HomeMy WebLinkAbout10-27-14 RECORDED OF=ICE OF
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David A. Mills, Esquire PA 37192
BLAKEY, YOST, BUPP &RAUSCH, LLP
17 East Market Street
York, PA 17401
(717) 845-3674
Attorneys for Petitioner, Randy L. Cramer
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
IN RE: No. 21-08-0544
ESTATE OF JUNE K. OTTO
Late of South Middleton Township,
Deceased
OBJECTIONS OF RANDY L. CRAMER
TO FIRST AND FINAL ACCOUNT AND PROPOSED DISTRIBUTION OF
EDWIN R. OTTO AND PATRICK K. MYERS, CO-EXECUTORS OF
THE ESTATE OF JUNE K. OTTO,DECEASED
AND NOW, this 13th day of October, 2014, comes the Petitioner, Randy L. Cramer, by
counsel, David A. Mills, Esquire of Blakey, Yost, Bupp & Rausch, LLP, who files these
Objections to the First and Final Account and Proposed Distribution of Edwin R. Otto and
Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased, as follows:
1. Objection to the "Receipts of Principal" in the aforesaid Account:
a. The First and Final Account and Proposed Distribution of Edwin R. Otto
and Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased, states "Receipts of
Principal" to include the real estate of the Decedent at 331 East Old York Road, Carlisle,
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Pennsylvania as if, on the date of death of the Decedent on May 2, 2008 and on May 16, 2008,
the date the Fiduciaries acquired said real estate, the real estate was two tracts of land upon the
Fiduciaries' Acquisition, as follows:
Value of Assets Fiduciary
Real Estate: Listed in Inventory Acquisition
(d/o/d value) Value
331 East Old York Road, Carlisle, Pennsylvania $900,000.00 $285,000.00
($615,000.00 Seller Financing Pursuant to Recorded Mortgage)
331 East Old York Road, South—37 Acres $ 85,000.00 $ 85,000.00
Carlisle, Pennsylvania
(Transfer Pending payment of Transfer Taxes, Subdivision Costs,
Real Estate Taxes and Expenses)
b. The real estate of the Decedent, June K. Otto, at 331 East Old York Road,
Carlisle, Pennsylvania, on the Decedent's date of death was a sin le tract of land, not two
separate tracts as stated in the aforesaid Account.
C. Prior to her death, Decedent, June K. Otto, stated her agreement with
Petitioner, Randy L. Cramer, to subdivide her property and entered into an Agreement of Sale,
dated, April 28, 2007, with Petitioner, Randy L. Cramer, which Agreement states, in pertinent
part, as follows:
1. The Property to be Sold. Otto agrees to sell to Cramer, and
Cramer agrees to purchase from Otto, all the real property, with farm buildings
thereupon, which Otto now owns on the south side of Route 174 in the County of
Cumberland, Township of South Middleton, Commonwealth of PA, and which is
currently part of the premises known as 331 Old East York Road, Carlisle, PA.
This parcel of land it is to subdivided (sic) from the remainder of 331 Old East
York Road, Carlisle, PA at a later date, and is comprised of approximately 35
acres, more or less (to be called"the Southern Tract").
See, Petitioner's Exhibit 1, attached to the Petition of Randy L. Cramer to Compel Co-
Executors to File Account.
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d. Prior to her death, the Decedent, June K. Otto, acknowledged her said
Agreement with Petitioner, Randy L. Cramer, as having occurred already in the Last Will and
Testament of June K. Otto, deceased, dated, May 11, 2007, in pertinent part, as follows:
(b) All of the remainder of my real estate which I may own
which is located in South Middleton Township, Cumberland County,
Pennsylvania, and which lies South of the southern line of East Old York
Road, known as Pennsylvania Route No. 174, and which contains
approximately 35 acres, I direct shall be transferred to my faithful friend
RANDY L.CRAMER, his heirs and assigns, of 170 Red Tank Road,
Boiling Springs, PA 17007, agreeable to the Agreement of Sale into which
I entered with him on April 28, 2007, in which Agreement I agreed to
convey the same to him for a consideration of$1.00 which he paid to me
upon the execution of the Agreement of Sale. This Agreement of Sale was
entered into by me with Randy L. Cramer in appreciation of the many
kindnesses and help which he has extended to me over a period of a
number of years.
See, Petitioner's Exhibit 3, attached to the Petition of Randy L. Cramer to Compel Co-
Executors to File Account.
e. Contrary to the aforesaid Account, none of the "Subdivision Costs, Real
Estate Taxes" or "Expenses" is to be borne by the Petitioner, Randy L. Cramer, but only the
"Transfer Taxes," as set forth in the aforesaid Agreement, in pertinent part, as follows:
5. Transfer Tax. Cramer will pay the entire cost of any
transfer taxes due upon the transfer of the Southern Tract.
See, Petitioner's Exhibit 1, attached to the Petition of Randy L. Cramer to Compel Co-
Executors to File Account.
£ Contrary to the aforesaid Account, none of the "ESTIMATED RECEIPTS
RECEIVED FROM RANDY CRAMER To TRANSFER 37 ACRES" should include "2008-2015
County/Township and School Taxes" of"$19,554.44," as the Fiduciaries persisted in a course of
conduct to deny legal title and possession to the Petitioner, Randy L. Cramer, after the date of
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death of the Decedent on May 2, 2008, the acquisition of said real estate by the Fiduciaries on
May 16, 2008, and the subdivision of the property by the Fiduciaries on December 21, 2012.
g. Contrary to the aforesaid Account, none of the `ESTIMATED RECEIPTS
RECEIVED FROM RANDY CRAMER TO TRANSFER 37 ACRES" should include "Subdivision Costs"
of "$17,380.30" as the Fiduciaries alone agreed to these costs solely either "Costs of
Administration" as stated in the Account and Inheritance Tax return, or more properly as debts of
the Decedent who had agreed with Petitioner, Randy L. Cramer, to subdivide "approximately 35
acres, more or less (to be called `the Southern Tract')" from her property at 331 East Old York
Road, Carlisle, Pennsylvania.
h. Under penalties of perjury, the Fiduciaries of the Decedent's Estate signed
the Pennsylvania Inheritance Tax Return, which took all of the aforesaid "2008-2015
County/Township and School Taxes" and "Subdivision Costs" paid by the Estate as deductions,
which the Department of Revenue allowed, because Edwin R. Otto and Patrick K. Myers, Co-
Executors of the Estate of June K. Otto, deceased, were legally obligated to pay them, as follows:
§ 9126. Deductions Generally
The only deductions from the value of the property transferred
shall be those set forth in this part. Except as otherwise provided in this
article, they shall be deductible regardless of whether or not assets
comprising the decedent's taxable estate are employed in the payment or
discharge of the deductible items. When a tax is imposed upon a transfer
described in subsection (c) of section 2107 and section 2108,1 the
deductions shall be allowed to the transferee only to the extent that the
transferee has actually paid the deductible items and either the transferee
was legally obligated to pay the deductible items or the estate subject to
administration by a personal representative is insufficient to pay the
deductible items
72 Pa. Stat. Ann. § 9126 (Emphasis added.)
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2. Objection to the omission of "Gains and Losses on Sales or other
Dispositions" from the aforesaid Account:
a. On March 19, 2013, Douglas H. Miller, Agent for Edwin R. Otto and
Patrick K. Myers, Executors of the Estate of June K. Otto, deceased, sold real property located at
331 Old York Road, Lot 1 94.298, and at 323 Old York Road, Carlisle PA 17015 in South
Middleton Township to Jonathan R. Rudolph and Ruth Ann Rudolph for $900,000.00 on an
inventory value of$285,000.00.
b. The Account states no disposition of "all the real property, with farm
buildings thereupon, which Otto now owns on the south side of Route 174 in the County of
Cumberland, Township of South Middleton, Commonwealth of PA, and which is currently part
of the premises known as 331 Old East York Road, Carlisle, PA. This parcel of land it is to
subdivided (sic) from the remainder of 331 Old East York Road, Carlisle, PA at a later date, and
is comprised of approximately 35 acres, more or less (to be called "the Southern Tract")," which
the Decedent sold to Petitioner, Randy L. Cramer, but did not transfer to him by Deed.
3. Objection to the"Distributions of Principal to Beneficiaries":
a. The aforesaid Account states under the heading, Distributions to
Beneficiaries, in pertinent part, as follows:
Distributions to Beneficiaries:
331 East Old York Road, South—37 Acres—Subject to Payment of Transfer
Taxes, Subdivision Costs, Real Estate Taxes and Expenses.....................$85,000.00
b. No Beneficiary is named as to this Distribution.
C. No Distribution of 37 acres at 331 East old York Road, Carlisle,
Pennsylvania has been made.
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d. No payment of "Subdivision Costs, Real Estate Taxes and Expenses" is
supported in either the Agreement of Sale, dated, April 28, 2007, see, Petitioner's Exhibit 1,
attached to the Petition of Randy L. Cramer to Compel Co-Executors to File Account, or the Last
Will and Testament of June K. Otto, deceased, dated, May 11, 2007, see, Petitioner's Exhibit 3,
attached to the Petition of Randy L. Cramer to Compel Co-Executors to File Account.
Wherefore, Petitioner, Randy L. Cramer, respectfully requests this Honorable Court to
sustain the Objections and enter an Order that directs Respondents, Edwin R. Otto and Patrick K.
Myers, Executors of the Estate of June K. Otto, deceased, to transfer to him by Executor's Deed
"all the real property, with farm buildings thereupon, which Otto [then] own[ed] on the south
side of Route 174 in the County of Cumberland, Township of South Middleton, Commonwealth
of PA, and which [was] part of the premises known as 331 Old East York Road, Carlisle, PA ....
[and was] subdivided from the remainder of 331 Old East York Road, Carlisle, PA at a later date,
and is comprised of approximately 35 acres, more or less."
4. Objection to the omission of "Receipts of Income" from the aforesaid
Account:
a. The First and Final Account and Proposed Distribution of Edwin R. Otto
and Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased, states no Receipts
of Income during more than six (6) years of administration of the decedent's estate when it is
believed, and therefore averred that the real estate of the Decedent at 331 East Old York Road,
Carlisle, Pennsylvania has been leased to a farmer since the date of death of the Decedent on
May 2, 2008 and the acquisition of said real estate by the Fiduciaries on May 16, 2008.
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b. The First and Final Account and Proposed Distribution of Edwin R. Otto
and Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased, states under the
heading,RECEIPTS OFPRINCIPAL,as follows:
RECEIPTS OF PRINCIPAL
Value of Assets Fiduciary
Listed in Inventory Acquisition
(d/o/d value) Value
Personal Property:
Stamy—Farm Rent Income $52,761.00 $52,761.00
RECEIPTS SUBSEQUENT TO INVENTORY
(Value When received)
04/22/14 Jonathon R. Rudolph, Farm Rent Income...................... $2,000.00
If this income were other than due on Decedent's date of Death, then it is not truly a "Receipt of
Principal." If Income in Respect of Decedent, there is no account of the income tax paid to the
U.S. Treasury or to the Commonwealth of Pennsylvania.
C. As Specific Devisee, Petitioner, Randy L. Cramer, is entitled to the net
income from property given to him accrued from the death of the Decedent. See, Act of 1972,
June 30, P.L. 508, No. 164, § 2, eff. July 1, 1972, as amended, 20 Pa.C.S.A. §3543 (b) (Income
on Distributive Shares).
d. As Specific Devisee, rental payments from business real estate belong to
Petitioner, Randy L. Cramer, not the Estate. In re Estate of Sell (K.), 10 Fid. Rep. 2d 202, 49
Somerset, 26, aff'd 392 Pa. Super. 658, 564 A.2d 266, appeal denied, 525 Pa. 585, 575 A.2d 115
(1990).
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Wherefore, Petitioner, Randy L. Cramer, respectfully requests this Honorable Court to
sustain the Objections and enter an Order that directs Respondents, Edwin R. Otto and Patrick K.
Myers, Executors of the Estate of June K. Otto, deceased, to account for Receipts of Income, if
any, that are attributed to the real property, with farm buildings thereupon, which Otto [then]
own[ed] on the south side of Route 174 in the County of Cumberland, Township of South
Middleton, Commonwealth of PA, and which [was] part of the premises known as 331 Old East
York Road, Carlisle, PA .... [and was] subdivided from the remainder of 331 Old East York
Road, Carlisle, PA at a later date, and is comprised of approximately 35 acres, more or less.
5. Objection to the "Proposed Distribution" in the aforesaid Account:
a. If the portion of the First and Final Account and Proposed Distribution of
Edwin R. Otto and Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased,
which identifies the Proposed Distribution is the "FINAL DISTRIBUTION," it does not contain the
name of Petitioner, Randy L. Cramer, to whom it is proposed to award the balance of the real
estate of the Decedent at 331 East Old York Road, Carlisle, Pennsylvania for distribution, the
amount of the share to be awarded to him, or a brief statement of the nature and reasons for the
proposed award, be it a reference to the applicable provisions of the Will or Agreement,
authorizing the proposed distribution.
b. That portion of the First and Final Account and Proposed Distribution of
Edwin R. Otto and Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased,
which identifies the Proposed Distribution is stated "FINAL DISTRIBUTION," but does not
distribute to Randy L. Cramer the amounts set forth in"Reserves" as follows:
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Reserves
Randy L. Cramer, Lawn Care........................... $9,701.00
Randy L. Cramer, Property Clean Up..................... $1,640.00
TOTAL...................................................... $11,341.00
C. That portion of the First and Final Account and Proposed Distribution of
Edwin R. Otto and Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased,
which identifies the Proposed Distribution is stated "FINAL DISTRIBUTION," but does not
distribute to Jason L. Cramer the amounts set forth in the inheritance Tax Return, as follows:
SCHEDULE H
12. Jason Cramer— Service Calls ........................ $725.00
13. Jason Cramer—HVAC repairs....................... $950.00
TOTAL........................................................... $1,675.00
Wherefore, Petitioner, Randy L. Cramer, respectfully requests this Honorable Court to
sustain the Objections and enter an Order that
1. Directs Respondents, Edwin R. Otto and Patrick K. Myers, Executors of the
Estate of June K. Otto, deceased, to transfer to him by Executor's Deed "all the real property,
with farm buildings thereupon, which Otto [then] own[ed] on the south side of Route 174 in the
County of Cumberland, Township of South Middleton, Commonwealth of PA, and which [was]
part of the premises known as 331 Old East York Road, Carlisle, PA .... [and was] subdivided
from the remainder of 331 Old East York Road, Carlisle, PA at a later date, and is comprised of
approximately 35 acres, more or less
2. Pays $11,341.00 to Petitioner, Randy L. Cramer, and$1,675 to Jason Cramer.
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6. Objection to the Affidavits of the Co-Executors to the aforesaid Account:
a. The affidavit of Edwin R. Otto, Co-Executor states:
Edwin R. Otto, Co-Executor for the Estate of June K. Otto,
deceased, hereby declares under oath [under penalty of perjury] that he has
faithfully discharged the duties of his office; that the foregoing First and
Final Account is true and correct and fully discloses all significant
transactions occurring during the accounting period; that all known claims
against the estate have been paid in full; that, to his knowledge, there are
no claims now outstanding against the Estate; and that all taxes presently
due from the estate have been paid.
/s/
Edwin R. Otto, Co-Executor
b. The affidavit of Patrick K. Myers, Co-Executor states:
Patrick K. Myers, Co-Executor for the Estate of June K.
Otto, deceased, hereby declares under oath [under penalty of perjury] that
he has faithfully discharged the duties of his office; that the foregoing First
and Final Account is true and correct and fully discloses all significant
transactions occurring during the accounting period; that all known claims
against the estate have been paid in full; that, to his knowledge, there are
no claims now outstanding against the Estate; and that all taxes presently
due from the estate have been paid.
/s/
Patrick K. Myers, Co-Executor
C. The claims of Petitioner, Randy L. Cramer, for approximately 35 acres,
i.e., "the Southern Tract" from the property of the Decedent at 331 East Old York Road, Carlisle,
Pennsylvania, and for Lawn Care and Clean Up, as aforesaid, have not been satisfied.
d. The claims of Jason Cramer for Service Calls and HVAC repairs are also
now outstanding against the Estate.
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WHEREFORE, Petitioner, Randy L. Cramer, requests this Honorable Court to sustain the
Objections of Petitioner, Randy L. Cramer, and enter an Order that does the following:
1. Distributes the "approximately 35 acres, more or less (`the Southern Tract')" from
the property at 331 East Old York Road, Carlisle, Pennsylvania, by deed from Edwin R. Otto and
Patrick K. Myers, Co-Executors of the Estate of June K. Otto, deceased to Randy L. Cramer,
who will record said Deed and pay Pennsylvania Realty Transfer Taxes attendant to recording
the Deed in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania;
2. States the gains or losses on sales or other dispositions of all property of the
Decedent;
3. Accounts for the Receipts of Income, if any, during the administration of the
Estate of June K. Otto, deceased;
4. Pays to Petitioner, Randy L. Cramer, the sum of $11,341.00 for the Lawn Care
and Property Clean Up;
5. Pays Jason Cramer the sum of$1,675 for Service Calls and HVAC Repairs.
Respectfully,
BL OST, BUPP . RAUSCH, LLP
Dated: ���� 02o r'� B
Davi A. Mills, Esq re PA 37192
ast Market Street
York, Pennsylvania 17401
(717) 845-3674
Attorneys for Petitioner, Randy L. Cramer
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CERTIFICATE OF SERVICE
I, David A. Mills, Esquire, hereby certify that I have served a true and correct copy of the
foregoing Objections of Randy L. Cramer to First and Final Account and Proposed Distribution of
Edwin R. Otto and Patrick K. Myers,'Co-Executors of the Estate of June K. Otto, Deceased, by
depositing a copy of same in the United States Mail, regular delivery, postage prepaid as follows:
Douglas Miller, Esquire
Irwin& McKnight, P.C.
60 West Pomfret Street
Carlisle, PA 17013
BLAKEY,YOST, BUP & BAUSCH, LLP
Dated:"PJ 6David
. M ls, Esquire 37192
st Market Street
York, PA 17401
(717) 845-3674
Attorney for Petitioner, Randy L. Cramer