HomeMy WebLinkAbout08-26-02IN THE COURT OF COMMON PLEAS.
CUMBERLAND COUNTY, PENNSYLVANIA
IN RE:
ESTATE OF LOY T. HEMPT,
Deceased
ORPHANS' COURT DIVISION
NO. Q.31
OBJECTIONS TO FIRST. AND FINAL ACCOUNT FOR
THE ESTATE OF LOY T. HEMPT AND RESIDUARY
TRUST UNDER WILL OF LOY T. HEMPT
AND NOW, come Petitioners, W. Robert Mark, Forrest H. Mark, and Steven E.
Mark, by and through their attorneys, ZULLINGER-DAVIS, P.C., and hereby file this
objection to the First and Final Account of the Estate of Loy T. Hempt and Residuary
Trust under Will of Loy T. Hempt.
THE OBJECTIONS SET FORTH HEREIN ARE BASED ON THE
FOLLOWING FACTUAL CONTEXT, WHICH PETITIONERS BELIEVE TO BE
TRUE AND CORRECT:
Loy T. Hempt died on March 19, 1977, a resident of Cumberland County,
Pennsylvania. He left a will dated August 8, 1964, and a codicil dated December 12,
1969, which are both probated in the office of the Register of Wills of Cumberland
County, Pennsylvania, hereinafter both the will and codicil are referred to as "the Loy T.
Hempt Will."
The Loy T. Hempt Will creates a residuary trust (hereinafter the "Residuary
Trust") with the life interest currently represented by Jean Hempt. The remainder
interest is currently represented as follows: forty (40%) percent thereof to the issue of
Max Hempt, as he is deceased; the issue who share equally in the aforementioned forty
(40%) percent are George F. Hempt, Marion H. Sendoff, Martha D. Bair, and Gerald L.
Hempt; forty (40%) percent thereof to the issue of Dorothy Hempt Mark as she is
deceased; her three issue (the petitioners herein), share equally her forty (40%) percent
interest. Twenty (20%) percent to Robert Kalbach who is now living and if he is deceased
at the time for distribution of the trust to his issue who are Robert Kalbach, Jr., and
Richard C. Kalbach.
The petitioners are nephews of Jean Doris Hempt, the life tenant under the
aforementioned residuary trust. Jean Doris Hempt (hereinafter "Jean"), was born
January 24,1927, in Cumberland County, Pennsylvania, and due to her mental retardation
has resided for many years at the Woods School and Residential Treatment Center at
Langhorne, Pennsylvania. She is unmarried, has no children and both of her parents are
deceased. Jean had a brother and sister, namely Max C. Hempt who died in 1999, and
Dorothy H. Mark who died in 1995. She was adjudicated to be an incapacitated person by
final decree of this Honorable Court dated March 8, 1985. Further, in a final decree dated
May 10,1990, this Honorable Court named Max C. Hempt and Dorothy H. Mark
guardians of the person of Jean. Jean's intestate heirs consist of the issue of Max Hempt,
namely George F. Hempt, Gerald L. Hempt, Marion H. Sendoff, and Martha D. Bair, and
the issue of Dorothy Hempt Mark, namely W. Robert Mark, Forrest H. Mark and Steven
E. Mark.
The will of Loy T. Hempt names Max C. Hempt and Margaret Hempt, the widow
of Loy T. Hempt as trustees of the Residuary Trust for the benefit of Jean and provides
that Dorothy H. Mark be an alternate residuary trustee. Margaret Hempt died on
September 4,1988, and thereafter Dorothy H. Mark died on June 15, 1995. These deaths
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created a vacancy in the fiduciary positions of co -trustee with Max C. Hempt for the
Residuary Trust for Jean's benefit under the will of Loy T. Hempt and as co -guardian of
the estate and person of Jean.
On June 3, 1996, Max Hempt and Gerald L. Hempt filed a petition with this
Honorable Court captioned "In the Matter of Jean Doris Hempt, an Incompetent"
(Exhibit "A" attached hereto). The petition requested that Gerald L. Hempt be appointed
as a successor trustee with Max Hempt under the Residuary Trust created by the Loy T.
Hempt will, as well as the trust under the will of Jean's father, George Hempt, and as co -
guardian of the estate and person of Jean. The Court on September 3,1996, entered an
order granting the petition of Max C. Hempt and Gerald L. Hempt (Exhibit B attached
hereto).
Max C. Hempt died on May 23, 1999, and Gerald L. Hempt has acted as sole
trustee under the Residuary Trust created by the will of Loy T. Hempt and as sole
guardian of the estate and person of Jean. However, no proceedings have been instituted
to have a successor personal representative appointed for the estate of Loy T. Hempt. By
his filing this account, Gerald L. Hempt apparently has assumed that position in spite of
there being no appointment by the Register of Wills of Cumberland County.
At the time of his death, Loy T. Hempt, owned shares in the common stock of
C.A. Hempt Estate, Inc., a Pennsylvania corporation, whose principal business is dealing
in commercial real estate in Cumberland County, Pennsylvania. Loy T. Hempt also
owned shares in Valley Land Company, which your petitioners assume is a company
owning real estate. Further, Loy T. Hempt held shares of stock in Hempt Brothers, Inc.
All three of these holdings are listed in the account filed by Gerald L. Hempt. Gerald L.
stocks were not distributed to Robert Kalbach because of his business
competition with Hempt Brothers, Inc. However, the decedent, Loy T.
Hempt, was aware of such conflicting interests prior to his death and
yet he chose to distribute his Residuary Trust on a pro-rata fractional
basis following Jean's death.
2. 20 PA. C.S.A., Section 7191, subsection (a), as amended by Act 39 of
1999, P.L. 422, was adopted to aid in the qualification of trusts as
qualified shareholders for subchapter S purposes, as well as for
Generation Skipping tax purposes. The intent of the legislature was
not to permit a trustee to gain personal advantage or control the
interests in closely held corporations to the detriment of other
beneficiaries.
3. The amendments to 20 PA. C.S.A. Section 7191 in 1992 and 1999,
were specifically not made to apply retroactively to a trust under a will
executed in 1964 by a decedent who died in 1977. In fact, Section
7191 at the time of the death of Loy T. Hempt, provided only that the
court "for cause shown and with the consent of all parties in interest
may divide a trust into two or more separate trusts".
4. If 20 PA. C.S.A. Section 7191(a), as amended, is deemed to apply in
this matter, it would be a violation of both the Pennsylvania and
United States Constitutional protections afforded petitioners against an
illegal taking of property.
5. The attempt by the accountant, who, in his individual capacity, is a
substantial owner in various businesses in which the Residuary Trust
holds stock and a remainder beneficiary under the Residuary Trust, to
divide the assets of the Residuary Trust into three separate trusts is on
its face a conflict of interest.
6. The petitioners, despite the fact that they own stock in C.A. Hempt
Estate, Inc. and despite the fact that they have attended various board
meetings of this entity over the years, do not have sufficient
information to determine the fair market value of C.A. Hempt Estate,
Inc. Accordingly, the petitioners cannot determine whether the
distributions proposed by the accountant are fair to all parties in
interest, which is their primary concern. The same is true of Hempt
Brothers, Inc. This is true despite the fact that petitioners may in fact
benefit significantly on a financial basis from the proposal as set forth
by the accountant.
7. The petitioners do not object to the distribution of assets from the Loy
T. Hempt Residuary Trust on a pro rata fractional share basis for each
asset.
B. Even if, the accountant is deemed to have the authority to divide the assets of
the Loy T. Hempt Residuary Trust into three separate trusts on a non -pro -rata
fractional basis, the petitioners object to the valuations presented by the
accountant, especially in light of the fact that neither the petitioners nor the
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court have sufficient information concerning the valuation of Hempt Brothers,
Inc., Valley Land Company, and C.A. Hempt Estate, Inc.
1. The valuation report prepared by C.A. Hempt Estate, Inc. for a
shareholders' meeting reflects the December 31, 2000 value of the
corporation at $211.44 per share (Exhibit C herein). The Loy T.
Hempt Residuary Trust holds 6,000 shares which, based on the
corporation's own valuation at the end of the year 2000, would make a
fair market value of $1,268,640.00. The accountant used the value of
$104.00 per share. There is no reference in the account as to why the
valuation of the shares plummeted. The petitioners and the court have
a right to know how the valuation of the stock in the C.A. Hempt
Estate, Inc. was arrived at. If the accountant used some type of
discounted valuation, the petitioners object to the impact of a discount
benefiting some beneficiaries and not others.
2. The valuation of Hempt Brothers, Inc. appears low and does not reflect
its fair market value. In 1975, the petitioners' mother, Dorothy Hempt
Mark, sold her shares in the company for $653.00 per share. The
accountant used a per share valuation in his account considerably less
than that. The account does not reveal a method of valuation to allow
the petitioners or the court to make an independent judgment of the
fairness of the valuation. Petitioners do not have, nor have they ever
seen a copy of the alleged buy -sell agreement covering Hempt
Brothers, Inc.
3. The valuation of Valley Land Company does not properly reflect its
fair market value in that the accountant's use of the common level
ratio to determine the value of Valley Land Company stock is
incorrect and inappropriate. The common level ratio is a statutory
creation which was not intended to determine fair market value.
4. All of the petitioners' concerns about valuation could be resolved by a
prorated fractional distribution into three separate trusts of each asset
in the Loy T. Hempt Residuary Trust.
C. In addition to the above, the Petitioners object to various actions on the part of
the accountant, which appear to be a breach of the accountant's fiduciary duty
to all of the beneficiaries.
1. The accountant was never appointed executor of the Loy T. Hempt
Estate by the Register of Wills of Cumberland County following his
father's death.
2. The accountant distributed in December of 2000, principal assets to
Jean's estate which were later reimbursed to the Loy T. Hempt Estate
and Residuary Trust. The reimbursement did not include
compensation for lost income from the funds before they were
reimbursed in January of 2002.
3. In selling assets of the Loy T. Hempt Estate and Residuary Trust to
make a distribution of principal to Jean's estate, a fiduciary income tax
obligation would be triggered on any capital gain, thus incurring
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objections or, in the alternative; that the Court consider the same and that the auditor or
Court consider the following relief:
1 Declare the distribution of the Loy T. Hempt Residuary Trust into three
separate trusts to be null and void.
2. In the alternative, if the Loy T. Hempt Residuary Trust is to be divided
into three separate trusts, order the allocation on a pro rata basis based on the
fractional shares set forth in the Loy T. Hempt will for each asset.
3. Order an independent corporate fiduciary to serve with Gerald L. Hempt
or alone as Administrator d.b.n. c.t.a. for the Estate of Loy T. Hempt and as trustee of all
trusts created under the will of Loy T. Hempt.
4. Order the accountant to reimburse the Loy T. Hempt Estate and Residuary
Trust in an amount equal to tax penalties, interest incurred and loss of the use of funds
suffered by the estate and trust due to the $200,000.00 principal distribution to Jean's
estate.
5. Order the accountant to reimburse the trust in the amount of $44,818.20
representing the amount of expenses improperly paid for the benefit of Valley Land
Company.
6. Order the accountant to reimburse the Residuary Trust for legal fees paid
or incurred since January 2001 from the assets of the Residuary Trust.
7. Order the accountant to reimburse the petitioners for their legal fees or
expenditures in connection with the accountant's management of the Estate of Loy T.
Hempt and the Residuary Trust.
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8. Grant such other relief as the Court, in its judgment, deems necessary and
appropriate.
11
Respectfully submitted,
ZULLINGER-DAVIS, P.C.
By
r.
oel R. Zullinge
Sup. Ct. I.D. N. 7516
14 North Main Street, Suite 200
Chambersburg, PA 17201
(717)264-6029
Attorney for Petitioners
CERTIFICATE OF SERVICE
AND NOW, this c,,26 'day of August, 2002, I certify that I am this day
serving a copy of the foregoing document upon the persons and in the manner indicated
below, which service satisfies the requirements of the Pennsylvania Rules of Civil
Procedure, by depositing a copy of same in the United States Mail, Chambersburg, PA,
with first class postage prepaid, as follows:
Jerry R. Duffle, Esquire
David W. DeLuce, Esquire
301 Market Street
P.O. Box 109
Lemoyne, PA 17043-0109
Attorneys for George F. Hempt
And Gerald L. Hempt
Daniel L. Sullivan, Esquire
3401 N. Front Street, P.O. Box 5950
Harrisburg, PA 17110-0950
Attorney for Robert Hempt Kalbach, Sr.,
Robert H. Kalbach, Jr. and
Richard C. Kalbach
Gerald L. Hempt
P.O. Box 278
Camp Hill, PA 17001-0278
Robert H. Kalbach, Sr.
1 W. Lawn Circle
Wormleysburg, PA 17043
Richard C. Kalbach
3 Manassas Court
Mechanicsburg, PA 17055
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Marion K. Semoff
410 Candlewyck Road
Camp Hill, PA 17011
Martha D. Blair
225 North Ridge Road
Perrysburg, OH 43555
George F. Hempt
763 Limekiln Road
New Cumberland, PA 17070
Jean Doris Hempt
c/o Gerald L. Hempt
Guardian of Estate and Person of
Jean Doris Hempt
P.O. Box 278
Camp Hill, PA 17001-0278
Robert H. Kalbach, Jr.
6339 Creek View Road
Mechanicsburg, PA 17055
Richard W. Stevenson, Esquire
McNees, Wallace & Nurrick, LLC
Pine Street, P.O. Box 1166
Harrisburg, PA 17108
VERIFICATION
I, Steven E. Mark, have read the foregoing document and verify that the facts set forth herein
are true and correct to the best of my knowledge, information and belief. To the extent that the
foregoing document and/or its language is that of counsel, I have relied upon counsel in making
this verification.
I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S.A.,
Section 4204 relating to unsworn falsification to authorities.
Steven E. Mark
VERIFICATION
I, W. Robert Mark, have read the foregoing document and verify that the facts set forth herein
are true and correct to the best of my knowledge, information and belief. To the extent that
the foregoing document and/or its language is that of counsel, I have relied upon counsel in
making this verification.
I understand that any false statements made herein are subject to the penalties of lP
C.S.A., Section 4204 relating to unsworn falsificatio r • autho
4irg; J
DATED:
W. Robert Mark
VERIFICATION
I, Forrest H. Mark, have read the foregoing document and verify that the facts set
forth herein are true and correct to the best of my knowledge, information and belief. To
the extent that the foregoing document and/or its language is that of counsel, I have relied
upon counsel in making this verification.
I understand that any false statements made herein are subject to the penalties of
'18 Pa. C.S.A., Section 4204 relating to unswom falsification to authorities.
DATED: ahyoa.,
Forrest H. Mark
IN THE MATTER OF
JEAN DORIS HEMPT,
AN INCOMPETENT
COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
Nos. 2008 of 1942, 253 of 1977, and 117 of 1985
PETITION FOR APPOINTMENT
of SUCCESSOR TRUSTEE and SUCCESSOR GUARDIAN
OF ESTATE and of PERSON
The Petition of Max C. Hempt and Gerald L. Hempt respectfully represents:
1. Petitioner Max C. Hempt is the brother of, and Petitioner Gerald L. Hempt is
the nephew of, Jean Doris Hempt (hereinafter "Jean") whose domicile is Cumberland County,
Pennsylvania.
2. Jean was born on January 24, 1927 in Cumberland County, Pennsylvania, and
because of a disability, has since 1937 been a resident at The Woods Schools and Residential
Treatment Center, Langhorne, Pennsylvania, a privately owned institution.
3. Jean is unmarried and has no children. Her parents are deceased.
4. Jean has two siblings - namely, a sister, Dorothy H. Mark, who died June 15,
1995, and the Petitioner, Max C. Hempt.
1
Exhibit A
5. Jean, because of mental retardation, is unable to manage her property or her.
person, is liable to become the victim of designing persons, and lacks sufficient capacity to
make and communicate responsible decisions concerning her property or person. Attached
hereto and incorporated herein by reference as Exhibit "A", is an affidavit, dated January 28,.
1985, of Jean's physician at the time, Stanley Gould, M.D., which sets forth the physical and
mental condition of Jean. The original of said affidavit is on file at the Cumberland County
Courthouse, Carlisle, Pennsylvania, recorded in Record Book 112, Page 494, Exhibit "A".
6. No change in Jean's disability and physical and mental condition has occurred
from 1985 to the present.
7. Jean is the beneficiary under a Testamentary Trust established by her father,
George L. Hempt, who died on September 8, 1942, and whose Will is filed with the
Cumberland County Register of Wills at No. 2008 of 1942. The Will of George L. Hempt
names his brother, Loy T. Hempt (now deceased) as trustee of such Testamentary Trust for
the benefit of Jean. By Decree dated April 12, 1977 at No. 253 of 1977, the Cumberland
County Court named Max C. Hempt (a brother of Jean) and Dorothy H. Mark (a sister of
Jean) as successor trustees of such Testamentary Trust for the benefit of Jean under the Will
of George L. Hempt.
8. Jean, also, is a beneficiary of a Testamentary Trust under the Will of her uncle,
Loy T. Hempt, now deceased, whose Will is filed with the Cumberland County Register of
2
Exhibit A
Wills, at No. 21-77-231. The Will of Loy T. Hempt names Max C. Hempt and Margaret
Hempt, the widow of Loy T. Hempt, as trustees of such Testamentary Trust for the benefit of
Jean, with provision that at the death of Margaret Hempt (who died September 4, 1988), she
will be succeeded as a co -trustee by Dorothy H. Mark.
9. In a Final Decree of the Cumberland County Court dated March 8, 1985 (Book
112, Page 499), Judge Sheely ordered that Jean is judged an incompetent and that Max C.
Hempt and Dorothy H. Mark are appointed guardians of Jean's estate, with no bond required.
10. In a Final Decree of the Cumberland County Court dated May 10, 1990, Judge
Sheely ordered that Max C. Hempt and Dorothy H. Mark are appointed guardians of the
person of Jean, with no bond required.
11. Because of the death of Dorothy H. Mark on June 15, 1995, there now is a
vacancy for the fiduciary positions she held as (1) co -trustee with Max C. Hempt of the
Testamentary Trust under the Will of George L. Hempt for the benefit of Jean; (2) co -trustee
with Max C. Hempt of the Testamentary Trust under the Will of Loy T. Hempt for the
benefit of Jean; (3) co -guardian with Max C. Hempt under the Final Decree of the
Cumberland County Court, dated March 8, 1985, naming Dorothy H. Mark as a co -guardian
with Max C. Hempt of the Estate of Jean; and (4) co -guardian under the Final Decree of the
3
Exhibit .A
Cumberland County Court of May 10, 1990 naming Dorothy H. Mark as a co -guardian with
Max C. Hempt of the person of Jean.
12. Petitioner Gerald L. Hempt is particularly situated to be a fiduciary for the
benefit of Jean because he has been involved for numerous years with overseeing and
managing Jean's financial affairs, and from this involvement, Gerald L. Hempt (aside from
Petitioner Max C. Hempt) is most knowledgeable about the over-all well-being and welfare of
Jean.
13. A major asset held for the benefit of Jean in the subject fiduciary accounts is
shares of stock of .Hempt Brothers, Inc., a family owned quarrying and road building business
of which both Petitioner Max C. Hempt and Petitioner Gerald L. Hempt are significant
shareholders. Because of the prominence of Hempt Brothers, Inc. stock among the assets held
for .the benefit of Jean, it is desirable and appropriate that a successor to Dorothy H. Mark as
a fiduciary for the benefit of Jean be a person significantly knowledgeable about Hempt
Brothers, Inc. Petitioner Gerald L. Hempt particularly qualifies in this respect, because
beyond being a shareholder of Hempt Brothers, Inc., he is, also, the long-time
Secretary/Treasurer of that Company, and has for numerous years been involved with the
management of that Company on a daily basis.
4
Exhibit A
14. Service of notice on Jean about the filing of this Petition, because of her
disability, will serve no purpose.
15. Petitioner Gerald L. Hempt is the owner of substantial property in Cumberland
and York Counties, and, therefore, it is respectfully submitted that no bond is necessary for
his serving as a fiduciary for the benefit of Jean.
16. Appointment of Petitioner Gerald L. Hempt as a co -trustee with Max C. Hempt
of Testamentary Trusts for the benefit of Jean, and as a co -guardian with Max C. Hempt of
her estate, and of her person, as herein described, is in the best interests of Jean, and such
appointment will not adversely affect the interests of any other person or organization.
WHEREFOR, your Petitioners pray that Gerald L. Hempt be appointed as a successor
co -trustee and as a successor co -guardian, as herein described, for the benefit of Jean, with no
bond being required of him.
Gerald L. Hempt
5
Exhibit A
COMMONWEALTH OF PENNSYLVANIA
: SS
COUNTY OF CUMBERLAND
MAX C. HEMPT and GERALD L. HEMPT, being duly sworn according to law,
depose and say that the facts set forth in the aforegoing Petition are true and correct to the
best of their knowledge, information and belief.
Sworn to and subscribed
before me this 3 r -d -day
of , _ , 1996.
My Commission Expires:
NOTARIAL SEAL
DIANE H. ROY, Notary Public
Camp Hill, Cumberland County
My Commission Expires Aug. 3, 1998
6
Exhibit A
•
•
"
FOUNDED 1913
EY
M0WE WOODS HARE
out • 2956)
•
THE WOODS SCHOOLS AND RESIDENTIAL TREATMENT CENTER
Langhorne, Pennsylvania 19047 • Telephone 215 757-3731
The undersigned, being duly sworn according to law,
deposes and says that he is a licensed physician specializing
in Pediatrics and has examined Jean Doris Hempt and is and has
been her physician since August, 1982 and deposes and says the
following:
1. That I am a Board -Certified Pediatrician,
licensed to practice in the State of Pennsylvania.
2. That Jean Doris Hempt entered The Woods Schools
on September 13, 1938 and has resided there continuously since
that date.
3. That Jean Doris Hempt suffers from mild mental
retardation. Her full-scale as measured by the Wechsler
Adult Intelligence Scale, is 60. Additionally, she demonstrates
deficits in visual -motor integration. She functions on a
concrete level, demonstrating difficulty with abstract thought,
practical judgement and memory. She is physically well,
although she has hypothroidism and varicosities of both legs.
4. That Jean Doris Hempt, because of her mental
retardation, is unable to manage her own property, is liable
to dissipate it and could well become the victim of designing
persons.
Lf 4 7 1
, . . .... • .. .
!I. C.. , : • '77.3
Stanley Gould, 1.D.
EXHIBIT "A"'
IN THE MATTER OF
JEAN DORIS HEMPT,
AN INCOMPETENT
COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
Nos. 2008 of 1942, 253 of 1977, and 117 of 1985
FINAL DECREE
vil
AND NOW, this day of S` rr-y'ri''t996, upon consideration of the annexed
Petition, IT IS ORDERED AND DECREED that Gerald L. Hempt is hereby appointed: (1) a
co -trustee (with Max C. Hempt) of the Testamentary Trust for the benefit of Jean Doris
Hempt under the Will of George L. Hempt; (2) a co -trustee (with Max C. Hempt) of the
Testamentary Trust for the benefit of Jean Doris Hempt under the Will of Loy T. Hempt; and,
(3) a co -guardian (with Max C. Hempt) of the estate, and of the person, of Jean Doris Hempt.
BY THE COURT,
CC
UU
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Exhibit B
TOWNSHIP We
;OWER ALLEN
21-77 11
230
11 ORTHA M. WILLIAMS
A-CTA
Carrip Hill
•
WARY 16,1977 !
EXECUTOR c ,j EUXEM` .,
DOTH F: Nov :2 1976
ADMR JANET R WILLIAMS
BOOK No. PAGE
MONTH DAYYEAR
ABSTRACT OF PROCEEDINGS Ii BOOK I No. PAGE
WILL , 76 355
INV 39 414
TAX • 10 72-4
I
•
.
•
i4
mAR. X31
MAY 119
MAY 119
SEPTI
OCT
MAY110
f
7
1
1977
1977
1977
1977
1977
1979
Petition for Citation „
LETTERS OF ADMINISTRATION-CTA
BOND
DEDUCTIONS
INHERITANCE TAX APPRAISEMENT
FEDERAL ESTATE TAX RETURN
Rt rexeEAZ,-1 t -- acst BIC_ y p. 1 b '7
0.0 , i1031
WILL !761646
TAX
10 X83-2
�.
911
RESIDENCE !
TOWNSHIP OF '
EAST PENNSB0R0,
FILE No.
21-77
231
NAME OF DECEDENT
LOiCT-,_HEMPT
DESIGNATION
T
RESIDENCE
HAMPDEN TWP.
RUARY 24 , 1977 !
MAX HEMPT & 3#1101N3111PIX
EXECUTOR
DOROTHY HEMPT MARK
DATE OF MARCH 19,1977
DEATH
ADM•R
BOOK No. PAGE I
MONTH IDAY1 YEAR
ABSTRACT OF PROCEEDINGS
BOOK No.
PAGE
_
1
WILL76 . 362
TAX •10 ,72-5
11
•Exhibit
MAR !31
DEC
DEC 119
APR [20
MAY 116
MAY
APR 4.2
JAN. '27'1992:
;1977
19119771
;1977]
16 ;1979
;
1978`
1978
I
J.978
LETTERS TESTAMENTARY- f%,._ v, t: ,j -
INVENTORY
DEDUCTIONS
INHERITANCE TAX APPRAISEMENI'
FEDERAL ESTATE TAX RETURN
AMENDED FEDERAL ESTATE TAX RETURN
REMAINDER APPRAISEMENT
LETTERS TESTAMENTARY
C _...... -
WILL X76
INV 39
TAX ` 10-72-71
i
TAX 10
WILL 120708
I
II
368
842
.
72-7
I
C.A HEMPT ESTATE, INC.
VALUATION
Assets
Cash
Bonds
Fixed Assets, net of depreciation
Deferred Lease expense, net
Total Assets
Liabilities
Demand Note
Per CPA
Statements
12/31/00
302,309
63,283
1,498,686
25,444
Fair
Market
Value
Sale/
Liquidation
Value
302,309
62,873 * Per CPA Statements
5,359,000 ** Per 5/1/01 appraisals
25,444
1,889,722 5,749,626
(675,000) (675,000)
Net Asset Value 1,214,722 5,074,626
Going Concern Value
Fair Market Value of Assets Tess Iiablities 5,074,626
Discount for lack of marketability (30%)
and minority interest (30%) for combined discount of 51 % (2,588,059)
Value 2,486,567
Per share value
(24,000 shares outstanding)
Safe/Liquidation Value
104
Potential gain on sale of real estate (5,359,000 minus 1,498,686)
Less: selling expenses (estimated)
Potential Toss on sale of bonds (62,873 minus 63,283)
Net gain
Less: PA tax on gain at 9.99%
Gain on sale for Federal tax purposes
Federal tax @ 35%
Fair Market Value of assets Tess liabilities
Less: selling expenses (estimated)
PA tax on gain
Federal tax on gain
Net asset value after sale/liquidation
Per share value
(24,000 shares outstanding)
Exhibit C
3,860,314
(400,000)
(410)
3,459,904
(345,644)
3,114,260
1,089,991
5,074,626
(400,000)
(345,644)
(1,089,991)
3,238,991
135
4
C.A HEMPT ESTATE, INC.
Present Value of $5 per share annual dividend for 99 years
Interest Rate
Present Value $5 per year/99 years
Present Value of $135, payable in 99 years
Present Value of $135, payable in
99 years
5% 6% 7% 8%
$99 $83 $71 $62
$1 $0 $0 $0
Total Value $100 $83 $71 $62
Exhibit C