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HomeMy WebLinkAbout11-07-14 c GUARDIANSHIP IN THE COURT OF COMMON PLEAS OF ESTATE OF CUMBERLAND COUNTY, PENNSYLVANIA KATHLEEN M. KNISELY CP—21 —2012—946 ORPHANS' COURT ORDER OF COURT AND NOW, this 5TH day of NOVEMBER, 2014, A Rule is issued upon all parties to Show Cause why the request set forth in the attached request from The Bryn Mawr Trust Company should not be granted. Rule returnable twenty (20) days from service. A HEARING and/or ARGUMENT will be held before this Court on FRIDAY, DECEMBER 5, 2014, at 1:00 p.m. in Courtroom# 3 of the Cumberland County Courthouse, Carlisle, Pa. BWtheurt, Edward E. Guido, J. Anthony L. DeLuca, Esquire Barbara Knisely James Knisely c ` M w M ' Mark F. Bayley, Esquire yrs.— Delano M. Lantz, Esquire Susan O'Donnell O M :sld F-- v' s. The Bryn Alawr Trust Company WEALTH MANAGEMENT DIVISION October 24, 2014 The Honorable Edward E. Guido Court of Common Pleas of Cumberland County Orphans' Court Division 1 Courthouse Square Room 102 Carlisle, PA 17013 Re: Guardianship Estate of Kathleen M. Knisely File No.: 21-12-946 Dear Judge Guido: You may recall that in your Order dated March 14, 2013, a copy of which is enclosed, for the above-referenced guardianship, The Bryn Mawr Trust Company, as Guardian of the Estate ("BMTC") was authorized to "pay for all remodeling work Mrs. Knisely desires to have done on her home". As a result, Mrs. Knisely has been remodeling her home and apparently is very pleased with the results. The most recent request is to have Mrs. Knisely's tennis court resurfaced and the fence repaired for the cost of$20,000.00. For your reference, I am enclosing copies of the two (2) estimates. The one estimate is for$57,000.00 and the other is for$20,000.00. Also enclosed are photographs of Mrs. Knisely playing tennis on the court in its current condition. Once again, BMTC is making a request in writing to the Court to authorize the cost of the renovation of the tennis court to avoid the expense of a Court hearing to address this issue. As you may recall, Mrs. Knisely's home and the surrounding land is not held as part of the Guardianship estate but is held in the Kathleen M. Knisely Qualified .Personal Residence Trust ("QPRT") dated June 5, 2012. Mrs. Knisely's daughter. Kathleen L. Knisely, is the Trustee of the QPRT, and pursuant to the terms of the QPRT Agreement, Mrs. Knisely has retained the right to live at the residence for a period of ten (10) years, and she is required to pay for all maintenance and any renovations. For your reference, I ant enclosing a copy of the QPRT document Please review these estimates. Please feel free to contact me directly at (610) 254-2043 if you have any questions or need any additional information or documentation. We look forward to the Court's response. 10 SOUTH BRYN MAWR AVENUE•BRYN MAWR,PENNSYLVANIA 19010 610-581-4774.800-268-5005 fax 610-527-8397 The Honorable Edward E. Guido Court of Common Pleas of Cumberland"County Page 2. October 24, 2014 Thank you so much for your time and consideration. Kind regards, Susan W. O'Donnell, Senior Vice President Enclosures cc: Anthony L. DeLuca, Esquire (via email) Barbara Knisely, Guardian of the Person (via email) s: James Knisely, Guardian of the Person (via email) Mark F. Bayley, Esquire (via email) Delano M. Lantz, Esquire (via email) IN RE: KATHLEEN M. KNISELY, IN THE COURT OF COMMON PLEAS OF an incapacitated person CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS ' COURT DIVISION NO. 21-12-946 ORDER OF COURT AND NOW, this 15th day of March, 2013 , after consultation with counsel, it is hereby ordered and directed as follows: 1 . Bryn Mawr Trust is authorized to pay all outstanding invoices for work done on the basement to Mrs. Knisely' s home. 2 . Bryn Mawr Trust is authorized to pay for all remodeling work Mrs. Knisely desires to have done on her home. 3 . We will decide at a later date whether or not it will be appropriate to seek reimbursement from the remaindermen of the real estate trust for these charges. 4 . To the extent that income is insufficient to cover the charges authorized by this Order, Bryn Mawr Trust has the authority to transfer amounts from from the principal account to the income account to cover the charges authorized herein. By the Court, C"') rn r i cn _-n Edward E. Guido, J. .z r-.1 '—' --q n7 � cn c� Q Anthony L. DeLuca, Esquire a c ti ' Delano M. Lantz, Esquire r3 Co r- r� Mark F. Bayley, Esquire -;CjPY FROM RECQRO� r— r" `�• imony wh*rof,I hereunto c,j �' Co Susan O'Donnell Z. da fo' my o�end the 1�aal Bryn Mawr Trust Company f Wealth Division Tof 10 South Br n Mawr Avenue Bryn Mawr, PA 19010 �_f O ani Court srs Cumberfand County BUILDERS Sl- n��i?�!6 S 3:��'sc.V►p'�_�. �C'JP+#�"',!k�;,i�7mi C'c]InP11<,Llf*J� �j�: Ni � �. ,ter. f,• `� x �� ' yy KNISELYS RESIDENCE TENNIS COURT RESURFACING PROCEDURE August 19, 2014 rAMERICAN MEMBER SPORTS BUILDERS ASSOCIATION MIDDLE STATEScl�or C ' Sport Builders 4401 Perkiomen Ave. Reading,PA 19606 T 610-779-7875 F 610-779-4366 matt@sportbuilders.com www.sportbUlders.com ,; ':� . ;_, :f�. �, `r SPOR O BUILDERS s w C. PROJECT DESCRIPTION PREPARATION- If necessary the fence may be opened to create an additional construction entrance. Following com- pletion of the project,the fence will be restored to its original condition. Scrape and thoroughly clean the entire surface area of the court especially removing all old delaminated court material.The surface will be pressured washed where necessary to remove dirt, moss and algae accumulation. During the project a job site will be created near the court- minor damage may occur during the project. Sport Builders will return everything to its original condition. CRACK REPAIR-All cracks found on the surface shall be routed out with a crack chaser.All cracks are filled with a concrete compound.All cracks to be filled with repair material to the level of the existing surface.The cracks will be ground down to blend in perfectly with the existing court surface.All crack repairs will be coated with one application of concrete primer and two applications of Acrylic Resurfacer. FABRIC MEMBRANE REPAIR INSTALLATION-The TriForce Crack Repair System is installed over all repaired cracks.Additionally,the system will be installed 2' (feet)beyond each end of the crack for added support.The system is installed by priming the surface with acrylic binder,then the membrane system is installed by centering it over the crack making the necessary cuts and transitions as cracks change direction.The system is"stepped out"with three membrane pieces(each piece overlapping the previous).After the system is fully installed,two coats of acrylic resurfacer are installed to disguise the repair work and to create an additional bond to the court surface. LOW SPOT&SURFACE REPAIR-Major depressions, divots or low sports shall be patched with leveling compound(a cement mixture of sand, portland cement and acrylic court patch binder).All repaired depressions shall be level with the existing court surface.The repair work shall be ground down with angle grinders equipped with diamond cup wheels to blend the repair work in with the existing court surface and to ensure it is flat.A layer of fiberglass is installed over all cement repairs to prevent surface cracking.All repair patches will be coated with one application of concrete primer and two applications of Acrylic Resurfacer. Following leveling,there will be low spots remaining on the surface, although they will be minor in nature and typical to most tennis courts.. NET POSTS, NET&CENTER STRAP-The existing net post to be straightened and serviced as necessary which in- cludes replacement of the net crank and painting of the poles.At the conclusion of the project a new double center ten- nis net and center strap to be installed. ACRYLIC RESURFACER-Two application of acrylic resurfacer will be furnished and installed over the entire court sur- face.The material to mixed according to manufacturer specifications. ACRYLIC COLOR-Two applications of acrylic color will be furnished and installed.The court to have a two tone color scheme with two coats in the center playing area and two coats on the perimeter of the court.The court will have a medium play speed(Approved ITF Pace Rating). Final color to be determined. PLAYING LINES-The playing lines will be properly measured in accordance with United States Tennis Association. Lines will be striped out with masking tape, sealed for crispness with one clear coat followed by the application of two textured white line paint coats. CLEANUP-The entire job site to be cleaned up as necessary; barrels, pallets and trash shall be removed from the premises.There may be minor damage to the lawn area outside the court area,but this will be repaired as necessary at the conclusion of the project. Sport Builders 4401 Perkiomen Ave. Reading,PA 19606 T 610-779-7875 F 610-779-4366 matt@sportbuiiders.com www.sportbuilders.com BUILDERS SPORT BUILDERS, lnc.�!' FENCE RENOVATION(Optional)-Remove existing chain link and properly discard.The remaining fence frame to be straightened and bent rails or posts to be replaced as required.The fence frame to then be painted with a rust inhibiting paint system and painted in a high gloss black. New 1 3/4"8/9 gauge vinyl coated fuse bonded chain link to be furnished and installed(black in color). PRICING Tennis Court Resurfacing Estimate -x,000.00(7Welve Thousand Dollars) Fence Renovation Estimate-$8,000.00(Eight Thousand Dollars) SCHEDULING Exact scheduling to be determined. Project cannot be scheduled until a written signed contract is received. Sport Builders has availability in September 2015. WARRANTY This project is guaranteed for a period of one year. If any problem arises during this period, Sport Builders will return to repair the specific problem at no charge. REFERENCES George Zink - F&M College 717-471-7771 Rick Parrett - Sea Colony Tennis Resort 302-462-5821 Sal Cutrona -Albright College 917-543-8529 Dave Marshall - Washington College 302-645-0616 Pat Shields - Fromuth Tennis 610-288-5039 Jeff Harrison -World Team Tennis 302-494-1667 Steven Reiniger-Villanova University 610-564-5606 Paul Johnson - New Castle County Department of Special Services - 302-395-5786 Sport Builders 4401 Perkiomen Ave. Reading,PA 19606 T 610-779-7875 F 610-779-4366 matt@sportbuilders.com www.sportbuilders.com BPORTJ BUILDERS SPORT BUILDEERS, Inc. - .. ourt C ns ruction ._ TERMS AND CONDITIONS Sport Builders is responsible for acquiring and providing all necessary materials and labor to complete the specified work. The scope of work shall consist of the preparation of the existing surface,the repair of the the court surface where necessary,the installation of the playing surface system and the application of the acrylic all weather coating system, including court lines, and anything pertaining thereto. All phases of this project shall be completed within a reasonable schedule established by Sport Builders, Inc.The specified scope of work outlined shall be performed in a safe and workmanlike manner by Sport Builders, Inc.The home owner is responsible for providing adequate access to the job site or work area. Sport Builders, Inc. does posses all surface manufacturers'approved qualifications and authorizations.Workers for Sport Builders, Inc.shall be well- aquatinted with the requirements of the scope of work,competent in their trade and have sufficient experience to properly perform this work.All work shall be subject to approval and acceptance by the owner.Additional procedures that are necessary to the completion or additional requests by the owner shall be subject to a change order,which must be signed prior to the additional work commencing. Sport Builders, Inc.shall complete the work in accordance with the scope of work described in this proposal in strict accordance with manufacturers'specifications.Work will not commence in the event of inclement weather,which may delay scheduled work. The appearance of cracks on the surface is possible due the nature of asphalt even after the court undergoes an aggressive repair and resurfacing program. If a repair fails, Sport Builders will return to repair the area as necessary at no additional charge for a period of one year. Cracks that appear on the surface including the appearance of new cracks or the return of a repaired crack are a direct result of the condition of the asphalt.Sport Builders does warranty all materials and workmanship for a period of one year. If a repair is required during the warranty period, Sport Builders will repair the crack or problem area by filling the area with a concrete compound,sanding it down to blend in with the existing court and painting it to match the existing court colors(the entire court is not painted for repair work during maintenance or warranty work). Sport Builders 4401 Perkiomen Ave. Reading,PA 19606 T 610-779-7875 F 610-779-4366 matt®sportbuilders.com www.sportbuilders.com SPOR7� BUILDERS ORT rAnc m 2014 TENNIS COURT RESURFACING CONTRACT 8/21/14 Mr. Janes Kniselys 23 West Lawn Circle Wornleysburg, PA 17043 717-648-0331 AUTHORIZATION-I hereby authorize Sport Builders, Inc.to perform the work as outlined in the enclosed proposal and accept all conditions stated in this contract.This proposal serves as a binding contract.Work will not be scheduled until this contract is signed and returned.This proposal is valid for a period of 60 days. Payments are to made according to the payment terms outlined in this proposal. Please make all check payable to Sport Builders, Inc. JOB COST-We propose to furnish and install all the labor and materials in complete accordance with the scope of work found in this proposal(Please initial selected options): Tennis Court Renovation-$12„000.00 (Twelve thousand dollars and 00/100 cents) Tennis Court Renovation-$8,000.00 (Eight thousand dollars and 00/100 cents) PAYMENT TERMS-25%Deposit,balance due upon project completion SCHEDULING-Exact dates to be determined upon project acceptance ACCEPTED BY AN AUTHORIZED REPRESENTATIVE OF THE KNISELYS RESIDENCE: Print Name Signature Date Please mail or fax signed copy to: Sport Builders Inc.4401 Perkiomen Ave. Reading, PA 19606 T 610-779-7875 F 610-779-4366 OUR PHILOSOPHY-We combine excellent craftsmanship with superior court materials to provide a consistent play- ing surface that players will appreciate.We use the finest products on the market today as authorized installers of many top brand product lines. Our goal is to exceed our customers'expectations each and every time we work on a project. Sport Builders 4401 Perkiomen Ave. Reading,PA 19606 T 610-779-7875 F 610-779-4366 matt@sportbuilders.com www.sportbuilders.com OFFICE&VVAREH0USE . � 7-7- s7 ,, , 1 � � 3642 BLUE ROCK.ROAD ''`v`z: s LAN CA-STER, PA 17503 ( i✓ "�E: PH: (717)372-3474 FAi?7) 872-8476X ;x.. �. September 17.2014 James Knisley 3822 Pampay Drive Mechanicsburg PA 17050 PROJECT; Tennis Court Renovation - 23 W.Lawn Circle,Wormleysburg CONTACT: 648-0331 EMAIL: knisleys@comcast.net Bid price and description of work as follows: Remove existing fence fabric,fence posts,and net post foundations. Install new fence posts and net post footers in one cubic yard of concrete per net post. Mill off old coatings,clean and prepare surface. Place 800 sq. yds. of paving fabric. Pave leveling Course as needed- Pave eededPave 800 sq.yds.@ 1-5"depth of 9-S mm asphalt. Install new black vinyl fence fabric and gate. Fence will have a continuous top rail,corner brace rail, and bottom rail Install black Douglas Premier Tennis Net Posts. Install.Latex-ite four coat Acrylic Color System in Owners choice of colors- Layout and paint play lines as per USTA regulations. Install Douglas Championship Tennis Net- BID PRICE: S SZD00.00 Due to the existing fence post condition where several have moved due to the freeze thaw cycle we believe it will be a betted long term job to install new fence pasts and pave around them to keep it from happening again. Exclusions:Permits,fees,lawn restoration,and locating any in house underground utilities. Escalator Clause:Above quotes are based on current encrgyand asphalt prices.We reserve the right to adjust the above quotes reflecting increases in energy and asphalt costs at the time the work is performed.This quote was prepared using the current Asphalt Index of$615.00 per ton of liquid asphalt If you have any further questions regarding this project please contact project estimator, Tom Breneman. The following shall be included in any binding contract TERMS NET 15 DAYS. All accounts past 30 days will be charged 1Yj%interest per month. Proposal valid for 30 days. Additional work not xP crfied in this pronasal such as power washin&llo2"it Patching.crudes.nenxitrtfees or any unforeseen conditions that will adversely affect rhe anality ofthe iob,will he an extra charge. Proposal valid with our existing insurance coverage's. IiAMM Y All work will be completed in a workmanlike manner according to standard practices. All material is guaranteed to meet specifications. AN work is guaranteed against defects for a period of ONE YEAR from the date of completion,except those due to ordinary wear and tear,improper uselmaiutenance,acts of nature or defects as a result of workdone by others. NOTE: Cracks are normally a yearly maintenance issue and carry NO WARRANTY. Tke Breneman Company mast be paid in full according to these contract terms to validate r ' t}. All agreements are contingent upon strikes,accidents,weather or delays beyond our control. ., Anthnrize Sig re ACCEPTANCE OFPROMSAL Please sign and return one copy(mail/fax)upon acceptance. Authorized Signature Date L d 0689-Z£L-LEL fuildinoSpuelAiesiuyl dbO:bOtrL6LdeS 1 i �' i z_, �. - - •i .„.."�, � �_! p - -� -_ --- .,_ �F --.. � - �. � � •• � Com' � __ _- � � 'PSS`.a_ ,ti x. ..�.Y_-, 9" V .. � .'`t _ _ -� .. � � � y. :� `� +L s� r ro;; i. fie'i; `�`'� .0 �.i •� w .. �' � n .�. — — ----- .� I � ------.. --` _ ...cam:- - --- —— s', 'n ' � ..�, t t� � ,� .r--i! .. �� _ t t -i y I � � � a Gy�� r •�"--•'} �_ {� � 1!'dry.}�. "� �,`"`._."w+`�+s.-.,. � � �—'T- • .~F� ^�,,WSJ � tea_ � .. {.l { � d �_ +�:.. � c '�•�' � . mac``!' ., Agreement of Trust OF KATHLEEN M. KNISELY QUALIFIED PERSONAL RESIDENCE TRUST On this day of , 2012) this trust is created by KATHLEEN M. KNISELY of Wormleysburg, Pennsylvania (collectively the ".Grantor") and KATHLEEN L. KNISELY(the "Trustee"), on the following terms and conditions: ARTICLE I: Trust Created and Purposes- (a) Trust Created- Grantor declares this trust,which shall qualify as a"qualified personal residence trust" ("QPRT") within the meaning of Section 2702(a) of the Internal Revenue Code of 1986, as 1 amended (the "Code") and Treasury Regulations §25.2702-5(c). In consideration of the covenants set forth in this Agreement, Grantor assigns and conveys to the Trustee the real property listed on Schedule A, (the "Residence") to be administered according to the terms of this instrument. With the consent of the Trustee, Grantor and anyone else may transfer additional property to the Trustee, to be held and administered according to the Trust's terms. The Grantor retains no right, title or interest in any Trust property except as specifically provided in Article III. (b) Purposes- This instrument shall be construed consistently with the following purposes: (i) Grantor intends to make a completed gift to four of her children, LEE ANN KNISELY, BARBARA L. KNISELY,JAMES G. KNISELY, and KATHLEEN L. KNISELY, of a vested remainder in the Trust property subject only to the Grantor's retention of a right to the use of the Residence and the income from the Trust for ten (10)years. Grantor's interest in this Trust shall give them only those rights which are ordinarily associated with an income interest in Trust for a term-for-years. (ii) The Grantor intends that this Trust constitute a QPRT pursuant to the applicable regulations of the U.S. Department of the Treasury promulgated with respect to Section 2702 of the Code, and all terms used herein shall have the same meaning in this Agreement as they do in the Code and the said regulations. ARTICLE II: Irrevocability- This Trust is irrevocable. Grantor has no power to alter, amend, revoke, or terminate any Trust provision or interest, whether under this Agreement or any statute or rule of law. ARTICLE III: Use of the Residence- Trustee shall hold the Residence for the Grantor's exclusive personal use and benefit. The following rules shall apply during the Trust term: (a) Grantor's Use - Grantor shall use the Residence without rent or other charge, and the Trustee shall maintain the Residence from the Trust funds, including any rental income received by the Trustee. (b) Expenses- The Trustee shall notify the Grantor of any expenses incurred by the Trust for maintenance of the Residence, which expenses exceed the Trust's cash assets. The Grantor may pay such expenses directly, without any right to reimbursement from the Trust. (c) Rent - The Trustee may rent the Residence on terms and conditions as the Trustee shall deem appropriate, but solely for use as a residence. The Trustee may rent the Residence only with the Grantor's request. 2 (d) Distribution of Income -All income of the Trust must i be distributed to the Grantor not less frequently than annually. (e) Other Distributions- The Trustee may not distribute income or corpus to anyone other than the Grantor. (f) Limitation on Trust Assets -Except as provided in the paragraph (g) the Trustee may hold in this Trust only the Residence and improvements to the Residence that do not change its status as a personal residence of the Grantor. (g) Cash- (i) The Trustee shall at no time accept additions of or hold more cash or cash equivalent (when added to amounts already held in such account)than is reasonably required for: (A) The payment of Trust expenses (including any mortgage payments) already incurred or reasonably expected to be incurred within the next six(6) months following the date on which the addition of cash is made; (B) Improvements to the Residence to be paid within the next six (6) months following the date on which such addition of cash is made; and (C) Purchase by'the Trustee of a residence to replace the Residence, within three (3) months of the date of the addition to the Trust of the cash,but only if the Trustee has-previously entered into a contract to 3 purchase a replacement residence before the addition of the cash to the Trust. (ii) The Trustee shall determine not less frequently than quarterly the amounts of cash that the Trustee may hold under this paragraph and shall distribute any excess cash to the Grantor immediately following such determination. (iii) The Trustee shall hold all cash and cash equivalents in an account in the name of the Trust. (h) Sale of the Residence -The Trustee may sell the Residence and may hold any proceeds from the sale of the Residence (including any income or gains thereon) in a separate account for a period not to exceed two (2)years from the date of sale. The Trustee shall use the proceeds (and all income and gains thereon) to buy another residence,to be used as a personal residence of the Grantor (also referred to as the "Residence"). (i) Insurance Proceeds-The Trustee may hold one (1) or more policies of casualty insurance on the Residence. (i) The Trustee shall hold in a separate account the proceeds of any insurance paid to the Trust as a result of the damage to or destruction of the Residence (including,for purposes of this Trust, any amount received by the Trustee as a result of the involuntary conversion of the Residence (within the meaning of Code §1033) for a period not to exceed two (2)years. (ii) The Trustee shall expend all proceeds (including any gains or income earned thereon) for the purchase, construction, reconstruction, and/or repair of a personal residence for the Grantor, to be held and owned by the Trust as a replacement for the Residence (also 4 referred to as the "Residence"). Such expenditures must be made within two (2)years from the date on which the Trustee receives the proceeds of the involuntary conversion of the Residence. 0) Trust Term. The term of this Trust begins on the date of the first transfer to this Trust, and terminates on the earlier of the death of the Grantor or the expiration of ten (10)years from the commencement of this trust. ARTICLE IV: Termination of Trust - This Trust shall terminate on the first to occur of(i) Grantor's death or (ii) the expiration of ten (10)years from the commencement of this trust. The Trustee shall within thirty (30) days of termination, distribute to the Grantor any cash held by the Trust and not needed to pay expenses due and payable on the date of termination (including those expenses related directly to termination) and distribute all of the Trust's other assets in equal shares to Grantor's children, LEE ANN KNISELY, BARBARA L. KNISELY,JAMES G. KNISELY, and KATHLEEN L. KNISELY. If any of Grantor's children are not living at the time of distribution,the share of Grantor's deceased child shall be paid to his or her then living issue,per stirpes;or absent issue, equally to the deceased child's sibling's share. ARTICLE V: Cessation of QPRT Status - This Trust shall cease to be a QPRT on the following dates and to the following extent: (a) Ownership of Other Assets -With respect to-the entire Trust fund, the Trust shall cease to be a QPRT on the date that the Trust first owns any property other than one (1) personal residence of the Grantor and such incidental amounts of cash and casualty insurance otherwise permissible under Article III,regardless of the reason for such Trust ownership. (b) Sale of the Residence-With respect to the proceeds of the sale of the Residence, the Trust shall cease to be a QPRT the earlier of the date two (2) years after the date on which the Trust sells the 5 Residence and the date on which the Grantor's interest in the Trust terminates,unless a new residence is bought by the Trustee. (c) Involuntary Conversion of the Residence-With respect to those proceeds of the involuntary conversion of the Residence to the extent that the conversion renders the Residence unusable as a residence,the earlier of the date two (2)years after the date of the involuntary conversion and the date on which the Grantor's interest in the Trust terminates, unless prior thereto replacement of or repairs to the Residence are completed or a new replacement residence is acquired by the Trust. ARTICLE VI: Conversion to GRAT- (a) Cessation Date-The date on which the Trust ceases to be a QPRT under the previous article shall be known as the "Cessation Date." (b) Conversion to a Grantor Retained Annuity Trust- Within thirty(30) days from the Cessation Date,the Trustee shall convert the Trust to a Grantor Retained Annuity Trust("GRAT"). The date of such conversion shall be referred to as the "Conversion Date." (c) Annuity Amount- From the Conversion Date until the termination of this Trust, the Trust shall function exclusively as a GRAT. During such term, the Trustee shall pay to the Grantor an "Annuity Amount." (i) The Annuity Amount will be determined by dividing the lesser of the value for federal gift purposes of all interests retained by the Grantor in property transferred to this Trust (as of the date of such transfer) or the value of the Trust assets on the Conversion Date, by the annuity factor for the initial term of the Grantor's 6 interest in the Trust, determined under Code§7520 (as of the date of the transfer). (ii) If only a portion of the Trust terminates because a portion of the Trust continues to be a QPRT, then the Annuity Amount shall be a fraction of the amount determined in paragraph(i) above. (A) The numerator of that fraction shall be the'excess of the fair market value of the Trust assets on the Conversion Date over the amount(including acquisition costs, if any)reinvested in the new residence or expended for repairs of the existing Residence. (B) The denominator of that fraction shall be the fair market value of the Trust assets on the Conversion Date. (d). Commencement of Annuity-The Trustee-shall begin paying the Annuity Amount not later than thirty(30) days after the Conversion Date. (i) The Grantor's entitlement to the Annuity Amount shall begin on the Cessation Date. (ii) Any Annuity Amount deferred until after the Cessation Date shall be paid together with interest, computed at a rate equal to the interest rate assumed for noncharitable interests under Code §7520 on the Cessation Date, adjusted by the amount of any income actually distributed by the Trust to the Grantor during the deferral period between the Cessation Date and the date on which the Annuity Amount is paid. 7 (e) Annual Payments - The Annuity Amount shall be paid in equal annual installments from income and, to the extent income is insufficient, from principal. If greater than the Annuity Amount, all income of the Trust must be paid to the Grantor not less frequently than annually. (f) Proration- In determining the Annuity Amount, the Trustee shall prorate the Annuity Amount on a daily basis for short taxable years. (g) Incorrect Determination-If the initial net fair market value of the Trust assets is incorrectly determined by the Trustee, then within a reasonable period after the final determination of the correct value, the Trustee shall pay to the Grantor, in case of an undervaluation,or the Grantor shall pay to the Trustee, in the case of an overvaluation, an amount equal to the difference between the Annuity.Amount properly payable and the Annuity Amount actually paid. (h) Certain Investment Limitations -The investment limitations contained in Article III shall not apply when the Trust is a GRAT under this Article. (i) Additions- No additions may be made to this Trust after it is a GRAT, notwithstanding any other provisions of this Agreement. (j) Construction-The Grantor intends that the provisions under this article create a Trust the Grantor's interest in which would be a qualified interest, from the Cessation Date and all provisions of this Agreement shall be construed consistently with this intent. ARTICLE VII: Commutation- The Grantor's interest in this Trust may not be commuted. 8 ARTICLE VIII: Trustee's Powers- The Trustee is exclusively empowered to do the following: (a) Hold Real Property-To hold and retain any real property received that constitutes a personal residence of the Grantor, regardless of the source of such property and without regard to diversification. (b) Management of Cash- To deposit Trust funds temporarily in any commercial interest bearing savings or savings and loan accounts. (c) Borrowing- To borrow money for any reasonable Trust purpose and upon such terms, including(but not limited to) interest rates, security; and loan duration, as the Trustee deem advisable. (d) Selling Trust Assets - To sell or otherwise dispose of Trust assets, including(but not limited to) Trust real property, for cash i or credit, at public or private sale, and with such warranties or indemnifications as the Trustee deem advisable. Notwithstanding any other provision of this Agreement, the Trustee is specifically prohibited from selling or transferring the Residence directly or indirectly to the Grantor, the Grantor's spouse, or to an entity controlled by the Grantor or the Grantor's spouse either during the term interest of the Grantor in this Trust, or at any time after the expiration of that interest if, at the time, this Trust is a Grantor trust as defined by applicable provisions of the Internal Revenue Code of 1986 and the regulations appurtenant thereto. (e) Dealing with Trust Assets -To improve, develop, manage, lease, or abandon any Trust assets, as the Trustee deem advisable, consistent with the purposes of.this Trust. 9 (f) Paying Expenses- To pay and advance money for the protection of the Trust and for all expenses, losses, and liabilities sustained in its administration. (g) Legal Actions- To prosecute or defend any action for the protection of the Trust, the Trustee in the performance of the Trustee's duties, or both, and to pay, consent, or settle any claim by or against the Trust or the Trustee in the performance of the Trustee' duties. (h) Employing Persons- To employ persons, even if they are associated with the Trustee, to advise or assist the Trustee in the performance of the Trustee' duties. (i) Distributing Trust Assets-To distribute Trust assets in kind or in cash, without regard to the income tax basis of any asset so distributed. (j) Situs of Trust- To change the situs of the Trust as the Trustee in its sole discretion may determine. (k) Principal and Income-To allocate receipts and j disbursements to principal or income, in accordance with applicable local law and practice, except that in the absence of any specific local law, the Trustee may allocate expenses as the Trustee deems appropriate, consistent with the purposes of this Trust. (1) Documents-To execute and deliver any instruments necessary or useful in the exercise of any of these powers. (m) Amendment of Trust- To amend this Agreement,but only for the sole purpose of qualifying this Trust as a qualified personal residence trust or as a GRAT, as the case may be,under applicable provisions of the Internal Revenue Code of 1986 and the regulations appurtenant thereto. 10 ARTICLE IX: The Trustee - (a) Naming Co-Trustee-A Trustee may designate any individual or institution as a Successor Trustee or a Co-Trustee,by a written instrument. Any Co-Trustee or successor Trustee may, without liability, accept without examination or review the accounts rendered and the property delivered by any predecessor Trustee. If the Trustee shall at any time fail or be unable to continue to serve as Trustee,James G.Knisely shall be the successor, if Trustee has not designated her successor. Each successor Trustee has the same title,powers and duties as the Trustee succeeded, without any additional conveyance. Any reference to a "Trustee" refers equally to any successor Co-Trustee. (b) Delegation of Authority-Any Trustee may, from time to time, delegate to any other Trustee by written instrument any or all of such Trustee's powers. Such delegation may be temporary or permanent, and, if temporary, may be for any duration of time or until any event specified by the delegating Trustee. Any person dealing in good faith with any Trustee may rely without inquiry upon the Trustee's certificate with respect to any designation. (c) Bond-No Trustee shall be required to provide surety or other security on a bond. (d) Resignation and Vacancies -Any Trustee may resign by giving written notice specifying the effective date of the resignation to the Grantor or her legal guardian. Whenever there shall be a vacancy in the office of Trustee, a successor Trustee shall be named by the Grantor or her legal guardian. (e) No Court Supervision- No Trustee shall be required to obtain the order of any court to exercise any power or discretion under this Trust. 11 (f) Accountings- No Trustee shall be required to file any accounting with any public official. The Trustee must,however, maintain accurate records concerning the Trust. Each year, furthermore, the Trustee shall furnish an annual accounting of the Trust's condition, including receipts and disbursements,to the Grantor or her legal guardian. This required accounting may be satisfied by a copy of the Trust's federal income tax return, if one is required. (g) Compensation-A Trustee shall be entitled to reasonable compensation for services in administering this Trust and to reimbursement for expenses. If the Grantor is the Trustee of this Trust, she will be entitled to no compensation but she will be entitled to reimbursement for expenses. ARTICLE X: Miscellaneous- (a) Choice of Law- This Trust shall be governed by and construed according to the law of the Commonwealth of Pennsylvania. (b) Gender and Number-Whenever the context of this Trust requires, the masculine_gender.includes the feminine or neuter, and vice versa, and the singular number includes the plural, and vice versa. IN WITNESS WHEREOF, the Grantor and Trustees have hereunto set their hands and seals, all as of the day and year first above written. WITN THLEEN M. KNI ELY, cantor THLEEN L. ISELY, ee 12 ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA _ SS.: COUNTY OF On this day of 2012, before me, a Notary Public, the undersigned officer, personally appeared KATHLEEN M. KNISELY, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within Agreement, and acknowledged that he executed the same for the purpose therein contained. IN WITNESS WHEREOF, I have hereunto set my notarial seal. Not y Public , (WEALTH OF PENNSYLVANIA Notaft sea! ]uliu A,Shearer,Notary Public SU14uahanna Twp.,Rauphln County n. M Commission Expires Jan.21,2014 MEMBER,P . SYLVANIAAM MER OfNOTAR)tr 13 ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA : SS.: COUNTY OF Lt t2c M64 On this day of 2012,before me, a Notary Public, the undersigned officer,personally appeared KATHLEEN L. KNISELY, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within Agreement, and acknowledged that he executed the same for the purpose therein contained. IN WITNESS WHEREOF, I have hereunto set my notarial seal. C- Notary Public SHANNON DANIELLE ROMANO ID#2389703 NOTARY PUBLIC OF NEW JERSEY My Commission Expires 91M014. 14 ORPHANS' COURT DIVISION COURT OF COMMON PLEAS OF In Re: KATHLEEN M.KNISELY CUMBERLAND COUNTY PENNSYLVANIA NO.21-12-0946 CERTIFICATE OF SERVICE OF ORDER ORDER DATE: 11/05/2014 JUDGE'S INITIALS: EEG TIME STAMP DATE: 11/07/2014 IN RE: ORDER OF COURT ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, SERVICE TO: ANTHONY DELUCA,PO BOX 358,BOILING SPRINGS PA 17007 MARK BAYLEY, 17 W SOUTH STREET,CARLISLE PA 1.7013 DELANO LANTZ,4 N HANOVER STREET,CARLISLE PA 17013 SUSAN O'DONNELL BRYN MAWR TRUST CO WEALTH DIVISION 10 S BRYN MAWR AVE BRYN MAWR PA 19010 METHOD OF MAILING: ENVELOPES PROVIDED BY: ®USPS ❑PETITIONER ❑RRR ❑ JUDGE ❑ HAND DELIVERED ® CLERK OF ORPHANS COURT ❑ OTHER MAILED: 11/07/2014 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, SERVICE TO: BARBARA KNISLEY,3501 SUNSET DRIVE,MADISON WI 53705 JAMES KNISELY,3822 PAMAY DRIVE,MECHANICSBURG PA 17050 METHOD OF MAILING: ENVELOPES PROVIDED BY: ®USPS ❑PETITIONER ❑ RRR ❑ JUDGE ❑ HAND DELIVERED ® CLERK OF ORPHANS COURT ❑ OTHER MAILED: 11/07/2014 �do 4 01 ���J, �4 puty PC erk of Orphan ' C°urt t