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HomeMy WebLinkAbout01-13-15 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISIONrn C> rn. IN RE 3_- c.. �•, TRUST UNDER IRREVOCABLE LIFE rn INSURANCE TRUST DATED NO. 221-14-1170 .M w r a 12/24/1992 > C.) CD c - -6 / OBJECTIONS TO TRUSTEE'S FIRST AND PARTIAL ACCQ04 OF i- r THE GEORGE F. GARDNER IRREVOCABLE TRUSS' co U> a AND NOW come the beneficiaries of the George F. Gardner Irrevocable Life Insurance Trust, established December 24, 1992, by and through their attorneys, Pecht&Associates, P.C., and make the following objections to the Trustee's First and Partial Accounting: 1. The accounting fails to cover the period from the establishment of the Trust, December 24, 1992, through May 11, 1993. 2. The accounting fails to state how the present fund was awarded to the Trustee. 3. The beneficiaries believe that the Trust principal value is inaccurate as stated in the accounting. 4. The accounting fails to show a life insurance policy from Security Life of Denver as an asset of the Trust, nor does it explain such policy's non-existence in the trust. 5. The accounting fails to address why there was a significant change of assets in the Trust (the change of insurance policies) by the Trustee or its predecessor in interest. 6. The accounting does not explain how the Trustee has mismanaged the funds of the Trust to create the situation where "corpus of the Trust is now nearly depleted". For example, the Trustee seems to have invested $444,744 on August 5, 2008 in a money market fund for two years. 7. The accounting does not appear to disclose all of the compensation paid to the Trustee. 8. The beneficiaries object to any compensation paid to the Trustee, based on the mismanagement of the Trust assets and the breach of its fiduciary duty. 9. The beneficiaries object to the fees taken by the Trustee as unreasonable. 10. The beneficiaries object to all legal fees paid to the law firm of Stevens & Lee. These fees were incurred solely and directly as a result of the Trustee's unwillingness to 1 1' v properly manage the trust assets. Further,the legal fees were incurred solely as a result of the Trustee's breach of its duties to the beneficiaries, its breach of its fiduciary responsibilities to the beneficiaries, and its breach of its duty of loyalty to the beneficiaries. 11. The beneficiaries object to the legal fees paid on May 20, 1994, July 19, 1994, and December 1, 2008, because the accounting contains no explanation regarding the fees. 12. The beneficiaries object to the legal fees paid on May 27, 2008, September 17, 2008, June 18, 2009, and October 7, 2009 in that the fees are unreasonable, not authorized, and not disclosed. 13. The accounting fails to set forth any plan to preserve the assets and fulfill the intent of the Settlor and the fiduciary obligations of the Trustee. 14. The beneficiaries reserve the right to file additional objections as they obtain more information concerning the Trustee's conduct,because the addresses used for service on several of the beneficiaries were incorrect. Respectfully submitted, PECHT& ASSOCIATES, P.C. Dated: January 13, 2015 By: Wayne M. Pecht, Esquire PA ID No.: 38904 650 North Twelfth Street, Suite 100 Lemoyne, PA 17043 (717) 691-9808 Attorneys for Objectors/Beneficiaries 2 VERIFICATION I, Gregory Molle;one of the beneficiaries of the George F. Gardner Irrevocable Trust, state that the averments contained in this document are true and correct to the best of my knowledge,information, and belief. Further, I am aware that any false statements made herein are made subject to the penalties of 18 Pa. C.S.. Section 4904,relating to unsworn falsification to authorities.. r'f Dated: January 13, 2015' GREGORY E 1 i d y 1 3' i CERTIFICATE OF SERVICE I, Wayne M. Pecht, Esquire,hereby certify that on this day I have served a true and correct copy of the Objections to Trustee's First and Partial Account of the George F. Gardner Irrevocable Trust upon the following by first class mail addressed as follows: Mark D. Bradshaw, Esquire Stevens &Lee 17 North 2"d Street, 16th Floor Harrisburg, PA 17101 Attorney for Trustee Dated: January 13, 2015 Wayne M. Pecht, Esquire c7 0 c , -0 ZX3 �' o Cn ;;0 rn U) ca ro ca o Co Co 4