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HomeMy WebLinkAbout03-06-15 of this Article Eleven, if any, or (iii) when such beneficiary is no longer incapacitated, as determined pursuant to the provisions of Article Fifteen. 4. Until such time as Matthew reaches the age of 40, the MR Trust provides at Article 11, Section 2. b. I.: My Trustee's Discretion: My Trustee shall pay to, or apply for the benefit of, such beneficiary, so much of the net income and principal of such beneficiary's trust share as my Trustee, in my Trustee's discretion, deems proper considering all other resources then known to be available to such beneficiary. 5. Article 14, Section 1. dd. provides: Termination of Small Trust: If at any time after my death the costs of administration of my Trust (or any share thereof) are of such an amount in relation to the then principal and undistributed income of my Trust (or any share thereof) that my Trustee, in my Trustee's discretion, determines that my purposes in establishing my Trust (or any share thereof), would no longer be served, and if my Trustee deems it advisable to distribute the then principal and undistributed income of my Trust (or any share thereof) to the then living beneficiary or beneficiaries and to thereby cause termination of such Trust or share, my Trustee (other than any then current beneficiary of my Trust) may do so without responsibility on the part of my Trustee. If no such Trustee is then serving, then any Trustee may direct than an Independent Trustee, to serve only for the purpose of determining the advisability of termination process, be appointed pursuant to the Trustee succession provisions of Article Three that would apply if no Trustee were then serving; provided however, than any Trustee who is also such a beneficiary may not otherwise participate in the appointment process. 6. Bernice died a resident of Lower Allen Township, Cumberland County, on July 26, 2011, whereby the BJR Trust became irrevocable and the MR Trust became vested and distributable. At the time of her death, there was no grandchild, other than Matthew, who had been diagnosed with diabetes. 7. Each of the MR Trustees serves as such as nominated trustees for the MR Trust, and the MR Trust has been funded. - 3 - 8. The MR Trustees have determined, in the exercise of their discretion, pursuant to Article 11, Section 2. b. L, and Article 14, Section 1. dd., to distribute all of the assets of the MR Trust to Matthew outright, and to terminate the MR Trust. 9. The MR Trustees, by Settlement Agreement, dated January 14, 2015 (the "Settlement Agreement"), have agreed to terminate the MR Trust and to distribute the MR Trust proceeds to Matthew outright, and to file documentation necessary to evidence termination and distribution with the Court within 30 days of the Court's approval of the Settlement Agreement. 10. By Order dated February 6, 2015, the Orphans' Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania (the "Court"), approved the Settlement Agreement and entered it as an Order of Court, thus establishing a deadline for the filing by March 8, 2015. This Petition is filed with the Court pursuant to that provision of the Settlement Agreement and the Court's Order. 11. Matthew, as the first beneficiary of the MR Trust has been provided by the MR Trustees with statements issued by the Vanguard investment firm, which holds all assets of the MR Trust, related to holdings, investments, earnings, valuation, and overall performance of the trust funds for each month of administration of the MR Trust since its funding, as well as a 2014 year-end statement and a January, 2015 interim statement (collectively, the "Vanguard Statements"). 12. Matthew acknowledges receipt of the Vanguard Statements, has reviewed the Vanguard Statements to his satisfaction, has made such other inquiries of the MR Trustees or Vanguard representatives as he determines appropriate, and, by his consent and joinder to this Petition, expresses his satisfaction with and acceptance of the Vanguard Statements for purposes both of disclosure and of accounting by the MR Trustees, in a complete substitution for a formal - 4 - accounting of the MR Trust for' audit by this Court, and with the same effect as if the MR Trust had been subject to audit before this Court. 13. The MR Trustees determined to distribute the MR Trust principal and interest, and to terminate the MR Trust; and Matthew is willing to accept such complete and final distribution of the MR Trust net assets as held by Vanguard. 14. The MR Trustees have not incurred any expenses in their administration, termination, or distribution of funds of the MR Trust and agree not to assert any claims for reimbursement for any such expenses. 15. All Parties have disclosed to the other Parties, and all Parties have reviewed, all documentation and data in the MR Trustees' possession or available upon request from Vanguard regarding the administration of the MR Trust, in order to cause termination of the MR Trust and distribution of the Trust assets. 16. All income tax consequences of the administration of the MR Trust, including those resulting from its termination and distribution to Matthew, shall be borne by Matthew from assets to be distributed to him, so that no reserve shall be maintained by the MR Trustees. Matthew agrees to indemnify and hold harmless the MR Trustees from all income! tax consequences of the administration and distribution of the MR Trust since its funding. 17. The MR Trustees shall distribute to Matthew outright all principal and income of the MR Trust without setoff or deduction, but subject to the obligations assumed by Matthew above (the "Distribution"). 18. The Distribution will be made to Matthew in full satisfaction of his rights, title and interest in the MR Trust and under the Trust Agreement, shall terminate the MR Trust, and shall fulfill the requirements of the MR Trustees under the Settlement Agreement. - 5 - 19. All Parties agree to a "Release of Claims" regarding the MR Trust and involving each other, which mirrors the provision of Section 11 of the Settlement Agreement, but which is altered to provide for release involving the MR Trust specifically, as follows: The Parties hereby release, discharge and acquit each other, their respective agents, heirs, successors and assigns, and each of them, from any and all suits, debts, agreements, promises, liabilities, claims, damages, actions, causes of action, or demands of any kind or nature, which are alleged or could have been alleged, including without limitation, statutory and common law causes of action, whether such claims are past or present, personal or representative, known or unknown, arising out of the circumstances of the MR Trust. This release shall not release any claims for enforcement of this actions to be taken by any Party under this Petition. 20. The MR Trust provides as follows, in the event of Matthew's death prior to attaining the age of 40 years: 7. Distributions on Death of Beneficiary Unless provided otherwise under the provisions of preceding Articles, if such beneficiary should die while my Trustee still holds trust assets for such beneficiary's benefit, such beneficiary's share of my Trust shall lapse and my Trustee shall distribute the balance of the trust share to such beneficiary's then living descendants, per stirpes. If such beneficiary has no then living descendants, my Trustee shall distribute such beneficiary's trust share to such beneficiary's siblings, per stirpes. If such beneficiary has no then living siblings, my Trustee shall distribute such beneficiary's trust share to my then living descendants,per stirpes. 21. Matthew is presently under the age of 40, has no living descendants, and has one sibling, David. Both Matthew, for himself, and for any unborn descendants, and David, similarly, join in this Petition and consent to the termination of the MR Trust and the distribution of its assets to Matthew. 22. The MR Trustees, as descendants of Bernice, are also remote contingent beneficiaries under the MR Trust who would take only in the event of: a) the death of Matthew before reaching the age of 40 without any living descendants, and b) the death of Matthew's - 6 - brother David prior to Matthew's death. The MR Trustees consent to this Petition in their capacities as such contingent beneficiaries (the "Contingent Beneficiaries"). 23. The children of the respective MR Trustees, as Contingent Beneficiaries (in addition to Matthew and David) are Christopher Carson (adult child of Contingent Beneficiary Mandy Carson), and Nicholas Kucher, Christina Kucher, and Abigail Kucher (adult children of Contingent Beneficiary Laurie Kucher), (collectively the "Additional Contingent Beneficiaries). The Additional Contingent Beneficiaries take under the MR Trust only in the event of: a) the death of Matthew before the age of 40 without leaving any living descendants, b) the death of David prior to Matthew's death, and c) the death of their parent—Contingent Beneficiary prior to Matthew's death. 24. The interests of the Contingent Beneficiaries and Additional Contingent Beneficiaries are identical or substantially similar. Pursuant to 20 Pa. C.S.,A, section 7723 (5) the Contingent Beneficiaries represent the interests of the Additional Contingent Beneficiaries and agree and consent to do so. 25. The MR Trustees, Matthew, David, and the Contingent Beneficiaries, for themselves and as Representatives on behalf of the Additional Contingent Beneficiaries, join in this Petition, consent to the relief requested herein, and waive formal accounting and confirmation for the MR Trust. 26. Specifically, it is requested that the Court: a. Approve and order termination of the MR Trust upon the terms and conditions set forth in this Petition, which are incorporated by reference. - 7 - b. Order distribution of all principal and income in the MR Trust to Matthew within 14 days of the date of the Court's Order, subject to Matthew's obligations regarding tax, as set forth in the Petition. C. Order that the MR Trustees, upon the distribution set forth above, be absolutely and fully discharged as trustees of the MR Trust with the same force and effect as if a formal audit and adjudication of the MR Trust had been conducted by the Court. WHEREFORE, the MR Trustees in their capacities as Trustees of the MR Trust and as Contingent Beneficiaries and Representatives of Additional Contingent Beneficiaries of the MR Trust, Matthew Robbins, and David Robbins respectfully Petition this Court to enter an order as set forth above and in the form attached. - 8 - RHOADS & SIN N LLP SERRATELLI, SCHIFFMAN & BROWN, P.C. By: By: Thomas A. French, Esquire Neil E. Hendershot, Es ire Date: ( n�I 1 "T Date: One South Market Square 2080 Lingle own 1>,ofid P.O. Box 1146 Suite 201 Harrisburg, PA 17108-1146 Harrisburg, PA 17110-9670 (717)233-5731 (717) 54079170 Counsel for Wendy Raab Robbins Counsel for Mandy Raab Carson & Laurie Ann R. Kuch'er CONSENT AND JOINDER BY OTHER PARTIES IN INTEREST. MATTHEW ROBBINS Date: DAVID ROBBINS Date: - 9 - RHOADS & SINON LLP SERRATELLI, SCHIFFMAN & BROWN,P.C. By: By: Thomas A. French,Esquire Neil E. Hendershot,Esquire Date: Date: One South Market Square 2080 Linglestown Road P.O. Box 1146 Suite 201 Harrisburg, PA 17108-1146 Harrisburg, PA 17110-9670 (717) 233-5731 (717) 540-9170 Counsel,for Wendy Raab Robbins Counsel for Mandy Raab Carson & Laurie Ann R. Kucher CONSENT AND JOINDER BY OTHER PARTIES IN INTEREST. MATTHEW ROBBINS Date: Inc,,vA (� �cir DAVID ROBBINS Date: �S DOCS -# t` 0 Iff v - 9 - RHOADS & SINON LLP SERRATELLI,SCHIFFMAN & BROWN,P.C. By: By: Thomas A. French, Esquire Neil E. Hendershot,Esquire Date: Date: One South Market Square 2080 Linglestown Road P.O. Box 1146 Suite 201 . Harrisburg,PA 17108-1146 Harrisburg, PA 17110-9670 (717) 233-5731 (717) 540-9170 Counsel for Wendy Raab Robbins Counsel for Mandy Raab Carson & Laurie Ann R. Kucher CONSENT AND JOINDER BY OTHER PARTIES ININTEREST. MATTHEW ROBBINS Date: DAVID.ROBRTTJc - 9 - VERIFICATION Wendy Raab Robbins deposes and says, subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities, that the facts set forth in the foregoing Petition are true and correct to the best of her knowledge, information and belief. Date: 31 S/l 5 VERIFICATION I, Laurie Ann R. Kucher, state that the facts contained in the foregoing pleading are true and correct to the best of my knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. Dated: Laurie Ann R. Kucher VERIFICATION I, Mandy Raab Carson, state that the facts contained in the foregoing pleading are true and correct to the best of my knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. Dated: Mandy ftab Carson