurance coverage had lapsed. 15. At that time Petitioner learned that the Co-Trustees had never visited Mr. Chapman for decades nor had they made any inquiry as to his well being. 16. On July 23, 2009 Henry L. Chapman petitioned the Court of Common Pleas of Philadelphia to appoint him plenary guardian of his father. 17. On September 4, 2009 Co-trustee John McCrea filed a Petition to Intervene-in the incapacity proceeding which stated: "Income and principal from the CR UT will be sufficient to pay all of Alfred Chapman's living expenses for the rest of his natural life, at the end of which the remaining income and principal will be distributed to various charitable beneficiaries."A true and correct copy of the Petition to intervene is attached hereto as exhibit`B." 18. On September 24, 2009 after a hearing, the Philadelphia Court, by Order of the Honorable Anne Lazarus, adjudicated Mr. Chapman a totally incapacitated person and appointed petitioner his plenary guardian of his father's person and estate under Phila. CCP File#1061 of 2009. A true and correct copy of said decree is attached hereto as "Exhibit C." 19. On that same date Judge Lazarus having learned the co-trustees had never filed any .accounting since their appointment more than 24 years before that, issued a second decree requiring M&T file an account of the second CRT in Philadelphia. A true and correct copy of said decree is attached hereto as "Exhibit D." 20. M&T complied with said decree and filed the partial account of the one CRT in Philadelphia County on December 7, 2009. 21. A second partial account was filed on August 17, 2011, but only in Cumberland County, without notice or any filings in the County of Philadelphia. 22. Between late 2010 and 2012 the interested parties to the two trusts litigated a petition to terminate the Lodge trust and amend the terms of both the trusts in Cumberland County to provide for the maintenance costs of Mr. Chapman that were mounting against him in Philadelphia. 23. The litigation revealed that Trustee McCrea's position [that Petitioner relied upon] that the trust will be sufficient to pay all of Alfred Chapman's living expenses for the rest of his natural life, was wholly false. 24. The litigation also revealed that the five percentage figure Trustee McCrea utilized as scrivener(when he was free to increase it substantially) was not only insufficient to meet the costs of Mr. Chapman's care, but insufficient to permit petitioner to follow the orders of the Philadelphia court to create a funeral reserve for Mr. Chapman or cover court approved nominal legal fees incurred in Philadelphia. 25. Since April 2012, M&T as the corporate Trustee has refused to honor any request of Petitioner to disburse any funds held in the POA account it manages as agent to third party vendors such as Friends Hospital and the Apothecary that provided medication to Mr. Chapman. 26. Petitioner has himself and through counsel attempted to contact Co-Trustee Mr. McCrea by phone and in writing since 2012. There has been no response. 27. In the Cumberland County litigation, in order to avoid the appearance of conflicts with the residuary charities of the two trusts which were located in or near Cumberland County at least two Judges of that county thus far(The Honorable Edward E. Guido and the Honorable Kevin Hess) had to recuse themselves resulting in the temporary transfer of that litigation to Perry County. 28. On December 29, 2011 Judge Kenneth A. Mummah sitting in Perry County issued an order without opinion terminating the Lodge Trust and ordering an accounting of it. 29. Thereafter over the course of the following two years M&T as corporate Trustee filed three accountings in the Lodge Trust and another partial accounting in the second CRT. 30. In the aforementioned litigation Mr. Chapman and his guardian, (the Petitioner herein) was represented by Jeffrey Boswell, Esq. who practices in Cumberland County and who was eventually terminated when disagreement arose between petitioner and he as to the failure of the litigation to focus on the protection of the elder Mr. Chapman's need for care in the psychiatric facility where he resides in Philadelphia. 31. In the litigation, the guardian was unsuccessful in reaching any successful resolution because the charities and the Attorney General's office as parens partriae objected to any modifications of the distribution scheme under the trust, even though both Trustees indicated a willingness at that time to negotiate and even possibly mediate the issues that had arisen with the financial disclosures that had been in made in the various accountings. 32. Said litigation was at great personal expense to Petitioner who incurred the cost of all legal fees and travel out of his own funds, since all of his father's distributions from the CRT were disbursed by M&T strictly into the POA account, and never to Petitioner. 33. The Philadelphia County court having jurisdiction over Mr. Chapman and being ultimately responsible for the safety of his person and estate is the appropriate venue for any further questions raised about his distributions from the CRT or the POA account. f • \ 34. Any further litigation in Cumberland County is unduly burdensome to petitioner. 35. Since 2012 in an attempt to close the POA account without audit, M&T requested petitioner execute a complete receipt and indemnity agreement, releasing M&T from any liability for its financial transactions in that account for the prior 36 years. 36. Petitioner refused to execute a release to M&T as petitioner noted discrepancies in the distributions that were made over the course of time that did not comport with proper fiduciary conduct. 37. On May 16, 2013 as Agent, M&T gave notice to Petitioner of its First and Final Account and called for audit and confirmation of same in Cumberland County under docket#21-2013- 563. 38. On June 18, 2013 Petitioner as guardian of his father the principal of the account, filed objections in Cumberland County, citing improper venue among other issues, and Michael L. Bangs, Esq. was appointed an auditor on the matter. 39. On February 7, 2014 Auditor Michael Bangs issued his Report which concluded that pursuant to 20 Pa. C.S.A. §721, Philadelphia County has assumed control over all matters involving the elder Mr. Chapman and his estate including all of the trusts established for his benefit by his late mother. A true and correct copy of the audit report is attached here as Exhibit «E9, 40. On March 4, 2014 upon consideration of the auditor's report, this court in the POA matter(docket#21-2013-0563) issued its Order that jurisdiction over Mr. Chapman's person and estate lies in the Orphan's Court of Philadelphia County. See Order dated March 4, 2014 a true and correct copy of which is attached hereto as Exhibit'T." r t- 41. The objections to the POA account are pending in Philadelphia under the Guardian docket number, and stayed by agreement of the interested parties, while negotiations take place with the primary creditor of Mr. Chapman, being Friends Hospital where he still resides but faces eviction for non-payment. 42. On September 11, 2014, M&T filed its Third and Partial Account in Cumberland County. 43. On October 13, 2014 Petitioner filed timely objections to the Third and Partial account and raised the improper venue as one of its objections. 44. 20 Pa. C.S.A. §722 authorizes the Court having jurisdiction of a testamentary trust, on application of any interested party, to approve a change of situs of the trust if the Court finds the change desirable for the proper administration of the Trust. 45 The life tenant of the Trust is a resident of Philadelphia County and seeks transfer of venue to Philadelphia. 46 The Will and its codicil that establishes this trust is silent as to its situs. 47. The parties in interest are as follows: NAME POSITION INTEREST Alfred Chapman only son lifetime beneficiary,5%annually Brown University charity 30%(to establish the Alfred McCrea Chapman scholarship) Dickinson College charity 10% (to establish the Alfred McCrea Chapman scholarship) Dickinson School of Law charity 20% The National Trust for Scotland charity 10% Episcopal Diocese of Central PA charity 30% 48. All parties having an interest are living, of age and sui juris.. 49. The court upon application and only with so much notice as it deems appropriate under the circumstances may change the situs of a testamentary trust. 50. The establishment of a trust in one county prior to a declaration of incapacity in another is not dispositive of the CRT's appropriate situs in this matter. 51. The Probate, Estates and Fiduciaries Code at Section 721 provides the precise framework for the assignment of venue of an incapacitated person's estate in the county whose court appointed the guardian. 52. Venue should be assigned to Philadelphia County. WHEREFORE, Petitioner respectfully requests that this Court change the situs of the Trust to Philadelphia County, which has already assumed jurisdiction under docket Philadelphia CCP File #1061 of 2009. Respectfully submitted, MONTCOELDERLAW S MR.,FERRINO I.D.No. 46773 1501 Lower State Road North Wales, PA 19454 (215) 283-4444 Counsel for Henry L. Chapman DATED: �U / eY � + Rosemary R. Ferrino, Esquire MontcoElderLaw Attorney ID#46773 1501 Lower State Road North Wales PA 19454 phone (215)283-444 fax (866)906-6091 IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS SARAH MCCREA CHAPMAN JONES CUMBERLAND COUNTY, PENNSYLVANIA. CHARITABLE REMAINDER TRUST : . ORPHANS' COURT DIVISION UNDER WILL DATED 9/8/76 F/B/O ALFRED MCCREA CHAPMAN NO. 21-2009-0329 CERTIFICATE OF SERVICE 1, Rosemary R. Ferrino, Esquire counsel for Henry L. Chapman, hereby certified that a true and correct copy of the Petition to Transfer Situs of the Sarah McCrea Chapman Jones Charitable Remainder Trust Under Will Dated 9/8/76 f/b/o Alfred McCrea Chapman to Philadelphia County was served via priority mail to the following parties on October 22, 2014: Manufacturers' and Traders Trust Company c/o Ivo Otto, Esquire & Seth Mosebey, Esquire 10 East High Street Carlisle, PA 17013 John McCrea, III PO Box 341 Newville, PA,17241 Dickinson College, Dickinson School of Law and Brown University c/o Daniel Sullivan, Esquire Saidis, Sullivan& Rogers 26 West High Street Carlisle, PA 17013 Barbara McLemore, Chancellor Episcopal Dioceses of Central Pennsylvania P.O. Box 11937 Harrisburg, PA 17108 National Trust for Scotland Hermiston Quay 5 Cultins Road Edinburgh, Scotland EHI 1 4Df _ f. Michael T. Forester, Esquire Office of The Attorney General 14th Floor - Strawberry Square Harrisburg, PA 17120 MON LDE MAR R RRINO Attorney ID 46773 1501 Lower State Road North Wales, PA 194545-1216 (215) 283-4444 Counsel for Guardian, Henry L. Chapman i___- VERIFICATION I, Rosemary R. Ferrino, verify that the statements contained in the foregoing pleading are true and correct to the best of my knowledge, information and belief; and that this verification is subject to the penalties of 18 Pa. C.S.A. §4904 relative to unsworn falsification to authorities. Rosemary R. Ferrino, Esquire Dated: � /,//X 7rnr- .`. .._ I FIRST CODICIL TO LAST WILL AND TESTAMENT � OF SARAH i•McCREA CHAPiAN JONES I KNOW ALL MEN BY THESE PRESENTS THAT I, SARAH McCREA CHAPMAN JONES, of Lower Mifflin Township, Cumberland County, Pennsylvania, do make, publish d declare ♦Mil a Coif" Will 'f y � tYn•. eC...arc � no a Codicil t0 i� Last �..i. anu Testament dated September 1975. FIRST: I revoke paragraph FOURTEENTH of my said will, as that bequest has been paid during my lifetime. I SECOND: I revoke paragraph FIFTH of my said will. In lieu thereof and as paragraph FIFTH I substitute the following: FIFTH: I give, devise and I bequeath Twenty Thousand ($201000.00) Dollars to each of the following persons:! John E. Morris, III, Jane McCrea Morris, Margaret Catherine McCrea Blaze, i Jean Shannon McCrea Heckman, Rebecca Sleichter McCrea Smith, and John McCrea III. Members of the family who are not mentioned in this instrument received vI �j gifts during my lifetime. THIRD: The silver tea service devised to Henry Lewis Chapman in para- graph SIXTEENTH of my Last Will is the flat tea service, being a service for (' twelve. The silver tea service devised to Kathryn Stacy Chapman in paragraph I c SEVENTEENTH of my said will is the service now in the possession of Betty Lou Leedom Chapman. The silver tea service devised to Karen Elizabeth Chapman: in i 1 paragraph EIGHTEENTH of my said will is the table service for eight having a i lily of the valley pattern. ti FOURTH: I revoke paragraph FORTY-FIRST of my said will. In lieu thereof, .,; and as paragraph FORTY-FIRST, I substitute the following: FORTY-FIRST: t"•.'ll a the rest, residue and remainder of my estate, be it real, personal or mixed, U I give, devise and bequeath to Farmers Trust Company and John McCrea III in i Trust and confidence. This Trust shall be known as the "Charitable Remainder Trust" and the net income, principal thereof shall be disposed of as herein- j i after provided: ! I (A) My Trustees shall pay to my son Alfred McCrea Chapman for life, in each taxable year of the trust, in such installments as may i I MCCREA4 DAVIS be convenient, bur not less often than annually a sum equal to five ! Air2RNt16 AT L.W ' Mtxvntt t SNtrPCN++uRa percent of the net fair market value of the trust assets determined 1 PLNNA. i I I 1 I J i annually. On my son Alfred's death, my Trustees shall transfer the i then principal of the trust (includi-ig all accumulated income) in the following proportions: i (1) To Dickinson College, one-tenth (1/10) for the Same purposes and ou the same conditions set forth in Paragraph Thirty-eight. Ii (2) To Brown university, three-tenths (3/10) for the j same purposes and on the same conditions set forth in f Paragraph Twenty-first. (3) To The National Trust for Scotland, one-tenth . f (1/10) for the same purposes and on the same conditions set i forth in Paragraph Twenty-seventh. j (4) To the Episcopal Diocese of Central Pennsylvania, 'v three-tenths (3/10) for the same purposes and on the same conditions set forth in Paragraph Thirty-fourth. I j (5) To the Dickinson School of Law, Carlisle, j PennsvIvania, two-tenths (2/10) for the same purposes and on the same conditions set forth in Paragraph Thirty-ninth. i s (B) In case the net fair market value of the assets of this trust � I is :.ncor.rectl;; determined, my trustees shall pay to my son Alfred, in, i r- case of any undervaluation, or be repaid by l:.im, in the case of an over- i valuatio^, an amount equal to the difference between the amount whicc: i I i '< my trustees should have paid if the correct value were used and the ( amount which my trustees actually paid within a reasonable period after the final determination of such value. I (C) If my Trustees accept additional contributions, for purposes of the ta;{ab.le year in which the additional contribution is made and where no valuation date occurs after the time of the contribution in the taxable year when the contribution is made, the additional property shall be valued at the time of the contribution and the amount described in (1) above computed by multiplying 5% by the sum of the net fair MCCREA eaves ATTORNEYS M LAW market value of the trust assets (excluding the additionalcontribution Id[WILL[6 SNIFFLN98 URS j FLNNA. 1 I and any appreciation or earned income attributable thereto) and that oro- � 3 I portion of the additional contribution plus earned income and appreciation; which the number of days, including the day of transfer, remaining in the i taxable year bears to the total number of days in that taxable year. I (U) If at the time any interest is to he irrevocably transferred I to a Charity under (A) above, that Charity is not in organization 1 described in 170 (C) I.R.C. , then in Lieu of transferring such interest i to said Charity my Trustees shall transfer it to an organization de- scribed in 170 (C). (E) This trust is intended to qualify as a charitable remainder unitrust as defined in Section 664(d) (1) and to be administered so that the trust shall qualify for the tax exemption provided under that section of the Internal Revenue Code. (F) My Trustees shall not engage in any act of self dealing as defined in Section 494I(d) of the Incernal Revenue Code of 1954, or i corresponding provisions of any subsequent Federal cax laws, and shall I c not make any taxable expenditures as defined in Section 4945(d) of the J ' Internal Revenue Code of 1954, or corresponding provisions of any sub- Sequent Federal tax laws. After the death of my son Alfred and until � �}) the actual termination of this trust, my Trustees shall not retain any I i excess business holdings as defined in Section 4943(c) of the Internal JRevenue Code of 1954, or corresponding provisions of any subsequent i Federal tax laws; shall n'ot make any investments :in such as > ch manner to i subject the trust to tax under Section 4944 of the Internal Revenue Code I of 1954, or corresponding provisions of any subsequent Federal tax laws; and shall distribute income and if necessary principal, at such time and in such manner as may be required so that the trust shall not become I subject to the tar, on undistributed income imposed by Sectior, 4942 of the Internal Revenue Code of 1954, or corresponding provisions cf any i subsequent Federal tax laws, The purpose of this paragraph (6) is to comply with the provisions of Section 508(e) of the Internal Revenue Code, to the extent applicable to this trust. I MAR" & GAMS II I 1TTOR"LYi Ft LA 11 (G) In the case of a taxable year which is for a period of less 4<gylltt S s"IPPL"98uR0 ll than PL""^ 12 months (other than the taxable year in which Alfred dies) the i -3- i i I 1 i amount to be distributed under (1) above shall be that amount mvViplied by a fraction, the numerator of which is the number of days in the taxable! year of the trust and the denominator of which is 365 (366 if February 29th is a day included in the numerator). If no valuation date occurs before the end of the taxable year of the trust, the trust assets shall be valued on the last day of the taxable year of the trust. (H) In the case of the taxable year in which Alfred dies, the amount to be distributed under (1) above shall be that amount mu;4iplied by a fraction, the numerator of which is the number of days between the beginning of such taxable year and the end of such period and the denominator of which is 365 (366 if February 29th is a day included in the numerator). If no valuation date occurs before the end of this period, the trust assets shall be valued on the last day of such period. 1 FIFTH: In all other respects 1 reaffirm and republish my said will of September_ 1976. IN WITNESS WHEREOF, I have executed this first Codicil to my Last Will and Testament consisting of four (4) typewritten pages by affixing my. signature and seal to each page and to the bottom of this last page this _—LOL_day of October, 1977. 'Af SARAH McCREA CRAPMAN j3NES The writing contained on these sheets were signed and sealed by the above-named Sarah McCrea Chapman Jones and by her published and declared as and for a first Codicil to her Lasz Will and Testament dated September 1976, in the presence of us who hereunto subscribed jqr names as witnesses at her request, in her presence and in the presence of each other the day of October, 1977. Ike MCGREA A DAVIS ATTOR MC Y3 AT LAM PC-A, f /'&�Kzl_l r3 4f l LAST WILL AND TESTAMENT OF SARAH MC CRS CFAPMIAN JONES I, Sarah McCrea Chapman Jones, a resident of Lower Mifflin Township, Cumberland County, Pennsylvania, do make, publish and declare this to 'je MV Last !^jill and Test-- ment and do hereby revoke and cancel all Wills and Codicils heretofore made by me. FIRST: I direct that all my just debts and funeral expenses be paid by my Executors, hereinafter named, as soon after my death as may be convenient. SECOND: I direct that all -legacy, inheritance, succession, transfer and estate taxes levied or lawfully assessed upon or with respect to any property or any interest in property, legal or equitable, which is included as part of my gross estate for the purpose of any such tax, shall be paid by my Executors out of my estate in the same manner as an expense of administration and shall not be pro-rated or apportioned among or charged against the respective devisees, legatees, beneficiaries, transferees or other recipients of any such property, nor charged against my property passing or which may have passed to them or any of them, other than such property that ­�ould otherwise constitute a part of my residuary estate, and that my Executors shall not be entitled to contribution or reim- bursement for any portion of any such tax from an,, such person, any statute or r-Ile of law to the contrary notwithstanding. 'rH'.RD: I give, devise and bequeath Five Thousand ($5,000.00) Dollars to the Farmers Trust Company and John McCrea !I!, in trust nevertheless, to pay the net income therefrom to Elizabeth Norcross McCrea aurin; 'tier life and upon her death to treat the principal of said trust as other residue of the estate page one of 12 paves FOURTH: I give, devise and bequeath Twenty Thousand ($20,000.00) Dollars to the Farmers Trust Company and John McCrea III, in trust nevertheless, to pay the net income there- from and so much of the principal as they, in their sole discretion, deem necessary for the car; maintenance and support Of Katherine Jane McCrea Morris, for life, and thereafter, to pay, upon the same terms, to her husband, John Morris, Jr. , for his life, it she should predecease him. Upon termination of this trust, the residue therefrom is to be paid to the then surviving children of Katherine Jane McCrea Morris, in equal shares, and, if there are at that event no surviving children, then the residue of said trust is to be treated as other residue of this estate. FIFTH: I give, devise and bequeath Ten Thousand ($10,000.00) Dollars to each of the following persons: John E. Morris III, Jane McCrea Morris, Margaret Catherine McCrea Blaze, Jean Shannon McCrea Heckman, Rebecca Sleichter McCrea Smith, and John McCrea III. Members of the family who are not mentioned in this instrument have received gifts during my lifetime. SIXTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to each of the children of the persons named in paragraph FIFTH of this instrument. SEVENTH: I cancel the note and loan of $800.00 secured y thereby which was made in 1938 to John McCrea and W.H. McCrea, Jr. , at the time of their purchase of the Old Stone Huntaberger Motel in Newville, Pennsylvania, plus any interest due therefrom. EIGHTH: I give, devise and bequeath my inheritance from my Mother's estate (deceased 1961) to the children of John McCrea, share and share alike. NINTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to Miss Dora David, formerly President of Sarah Tucker College, India. page two of 12 pages TENTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to Doctor Anna Zachariah, formerly President of Madras Women's Christain College, India. ELEVENTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to Mark Heberlig and Margaret Heberlig, or the survivor of them. TWELFTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to Fred Heckman. THIRTEENTH: I give, devise and beq :eath One Thousand ($1,000.00) Dollars to Alberta °oldosser. FOURTEENTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to my niece, Hazel M. Chapman. FIFTEENTH: I give, devise and bequeath One Thousand ($!-,000.00) Dollars to The Reverend Doctor Ronald Wiley and Alberta Wiley, his wife, or the survivor of them. SIXTEENTH: I give, devise and bequeath to my grandson, Henry Lewis Chapman, the Chapman Grandfathers Clock, Chapman large carved oak cabinet, Goddard-type desk, all now located in Chapman Lodge, and one of my silver services. SEVENTEENTH: I give, devise and bequeath to my granddaughter, Katherine Stacy Chapman, the Powell Grandfathers Clock, now located in the home of Alfred M. Chapman, Ardmore, Pennsylvania, and one of my silver services. s EIGHTEENTH: I give, devise and bequeath to my granddaughter, Karen Elizabeth Chapman, the Grandfathers Clock, now located at Ziegler's Storage Warehouse, the antique walnut tiptop table, which was a wadding gift from my parents, and one of my silver services NINETEENTH: I give, devise and bequeath to the Farmers L,_.. Trust Company and John McCrea III, in trust nevertheless, my country house known as Chapman Lodge and its contents, together page three of 1,12 pages with the land adjacent thereto, Lower Mifflin Township, Cumber- land County, Pennsylvania, containing 19 acres, more or less, for the benefit and use of my son, Alfred McCrea Chapman, as long as he lives or as long as he has any need for it. At his. death or whenever the benefit to him ends, then my Trustees herein shall continue to hold the property for the use and benefit of the children of Alfred McCrea Chapman, and for the use and benefit of the children of John McCrea and the children of Katherine Jane McCrea Morris, until the voungest child of Alfred McCrea Chapman reaches the age of Twenty-one years, at which time my Trustees are to convey said property for life to the children of Alfred McCrea Chapman, as joint lime tenants.. At the termination of the life estates, or after renunciation thereof, or if there are no children of Alfred McCrea Chapman living at the termination of this trust, then said property shall pass in remainder to St.Johns Episcopal Church, Carlisle, Pennsylvania. TWENTIETH: I give, devise and bequeath to the Farmers Trust Company and John McCrea III, Thirty-five Thousand ($35,000.00) Dollars, in trust nevertheless,. to use the income and so much of the principal as they in their discretion deem necessary for the upkeep, maintenance, repair, and taxes of Chapman Lodge and its adjacent acreage, during; the term of the trust created in paragraph NINETEENTH. When that trust terminates, then the residue of this trust shall be treated as other residue of this estate. TWENTY-FIRST: I give, devise and bequeath to Brown University Ten Thousand ($10,000..00) Dollars, to expend the income therefrom for scholarships and to be known as the Alfred McCrea Chapman scholarships. TWENTY-SECOND: I give, devise and bequeath to Lawrenceville School, Lawrenceville, New Jersey, Five Thousand ($5,000.00) page four of 12. pages r Dollars, to expend the income therefrom for scholarships, and to be known as the Alfred McCrea Chapman scholarships. TWENTY-THIRD: I give, devise and bequeath to St. Thomas Episcopal Choir School, West Fifty-fifth Street, New York City, Five Thousand ($5,000,00) Dollars, to expend the income there- from for scholarships and to be known as the Alfred McCrea Chapman scholarships. TWENTY-FOURTH- I give, devise and bequeath to St. Lukes Episcopal Churcb, Newton, Bucks County, 1'ennsylvania, Five Thousand ($5,000.00) Dollars, to expend the income therefrom for general church purposes and to be known as the Alfred Madison Chapman Fund. TWENTY-FIFTH' I give, devise and bequeath to the Trinity Episcopal Church, Wilmington, Delaware, One Thousand ($1,000:00} Dollars to expend the income therefrom for flowers during the month of January in memory of Joseph Holton Jones. TWENTY-SIXTH: I give, devise and bequeath to the Domestic and Foreign Missionary Society of the Episcopal 'Church at 815 Second. Avenue, New York City, for the benefit of the Sarah Tucker College of Palayamkottai, Madra State, South India, One Thousand ($1,000,00) Dollars. TWENTY-SEVENTH: I give, devise and bequeath to the National Trust of Scotland One Thousand ($1,000.00) Dollars, to pay the income therefrom for the upkeep and maintenance of the Kintail Trust Property and to be known as the Sarah McIlvaine McCrea Jones Fund. TWENTY-EIG%TH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to the Directors of the John Graham Library Association, Newville, Pennsylvania, and to be known as the Sarah McCrea Chapman Jones Fund. TWENTY-NINTH: I give, devise and bequeath One Thousand ($1,000.00) Dollars to the Hamilton Library and Cumberland page five of 12 pages County Historical Association, Carlisle, Pennsylvania, for general purposes, to be known as the John McCrea Fund. THIRTIETH: I give, devise and bequeath to St. Johns Episcopal Church, Carlisle, Pennsylvania, One Thousand ($1,000.00) Dollars. THIRTY-FIRST: I give, devise and bequeath to the First United Presbyterian Church; Newville, Pennsylvania, One Thousand ($1,000.00) Dollars. THIRTY-SECOND: I give, devise and bequeath to the Holy Trinity Episcopal Church, Philadelphia, Pennsylvania, One Thousand ($1,000.00) Dollars. THIRTY-THIRD: I give, devise and bequeath to St. Andrews Episcopal Church, Yardley, Pennsylvania, One Thousand ($1,000.00) Dollars. THIRTY-FOUPTH: I give, devise and bequeath to the Episcopal Diocese of Central Pennsylvania Five Thousand ($5,000.00) Dollars for the Endowment Fund, to be knows: as the Sarah McCrea Chapman Jones Fund. THIRTY-FIFTH: I give, devise and bequeath to tlillore Medical College and Hospital in India One Thousand ($1,000.00) Dollars. THIRTY-S.IYFH: I give, devise and bequeath to Nepal Hospital Fund, Kathmandu, One Thousand ($1,000.00) Dollars. a THIRTY-SEVENTH: I give, devise and bequeath to the Episcopal Home for the Aged, Shippensburg, Pennsylvania, One Thousand ($1,000.00) Dollars. THIRTY-EIGH'fH: I give, devise and bequeath to Dickinson College, Carlisle, Pennsylvania, Five Thousand ($5,000.00) Dollars, to expend the income therefrom for scholarships and to be known as the Barbara Snyder McCrea scholarships. page six of 1.2 pages f r ` THIRTY-?NINTH: I give, devise and bequeath to the Dickinson School of Law, Carlisle, Pennsylvania, One 'Thousand ($1,000.00) Dollars. FORTIETH: Twenty per cent (20%) of the rest, residue and remainder of my estate, be it real, personal or mixed, I give, devise and bequeath to the Farmers Trust Company and John McCrea III, in trust nevertheless, to pay out of the income and so much of the principal as they, in their sole and absolute discretion, deem necessary, for the care, maintenance and support of my son, Alfred McCrea Chapman, for life; and, in addition, to pay out of the income and so much of the principal as their absolute dis- cretion deems necessary, for the care, maintenance, support and education (secondary, college, and graduate) of the children of Alfred McCrea Chapman, until all the children have either attained the age of twenty--one years, or completed their education, which- ever later occurs. My trustees are to have the broadest discretionary powers with regard to the distribution of income and principal without need for equality of amount between or among beneficiaries and without recognition of intestacy proportions. My trustees may convert any and all of the trust assets at either public or private sale and reinvest the same in whatetrer securities or real estate they in their sole discretion, deem advantageous to the trust. Said investments may include the stock of the Farmers Trust Company. Upon the termination of this trust I give, devise and be- queath to each of my grandchildren, Henry Lewis Chapman, Katherine Stacy Chapman, and Karen Elizabeth Chapman, one third of the then balance. If any or all grandchildren are deceased at the payment of this bequest, and leave issue them surviving, then each page seven of 12 pages i deceased grandchild's share is to be paid to his issue, share and share alike. If any deceased grandchild does not leave issue him or her surviving, then his or her share is to be paid to my grandchildren who survive him or her, or their issue,the grandchildren to take equal shares, and the issue to take, per stirpes, the share their deceased parent would have taken had he or she survived. If no grandchildren, and no issue of grand- children, survive at the time of the payment of this bequeath, then it shall b>_ treated as part of the residue of this estate. .FORTY-FIRST: All the rest, residue and remainder of my estate, be it real, personal or mixed, I give, devise and be- queath to Farmers Trust Company and John McCrea III in Trust and confidence. This Trust shall be known as the "Charitable IRemainder Trust" and the net income, principal thereof shall be disposed of as hereinafter provided: (A) My Trustees shall pay to my son Alfred McCrea Chapman for life, in each taxable year of the trust, in such installments as may be convenient, but not less often than annually a sum equal to 5 per cent of the net fair market value of the trust assets determined ` annually. On my son Alfred's death, my Trusteees shall transfer the then principal of the trust (including all accumulated income) in the following proportions: „e (1) To Dickinson College, three-tenths( (3/10) ) for the same purposes and on the same conditions set forth in Paragraph Thirty-eight. (2) To Brown University, three-tenths (3/10)/ for the same purposes and on the same conditions set forth in Paragraph Twenty-First. (3) To The National Trust for Scotland, one-tenth (1f10) for the same purposes and on page eight of 12 pages . t the same conditions set forth in Paragraph Twenty-Seventh. (4) To the Episcopal Diocese of Central Pennsylvania, three-tenths (3/10) for the same purposes and on the same conditions set forth in Paragraph Thirty-Fourth. (B) In case the net fair market value of the assets of this trust is incorrectly determined, my trustees shall pay to my son Alfred, in case of any undervalua- tion, or be repaid by him, in the case of an overvaluation, an amount equal to the difference between the amount which my trustees should have paid if the correct value were used and the amount which my trustees actually paid within a reasonable period after the final determination of such value. (C) If my Trustees accept additional contributions, for purposes of the taxable year in which the additional con- tribution is made and where no valuation date occurs after the time of the contribution in the taxable year when the contribution is made, the additional property shall be valued at the time of the contribution andthe amount described in (1) above computed by multiplying S. by the sum of the net fair market value of the trust assets (excluding the additional contribution and any apprecia- tion or earned income attributable thereto) and that pro- portion of the additional contribution plus earned income and appreciation, which the number of days, including the day of transfer, remaining in the taxable year bears to the total number of days in that taxable year. (D) If atthe time any interest is to be irrevocably transferred to a Charity under (A) above, that Charity is not an organization described in 170 (C) I.R.C. , then in lieu of transferring such interest to said Charity my page nine of 12 pages Trustees shall transfer it to an organization described in 170 (C). (E) This trust is intended to qualify as a charitable remainder unitrust as defined in Section 664(d) (1) and to be administered so that the trust shall qualify for the tax exemption provided under that section of the Internal Revenue Code. (F) My Trustees shall not engage in any act of self dealing as defined in Section 4941(d) of the "Internal Revenur Code of 1954, or corresponding provisions of any subsequent Federal tax laws, and shall not make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1954, or corresponding provisions of any subsequent Federal tax laws. After the death of my son Alfred and until the actual termination of this trust, my Trustees shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1954, or corresponding provisions of any subsequent Federal tax laws; shall not make any invest- ments in such manner as to subject the trust to tax under Section 4944 of the Internal. Revenue Code of 1954, or corre- °� spondin'g 'provisions 'of any subsequent Federal tax laws; and shall distribute income and if necessary principal, at such r time and in such manner as may be recuired so that the J trust shall not become subject to the tax on undistributed income imposed by Section 4942 of the Internal Revenue Code of 1954, or corresponding provisions of any subsequent Federal tai: laws. The purpose of this paragraph (6) is to comply with the provisions of Section 508(e) of the Internal Revenue Code, to the extent applicable to this trust. •(G) In the case of a taxable year which is for a period of less than 12 months (other than the taxable year in which Alfred dies) the amount to be distributed under (1) above shall be that amount multiplied by a fraction, the page ten of 12 pages 1 r numerator of which is the number of days in the tax- able year of the trust and the denominator of which is 365 (366 if February 29th is a day included in the numerator). If no valuation date occurs before the end of the taxable year of the trust, the trust assets shall be valued on the last day of the taxable year of the trust. (H) In the'case of the taxable year in which Alfred dies, the amount to be distributed under (1) above shall be that amc•unt multiplied by a frac`-ion, the numberator of which is the number of days between the beginning of such taxable year and the end of such period and the -denominator of which is 365 (366 if February 29th is a day included in the numerator), If no valuation date occurs before the end of this .period, the trust assets shall be valued on the last day of such period. FORTY-SECOND: I direct that my grandchildren named as bene= ficiaries of my Last Will and Testament be permitted, insofar as they may unanimously agree, to select in kind from my personal property not specifically devised such items as each .of them may want, with the provision that said items scall be taken at 'their ap raised value 'an,d.'char_ed against randchild's bequest. G p. . g P F J FORTY-THIRD: I direct that all advancements of monev or property made by me in my lifetime to specific legatees, both individual and charitable, and charged or noted by me hereon, or on my books of account or cancelled checks and check registers as such advancements, shall be taken and counted as part of such legacies in this estate under this instrument. FORTY-FOURTH: In the event my estate shall be insufficient to pay in full all my specific bequests, then, in that event, my bequests set forth in paragraphs TWENTY-FIRST through THIRTY-NINTH, inclusive, which are to charitable, historical and educational institutions shall abate first. In the event there are not suffi- cient funds in my estate to pay such charitable, historical and educational page. eleven of 12 pages bequests in part, then, said bequests shall share proportionately. FORTY-FIFTH: I nominate the Farmers Trust Company and John McCrea III as the Executors of this my Last Will and Testament. IN WITNESS WHEREOF, I, the said Sarah McCrea Chapman Jones, have hereunto set my hand and seal to this my Last Will and Testament, written on twelve sheets of paper, each of which is signed by me on the bottom margin, this PkIday of September, 1976. arah McCrea Chapman 7 nes This instrument was by the Testatrix, Sarah McCrea Chapman Jones, on the date hereof, signed, published and declared by her to be her Last Will and Testament, in our presence, who, at her request, and in her presence and in the presence of each other, we believing her to be of sound and disposing mind and memory have hereunto sub- scribed our names as witnesses. page twelve of 12 pages r IN THE COURT OF COMMONPLEAS OF PHILADELPHIA COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION O.C.No. 1061 Al of 2009 Control No.091393 Estate of ALFRED McCREA CHAPMAN, an Alleged Incapacitated Person PETITION TO INTERVENE t. Petitioner is John McCrea, 111, an adult individual whose mailing address is P.O. Box 341,Newville,PA 17241, 2. Petitioner is the first cousin of Alfred Chapman and is co-trustee, along with M&T Bank, of the charitable remainder unitrust("CRUT")created by the Last Will and Testament and the First Codicil of Sarah McCrea Chapman Jones,mother of Alfred Chapman. 3. Income and principal of the CRUT pays all of the living expenses of Alfred Chapman, who has resided at Greystone House(Hillside House since July 1,2009)on the -r grounds of Friends Hospital for 29 years, and has paid all of the living expenses of Alfred Chapman for all of these 29 years. 4.Alfred Chapman has no income from any source other than the CRUT. 5. Alfred Chapman's annual living expenses are in excess of$60,000.00. 6. Income and principal from the CRUT will be sufficient to pay all of Alfred Chapman's living expenses for the rest of his natural life, at the end of which the remaining income and principal will be distributed to various charitable beneficiaries. 7. In this proceeding, Henry Chapman is seeking to be appointed permanent plenary guardian of Alfred Chapman,and to receive full powers over both the estate and person of Alfred Chapman. 8. If Henry Chapman is appointed plenary guardian, such action will alter the system of payment of Alfred Chapman's living expenses by the co-trustee, which system has been in place and has worked well for more than three decades, and which system has been faithfully responsive to the wishes of the Testator, Sarah McCrea Chapman Jones, for more than three decades. 9. Petitioner,together with his co-trustee,M&T Bank,has a legally enforceable interest in the performance of his fiduciary duty to administer the CRUT and pay the living expenses of Alfred Chapman during his lifetime. 10. If Henry Chapman receives full plenary guardian powers,Petitioner's ability to carry out his legally enforceable interest and perform the fiduciary duty of paying all of Alfred Chapman's living expenses will be affected. 11. Petitioner seeks intervention in this proceeding in order to interpose a defense to the request for full plenary powers by Henry Chapman and to limit Henry Chapman's guardian powers to those which deal with the person of Alf-red Chapman. 12. Petitioner believes that appointment of Henry Chapman only as guardian of the person of Alfred Chapman is a valid less restrictive alternative to the award of full plenary guardian powers to Henry Chapman. 13, If Petitioner is given leave to intervene in this proceeding,he will file an Answer and New Matter in response to the guardianship petition.A copy of the proposed Answer and New Matter is attached to this Petition as Exhibit"A"and incorporated by reference herein. WHEREFORE, your Petitioner prays that this Court enter an Order allowing him to intervene in this guardianship proceeding and,thereafter,have all of the rights and liabilities of a party to the action. Dated: September 4, 2009 John McCrea. III P.O. Box 341 Newville,PA 17241 Tel. (717) 776-6656 Fax(717)776-1245 2 1 �. ,r � . . t i 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 AND NOW, this day of SEPTEMBER, 2009, upon consideration of the annexed petition and after hearing held following due notice, this Court finds b clear and convincing ncmg evidence that: 1. Alfred McCrea Champman- is 73 years of age and is domiciled in Phi ladelphia,Pennsylvan!a. 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. 1' 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. I 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 IN THE COURT OF COMMON PLEAS OF PHILADELPHIA ORPHANS' COURT DIVISION O. C No. 1061 IC of 2009 Estate of ALFRED MCCREA CHAPMAN, An Incapacitated Person DECREE AND NOW, this , 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. Ferrino, Esquire, COPIES SENT PURSUANT TO Pa.R.C.P.236(b) SEP 2 4 2009 FIRSTJUOIciAL. TOF A USER I.Q.; 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 x 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. 2 k" y 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 _ '� E' 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 ofthetrust, 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 5 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 PER 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 ties 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. 6 - r � .. 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 ICHAEL 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 I-Aj b J�/-1 A /I K DATE: — f WtWY K. ST UB Paralegal 8 f ... POWER OF ATTORMY SNOW ALL f�2'.4 BY THESE PRESENTS, Thai 1, A?MED MCCR A CFAPRAN, have made, coni tltuted and appointed, anc,, by " :ese pr'ese �!.s do make, constitute and .appoint FA�rRS TRUST CC�C�Aivz', of the Borough of Carlizle, CwTtberlard County, Pennsylvania, my true and lawful .attorney,, for rye and in my name and on ;,iy behalf 1. To ask, demand, recover rnd re.,ceive all and any surds of money, debts and rents due or payable, coming or belonging, or which may-at any time be due and payable ,and beionging to me, from any person, firm, corp oration, or legal, entity whatsoever, including the Commonwealth of Pennsylvania, t.,.e United States of America, the Social Security Administrati*n- and any other agency of the State of Penr_sy'lvanie or of the united estates of America.; 2. To enter any safe deposit box of: which l aur renter in my own right or jointly with others; 3. To deposit finds in and withdraw x:'unds .from any account that 1-may have -I- 'any bank, tr*ust *company:, teal savings bank vi SaV`l:tes ana I.oen association,' lndludi� au Lint& i riga}r '.:old. jointly with other persons, or to de fund n and withdraw ,funds from any account in any fina. al stitution which-my said attorney may, create for that p Tc 'inc?orse notes, c, ks, d ft8 and bills of exchange, which way requi 'e my en me deposit, ,for cashing or for collection; 5. To sell, transf assign: any personal property, stock, bond or other security or evidence of debt which I am now possessed or 16 which T may have or hereafter acquire an interest czy and! � _:?u 7:1 . . :�, i,, .:.i'sary :u make such sale, ;.ransfer or assignment; b. To mortgage, sell, transfer, and convey any and all real estate which T may now oen or in which S may have any interest r 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 account -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; 8. To invest any funds received by said attorney as Way be 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 thepayment .of- any medical, surgical, dental, or nursing. care which may or is required 10. This power of Attorneyshall t acted by my disability or incapacity, physical me al,. but the authority hereby conferred shall be.exerc aid attorney, notwithstanding my disability or incapacity. 11. I grant to my .s a power and authority, to make and.substitute in and ncern the premises .an attorney: or attorneys under it .and s to,revoke. 12. I`Slve 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 done 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, shall lawfully do or cause to be done therein by virtue of these presents. IN ±vITSS WFTEREOF, I here hereunto sat my hand and seal this day of (SEAL; All d McCrea Chapman COMNMONWEALTF? OF PENNSYLVANIA) COUNTY OF } On this, the day o�: cG f�� � before me, the undersigned .officer, per_sane 1 appeared ALFRED McCFEA CFIAPMAN, 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.purpgses .therei:i contained. x IN WITNTSE WH_EREOr, I hereunto set my rand and ficial ., !r seal. t F (SEAL) f ;AMES PRIG£ { F�C:tTY. K*92fiitf -tic CD, . F}p Latar'E,011(tccewbd:9,1471 s 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 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 Philadelphia,Pennsylvania. 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 Guardian shall file an inventory and report In compliance with 20 Pa.C.S.§5521(c) within ninety(90)days of this Decree and annually thereafter. The Court, upon the filing of the inventory, may order security to be posted by the Guardian. The said guardian shall not enter into any settlement of any claim or cause of action without prior approval of this Court, In the event of a settlement of any claim or cause of action, this Court reserves the right to remove the guardian and appoint a corporate guardian. If the incapacitated person has a safe deposit box,an official Examiner of this Court shall attend the opening of the safe deposit box. The Certificate of the Official Examiner of his examination of the assets of the safe deposit box shall be submitted to this Court and,when approved by the hearing judge,shall be filed with the record in this case. The amount and manner of the compensation for the, services of the Official Examiner shall be determined by the hearing judge. Within sixty(60)days after the death of the Incapacitated person or an adjudication of capacity, the guardian shall file a Final Report with the Court pursuant to 20 Pa.C.S.A. §552'1(c)(2). The Guardian of the Person shall have the authority and responsibility to decide where Alfred McCrea Chapman shall live and how meals, personal care, transportation and recreation will be provided. The Guardian of the Person shall also have authority to authorize and consent to medical treatment and surgical procedures necessary for the well being of the incapacitated person. The Guardian of the Estate shall have the authority and responsibility to manage and use Alfred McCrea Chapman's property primarily for his benefit and secondarily for the benefit of his legal dependents In accordance with 20 Pa.C.S-k Section 5536(a),which authorizes the Guardian of the Estate to spend Income for the aforesaid purposes without the court's written approval. The Guardian of the Estate may not spend principal assets for the care and maintenance of Alfred McCrea Chapman without Court approval. The Guardian shall establish an appropriate burial reserve, if one does not exist. ACcordhnft,counsel for Petitioner shall cause to be served upon and read to Atfied McCrea Chapumn a copy of this Decree and the Statement of Rights attadted bereft as ExhtM"A", and file proof of same with the Court within ten(10) days from#*date hereof: Mired McCrea Chapman has twenty (20) days from the date of this decree 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. Lazarus,J. Rosemary Fenrino, Esquire COPIES SENT pURSUANTTO p&R.C.p.236(b) SEP 2 4'2Q09 FIRST3UOIC STRI OFr.. USER LO- f W 7W COURT OF COMMON PLEAS OF PHILADELPHIA ORPHANS' COURT DIVISION O. C No. 1061 IC of 2009 Estate of ALFRED MCCREA CHAPMAN, An Incapacitated Person DECREE AND NOW, this a 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. Ferrino, Esquire PURSUANCOPPIO S SRWC P SEP 2 4 2009 FIRSTJUDI&L TOF A USER I.D.; _a IN RE: FIRST AND FINAL ACCOUNT IN THE COURT OF COMMON PLEAS OF OF MANUFACTURERS AND CUMBERLAND COUNTY, PENNSYLVANIA TRADERS TRUST COMPANY, SUCCESSOR TO KEYSTONE FINANCIAL BANK, NA, SUCCESSOR TO FINANCIAL TRUST SERVICES COMPANY, SUCCESSOR TO FARMERS TRUST COMPANY, AGENT, FOR THE ATTORNEY IN FACT: UNDER POWER OF ATTORNEY DATED 5/3/1977 F/B/O ALFRED McCREA CHAPMAN 21-2013-0563 ORPHANS' COURT ORDER OF COURT AND NOW, this !jK'4'0 day of March, 2014, upon consideration of the Auditor's Report filed on February 7, 2014, and in the absence of objections from the parties, we adopt the Auditor's finding that the Court of Common Pleas of Philadelphia County has venue and, accordingly, DIRECT that this matter be transferred to the Court of Common Pleas of Philadelphia County docketed to O.C. No. 1061 of 2009, Control No. 091893. By the Court, Albert H.. Masland, J. Seth T. Mosebey, Esquire 10 East High Street Carlisle, PA 17013 Rosemary R. Ferrino, Esquire 1501 Lower State Road, Suite 205 North Wales, PA 19454 P� Michael L. Bangs, Esquire 429 S. th 18 Street Camp Hill, PA 17011 C: co :Sal