HomeMy WebLinkAbout06-08-15 �-
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Ivo V. Otto, III, Esquire =��- �' �— ��' `�
I.D. No. 27763 � � �' ' ��-�
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David W. Park, Esquire r � � ;
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Attorney I.D.No. 315905 -'
MARTSON LAW OFFICES '
10 East High Street ?� ,�
Carlisle, PA 17013 F--� . �>
(717) 243-3341 � - r'�'
Attorneys for Appellant �.: `'' `-i
1N RE: ESTATE OF : IN THE COURT OF COMMON PLEAS OF
ROBERT A. BROWN, DECEASED : CUMBERLAND COUNTY, PENNSYLVANIA
: ORPHANS' COURT DIVISION
: N0. 21-13-1172
NOTICE OF INHERITANCE TAX APPEAL
Appellant Norma J. Brown, as the Executrix of the Estate of Robert A. Brown, by her
attorneys, Martson Law Offices, set forth the following:
1. Appellant Norma J. Brown is an adult individual resiciing in Cumberland County.
2. Appellant is the widow of Decedent Robert A. Brown, and the executrix of
Decedent's estate.
3. Decedent died testate on October 22, 2013.
4. Decedent's will was probated in Cumberland County under pocket Number,21-13-
1172. A true and correct copy of the Last Will and Testament of Robert A. Brown (the "Will") is
attached hereto as Exhibit"A".
5. Item Four of the Will provided that certain assets would be bequeathed unto
Appellant.
6. Item Six of the Will,titled"Residuary and Disclaimer Trust,"established a trust (the
"Trust") for, inter alia, any assets disclaimed by Appellant.
7. Item Six of the Will also identified Appellant as the primary beneficiary of the Trust.
8. Item Five of the Will provided that,in the event that Appe llant disclaimed her interest
in the assets bequeathed to her under the Will,Appellant would not be deemed to have predeceased
Decedent.
9. On July 18, 2014 at 10:41 a.m., Appellant filed a Disclaimer with the Office of the
Register of Wills of Cumberland County (the "Disclaimer"). A true and correct copy of the
Disclaimer is attached hereto as Exhibit"B".
10. In the Disclaimer, Appellant expressly disclaimed as follows (emphasis added):
...any interest to which I may be entitled under Items Four and Six of the Last Will
and Testament of Robert A. Brown dated December 19, 2007 and probated at the
above number, and under applicable law to the following assets:
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Date of Death Value
47,172 shares Carlisle Companies, Inc. $3,429,404.40
2,696 shares McDonalds Corporation $ 255,715.60
15,586.859 shares MFS MUN Ser TR PA Mun Bd FD $ 152,471.72
8,026.44 shaxes MFS SER TR III MUN HI INCM A $ 60,072.86
6,044.554 shares PIMCO FDS PAC INVT MGMT SER NUM I3D FD CL-A $ 54,869.50
3333 shares EATON VANCE MUN BD FD - COM $ 37,809.02
Total 3,990,$43.10
*(the above assets hereinafter referred to as the "Assets").
11. Through the Disclaimer, Appellant intended to disclaim the Decedent's bequest of
the Assets to her under Item Four of the Will.
12. Through the Disclaimer,Appellant further intended to disclaim any interest she may
have in the Assets under Item Six of the Will.
13. Appellant did not disclaim her interest in the principal af the Trust,nor in any income
produced by the Trust.
14. Prior to filing the Disclaimer, Appellant endeavored to establish the Trust.
15. On or about July 3, 2014, Appellant obtained an EIN for the Trust from the IRS. A
true and correct copy of the correspondence from the IRS dated July 3,2014 and notifying Appellant
of the Trust's assigned EIN is attached hereto as Exhibit"C".
16. Simultaneous to filing the Disclaimer,Appellant,in her capacity as Executrix of the
Estate of Robert A. Brown (the "Estate"), filed the Inheritance Tax Return far the Estate (the
"Inheritance Tax Return"). A true and correct copy of the Inheritance Tax Return is attached hereto
as Exhibit"D".
17. The Inheritance Tax Return was filed with the Office of the Register of Wills of
Cumberland County on July 18, 2014 at 10:41 a.m.
18. The Inheritance Tax Return indicates that the aggregate`�alue the Estate's assets was
$3,995,908.90 at the time of Decedent's death.
19. The Inheritance Tax Return reflects spousal distributions under Section 9113 of the
PEF Code in the amount of$3,990,343.10, representing the value of�the principal of the Trust.
20. The Inheritance Tax Return further reflects spousal distributions in the amount of
$5,565.80, representing residue of the Estate which was bequeathed to and accepted by Appellant.
21. The Pennsylvania Department of Revenue issued its Appraisement of the Estate on
January 12, 2015 (the "Appraisement"). A true and correct copy of the Appraisement is attached
hereto as Exhibit"E".
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22. In the Appraisement, the Pennsylvania Department of Revenue determined that
Appellant disclaimed her interest in the Assets as well as the her interest in any income from the
Trust through her Disclaimer.
23. Appellant, by and through her attorneys, Martson Law Offices, appealed the
Appraisement by way of a letter dated January 12, 2015 (the "Appeal").
24. The Board of Appeals of the Pennsylvania Department of Revenue (the "Board of
Appeals") issued a Decision and Order regarding the Appeal on April 10,2015 (the"Decision and
Order"). A true and correct copy of the Decision and Order is attached hereto as Exhibit"F".
25. In the Decision and Order, the Board of Appeals determined that Appellant
"disclaimed her interest in both Item 4 [of the Will],the assets of the estate and Item 6 [of the Will]
the assets which past to the trust due to [Appellant] disclaiming items t�nder Item 4 [of the Will].
As the [Appellant[ has disclaimed both the probate assets and the trust assets, the $3,990,343.19
assets disclaimed would pass to the decedent's issue."
26. The Decision and Order directed the Pennsylvania Department of Revenue to tax the
"probate assets of the estate on Line 15 [of the Inheritance Tax Return]" (i.e. the Assets, which are
valued at $3,990,343.19).
27. The Decision and Order expressly states that any appeal must be filed with the
Orphan's Court within sixty (60) days of receipt.
28. Pursuant to the express language of the Decision and Order as well as C.C.O.C.R
10.2-2 and in consideration of the Decedent's residency in Cumberland County at the time of his
death as well as the probating of the Estate and filing of the Inheritance Tax Return in Cumberland
County, this Inheritance Tax Appeal is properly before this Honorable Court.
29. This Inheritance Tax Appeal,being filed within sixty days of the Decision and Order
dated April 10, 2015, is timely.
ISSUES RAISED ON APPEAL
A. Whether the Board of A�peals for the Pennsvlvania Denartment of Revenue erred
when it determined that AQpellant disclaimed her interest in the Trust?
30. In the Disclaimer, Appellant expressly disclaimed as follows:
...any interest to which I may be entitled under Items Four and Six of the Last Will and
Testament of Robert A. Brown dated December 19, 2007 and probated at the above
number, and under applicable law to the following assets:
Date of Death Value
47,172 shares Carlisle Companies, Inc. $3,429,404.40
2,696 shares McDonalds Corporation $ 255,715.60
��«ri iu o rr trrtmi � _
15,586.859 shares MFS MUN Ser TR PA Mun Bd FD $ 152,471.72
8,026.44 shares MFS SER TR III MUN HI INCM A $ 60,072.86
6,044.554 shares PIMCO FDS PAC INVT MGMT SER NUM BD FD CL-A $ 54,869.50
3333 shares EATON VANCE MUN BD FD - COM $ 37,809.02
Total $3,990,343.10
*(Emphasis Added)
31. Interest in particular assets is separate and distinct from interest generated from the
income produced by a trust that contains the particular assets as principal. See 20 Pa. C.S.A §
6206(c)(1), regarding partial acceptance of a testamentary interest, "income for life or any other
period shall be considered a single interest but separate from any interest in the principal or any
additional interest in income to take effect upon the happening of a future event."
32. Appellant,in her Disclaimer,expressly disclaimed any interest to the Assets,but did
not disclaim any interest to the income produced by the Trust, which contained the Assets as
principal.
33. Appellant did not disclaim her interest in the principal of the Trust under the
Disclaimer, as she retained the ability to scoop out principal at the discretion of the trustee of the
Trust.
34. The Disclaimer references Item Six of the Will in disclaiming any interest in the
Assets with the intent to restrict any potential principal draw down which could asserted were
Appellant to retain any ownership interest in the principal of the Trust as assets,which is in line with
the Decedent's intent under the Will. See Item Six B of the Will, lirniting payments to Appellant
from the Trust to the greater of$5,000.00 or 5%of the aggregate value of the principal of the Trust.
35. The Decision and Order erroneously interprets the Disclaimer as Appellant
disclaiming her interest in the Trust and any income produced by the Trust.
WHEREFORE, Appellant Norma J. Brown requests that this I�onorable Court vacate the
Order and Decision of the Board of Appeals of the Pennsylvania Department of Revenue and issue
an Order directing the Department of Revenue to treat the Robert A. Brown Trust and its principal
value at the death of Robert A. Brown as a spousal distribution pursuant to Section 9113 of the PEF
Code.
B. Whether the Board of A�peals for the Pennsvlvania Denartment of Revenue erred
when it failed to consider that A ellant acce ted her mterest m the mcome of the
Trust prior to �ling her Disclaimer and, therefore, was barred from disclaiming her
interest in the income of the trust�pursuant to 20 Pa. C.S.A. � 6206?
36. At the time that Appellant filed the Disclaimer,she was barred from disclaiming her
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interest in the Trust because she had already accepted her interest in the Trust.
37. Pursuant to 20 Pa. C.S.A. § 6206 , acceptance of a testamentary interest is a bar to
disclaimer of said testamentary interest.
38. Pursuant to 20 Pa. C.S.A. §6206(a), "acceptance may be express or may be inferred
from the actions of the person entitled to receive an interest in the prope�rry."
39. Prior to filing the Disclaimer,Appellant expressed her intention to accept her interest
in the Trust.
40. Evidence of Appellant's acceptance of her interest in the Trust prior to filing her
Disclaimer is the fact that Appellant obtained an EIN for the Trust on July 3, 2014.
41. Further Evidence of her acceptance is the fact that Appellant,through her attorneys,
Martson Law Offices, drafted the Inheritance Tax Return to reflect Appellant's acceptance of her
interest in the Trust prior to Appellant filing her Disclaimer. The record establishes this time line
as the Disclaimer and the Inheritance Tax Return were both filed on:Tuly 18, 2014 at 10:41 am.
42. Pursuant to 20 Pa. C.S.A. § 6206,at the time that Appellant filed the Disclaimer,she
was barred from disclaiming her interest in the Trust because she had already accepted her interest
in the Trust.
WHEREFORE, Appellant Norma J. Brown requests that this Honorable Court vacate the
Order and Decision of the Board of Appeals of the Pennsylvania Department of Revenue and issue
an Order directing the Department of Revenue to treat the Robert A. Brown Trust and its principal
value at the death of Robert A. Brown as a spousal distribution pursuant to Section 9113 of the PEF
Code.
Respectfully submitted,
MARSTON L,AW OFFICES
By: �'�rd;.�l�':"%
Ivo V. Otto, III, Esquire
I.D.No. 27763
David W. Park, Esquire
I.D. No. 315905
Ten East High Street
Carlisle, PA 17013-3093
(717) 243-3341
Date: � � �� r� Attorneys for Appellant
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,
VERIFICATION
The foregoing is based upon information which has been gathered by my counsel in the
preparation of this appeal. The language of the document is that of counsel and not my own. I have
read the document and to the extent that it is based upon information which I have given to my
counsel,it is true and correct to the best of my knowledge,information,and belief.To the extent that
the content of the document is that of counsel,I have relied upon counsel in making this verification.
This statement and verification are made subject to the penalties of 18 Pa. C.S. Section 4904
relating to unsworn falsification to authorities, which provides th�t if I make knowingly false
averments, I may be subject to criminal penalties.
L!%�✓l�i ,'��,�.
Norma J. Brown, E utor of the Estate of Robert A. Brown
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CERTIFICATE OF SERVICE
I,Ami J. Thumma, an authorized agent for Martson Law Offices,hereby certify that a copy
of the foregoing Notice of Inheritance Tax Appeal was served this date by depositing same in the
Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows:
Department of Revenue
Office of Chief Counsel
P.O. Box 281061
Harrisburg, PA 17128-1061
MAR LA�V OrEE�E
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Carlisle, PA 17013
(717) 243-3341
Dated:
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EXHIBIT "A"
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_3.�i"�SON DF.�i.RDO�PP '�ILL�.�,1�
�?TTO G1L't0'Y:� FA�R
:1ir1RTSON IAW i.)FFICES
LaST WILL :�YD TEST�►V(EYT 10 F11ST HIGH STRF.Ei'
' CARLISLE, PA 17013
�7��) 233-33-11
[, ROBERT �. BROWN, of South �liddleton Township, Cumberland County,
Pennsylvania,bcing of sound and disposing mind and memory,do hereby make,publish and declare
this to be my Last �Vill and Testament, hereby revoking any and all former Wills or Codicils made
by me.
ITEM ONE
[ciirect that all my legally enforceable debts, funeral expenses, testamentary expenses and
all inheritance taxes shall be paid to the extent possible from the assets held or passing under ITEv1
5G�C hereof as soon as practicabte after my decease and as part of the administration of my estate.
ITEM TWO
[n the event my wife shall predecease or fail to survive me by thirty(30) days, then I give
such items of personalty as are itemized in a certain list attached hereto to the persons named
thereon, which list is signed and dated by me at the end thereof.
ITEM THREE
I bequeath any automobiles or motor vehicles [ may own at my death, my personal effects,
such household goods if any as may be my individual property and not the property of my wi fe or
owned jointly by me with my wi fe,and other tangible personal property of like nature(not including
cash or securities),together�vith any existing insurance thereon,to my wi fe, NORMA J. BROW�1,
providing she survives me by thirty(30)days. Should rny wife predecease me or die on or before
the thirtieth day following my death, [ bequeath such tangible personal property and insurance
thereon to such of my children as are living on the thirty-first day�fter my death, to be divided
between or among them with due regard for their personal prePerences in as ilearly equal shares as
practical and as th�:y shall mutually agree. I direct that any of the foregoing articles not selected by
such children or sbout �vhich there is no a�ureement shall be sold at public or private sale by my
p�rsonal representati��e(s),and i furtherilirect that the net procc�ds thc:reoFshall be administ�red and
aistributcd as a part of th� residue of my c:state.
(TE�t FO(.'R
(f my wi fe, �ORMA J. BRO�W, is living thirty(30)days aftcr my dcath,then [�ive,devise
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and bequeath all of my estate, both reai and personal property, unto my said wife, absolutely. If my
said wife does not so survive me,then I give,devise and bequeath all the rest,residue and remainder
of my estate, both real and personal property, unto my Tn�stee to be held or distributed by such
Trustee under [TE�I SIX hereof.
ITEM EIV6
[n the event my said wife shall disclaim all or any portion of any devise or bequest made to
my wi fe under the foregoing ITEvf FOUR,then the amount otherwise payable shall be held by my
Trustee under ITEvf SGjC hereof. For purposes of the Trust established under ITE�I SUC hereof, my
said wife shall not be deemed to have predeceased me by virtue of my said wife's exercise of the
right to disclaim set forth herein.
ITEM SIX
RESIDUARY AND DtSCLA�IER TRUST
�ty T'rustee shall hold the assets received under 1TEMS FOUR.anc3 FNE hereof,if any, for
the following purposes:
A. My Trustee shall pay the net income,at least quarter-annuaIly, to my wi fe,NORI�IA
J. BROWiV, for life. In addition, my Trustee, in my Trustee's sole discretion, may invade the
principal of the Trust for the proper and adequate support of my said wife.
B. In additiort to the above provisions,my said wife shall have the power to direct my
Trustee to pay to her or to apply out of the principal of this Trust in each year, including the year of
� my death,an amount not in excess of the greater of Five Thousand(�5,000.00)Dollars or five{5%)
percent of the then aggregate value of the principal of this T'rust. This power shall be noncumulative
and may be exercised only by an instrument in writing signed by her and delivered to my Trustee
within the first thirty(30) days of fiscal year of this Trust.
C. (.`pon the death of my said wife,or upon my death if my�vife shall not survive me
by thirty f 30)days, my Tnistee shall distribute the principal of the Tr�ist to my chilclrcn, C:�RL.-�
D. STL'TE�ROTH,TODD�. BRO��'�', SCOTT E. BROWV and D:l�'(D .�. BROWv, in cqual
shares, absolut�ly.
D. (n the e�•cnt that any uf my said children shall fail to sun•i�•c my �vife and me, but
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Pa�c 2 uf 3 Pages
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sf�all leave isstte surviving,then such dcceased child's share shall be held by Eny Trustee and the net
income therefrom shall be used For the support, maintenance and education of the issue of such
cieceased child. �ty Trustee shall use as much of the prineipal as it shall deem desirable for said
purposes. �ty Trustee shall distribute absolutely the principal of such share of such deceased child
to the issue of such deceased child per stirpes as each shall attain the age of twenty-tive(?5)years.
[n the event that any of my children shall fail to survive my wife and me and not leave issue
surviving, then such deceased child's share shall be added to the shares of my other ehildren as if
originally a part thereof.
[TEM SEVEN
POWERS OF EXECliTR[X �►ND TRUSTEE
[n addition to the powers conferred by case(aw,by statute,and by other provisions hereof,
my Executrix and Trustee and their success�rs, shall have the foll4wing discretionary powers
applicable to all property held by them which powers shall be effective without order of any court
and shall exist until final distribution.
A. To retain any property of any nature received by them for whatever period they shall
deem advisable;
B. Ta invest and reinvest atl or any part of said property in such stocks,bonds,common
trust funds,securities,accounts,certificates of deposit(including,but not limited to,stocks,bonds,
common trust funds,securities,accounts or certificates of deposit of the T'rustee)or other property,
real or personal, as in their discretion they shall deem proper,without regard to statutes limiting the
property which a fiduciary may purchase;
C. To sell,transfer,e�cchange or otherwise dispose of,any part of said property,for cash
or on terms,publicly or privately,or to lease,even for a term exceeding five(5)years or the duration
uf any trust herein, without liability on the purchasers or lessees to see to the application of the
procce�is, and to ;ive options for these purchases �vithout the obligation to repuJiate thcm in ta�•ur
of a I�i�i�er offcr;
D. To e�cccute and �leli��rr any Je�ds, Icasrs, assi;nm�nts or othcr inst�-�im�nts as may
h� n�c�ssary to �arry uut thc pro��isions ot'any trust hereunJcr;
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E. To borrow money, including the ri;ht to borrow money from any bank and to
mortgage or pledge any asset of the estate as security;
F. Toassumecontinuanceofthestatusofanybeneficiary�vithregardtodeath,mania�e,
ciivorce, illness, incapacity and the tike in the absence of information deemed reliable �vithout
liability for disbursements made on such assumption;
G. To pay from the trust,or the income therefrvm,all debts or claims against my estate,
or any taxes or similar charges on my estate;
H. To make any distribution hereunder either in kind or in money, or partially in kind
and partially in money. Distribution in kind shall be made at the market value of the property
distributed,and my Trustee, in my Trustee's absolute discretion, may cause the share distributed to
any distributee to be composed of property similar to or different frvm that distributed to any other
distributee;
[. To erercise any subscription right in connection with any security held hereunder,to
consent to or participate in any reeapitalization, reorganization, consolidation or merger of any
corporation, company or assoeiation, the securities of�vhich may be held hereunder, to delegate
authority with respect thereto, to deposit investments under agreements, to pay assessments, and
generally to exercise all rights of investors;
J. To invest in endowment, insurance or annuity policies on the lives of beneficiaries
of any trust hereunder;
K. To continue in any partnership, joint venture, joint ownership or other business
enterprise of�vhich I am a part at the time of my death;
L. 1'o compromise claims;
'�t. To continue for whatever period of time as they shall deem necessary any o�vncrship
as a tenant in common or as a partner,in real estate or other property and to act as i could have cione
I�ad I becn li��ing;
V. To Icnd moncy to iliy rstate or to any trust created hcrcunder or to purchasc fronz the
�stat� or f'rom any tn�st created hercundcr, at the markct ��alu� thercot�at the timc of purchas�, uny
s�curiti�s or other property tendered to them by my estate ur any tnist crcated hereun�er at any tirne
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and from time to time within a period of nine (9) months after my death;
0. [n the event that any amounts are payable h�reunder ur under any trust created
flereunder to a minor, or to a person uthenvise under le;al disability, or to a person not a�ij�idicated
to be an incapacitated person,but�vho,by reason of il[ness or mental or physical disability is,in the
opinion of the tiduciary(ies)hereunder, unable to properly administer such amounts,such amounts
may be paid by the fiduciary(ies)hereunder in his,her or their sole discretion in any of the following
ways as he,she or they may deem best:
1, Directly to such beneticiary;
2. To a legally appointed guardian of such beneticiary for the benefit of such
beneficiary;
3. To a person having custody of such betteficiary for the benefit of such
beneficiary;
4. By the fiduciary(ies)hereunder using such amounts directly to the benetit of
such beneficiary.
Evidence of the apptication of payment of an amount in such a manner shall be a full and complete
�iischarge of the fiduCiary(ies) hereunder to the extent of such payment or application. This
paragaph shall be applicable to payments of income as well as principal.
P. To empioy agents, attorneys and proxies and to delegate to them such power as my
personal representative and Trustee consider desirable and to pay reasonable compensation for such
services as rnay be rendered by such agents, attomeys and proxies;
Q. To conduct an inventory of any safe deposit box necessary to the administration of
my cstate.
R. To do all other acts in their judgment ne:cessary or desirable for the proper
management, investment and distribution of my Estate.
[TE�I EIGHT
PROTECTIVE PROV[S[OVS
.111 incomc:or principal hc:ld for thc use and benetit ut'tl�c;brn�ticiarics o t'any trust hcretu�d�r
�hall not he in any��•ay ur manner subject ro anticipation, assi�nment. pled�e, salr:ur transfer, nur
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sl�all any such interest, while in the possession oFmy"f'rustee, be liable for or subject to�he debts,
contracts, ubligations, liabilities or torts uf any beneticiary, ur to lttachments, e�cecutions ur
sequestrations under process of law.
ITE�1 Nt�JE
APPONT�I�NT OF EXECUTRIX AND TRUSTEE
I nominate,constitute and appoint my wi fe,vOR1�1A J.BR01�W,as Executrix o f my estate.
In the event that my said wife shall predecease me or fail to act as Executrix, then I appoint
MART'SON LAW OFFICES, of Carlisle, Pennsylvania, as Executor of my estate. In such latter
event, the basis for compensation shall be the hourly rate(s)of such firm in effect as such services
are rendered.
[ nominate, constitute and appoint my wife, NOR1ti1A J. BROWN, as Trustee of any trust
created hereunder. In the event that my said wife shall fail or be unwilling to continue to act as
Trustee, then [appoint MARTSON LAW OFFICES,of Carlisle, Pennsylvania, as Trustee of any
trust created hereunder. In such latter event, the basis for compensation shall be the hourly rate(s)
of such firm in effect as such services are rendered.
A majority of all income beneficiaries of the trust or trusts created under this Will may from
time to time remove any corporate trustee then acting for reasonable cause and substitute another
corporate trustee; provided, however, that such successor corporate trustee shall not be a related or
subordinate to any one or more of the beneficiaries hereunder within the meaning of Internal
Revenue Code§672(c)or successor provisions. �Vhen the removed corporate trustee has received
written notice of its removal and has been noti6ed in�vriting by its successor corporate trustee of the
latter's acceptance, the removed corporate trustee shall surrender atl books, records, and assets in
its possession comprising any portion of the trust or relating to the trust. [n no event shall ti�e
rcmovcd corporate trustee charge a"termination fce"based on a perccnta;e o f trust assets as a result
of such removal but shall bc cntiticd only ro charge such fce as fairiy reprc:scnts the cost of any
accoiu�ting reyuired by the benetieiaries u�succ�ssor eorporate trustee as part of such r�mu��af anJ
�ubstitution. �Thc rcmo�•�J rorporate trustre shall not bc rclie��cd of liability until its succcssor has
��ualitiea and the remove�i tnistre's accountin;, if applicable, has bcen s�ttic:d ur the bcneticiaries
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and st�ccessor corporate trustee have uthenvise accepted an account stated in lieu of a formal
accounting. �s used in this para,aph, the term "reasonable cause"ir�cludes, but is not limited to:
(1)poor investment performance,(2)the removal of all cunent income beneficiaries frum the state
in which the corporate trustee is licensed to conduct business as a corporate trustee,(3) inattention
to the reasonable needs of the beneficiaries, (�1) lack of communication between trustee and
beneficiaries,(5)inaccurate or unclear transaction statements or statements of account,(6)contlicts
bet�veen the corporate trustee and thebeneficiaries,(7)merger,acquisition or deteriorating tinancial
cundition of the corporate trustee,or(8}hi�h turnover of account officers assigned to any trust under
this Will.
ITEM TEN
WANER OF BOND
I direct that all fiduciaries acting under the Will, whether or not narned herein, shall not be
required to give bond for the faithful performance of their duties in any jurisdiction, nor shall they
be required to obtain any order or approval of any court for the exercise of any power or discretion
set forth in this Will.
IN WITiVESS WHEREOF I have hereunto set my hand and seal this ,� ;' '��1 Jay of
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/���" . ,.ilL (SEAL)
Robert . Brown
SIGNED,SEALED,PUBLISHED AND DECLARED by the above-named Testator,as and
for his Last 1�Vi11 and Testament, in the presence of us,wha at his request, have hereunto subscribed
our names as �vitncsses tllcrcto, in the presence uf the said Testator and uf each othcr.
\ 1C ` • " j; - ---
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CO�t1�(0�1�1'EALTH OF PEw'SYLV.��[.a )
: SS.
CO(;tiTY OF Cli�IBERLA�;D �
�Ve,Robert A.Brown,Ivo V. Otto[II,and .. ' �. �• •. ! � - '� ,the I'estator
�nd the�vitnesses,respectively,�vhose names are signed to the foregoing instrument,being first duly
sworn, do hereby declare to the undersigned authority that the Testator signed and executed the
instrument as his last Will and that the Testator has signed willingly, and that the Testatorexecuted
it as his free and voluntary act for the purposes therein expressed,and that each of the witnesses, in
the presence and hearing of the T'estator,signed the Will as a witness and that to the best of his/her
knowledge the Testator was at that time eighteen years of age or older,of sound mind and under no
constraint or undue influence.
/C �.
Robe�t A. Br wn, Testator
\ �. `�
Witness
i ';;�1., _. l ! ( I'`,� �!��'r—
Witr�ess-�� �
Subscribed, sworn to and acknowledged before me by Robert A. Brown the Testator, and
subscribed and sworn ro befo�me by Ivo V. ptto III and • ' -. -� � r� � , .�i- � ,the
witncsses, this � '.- 'day of ',� , . , .. ,��� �_ , ' � ;� .
: �.
, , f/�--
�otary Public
. • •'�
; � � �
. . ;
I_ .�...... ' � � .. �
Pa;c 8 uf 3 Pa�cs
,,•>� nr�.rr iroim �
EXHIBIT "B"
a���� iu�fl rr n�iimi �
. +
IN RE: ESTATE OF : IN THE COURT OF COiv11�ION PLEAS OF
: CUMBERLAND COU:��TY, PEi�1NSYLVANIA
ROBERT A. BROVVN, :
: ORPHANS' COURT DI�VI'SION
DECEASED : N0. 21-13-1172
DISCLAI�IER
I, Norma J. Brown, hereby exercise the rights granted to me in Ch�:�pter 62 of the Probate,
Estates and Fiduciaries Code (the"PEF Code"), and I hereby disclaim anti renounce any interest to
which I may be entitled under Items Four and Six of the Last `Vill and Testament of Robert A.
Brown dated December 19,2007 and probated at the above number,and under applicable law to the
Following assets:
Date of Death Value
�7,172 shares Carlisle Companies, Inc. 3,429,404.40
2,696 shares McDonalds Corporation 255,715.60
1�,586.859 shares MFS N1UN Ser TR PA Mun Bd FD 152,471.72
3,026.44 shares MFS SER TR III MUN HI INCM A 60,072.86
b,044.554 shares PIMCO FDS PAC INVT NtGMT SER NUN1 BD FD CL-A 54,869.50
3333 shares EATON VANCE MiJN BD FD - COM 37.809.02
Total 3,990,343.10
IN WITNESS WHEREOF, intending to be legally bound hereby and intending that this
Disclaimer and Renunciation shall be filed of record in the Oftice of the Clerk of the Orphans' Court
Division of the Court of Common Pleas of Cumberland County, Pennsylvania, as provided in
Section 6204 of the PEF Code, I have hereunto set my hand and seal this � ;�'' '�� day of
;
� �
` f� 2014.
.f, _
,
;�
_ , �� ��- � _�
' �n7�, �=. - . 1
� ''�t;•.,> � �����"...;r`-�.�i _
Norma J. Browrt�� ��� �.
��.
�; :, _.
J�_' _'
:_, �� ;__ :�r,
COi�1MONWE�LTH OF PENNSYLVANIA ) � � `,,,�
�' --r,
ss. _
COi1�1TY OF CUMBERLAND j
On this, the � day of � � , - ' , betore me, a notary public,
personally appeared Norma J. Brown, known to me to be the person whose name is subscribed to
the within instrument, and acknowledged that he executed the-same for the purposes therein
contained.
f'o'�xv�v�.,�r�cF��v;rsn,v.a�r��
rrtyf<��RIAL S�#L � � , ' ,,:i.
victcJria i�C,tt�,;�t,�r.�.y�,blic i dotary P�tblic �
{:arlis(e E3oro,Cumberland Counry
�f commission�_ �zpi�s Cece;�ber�Q�Ol�t
------_____._
.:i iu�•i r ir�mi �
s
EXHIBIT " C "
_�i iu R�i r iri�mi �
.
�Y�IRSDEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
CINCINNATI OH 45999-0023
Date of this notice: 07-03-2014
Employer ldentification Number:
47-6344181
Form: SS-4
Number of this notice: CP 575 B
ROBERT A BROWN TU4V 12192007 NORMA J
BROWN TTEE
NORMA J BROWN TTEE For assistance you may call us at:
410 CHESTNU'C DR 1-800-829-4933
BOILING SPRGS, PA 17007
IF YOU WRITE, ATTACH THE
STUB AT THE END OF THIS NOTICE.
WE ASSIGNED YOU AN EMPLOYER IDENTIFICATION NLJMBER
Thank you for applying for an Employer ldentification Number (EIN) . we assigned you
EIN 47-6344181. This EIN will identify your estate or trust. If you are not the
applicant, please contact the individual who is handling the estate or trust for you.
Please keep this notice in your permanent records.
When filing tax documents, payments, and related correspondence, it is very important
that you use your EIN and complete name and address exactly as shown above. Any variation
may cause a delay in processing, result in incorrect information in your account, or even
cause you to be assigned more than one EIN. If the information is not correct as shown
above, please make the correction using the attached tear off stub and return it to us.
Based on the information received from you or your representative, you must file
the following form(s) by the date(s) shown.
Form 1041 07/03/2014
After our review of your information, we have determined that you have not filed
tax returns for the above-mentioned tax period(s) dating as far back as 2014. Please
file your return(s) by 07/18/2014. If there is a balance due on the return(s) ,
penalties and interest will continue to accumulate from the due date of the return(s)
until it is filed and paid. If you were not in business or did not hire any employees
for the tax period(s) in question, please file the return(s) showing you have no
liabilities.
If you have questions about the form(s) or the due date(s) shown, you can call us at
the phone number or write to us at the address shown at the top of this notice. If you
need help in determining your annual accounting period (tax year) , see Publication 538,
Accounting Periods and Methods.
we assigned you a tax classification based on information obtained from you or your
representative. It is not a legal determination of your tax classification, and is not
binding on the IRS. If you want a legal determination of your tax classification, you may
request a private letter ruling from the IRS under the guidelines in Revenue Procedure
2004-1, 2004-1 I.R.B. 1 (or superseding Revenue Procedure for the year at issue) . Note:
Certain tax classification elections can be requested by filing Form 8832, Entity
Classification Election. See Form 8832 and its instructions for additional information.
To obtain tax forms and publications, including those referenced in this notice,
visit our Web site at www.irs.gov. If you do not have access to the Internet, call
1-800-829-3676 (TTY/TDD 1-800-829-4059) or visit your local IRS office.
.
(IRS USE ONLY) 575B 07-03-2014 ROBE B 9999999999 SS-4
IMPORTFNT REMINDERS:
* Keep a copy of this notice in your permanent records. This notice is issued only
one time and the IRS will not be able to generate a duplicate copy for you. You
may give a copy of this document to anyone asking for proof of your EIN.
* Use this EIN and your name exactly as they appear at the top of this notice on all
your federal tax forms.
* Refer to this EIN on your tax-related correspondence and documents.
If you have questions about your EIN, you can call us at the phone number or write to
us at the address shown at the top of this notice. If you write, please tear off the stub
at the bottom of this notice and send it along with your letter. If you do not need to
write us, do not complete and return the stub.
Your name control associated with this EIN is ROBE. You will need to provide this
information, along with your EIN, if you file your returns electronically.
Thank you for your cooperation.
Keep this part for your records. CP 575 B (Rev. 7-2007)
----------------------------------------------------------------------------------------------
Return this part with any correspondence
so we may identify your account. Please CP 575 B
correct any errors in your name or address.
9999999999
Your Telephone Number Best Time to Call DATE OF THIS NOTICE: 07-03-2014
( ) - EMPLOYER IDENTIFICATION NiJMBER: 47-6344181
FORM: SS-4 NOBOD
INTERNAL REVENUE SERVICE ROBERT A BROWN TUW 12192007 NORMA J
CINCINNATI OH 45999-0023 BROWN TTEE
I�I��I�I�I�I�I��I�I��I�I��II���II�����I�I��II�I�I��I NO� J BROwN TTEE
410 CHES'PNUT DR
BOILING SPRGS, PA 17007
EXHIBIT "D"
� 1505610143
���"�� ��� ex�ez.�i� I�.
�"JFFICIAL USE ONLY
PA Department of Revenue pennsylvania �,�o,��cY r,�ae r�ar F�ie Number
9ureau of Individual Taxes °Eo•p*.�,�o�^�EM�■
�o eox.2aoso� INHERITANCE TAX RETURN ;,Z 1 13 117 2
Harrisburg, PA 17128-C601 RESIDENT �ECEDENT
ENTER DECEDENT INFORMATION BELOW
Sociai Security Number Date of Death Date of Birth
348 22 5598 10 22 2013 07 20 1�30
DecedenYs Last Name Su�x Decedent's First Name MI
BROWN ROBERT A
(if Applicable)Enter Surviving Spouse's Informatlon 8elow
Spouse's Last Name Su�x Spouse's First Name Mi
Spouse's Social Security Number
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF Ve/ILLS
FILL IN APPROPRIATE OVALS BELOW
a t. Original Retum � Z. Suppiemental Retum � 3. Remainder Return(Date of Death
Priof to 12-13-82)
� 4. Limited Estate � 4a.Future Intereat Compranias 5. Fedetal Estate Tdx Retum Requlred
(data of deaN afler 12-12-82) ❑
� g DecedeM Oied Testate � oec er�t Main��nea a Livinq rn,sc � _ 8. Total Number of Sa/e De osit Boxes
(Attach Copy of Wdp ❑ (Atta�Gopy o rust) P
� 9. Litigation Proceeds Received � ���Cen°veeni��31-����Da���Deatn � 11.Election to tax undet Sec.9113(A)
(Attach Schedule O)
CORRESPONDENT•THIS SECTION MUST 8E COMPLE7E0.ALL CORRESPONOENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO:
Name Daytime Telephone Numbe�
IVO V OTTO III 717 243 3341 �
C7 - -��
� �
- r`L
REGISTER t��.LS US��NLY , ; '
rn�-c_ r—' ��-�
First Line of Address ��f'� �
; - �
Z�� � _.
10 EAST HIGH STREET ��-� �,
�� ..� �
Second Line of Address ��� � — ��
— �n
.TS --� � ..!S Q
DATE FILED `
City or Post Office State ZIP Code
CARLISLE PA 17013
CorrespondenYs e-mail address:
Under penalties of perjury,I Cecfare that I have examined this return,includin�accompanying schedulee and statements,and to the best of my knowledge and beliet,
it is true,correct and complete.Declaration oi preparer other than the persona representative is based on all information of which preparer has any knowledge.
SIGNA7URE�OFVERSON RESPONSIBLE FOR�IIL�G RETURN DATE
=, � / �
. � ;r- � ; ',,��_;��. . ;Vorma J Brown / �' �: ,�'�''� % ;�
aooRes
d10 Chestnut Drive, 8oilinq Sprinqs, PA 17007
SIG'YATURE OF PREPA E{i OTHER TH�REPRESENTATIVE DATE
�
����� � +,�I'� v�_ � IVO V. Ott0111 �'/j,j : , • �,
ADDRESS
10 East High Street, Carlisle, PA
Side 1
� 7,505610143 �,S�J5610143 �
.�.� �o e.i r�rrcmu r
� 150561�243
REV-1500 EX
0-=;cadent's Social Security Number
G3cedanCsName SrOWII� RObePt A. 348 22 5598
�ECAPITULATION
1. Real Estate(Schedule A)....................................................................................... 1.
2. Stocks and Bonds(Schedule B)............................................................................. 2. 3 , 9 95 , 9 0 8 . 9 0
3. Closely Held Corporation, Partnership or Sole-Proprietorship(Schedule C)......... 3.
4. Mortgages 8 Notes Receivable(Schedule D)........................................................ 4.
5. Cash,Bank Deposits&Miscellaneous Personal Property(Schedule E)............... 5.
6. Jointly Owned Property(Schedule F) ❑ Separate Bil�ing Requested............ 6.
7. Inter-Vivos Transfers&Miscellaneous I�n;Probate Property
(Schedule G) �J Separate Billing Requested........,... 7,
8. Total Gross Assets(total lines 1 through 7)........................................................ g, 3� 995� 908 . 90
9. Funeral Expenses and Administrative Costs(Schedule H).................................... 9.
10. Debts of Decedent,Mortgage Liabilities and Liens(Schedule I)............................ 10.
11. Total Deductlons(total Lines 9 and 10)................................................................ 11.
12. Net Value of Estate(Line 8 minus Line 11).......................................................... 12. 3, 995 � 9�8 . 90
�3, Charitable and Governmental Bequests/Sec 9113 Trusts for which
an election to tax has not been made(Schedule J)............................................... 13.
14. Net Value SubJect to Tax(Line 12 minus Line 13)............................................... �q, 3 � 995, 908 . 9�
TAX COMPUTATION-SEE INSTRUCTIONS FOR APPLICABLE RATES
15. Amount of Line 14 taxable
at the spousal tax rate,or
transfers under Sec.9116
(a>(�.2)x.00 3 , 995 , 908 . 90 �5. 0 . 00
16. Amount of line 14 taxable 0 . 0 0 16. 0 . 0 0
at lineal rate X .045
17. Amount of Line 14 taxable
at sibling rate X.12 0 . 0 0 17. 0 . 0 0
18. Amount of Line 14 taxable
at collateral rate X.15 0 . 0 0 18. 0 . 0 0
19. TAX DUE................................................................................................................ 19. 0 . 0 0
20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. �
Side 2
� 1505610243 150561D243 „��
REV-1500 EX Page 3 File Number 21-13-1172
Decedent's Complete Address:
DECEDENT'S fVAME
Brown, Robert A.
STREET ADDRESS ---
410 Chestnut Drive
C�N BTATE ZIP
Boiling Springs PA 17007
Tax Payments and Credits:
1. Tax Due(Page 2,Line 19) (1) 0.00
2. Credits/Payments
A. Prior Payments
B. Discount 0.00
Total Credits(A +B) (2) 0.00
3. Interest �3�
q. If Line 2 is greater than Line 1 +Line 3,enter the difference. This is the OVERPAYMENT. (4}
Check box on Page 2,Line 20 to request a refund
5. If Line 1 +Line 3 is greater than Line 2,enter the difference. This is the TAX DUE. (5) Q.QD
Make Check Pa able to: REGISTER OF WILLS AGENT
�� �� � � " : „� � n - � .. � r
��� +�k'�� �:�� . �� �.# ' .�� '�;...�arsr�:d'�n�����ak�.Re�s `�. ' ��.�' ' �.' i• a .; x'n � n:�:, �.��i���s.a�.G+�.,.���n+'zYs'�„ fio+rr5�isr,"�
�., -c-`. ,ar, Rd:�r..r��i��,s,�c,,,,"...��a; .2te-s'-;K'.Y.�+.,..i..k.t�?�„�u.uc�':s�a,..3x':'�.
PLEASE ANSWER TNE FOLLOWING QUESTIONS BY PLACING AN "X" iM THE APPROPRIATE BLOCKS
t. Did decedent make a transfer and: Yes No
a. retain the use or income of the property transferred:........................................... ................................... X
b. retain the right to designate who shall use the property transferred or its income:.................................. � I x
c. retain a reversionary interest:or............................................................................................................... �x
d. receive the promise for life of either payments,benefits or care9............................................................ (x
2. If death occurred after Dec. 12, 1982, did decedent transfer property within one year of death without
receiving adequate consideration7................................................................................. .................................. ❑ �
3. Did decedent own an"in trust for� or payable upon death bank account or security at his or her death?.,..... ❑ ��
4. Did decedent own an individual retirement account, annuity,or other non-probate property which I�
contains a beneficiary designation7.................................................................................................................. i_1 �
IF THE ANSWER TO ANY dF THE ABOVE(lUESTIONSIS YES,YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
., ,.:.,: ;.Y,,,� �M,�.. .a.,r ,,.,,.,.;�.,�.,.�.��.. �,_. ;, . ,,x:�.,��,o�.«_� �..��:.,�, � ` °: .r .�.�> < �� � ��� ,,.� ,�, _
For dates of death on or after July 1, 1994 and before Jan. i, 1995,fhe tax rate imposed on fhe net value of transfers to�r for the use of the surviving spouse�
�s 3 percent(72 P S.§9116(a)(1.1)(i)],
For dates of death on or after January 1, 1995,the tax rate imposed on�he net value of transfers to or for the use of tne surviving spouse is 0 percent
(72 P.S.§9116(a)(1.1)(ii)�. The statute does not exempt a transfer to a surviving spouse from tax,and the statutory requirements for disclosure of assets and
filing a tax retum are still applicable even if the surviving spouse is the only beneficiary.
For dates of death on or after July 1,2000:
. The tax rate imposed on the net value of transfers from a deceased child 21 years of age or younger at death fo or for the use of a natural parent,an
adoptive parent,cr a stepparent of the child is 0 percent(72 P.S.§9116(a)(1.2)J.
• The tax rate imposed on the net value of transfers to or for the use of the decedenYs lineal beneficiaries is 4.5 p2rcenf,�rcept as noted in(72 P.S.§9116{a)(1)).
. The tax rate imposed on the nat value of transfers to or(or the use of the decedenYs siblinqs is 12 percent(72 P.S.§`:'�11=i(a)(1 3)j. A sibiing is Cefined,
urder Section 9102,as an individual�Hho has at least one parent in common with the decedent,svhether by blood or adoption.
Rev-1503 eX�(8-98�
�������� �
����� STOC�CS & BO�IDS
CCMMONIh�EALTH CF?ENNSYLVANIA
'�.HNERITANCE TAX RETURN
AESI�ENIOECE�ENT
ESTATE OF FILE NUMBER
8rown, Robert A. 21-13-1172
All property Jolnttyownedwith�ight of eurvivorship must bediscloaed on 5chedula F.
ITEM CUSIP VALUE AT DATE
NUMBER NUMBER DESCRIPTION UNIT VAIUE OF DEATH
Wells Fargo 1632-3553
1 3,333 shares of EATON VANCE MUN BD FD-Date of death 11.343840 37,809.02
value
2 15,586.859 shares of MFS MUN SER TR PA MUN BD FD- 9.7599998 152,127.74
Date of death value
Accrued dividend on Item 2 through date of death 343.98
3 8,026.44 shares of MFS SER TR III MUN HI INCM A-Date of 7.46 59,877.24
death value
Accrued dividend on Item 3 through date of death 195.62
4 6,004.554 shares of PIMCO FDS PAC INVE MGMT SER NUM 9.12 54,761.53
BD FD CL-A-Date of death value
Accrued dlvidend on Item 4 through date of death 10T.97
5 47,172 shares of Carlisle COS INC-Date of death value 72.7 3,429,404.40
6 2,696 shares of McDonalds Corp-Common-Oate of death 94.85 255,715.60
value
7 68 shares of PRUDENTiAL FINL INC.,COM $1.85 5,565.80
TOTAL(Also enter on Line 2, Recapitulation) 3,995,908.90
pf more space is needed,additional pages of the same size)
Copyriyht(c)2002 form software only The Lackner Group, inc. Form PA.1500 Schedule 8(Rev.6-98)
REV•1517 EX+(01-10�
pennsylvania �C������ �
DEPARTMENT OF REVENUE
WHERITANCE TAX RETURN 8EN EFiCiARi ES
RESIOENT CECEOENT
ESTATE OF FILE NUMBER
Srown, Robert A. 21-13-1172
NAME ANO ADDRESS OF RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE
NUMBER PERSON(S)RECEIVING PROPERTY DECEDEN7 ��,vords) (3$$)
i TAXABLE DISTRIBUTIONS [include outright spousal
' distributions,and transfers
under Sec.9116 a 1.2
1 Norma J.Srown Spouse All estate residue 5,565.80
410 Chestnut Drive
Boiling Springs, PA 17007
2 Norma J. Brown, Trustee, fbo Norma J. Brown, Spouse 654,444.10
present value of Disclaimer Trust
410 Chestnut Drive
Boiling Springs, PA 17007
3 Norma J. Brown, Trustes fbo Norma J. Brown, Spouse 3,335,899.00
remalnder value of Dfsclaimer Trust
410 Chestnut D�ive
Boiling Springs,PA 17007
Total 3,995,908.90
Enter dollar amounts for distributions shown above on lines 15 throu h 18 on Rev 1500 r.ovar sheet as a ro riate.
NON-TAXABIE DISTRIBUTIONS:
II. A.SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN
Present value of spousal interest in Schedule B,items 1-6 654,444.10
ftemainder value of Schedule B, Items 1-6 �,335,899.00
B.CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
TOTAL OF P.4RT II-ENTER TOTAL�ION-TAXABLE DISTRIBUTIONS ON UNE 13 OF REV-15i:)0 COVER SHEET
Copyright(c)2010 form software only 7he Lackner Group, inc. f"orm pA-1500 Schedule J(Rev. 01-10)
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`riEV-1514 EX;(4-09) �
�������� �
�' LIFE ESTATE, ANNUITY
COMMONWEALTHOFPENNSYLVANIA � TERM CERTAIN
:NHERITANCE T,aX RETURN
RESIOENT OECEDENT (Check 8ox 4 on Rev-1500 Cover Sheet)
cSTATE aF FILE ��UMBER
8rown, Robert A. 21-13-1172
This schedule should be used for all single life,joint or successive life estate and term-certain calculati�ns.For dates of death prior to 5-1-89,
actuarial factors for single life calculations can be obtained from the Oepartment of Revenue.
Actuarial factors can be found in IRS Publication 1457,Actuarial Values,Aipha Volume for dates of death from 5-1-89 to 4-30-99,
and in Aleph Volume for dates of death from 5-1-99 and thereafter.
Indicate the type ot instrument which created the future interest below and attaci�a copy to the tax return.
x�]VUili__(]Intervivos Deed of Trust ❑ Other
_. _ , LIF�ESTAT�INTERES�'C'AE�ULATi�i� '
� , - �� , �;. ��; ...z, _ _,,. ��� , ,� �
NEAREST AGE AT � �� '� ���
NAME OF LIFE TENANT DATE OF BIRTH DATE OF DEATH 7ERM OF YEARS
LIFE ESTATE IS PAYABLE
Norma J. Brown 07/17/1932 81 � Life or ❑Term of Years
❑ Life or ❑Term of Years
❑ Life or ❑Term of Years
❑ Life or ❑Term of Years
1. Value of fund from which life estate is payable $ 3,990,343.10
2. Actuarial factor per appropriate table .16526
Interest tabie rate- ❑ 3112% ❑ 6% ❑ 10% �Variable Rate 2.4%
3. Value of life estate(Line 1 multiplied by Line T) $ 659,444.10
�� .. .._�$ �. . .�k ,,. .�,��....��,AN�1tJlT�ll�TEt�ES'��A�.CU�4TIO�F � �- � . ,'�
� , .,.� m..;� , , � .�� ,.�.� ,..�. r , .
NAME OF ANNUITANT NEAREST AGE AT TERM OF YEARS
DATE OF BIRTH DATE OF DEATH ANNUITY IS PAYABLE
❑ Life or ❑Term of Years
❑ Life or ❑Term of Years
❑ Life or ❑Term of Years
❑ Life or ❑Term of Years
�. Value of fund from which annuity is payabie $
2, Check appropriate block below and enter wrresponding number
Frequency of payout-�] Weekly(52) ❑Bi-weekly(26) ❑Monthly(12) ❑Quarterly(4)
❑ Semi-annualiy(2) ❑Annuaily(1) ❑Other
3. Amount of payout per period $
4, Aggregate annual payment. l.ine 2 multiplied by Line 3
5. Annuity Factor(see instructions)
�nterest table rate- ❑ 31/2% ❑ 6% ❑ 10% ❑ Variable Rate
6. Adjustment Factor(see instructions) $
7, Value of annuity-If using 3 1/2%,6%, 10%or if variable rate and period payout is at end of period,
calculation is: Line 4 x Line 5 x Line 6 �
If using variable rate and period payout is at beginning of period, calculation is:
(Line 4 x Line 5 x Line 6)+Line 3
�OTE: The values of the funds which create the above future interests must be reported as part of the estate assets on Schedules A through G of the
tax retum.The resulting life or annuity interest(s)should be reported at the appropriate tax rate an I_ines 13 and 15 through 18 of the return.
Copyright(c)2009 form software only The Lackner Group, Inc. Form PA•1500 Schedule K(Rev. 4-09)
v i nr r r r ir�mu
REV-1847 EX�(9-00) /����
�������� ��
COMMONWE4LTHOFPENNSYLVANIA �UTURE lNTEREST COMPROMISE
��JHERITANCE TN(RETURN
RESIDENT OECE�ENT (Check Box 4a on Rev-1500 Cover Sheet)
ESTATE OF FI�E NUMBER
8rown, Robert A. 21-13-1172
This schedule is appropriate oniy for Estates of decedents dying after December 12, 1982.
This schedula is to be used for all future interests where the rate of tax which will be applicable��vhPn the future interest vests in
possession and enjoyment cannot be established with certainty.
Indicate below the tvoe of instrument which created the future interest and attach a coflv to tha tax return
!�Will ❑Trust ❑Othe�
I. Beneficiaries
NAME OF BENEFICIARY RELATIONSHIP DATE OF BIRT AGE TO
NEAREST BIRTHDAY
1, Norma J. Brown Spouse 07/17/1932 81
2.
3.
4.
5.
��• For decedents dying on or after Juiy t, 1994,if a surviving spouse exercised or intends to exercise a right of withdrawal within 9
months of the decedent's death,check the appropnate block and attach a copy of the document in which the surviving spouse
exercises such withdrawal r�' qt.
L! Uniimited ri ht of withdrawal ❑ Limited ri ht of withdrawal
ill. Explanatlon of Compromise Offer:
Date of Death value of Trust 3,990,343.10
Age of Life Tenant at nearest birthday 81
Federal Section 7520 rate for October 2.4%
Remainder factor .037474 see footnote(1)
Present value of Spousa{ Interest 654,444.10
Reminde�value of Trust 3,335,899.00
Footnote�1) From Federal Table S.Single Life Remainder Factor-Life Interest Holder Age 81 and 2.4%Rate.
IV. Summary of Compromise Offer:
1. Amount of Future Interest: 3,990,343.10
z. Value of line 1 exempt from tax as amount passing to charities,etc. 0.00
(also include as part of total shown on Line 13 of Cover Sheet)
3. Value of Line 1 passing to spouse at appropriate tax rate ei54,444.10
Check One ❑ 6% ❑ 3% �0%
(also include as part of total shown on Line 15 of Cover Sheet}
4. Value of Line 1 !axable at lineal rate 3,,335,899.00
❑ 6% `� 4,5°/a
(also inciude as part of total shown on Line 16 of Cover Sheet)
5. Value of Line t taxable at sibling rate(12%)
(also include as part of total shown on Line 17 of Cover Sheet)
o. Vatue of�ine 1 taxable at coliateral rate(15°/o)
(also incfude as part of total shown on Line 18 of Cover Sheet)
7 Total value of Future Interest(sum of Lines 2 thru 6 must equal Line 1} 3,990,343.10
Ccpyright(c)2002 form software only The Lackner Group, Inc. Form PA-1500 Schedu�e M(Rev.5-98)
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Rev-1649 EX(08-i�)
pennsylvania � �'C�����-� � �
DEPARTMENTOFREVENUE ELECTION UNDER SEC. 9113(A)
:NHERITANCE TAX RETURN
RESIDENTOECE�ENT {gppUSAL DISTRIBUTIONS) i
ESTATE OF FILE iVUMBER
Brown, Robert A. 21-13-1172
PART A - �JEFERRING STATEMENT
For ali trust assets reportable for Pennsylvania inheritance tax purposes for which a deferrai of#ax is chosen under
Section 9113(a),the personal representative responsible for filing the return and the trustee(s)of the trust in question hereby
acknowledge the departmenYs Statement of Policy set forth at 61 Pa.Code§94.3 concerning any potential termination of the
trust under 20 Pa.C.S. §7710.1 that occurs after the return was filed.Specifically,the signatories r2cognize each individual's
assumption of liability for inheritance tax consequences that result from any termination of the trust under 20 Pa.C.S.§7710.1
that occurs after a return has been filed.
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Signatur of Person Respons le for Filing Return Signature(s)of Trustee(s�
PART B — ELECTION TO TAX AMOUNTS
Complete this section only if making the election to tax available under Section 9113(a) of the Inheritance �
Estate Tax Act.
If the election applies to more than one trust or similar arrangement,a separate form must be filed for each trust. This election
applies to the Disciaimer Trust(marital, residual A,B,bypass,unified credit,etc.).
Enter the description and value of ali interests for which the Section 9113 (A) election to tax is made
DESCRIPTION VALUE
Total
(If more space is needed, insert additional sheets of the same�>ize)
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EXHIBIT "E "
_ �
NOTICE OF INHERITANCE TAX '����
BUREqU oF INDIVIDUAI raxEs APPRAISEMENT, ALLOWANCE OR DISALLOWANCE ,��� �Q�nSY�y�n»
tNHERITANCE 7AX �IVISION OF DEDUCTIONS AND ASSESSIMENT OF TAX DEPARTMENT OF REVENUE
PO BOX 280601
HARRISBURG PA 17126-0601 REV-1547 EX AFP C11-14)
DATE 01-12-2015
ESTATE OF BROWN ROBERT q
DATE OF DEATH 10-22-2013
FILE NUMBER 21 13-1172
OTTO III I�p y COUNTY CUM$ERLAND
10 E HIGH ST ACN 1U1
APPEAL DATE: 03-13-2015
C A R L I S L E P A 17 013-3 015 (See revE�rse.cide under Objections)
Amount Remitted �
MAKE CHECK PAYABIE AND REMIT PAYMENT T0:
RE6ISTER OF WILLS
1 COURTHOUSE SqUARE
CARLISLE PA 17013
CUT ALON6 THIS LINE � RETAIN LOWER PORTION FOR YOUR RECDRDS t�•
--------------------------------------------------
REV-1547 EX AFP C11-14� NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR
--------------
DISALLOWANCE OF �EDUCTIONS AND ASSESSMENT OF TAX
ESTATE OF: BROWN ROBERT AFILE N0. :21 13-1172 ACN: 101 DATE: 01-12-2015
TAX RETURN WAS: ( ) ACCEPTED AS FTLED ( }O CHANGED SEE ATTACHED NOTICE
APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN
1. Real Estate CSchedule A)
C1) .00 NOTE: To ensure
2. Stocks and Bonds (Schedule H) Proper
�2� 3,995, 908.90 credit to your account,
3. Closely Held Stock/Partnership Interest (Schedule C) submit the upper portion
C3) .00
4. Mortgages/Notes Receivable CSchedule D) of this form with your
(4) • 00 tax payment.
5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) (5) . 00
6. Jointly Owned Property (Schedule F) �6� . 00
7. Transfers (Schedule G) . 00
C7)
8. Total Assets
APPROVED DEDUCTIONS AND EXEMPTIONS: �e� -- 3.995 908 90
9. Funeral Ezpenses/Adm. Costs/Misc. Expenses tSchedule H? �g� 00
10. Debts/Mortgage liabilit3es/Liens (Schedule i)
(101 00
11. Total Deductions
12. Net Value of Tax Return �11) .0 0
13. Charitable/Governmental Bequests; Non-elected 9113 7rusts CSchedule J) �12� 3,995,908.9 0
14. Net Value of Estate Subject to Tax C13) 00
ci4) 3,995,908.90
NOTE: If an assessment was issued previously, Lines 14, 15, 15, 17, 18 and/Or 19 will
reflect figures that include the total of all returns assessed to date.
ASSESSMENT OF TAX:
15. Amount of Line 14 at spousal rate �15� . 00 X 00 =
16. Amount of Line 14 taxable at lineal rate C16) ;-995 .4l1R 90 •0 0
17. Amount of Line 14 at sibling rate x 045 = 179,815.90
(17) nQ X 12 = .00
18. Amount of Line 14 taxable at collateral rate �Lg� _
19. Principal Tax Due • ��� X 15 - .00
TAX CREDITS: C19�' 179,815.90
PAYMENT RECEIPT DISCOUNT C+)
DATE NUMBER IN7EREST/PEN PAID (-� AMOUN7 PAID
INTEREST IS CHARGED THROUGH 01-27-2015 TOTAL TAX PAYMENT
AT TNE RATES APPLICABLE AS OUTLINED ON THE HALANCE OF To�X DUE • 00
REVERSE SIDE OF THIS FORM 179,815.90
INTEREST ,ANA PEN. 2,�g6.�9
TOTAL DUE 182,502.b9
* IF PAID AFTER DATE INDICATED, SEE REVERSE IF TOTAL DUE IS REFLECTED AS A CREDIT CCR), YpU MAY BE DUE
FOR CALCUlATION OF ADDITIONAL IN7EREST. A REFUND.
SEE REVERSE SII;� ;=OR INSTRucrrnuc
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EXHIBIT "F"
_____.. _....._. _.___�.�..�..�,�.�..a ��d��5 t.,.�� ,. ..: - __ ,�
.
' BOaRDOF.aPPE.aLS � �� X: pennsylvania
P O BOX 28(021
DEPARTMENT OF REVENUE
HARRISBURG,PA 17128-1021 _.,_�,,,��
IVO V OTTO III IN RE ESTATE OF:
10 E HIGH ST
CARLISLE, PA 17013-3015 BROWN ROBERT A
DOCKET NO. : 1501608
TAX TYPE: Inheritance
APPEAL TYPE Protest
FILE NUMBER: 2113-1172
ACN: 101
APPRAIS EMENT: 1/12/2015
PETITION FILED: 1/14/2015
EXAMINER: Holly Moore
Direct Dial: (717) 783-7905
Fax: (717) 787-7270
F,mail:holmoore@pa.gov
MAILING DATE: April 10, 2015
DECISION AND ORDER
The Department issued an appraisement and assessment on.Tanuary 12, 2015. The
assessment taYed all assets of the estate at the lineal tax rate. The E�Yplanation of Changes indicates
"Spouse specitically disclaimed all interest in Items 4 and 6 of the will. This amount is to be taxed at
the lineal rate."
Petitioner disagrees with the Department's assessment of the estate and argues that the
disclaimer filed in which the decedent's spouse disclaimed all interest in her husband's estate except
for residue in the amount of$5,565.80. Petitioner contends that the tax return reflects spousal
distribution under Section 9113 in the amount of$3,990,343.10.
ITEM FIVE of the decedent's Last Will and Testament states: `'In the event my said wife
shall disclaim all or any portion of any devise or bequest made to my wife under the foregoing ITEM
FOUR, then the amount otherwise payable shall be held by my Trustee ttnder ITEM SIX hereof. For
purposes of the Trust established under ITEM SIX hereof, my said wife shall not be deemed to have
predeceased me by virtue of my said wife's eYercise of the right to disclaim set forth herein." In this
case the surviving spouse has filed a timely disclaimer which states "I, Norma J. Brown, herby
exercise the rights granted to me in Chapter 62 of the Probate Estates and Fiduciaries Code (the
"PEF Code"), and I hereby disclaim and renounce any interest to which I may be entitled under
Items Four and SiY of the Last Will and Testament of Robert A. Brown dated December 19, 2007
_ ---- �„:a.�� . . > :,,,e�
.
BROWN ROBERT A Page 2 of 2
BOARD DOCKET NO. 1501608
and probated at the above number, and under applicable law to the following assets:". The total
value listed for the disclaimed assets is $3,990,343.10. Based on this, the surviving spouse
disclaimed her interest in both Item 4, the assets of the estate and Item 6 the assets which passed to
the trust due to the spouse disclaiming items under Item 4. As the surviving spouse has disclaimed
both the probate assets and the trust assets the $3,990,343.10 assets disclaimed would pass to the
decedent's issue.
As for the amount the surviving spouse did not disclaim, according to the decedent's will,
ITEM FOUR indicates the decedent devises his entire estate to his surviving spouse. Based on this
the remaining probate estate, $5,565.80 should be taYable at the spousal rate.
Accordingly, it is hereby Ordered the protest is sustained in-part. The Department is directed
to tax the probate assets of the estate on Line 15.
FOR THE BOARD OF APPEALS
Lauren Zaccarelli, Chair
Any appeal from this decision must be filed with the Orphans' Court within sixty (60) days of
receipt of this decision. A copy of the appeal should be served on the Department of Revenue,
Office of Chief Counsel, P.O. Box 281061, Harrisburg, Pa 17128-1061.
Any applicable notice reflecting any changes to the account pursuant to the Board's Decision and
Order may be mailed to you by the appropriate bureau.
Please be advised that all evidence submitted in conjunction with this appeal becomes the property
of the commonwealth of Pennsylvania and will not be returned.
If you require this information in an alternate format under the provisions of Americans with
Disabilities Act of 1990, please call 717.783.3664, or for services for taYpayers with special hearing
and speaking needs: 1.800.447.3020 (TT only).
Board of Appeals
PO Box 281021 � Harrisburg, PA 17128 � 717.783.3664 J www.revenue.state.pa.us