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HomeMy WebLinkAbout06-06-05 ~S-S~y.\ RELEASE - TRUSTEE FOR MINOR BENEFICIARY NOW OF AGE WHEREAS, Manufacturers and Traders Trust Company, successor by merger to Ilfirst Trust Company of Pennsylvania, N.A., formerly known as Allfirst Bank, formerly known as FM Bank, Successor by merger to Dauphin Deposit Bank and Trust Company of Harrisburg, Pennsyl ania, was appointed Trustee under an Irrevocable Trust Agreement dated July 23, 1991 between imothy and Deborah Nicholson for the benefit of Ryan Nicholson, of Cumberland County, Pennsylvani ; and WHEREAS, Article II (C) states: "When the beneficiary reaches the age of twenty-one years, the trustee sh II immediately notify the beneficiary in writing that the beneficiary shall have the right for a pe iod ending sixty days after the beneficiary reaches the age of twenty-one to compel immedi e distribution of the portion or all of the trust principal with any undistributed income by giv' g the trustee written notice of the desired distribution within said sixty days. If the benefici does not give such written notice, or if the beneficiary exercises the right to compel distributi n of only a portion of the trust assets, the trust shall continue until the beneficiary attains the a es set forth below, at which time the trustee shall distribute outright to the beneficiary the actional portion then remaining of the trust estate - age forty years one-half, forty-five years enti remaining balance." and WHEREAS, the Trustee provided written notice to Ryan Nicholson by letter date WHEREAS, the said Ryan Nicholson then notified the Trustee that he elected to r ceive the entire Trust principal and any undistributed income under letter dated April 8, 2005; and WHEREAS, the said Ryan Nicholson avers that he was born March 23, 1984 a d therefore is now of age, and said trusteeship is now terminated; and WHEREAS, in order to save the expense and delay incident to filing said accoun in the Orphans' Court of Dauphin County and having the same confirmed, the said Ryan Nicholson has requested the Trustee to make settlement with him at once. NOW THEREFORE KNOW ALL MEN BY THESE PRESENTS that I, the said yan Nicholson, have this day had and received of and from Manufacturers and Traders Trust Compan , successor by merger to Allfirst Trust Company of Pennsylvania, N.A., formerly known as Allfirst Ba k, formerly known as FMB Bank, Successor by merger to Dauphin Deposit Bank and Trust Company Trustee as aforesaid, the cash amount of seventy-six thousand two hundred thirty-three dollars and forty-five cents ($76,233.45) in full settlement and satisfaction of all such sum or sums of mo ey as are due me by reason of said trusteeship, and THEREFORE I DO BY THESE PRESENTS rem se, release, quit-claim and forever discharge the said Manufacturers and Traders Trust Company, s cessor by merger to Allfirst Trust Company of Pennsylvania, N.A., formerly known as Allfirst B , formerly known as FMB Bank, Successor by merger to Dauphin Deposit Bank and Trust Compa y, its successors and assigns, of and from said legacy, and of and from all actions, suits, payments, accounts, reckonings, claims and demands whatsoever for or by reason thereof, or of and from all her acts, matters and things whatsoever including gross negligence, to the day of the date hereof. IN WITNESS WHEREOF I have hereunto set my hand and seal this 3~ day of flAt ,2005 WITNESS: ~ _ :<J )->--1 :..... ~..,-.I -on c'\ -4 Ul 'J-S'<- ~~~:l~~~.m_~::lll~ COUNTY OF boJ.~ ) ) SSe ) On this, the 1lrJov day of ~~ ,2005, before me, a Not Public in and for said State and County, personally appeared Ryan Nicholson, known to me (or satisfac orily proven) to be the person whose name is subscribed to the foregoing Release and Refunding Bond d acknowledged that he executed the same for the purposes therein contained and desires that the same e recorded as such. WITNESS my hand and Notarial Seal. IRREVOCABLE TRUST AGREEMENT FOR THE BENEFIT OF RYAN NICHOLSON THIS AGREEMENT is made and entered into this 23rd day of July, 1991, by and between TIMOTHY F. NICHOLSON and DEBORAH B. NICHOLSON, husband and wife, of Naples, Collier County, Florida (together referred to as the "Grantor"), and MARIANNE VAN LANCKER, of Poland, Ohio, JOSEPH D. SNYDER, of Mechanicsburg, Cumberland County, Pennsylvania, and DAUPHIN DEPOSIT BANK AND TRUST COMPANY, Harrisburg, Pennsylvania, (together referred to as the "Trustee"). WITNESSETH: WHEREAS, the Grantor desires to transfer certain assets to the Trustee for the benefit of the Grantor's son, RYAN NICHOLSON (the "Beneficiary"); and WHEREAS, the Grantor may hereafter make additional transfers of assets to the Trustee. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it is agreed by and between the parties hereto as follows: ARTICLE I Transfer of Assets The Grantor hereby absolutely and irrevocably transfers and assigns to the Trustee all his or her right, title and interest in and to the assets listed on Schedule A, attached hereto and by this reference made a part hereof. The Grantor, or any other party or person, may from time to time by irrevocable inter vivos grant or by will, transfer and assign additional assets to the Trustee, which shall be added to the principal of the trust and held, managed and disposed of in accordance with the provisions of this Agreement. ARTICLE II Dispositive provisions The Trustee shall have, hold and administer said assets and all investments and reinvestments thereof, IN TRUST NEVERTHE- LESS, for the following uses and purposes: (A) until the Beneficiary reaches the age of twenty-one years, the Trustee may from time to time pay to or for the benefit of the Beneficiary so much of the net income and principal of the trust as the Trustee, in the Trustee's sole discretion. shall determine. Any income that is not paid to or for the benefit of the Beneficiary shall be added to principal at the end of each calendar year. - 2 - (B) After the Beneficiary reaches the age of twenty-one years and until the termination of this trust, if the trust continues pursuant to the following subparagraph (C), the Trustee: (1) shall pay all the net income of this trust to the Beneficiary in regular installments not less frequently than quarterly and (2) may distribute outright to the Beneficiary from the principal of this trust such amount or amounts as in the Trustee's uncontrolled discretion may be necessary to provide for the Beneficiary's comfort, care, maintenance, support, education, and advancement in life, taking into consideration any other means readily available for such purposes. (C) When the Beneficiary reaches the age of twenty- one years, the Trustee shall immediately notify the Beneficiary in writing that the Beneficiary shall have the right for a period ending 60 days after the Beneficiary reaches the age of twenty-one to compel immediate distribution of any portion or all of the trust principal and any undistributed income by giving the Trustee written notice of the desired distribution within said 60 days. If the Beneficiary does not give such written notice, or if the Beneficiary exercises the right to compel distribution of only a portion of the trust assets, the trust shall continue until the Beneficiary attains the ages set forth below, at which time the - 3 - Trustee shall distribute outright to the Beneficiary the fractional portion then remaining of the trust estate: Age Fractional Part 40 years 45 years One-half Entire remaining principal (D) If the Beneficiary dies before distribution to the Beneficiary shall have been completed: (1) The Trustee shall pay the then assets of the trust to, or hold them for the benefit of, such person or persons, including the Beneficiary's Estate, as the Beneficiary shall appoint by a will which refers specifically to this power. The appointment may be in such amounts and proportions and for such estates and interests, and upon such terms, trusts, conditions, and limitations as the Beneficiary may appoint. (2) To whatever extent the then assets of the trust are not effectively appointed by the Beneficiary pursuant to the Beneficiary's power to appoint by Will, the Trustee shall distribute those assets outright: (a) To the Beneficiary's then living issue, per stirpes; or, if the Beneficiary has no issue then living, - 4 - (b) To the Grantor's then living issue, per stirpes. (3) If any person entitled to receive an outright distribution under the above subparagraph (2) is then entitled, either absolutely or in the discretion of the Trustee, to income from a trust held under "The Irrevocable Trust Agreement for the benefit of Ryan Nicholson," or "The Irrevocable Trust Agreement for the benefit of Daniel Nicholson", then the distribution that such person would have received shall be made to the then Trustee of such trust and shall thereafter for all purposes be held by that Trustee as an integral part of the principal of such trust estate. (4l If any person entitled to receive an outright distribution under the above subparagraph (2 l has not reached the age of twenty-one years at the time actual distribu- tion is to be made and is not then entitled to income from a trust described in the above subparagraph (3l, the Trustee shall hold in a separate trust the assets that would otherwise be distributed to that person. Until the person with respect to whom such a separate - 5 - trust is created reaches the age of twenty-one years, the Trustee shall distribute to that person such sums from the income and principal of that separate trust as may be reasonably necessary in the Trustee's uncontrolled discretion to provide for that person's comfort, care, maintenance, support, educa- tion, and advancement in life, taking into consideration any other means readily avail- able for such purposes and when that person reaches the age of twenty-one years, the Trustee shall distribute the remaining assets of that separate trust to that person. If that person dies before reaching the age of twenty-one years, the Trustee shall distribute the then remaining assets of that separate trust to the person or persons then living, other than the Grantor or the Trustee, who would be entitled to inherit that person 's personal property under the laws of pennsylvania then in force if that person had then died intestate. - 6 - ARTICLE III Gifts to Trust After Beneficiarv Reaches Aqe 2l After the Beneficiary attains the age of twenty-one years, the Trustee shall, immediately upon receipt of any and all property placed into this trust by irrevocable inter vivos grant, notify the Beneficiary of the details of any such property received, whereupon the Beneficiary shall have the unrestricted right for a period of thirty days from the date of notification to demand and immediately receive from the trust the value of any such assets transferred to the Trust; provided, however, that no such withdrawal, when added to the aggregate value of all withdrawals made by the Beneficiary pursuant to this ARTICLE III during the calendar year in which the addition to this trust is made, shall exceed the greater of $5,000 or five (5%) percent of the aggregate value of the principal of the Trust at the time of such withdrawal [or such corresponding amount as then provided in g2514(e) (1) of the Internal Revenue Code of 1986, as amended, or a subsequent parallel provision, as will not constitute a release of this power by the Drawer). The foregoing power in the Beneficiary shall be exercisable in writing and only during the aforesaid time period, shall be noncumulative from transfer to transfer and from year to year and shall terminate upon the death of the Beneficiary. If a Beneficiary is under a legal disability during part or all of a withdrawal period, the court-appointed guardian, if any, of the - 7 - Beneficiary may exercise such withdrawal on the Beneficiary's behalf. ARTICLE IV Prohibited Powers Notwithstanding any other provision of this Irrevocable Agreement of Trust: (A) Trust income shall not under any circumstances be distributed to, or be held or accumulated for future distribution to, the Grantor or the Grantor's spouse; (B) Trust income shall not under any circumstances be applied to the payment of premiums on pOlicies of insurance on the life of the Grantor or the Grantor's spouse; (C) No distribution shall be made to or for the benefit of any beneficiary in lieu of or in discharge of the legal obligation of the Grantor or of the Grantor's spouse to support or maintain said beneficiary or in discharge of any other legal obligation of the Grantor or of the Grantor's spouse; (D) No person shall have any power to enable any person to purchase, exchange, or otherwise deal with or dispose of the principal or income of this trust for less than an adequate consideration in money or money's worth; (E) No person shall have any power to enable the Grantor to borrow the corpus or income of this trust, - 8 - directly or indirectly, wi thout adequate interest or without adequate security; and (F) None of the following powers shall be exercisable in a non-fiduciary capacity by any person: (1) a power to vote or direct the voting of stock or other securities of a corporation in which the hOldings of the Grantor and the trust are significant from the viewpoint of voting control; (2) a power to control the investment of the trust funds either by directing investments or reinvestments or by vetoing proposed investments or reinvestments, to the extent that the trust funds consist of stock or securities of corpora- tions in which the holdings of the Grantor and the trust are significant from the viewpoint of voting control; or (3) a power to reacquire the trust corpus by substituting other property of an equivalent value. ARTICLE V spendthrift Provisions No part of the income or principal of the property held under any of the trusts created hereunder shall be subject to attachment, levy or seizure by any creditor, spouse, assignee or trustee or receiver in bankruptcy of any beneficiary prior to his or her actual receipt thereof. The Trustee shall pay over the net income and/or the principal to the parties herein designated, as their interests may appear, without regard to any attempted - 9 - anticipation (except as provided herein), pledging or assignment by any beneficiary under any of the trusts created hereunder, and without regard to any claim thereto or attempted levy, attachment, seizure or other process against said beneficiary. ARTICLE VI Trustee Powers Trustee shall possess, among others, the following powers, both as to principal and income, to be exercised for the best interests of the beneficiaries: (A) TO retain any investments so long as the Trustee may deem it advisable to a trust so to do, including partnership interests, stocks, bonds, time deposits, real estate and funds of the Trustee. (B) To vary investments, when deemed desirable by the Trustee, and to invest in such partnerships, bonds, stocks, notes, real estate mortgages or securities or in such other real or personal property, as the Trustee shall deem wise, including the Trustee's own common investment funds, stocks, bonds, time deposits and funds of the Trustee, without being restricted to so-called "legal investments"; provided, however, that nothing in this Irrevocable Agreement of Trust shall be construed to permit Grantor to borrow directly or indirectly from the trust without adequate interest and adequate security. (C) In order to effect a division of the principal of a trust or for any other purpose, including any final distribution of any trust, the Trustee is authorized to make said divisions or distributions of the personalty and realty partly or wholly in kind. If such divisions or distributions are made in kind, said assets are required to be divided or distributed at their respective values on the date or dates of their distribution or division. In making any divisions or distributions in kind, the Trustee shall divide or distribute said assets so as to fairly allocate any unrealized appreciation therein. - 10 - (D) To sell either at public or private sale and upon such terms and conditions as the Trustee may deem advantageous to a trust, any or all real or personal estate or interest therein owned by a trust severally or in conjunction with other persons, and to consummate said sale or sales by sufficient deeds or other instruments to the purchaser or purchasers, conveying a fee simple title, free and clear of all trust and without obligation or liability of the purchaser or purchasers to see to the application of the purchase money, or to make inquiry into the validity of said sale or sales; also, to make, execute, acknowledge and deliver any and all deeds, assignments, options, or other writings which may be necessary or desirable in carrying out any of the powers conferred upon the Trustee in this paragraph or elsewhere in this instrument; provided, however, that nothing in this Irrevocable Agreement of Trust shall be construed to permit the Grantor or any person to purchase, exchange, or otherwise deal with or dispose of trust principal or the income therefrom for less than adequate consideration in money or money's worth. (E) To mortgage real estate and to make leases of real estate, including leases extending beyond the term of this trust. (F) To borrow money from any party and to assign and pledge trust assets therefor. Said borrowing is specifically authorized to permit the Trustee to satisfy any demand right created under ARTICLE III hereof. (G) To pay all costs, expenses and charges in connection with the administration of a trust, including a reasonable compensation to agents. (H) To vote any shares of stock which form a part of a trust and otherwise exercise all the powers incident to the ownership of such stock; to actively manage and operate any incorporated or unincorporated business, including any joint ventures and partnerships, and to incorporate any such unincorporated business, with all the rights and powers of any owner thereof. (I) In the discretion of the Trustee, to unite with other owners of similar property in carrying out any plans for the reorganization of any corporation or company whose securities form a part of a trust. (J) To assign to and hold in a trust an undivided portion of any asset. - 11 - (K) To do all other acts which the Trustee, in its sole discretion, shall deem necessary or desirable for the proper and advantageous management, investment and distribution of trust assets. ARTICLE VII simultaneous Death provisions Any person who shall have died at the same time as any then recipient of income, or under such circumstances that it is difficult or impossible to determine who died first, shall be deemed to have predeceased such beneficiary. ARTICLE VIII Guardian If at any time any minor child shall be eligible to receive any income or assets hereunder, the Trustee hereunder shall act as Guardian of the funds payable to such child, and shall have full authority to use such funds in any manner it shall deem advisable for the best interests of such child. Said Guardian shall have the rights and privileges as to the Guardianship and its assets as are herein granted to the Trustee as to the trust and the assets therein. ARTICLE IX Substitute Trustee In the event of the death, resignation, refusal or inability of either of the individual Trustees to serve hereunder, - 12 - the surviving Trustees or Trustee shall act or continue to act with all the powers given to the original Trustees. The individual Co- Trustees or Co-Trustee shall have the right to remove the corporate Trustee from time to time for any reason so long as a successor corporate Co-Trustee is immediately substituted and is a banking institution with trust powers. ARTICLE X Fiduciarv's Bond The Grantor directs that any fiduciary acting hereunder shall not be required to enter bond or other security in any jurisdiction in which said fiduciary may be called upon to act. ARTICLE XI Irrevocability It is agreed that the Grantor may not modify, alter or revoke this Irrevocable Agreement of Trust in any way. In addition, the Grantor hereby renounces any interest, including any reversion or possibility of reverter, in the corpus and income of the trust and any right to determine who shall enjoy said corpus and income. ARTICLE XII situs The Commonwealth of Pennsylvania is hereby designated as the situs of the trust herein created, and all questions pertaining - 13 - to the validity and construction of this Irrevocable Agreement of Trust or the administration hereunder shall be determined in accordance with the laws of Pennsylvania regardless of the jurisdiction in which this trust may at any time be administered. IN WITNESS WHEREOF, Timothy F. Nicholson and Deborah B. Nicholson, as Grantors, and Joseph D. snyder, Marian Van Lancker and Dauphin Deposit Bank and Trust Company, as Trustees, have hereunto affixed their hands and seals, the day and year first above written. (SEAL) WITNESS: .m.<~ holson ) ;1';; ) /J--t j,(-fo/t.J....,~"- (S EAL) Deborah ~ Nicholson WITNESS: TRUSTEES: ~~~ (SEAL) ~",..{ tI~~~~SEAL) Marian~an Lancker DAUPHIN DEPOSIT BANK AND TRUST COMPANY ATTEST: ~"" _'"<'____.).y-,j..J"Y"'l ~. - <..\ ~SS~STt..~-:1 S:~:1.:7:~"Y By: ~tJ1d COdtfM & U,P Title: RNl~hol.TKU/SAS~:Trusts/7/22/91/#6 IRREVOCABLE AGREEMENT OF TRUST FOR THE BENEFIT OF RYAN NICHOLSON SCHEDULE A Sha~es of Ste~ling Banco~p WITNESS: (y). ~~ 'Tn, 4~ Jlu AT'l'EST: "'B., . ......:::" ~~_I .~' J\SSiS7t.!-~T' sr.:C~rr;!_lY GRANTORS: (SEAL) o F. ~lSOn , / - I . .: /;,1 jU/iJ..!. /G~'L!<'~ Deborah B 1cholson (SEAL) TRUSTEES: ~ ~~ (SEAL) )J~{/U~v{?~EAL) Maria~Van Lancker DAUPHIN DEPOSIT BANK AND TRUST COMPANY By: z;tIJI.tICi (. U4'11 Title: 51 U. f7. COUNTY OF JtlA~~~ ) ) SS: ) COMMONWEALTH OF PENNSYLVANIA On this, the ,;lJ'dA day of 1991, before me, a notary public, the undersi personally appeared Timothy F. Nicholson and Deborah B. Nicholson, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~~/ A-c~ ary Public Commission Expires: (SEAL) ..,.p.._~-' NOT A'FilAL SEAL YVONNE R. DURHAM,. Nola'" Public Hanisbur9, Oaupl'lLn County My Commission Expil'les June 19. 1993 COMMONWEAL~VANIA COUNTY OF . ) ) SS: ) On this, the /{P~ day of ~ 1991, before me, a notary public, the undersigned officer, personally appeared Joseph D. Snyder, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~ ?11.,J5:J Notary Public My Commission Expires: (SEAL) NOTARIAL SEAL SANDRA M. TITEL Notary Public Mechanicsburl. Cumberiand County My Commission Expires May 13. 1996 COUNTY OF QUiD fv\A'UilrJi l\f&' ) ) SS: ) STATE OF On this, the _ '1* day of ur;::C~.i\ f!>6<- 1991., before me, a notary public, the undersigned officer, personally appeared Marian Van Lancker, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that she executed the same for the purposes therein contained. , )IV~ I/:L~~~ IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~L~YO No'ary P1,tblic . My Commission Expires: (SEAL) SUSAN ECKENRODE LONEY NOTARY FUBlIC. STATE of OHIO My Commission Expire. May 7, 1997 COMMONWEALTH OF PENNSYLVANIA COUNTY OF &{~ On this, the ..!t~day of J~ ~ ' 1.991., ~efo~e me, the undersigned officer, personally appeared~~k~~ who acknowledged himself to be th~ ~#/~P/.7 of : ss: Dauphin De}}osit Bank and Trust company, ~. ~~ being authorized to and that he as such do so, executed the foregoing instrument for the purposes therein contain~ the name of the corporation by himself as IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~dd~~ N ta PUblic My Commission Expires: (SEAL) NotaIiaJ Seal Mary AmAnderoon, No!aIyPtdc My"~ Dauphin~ .....","""'" Expires Oct. 30, 1994 Mambor. f'en".yJvani. Association 01 Notaries