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HomeMy WebLinkAbout04-22-15 DELANO M. LANTZ&ASSOCIATES By: Delano M. Lantz, Esquire Identification No. 21401 c -D rn 4 North Hanover Street, Carlisle, PA 170113` 717-422-5874 M rn 717-422-5879 (fax) D CD ci, 7D -1 -TI M Cn CJ IN RE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA KATHLEEN M. KNISELY No. 21-12-946 An Incapacitated Person ORPHANS' COURT DIVISION: ANSWER OF SAMUEL SCOTT KNISELY TO PETITION FOR APPROVAL TO EXPEND ONGOING PRINCIPAL BY PLENARY GUARDIAN OF ESTATE FOR MONTHLY EXPENSES AND CHARITABLE GIVING AND NOW comes Samuel Scott Knisely, by and through his attorney, Delano M. Lantz, Esquire, and submits the following response to the Petition for Approval to Expend Ongoing Principal by Plenary Guardian of Estate for Monthly Expenses and Charitable Giving. 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Admitted. 7. After reasonable investigation, Samuel Scott Knisely lacks sufficient information to form a belief to the averments in Paragraph 7. 8. Samuel Scott Knisely understands that Mrs. Knisely's primary assets are very substantial but lacks sufficient information to form a belief as to the truth of the specific figures set forth in Paragraph 8. 9. Admitted in part and denied in part. With respect to the averments Samuel Scott Knisely further states as follows: (1) Admitted that documents indicate that Mrs. Knisely's home is owned by a Qualified Personal Residence Trust (APRT). Samuel Scott Knisely was not included as a beneficiary of the QPRT that was established as part of the events set forth in the "Answer of Samuel Scott Knisely to the Rule to Show Cause and Petition Seeking Clarification of Scope of Guardianship Powers and Requesting the Court to Substitute Its Judgment for that of the Incapacitated Person Pursuant to 20 Pa.C.S. 5536(b)" filed on December 19, 2012 (hereinafter referred to as "Answer filed December 19, 2012"). Any and all instruments signed by Mrs. Knisely after January 1, 2012, are suspect and involve issues of abuse of confidential relationship, undue influence and capacity. This includes the APRT and the deed to the home. See Answer filed December 19, 2012, at Paragraphs 18 and 30 and Paragraphs 70-111 of New Matter that are incorporated herein by reference. (2) The Declaration of Trust was established by the Order of this Honorable Court dated December 20, 2012. Mr. Knisely has not been provided with a copy of that Declaration of Trust to date. The Order directed that the Trust 2 V "shall be segregated in an acceptable vehicle for the benefit of some or all of Mrs. Knisely's children. This Court will determine at a later date which children shall participate in said gift." (Order, Para. 1). (3) Samuel Scott Knisely is aware of the life insurance policy that she transferred to her children. Samuel Scott Knisely acknowledges that the face amount of the life insurance is $3,000,000, but he lacks adequate information to form a belief as to the current cash value of the policy. Expenditures of Principal for Monthly Expenses 10. After reasonable investigation, Samuel Scott Knisely lacks adequate information to form a belief as to the truth of the total amount of the current and ongoing living expenses and has requested documentation for them. He agrees that all of Mrs. Knisely's reasonable expenses should be provided for by the Court. 11. Samuel Scott Knisely lacks adequate information regarding the expenses paid for periodic trips and vacations and has requested documentation of such expenditures. He agrees that her reasonable expenses for periodic trips/vacations should be provided for by the Court. 12. Samuel Scott Knisely lacks adequate information with regard to Mrs. Knisely's income and requests documentation of the income. 13. Samuel Scott Knisely lacks adequate information as to the income and expenses underlying the averments in Paragraph 13 and requests documentation for the income and expenses thereof. 14. This paragraph states a legal conclusion which requires no answer. 3 15. For the reasons above, Samuel Scott Knisely lacks sufficient information as to whether and to what extent preapproval should be given for expenditures from principal. Samuel Scott Knisely agrees that all of Mrs. Knisely's appropriate, reasonable expenses should be provided for from her substantial estate, but other expenditures, especially any expenditures going to or for the benefit of other family members, should be closely scrutinized and not allowed to be paid by the guardian of the estate. Expenditures of Principal for Charitable Giving 16. Admitted in part and denied in part. Admitted that various gifts have been given to charity on a one-time or sporadic basis. Denied that the record supports "a pattern of making various and substantial gifts to various charitable organizations" that provides a basis for the relief requested. Except for the substantial gift to Gettysburg College in 1982 that was initiated by Samuel W. Knisely who died in 1983, all gifts have been relatively modest. 17. Admitted that, prior to his death, Samuel W. Knisely initiated the gift of $138,000 to Gettysburg College 33 years ago. Such a one-time gift does not establish a "pattern". for Mrs. Knisely. Samuel Scott Knisely believes that the records from 1996 to 2012 do not support a "pattern" of gifting that provides an adequate basis for the relief requested from the Court. Through counsel, Samuel Scott Knisely has requested the documentation for the charitable giving from 1996 to 2013. 18. Admitted in part and denied in part. Samuel Scott Knisely's siblings have excluded him from any and all such discussions that may have taken place with Mrs. Knisely. The gifting of the magnitude and type proposed in Paragraph 18 of gifts ranging from $30,000 to $50,000 per year is totally inconsistent with Mrs. Knisely's 4 history of charitable gifting before she was declared incapacitated. In view of her incapacity, the records of gifting or lack of gifting before her incapacity should be given great importance. 19. This paragraph states a legal conclusion. The provision requires a history of gifting to the person before the incapacity arose. 20. This paragraph states a legal conclusion. 21. This paragraph states a legal conclusion. In this case the present guardians,of the person have conflicts of interest. 22. Denied. For the reasons above, the history of charitable gifting does not support the request for charitable gifts of up to $50,000 per year. Although Paragraph 22 refers to "her children", to date Samuel Scott Knisely's siblings have excluded him from any discussions with regard to such matters. Further, there may be a concern as to whether or not Mrs. Knisely truly wants to make these gifts or whether the other children, for their own secondary gain, desire gifts to be made to various charitable organizations that they favor. 23. Admitted. 24. Admitted that there are substantial assets. However, no matter how substantial the estate may be at this time, only expenditures that are appropriate under the law should be permitted to be made by the plenary guardian of the estate. Also, future events may require large expenditures directly for Mrs. Knisely's benefit, such as for various types of medical care and treatment that may benefit her. Notice to Parties in Interest 25. Samuel Scott Knisely acknowledges receipt of notice. 5 Payment of Legal Fees 26.-29. Samuel Scott Knisely requests the Court to carefully scrutinize the legal fees requested by counsel for Petitioner. WHEREFORE, Samuel Scott Knisely respectfully requests the Honorable Court to carefully scrutinize all requests being made by the guardian of the estate. The Court is requested to authorize only reasonable expenditures that are appropriate for Mrs. Knisely's ongoing monthly expenses relating to her health, support, maintenance and welfare including appropriate travel, entertainment and recreation. With respect to charitable giving, the Court should not authorize any charitable giving that is not supported by Mrs. Knisely's own history of charitable giving prior to her being declared incapacitated. The Court is further requested to carefully review the counsel fee request for the payment of legal fees and court costs. Respectfully submitted, DELANO M. TZ &ASSOCI TES By: elano M. Lantz I.D. No. 21401 4 North Hanover Street Carlisle, PA 17013 717-422-5874 717-422-5879 (fax) Attorney for Respondent Samuel Scott Knisely Dated: April 22, 2015 6 VERIFICATION I verify that the statements made in the foregoing Answer of Samuel Scott Knisely to Petition for Approval to Expend Ongoing Principal by Plenary Guardian of Estate for Monthly Expenses and Charitable Giving are true and correct to the best of my knowledge, information and belief. I understand that false statements are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authorities. l muel Scott nisely Dated: April 22, 2015 C CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date, a true and correct copy of the foregoing document was e-mailed to counsel and intended to be hand-delivered prior to the scheduled hearing as follows: Scott Alan Mitchell, Esquire Rhoads & Sinon LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 Anthony L. DeLuca, Esquire 113 Front Street P.O. Box 358 Boiling Springs, PA 17007 Mark F. Bayley, Esquire 17 West South Street Carlisle, PA 17013 ano M. Lantz Date: April 22, 2015