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HomeMy WebLinkAbout64-1450IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS CUMBERLAIV'D COUNTY, PENNSYLVANIA CHARLES A. BERNARD, ORPHANS' COURT DIVISION INCAPACITATED PERSON NO. 1450 OF 1964 PETITION FOR APPOINTMENT OF CORPORATE CO-GUARDIAN AND NOW COMES HELEN N. CERNUGEL, Guardian of the Estate of Charles O. Bernard, and petitions this Court pursuant to Section 5514 of 20 Pa.C.S. for the appointment of Orrstown Bank as a corporate co-guardian to serve with her, and asserts in support hereof as follows: 1. Petitioner is Helen N. Cernugel, who resides at 5060 Franklin Street, Harrisburg, PA 17111. 2. Charles O. Bernard resides at 132 North Middlesex Road, Carlisle, Cumberland County, PA 17013. 3. Orrstown Bank is a State Banking Corporation organized and existing under the laws of the Commonwealth with Trust Office at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 4. By Order of August 29, 1977, to the above caption, this Court found Charles O. Bernard to be incompetent and unable to handle his affairs and property and liable to dissipate it or become the victim of a designing person. The Court appointed petitioner Helen N. Cernugel, and her husband, Anthony N. Cernugel, as Guardians of the Estate of Charles O. Bernard, an incompetent. A copy of that Order is attached hereto and made a part hereof as Exhibit 1. 5. Anthony N. Cernugel died May 5, 1998. Since his death, Helen N. Cernugel has served as sole guardian of Charles' estate. 6. Helen N. Cernugel is the aunt, by marriage, of Charles O. Bernard; her husband, Anthony N. Cernugel, was the brother of the Charles' mother. 7. Petitioner believes and avers that Charles O. Bernard is an incapacitated person within the meaning of 20 Pa.C.S. Section 5501, in that his ability to receive and evaluate information effectively and communicate decisions is impaired to such a significant extent that he is unable to manage his financial resources. 8. Charles O. Bernard was born January 25, 1957, and is presently 42 years of age. 9. Charles O. Bernard is unmarried and has no children. Other than during a period of residential placement, Pennsylvania, he has always resided with his parents. He has never been gainfully employed. 10. Prior to mother's death in February 1999, Charles O. Bernard resided with his mother, Anna M. Bernard, at 132 North Middlesex Road, Carlisle, PA, along with a second cousin, Matthew J. Kostelac. 11. Charles O. Bernard continues to reside in the home at 132 North Middlesex Road, along with his second cousin. 12. During her life, Anna M. Bernard was the primary support of her son and the household. The personal estate of Charles O. Bernard was used for the payment of health insurance, unreimbursed health costs, personal income taxes, legal and tax preparation fees, a small personal allowance of $10 per week, and other minor expenses for the benefit of Charles O. Bernard. 13. Prior to his mother's death in February 1999, the expenditures of the guardianship estate of Charles O. Bernard did not exceed income received. 14. Reports of the guardians of the estate have been made to the Court from the date of appointment of Petitioner and her husband as guardians. The last confirmed report was filed for the period 12/30/91 to 1/6/96 on October 10, 1996 and was confirmed by the Court on November 26, 1996. As set forth in that report, the balance in the account of Charles O. Bernard on January 6, 1996, was $230,126.01. 15. An accounting of the estate for the period January 1, 1996 to December 31, 1998, has been filed with the Court on June 3, 1999. A copy of the Report is attached hereto and made a part hereof as Exhibit 2. 16. As of December 31, 1998, the combined principal and income accounts of Charles O. Bernard, under the guardianship of Petitioner was $256,012.45. 17. Upon the event of his mother's death, in February 1999, Charles O. Bernard's personal estate received title to certain assets as surviving joint tenant with right of survivorship. Those assets included approximately $259,225.57 held in bank certificates of deposit. An inventory of those assets is attached hereto and made a part hereof as Exhibit 3. 18. Life insurance proceeds payable on account of his mother's death were also received by Charles O. Bernard and placed in his guardianship account in the net amount of $99,284.79. See Exhibit 3. 19. The current value of the Estate of Charles O. Bernard held by Petitioner exceeds $600,000. An inventory of the current assets of the Estate is attached hereto and made a part hereof as Exhibit 4. 20. The Last Will and Testament of Anna M. Bernard was admitted to probate in Cumberland County by the Register of Wills at Estate No. 1999-00150. A copy of the Last Will and Testament with Codicil is attached hereto and made a part hereof as Exhibit 5. 21. By the terms of his mother's Last Will and Testament, Charles O. Bernard is the sole beneficiary of a discretionary support trust to be established under Will the terms of the Last Will and Testament of his mother, Anna M. Bernard. It is anticipated that net funds available to fund that trust will be approximately $290,000 including the home where Charles O. Bernard resides, and a vehicle valued at $32,000. 22. Petitioner Helen N. Cernugel is named as Co-Executor of the Estate of Anna M. Bernard and Co-Trustee of the Trust under the Will, along with Matthew J. Kostelac. 23. The remainder interests in the trust under Anna Bernard's Will are certain of her nieces and nephews including the children of Petitioner. 24. Matthew J. Kostelac was not named as a direct or remainder beneficiary in the Will. 25. Matthew J. Kostelac has entered into an agreement for Terms of Payment for Care of Charles O. Bernard. Matthew J. Kostelac executed the agreement individually and as Co-Executor of the Estate of Anna M. Bernard, and as Co-Trustee of the Trust under Will of Anna M. Bernard f/b/o Charles O. Bernard. The other party to the agreement is Petitioner as Guardian of the Estate of Charles O. Bernard, Co- Executor of the Estate of Anna M. Bernard, and as Co-Trustee of the Trust under Will of Anna M. Bernard f/b/o Charles O. Bernard. A true and correct copy of the agreement is attached hereto and made a part hereof as Exhibit 6. 26. The terms of the agreement provide for the payment to Matthew J. Kostelac of $50,000, including 25,000 per year payable weekly at rate of $480.77 and $25,000 per year credit toward purchase of real estate owned by the Estate of Anna M. Bernard. 27. Cash disbursements out of the personal estate of Charles O. Bernard since his mother's death to date of this petition have included a food allowance for the household in the amount of $350 per week, a personal allowance to Charles O. Bernard of $70 per week, and cash payments to Matthew J. Kostelac of $480.77 per week. These expenses do not include the non-cash credit against real estate due to Matthew J. Kostelac at the rate of $25,000 per year. 28. Additional expenses of the household of Charles O. Bernard, including the expenses of the household vehicle, are also being covered by the Estate of Anna M. Bernard and/or the estate of Charles O. Bernard. 29. The current expenses of Charles O. Bernard exceed the income to his individual guardianship estate. Petitioner believes it will be in the best interest for a of Charles O. Bernard for an independent corporate co-guardian and asset manager, to assist in the development of a long term care plan for Charles in light of his long term financial needs and disability, and the limited funds available to Charles for his support and maintenance from his personal estate and from the trust to be established under the terms of his mother's Will, and to assist in carrying out that plan in the event of the death or incapacity of Petitioner. 30. Petitioner has met with trust officers from Orrstown Bank, including Brad Gerlach, who have indicated an interest and willingness on the part of the Bank to serve as a corporate co-guardian of the personal estate. 31. A statement of consent to serve as corporate co-guardian duly executed by Bradley S. Gerlach, Vice President and Trust Officer, on behalf of Orrstown Bank, is attached hereto and made a part hereof as Exhibit 7. 32. Charles O. Bernard has continued to evidence an inability to competently handle his affairs, to manage his funds and property, or to understand the need for long term planning for his estate. His conduct evidences a clear likelihood that he is liable to dissipate his property and become the victim of a designing person. 33. Petitioner believes that it is in the best interest of Charles O. Bernard to have Orrstown Bank appointed as a corporate co-guardian to assist her in the management of the Estate of Charles O. Bernard and to continue as guardian in the event of her death or inability to serve. 34. 20 Pa.C.S. Section 5514 provides for the Court, after such notice as it shall direct, may without a hearing, appoint a succeeding guardian to fill a vacancy in the office of guardian or may appoint a co-guardian of the estate of an incapacitated person. 35. Petitioner has discussed this matter with Charles O. Bernard, and with his counsel, Michael Bangs, Esquire. Charles O. Bernard does not join in this Petition. WHEREFORE, Petitioner asks this Court to issue upon Charles O. Bernard, a rule to show why Orrstown Bank should not be appointed co-guardian to fill the vacancy in the office of the guardian left by reason of the death of Anthony N. Cernugel, and to thereafter issue an order appointing Orrstown Bank as corporate co- guardian upon the posting of a bond in the amount set by this Court and such other relief as the Court may deem proper and just. Respectfully submitted, 1 ~A ~~ ~ ~ (~l BY: Andy a C. J obsen, Esq. JACOBSE ~LKES 52 East High Street Carlisle, PA 17013 (717) 249-6427 Telephone (717) 249-8427 Fax Attorney No. 20952 I hereby verify that the statements made in the foregoing are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904, relating to unsworn falsification to authorities. Dated: ~: J!y ~ cf ~-.~-.u..-- ~~~.~~y~~~-,/ ..-'~._.._...~ HELEN N. CERNUGEL 1[v' IiE : •rS1'ATE OF IN TIIE COUP.T OF COI 121017 1'],EAS OF CU14Ili:RL,_4idD' COUid'I'Y, YENNSYLVAIdIA CIInRLCS 0, BERidAP,D, OY.PIIl~~JS' COURT DIVISION Ai: AI,i;~GL• b Zt1C0! 1PETP:!dT 110. 1450 OiZDI;R OF COURT I~Nb 1dOlJ, this 29C1i day of ~uUust, 137%, after heari_ug held at which /`,nna Pi. Uernarci, Airtl~~i~y il. Cernugel, iielen ;d. Cernul;el, Charles 0. Rcr.nard and l~obcr.-t i;eit; e1, "irust CCfir_er of '1'l;e Co~mrioi~wealth Irational Ganl:, appeared and testified, the Court does hereby find Charles 0. rernard to be incompetent and unable~to handle his affairs and property and is liat~le to dissipate it or become the victim of designing persons. The Court does further appoint Anthony lI, Cernugel and iielen N. Cernugel as Guardians of the Estate of the said. Charles 0. Bernard, an incompetent-, and does further require. that said Guardians shall. post with this: Court bond in the amount of $100,000-with approved surety to secure the faithful pcrforr.!ance of heir duties: BY 1'1!E COURT, _/ ~~ F oT-nora}ile`F'red~?-TSavzs 43rd Judicial District Specially Presiding ,.. o„~~~ f. off NlfOM. f. [,i April / ~ 197E3 I hereby.ceitify that. the within is a true and correct copy of the original on rile in this office. I further certi y that the Bond referred to above was filed with approved surety on J~t~-~'`J "1978. ~~ ~f~-a.-~s~ ~ ~Llitc~~-tcs'~_~/ CIS of Courts ~/,~ ,,,{!~_ ~- Orphans' r'" '-1/~ ~`, a ~'uE~c~tT ~ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. 1450 ] FOURTH ACCOUNT OF HELEN N. CERNUGEL, GUARDIAN OF THE ESTATE OF CHARLES O. BERNARD, AN INCOMPETENT, OF MIDDLESEX TOWNSHIP CUMBERLAND COUNTY PENNSYLVANIA Guardian appointed August 29, 1977 First Triennial Account was confirmed August 25, 1981 Second Account was confirmed August 25, 1992 Third Account was confirmed November 26, 1996 Account Period is to December 31, 1998 The Accountant charges herself with receipt of the items of personalty as set forth herein as debits and claims credit for the items listed herein as credits. PRINCIPAL ACCOUNT DEBITS Principal remaining in the hands of Accountant, which includes accumulation of income not required for expenses of Charles 0. Bernard, is comprised of the following: 1. Certificate No. 2963304995, Harris Savings Interest @ 5.91%; 36 months; Due 10/24/00 $50,000.00 2. Certificate No. 2963305005, Harris Savings Interest @ 5.91%; 36 months; Due 11/01/00 50,000.00 3. Certificate No. 00775188, Mellon Bank Interest 5.35%; 36 months; Due 10/31/99 24,617.37 4. Certificate No. 00859181, Mellon Bank Interest 6.40%; 9 months; due 12/I8/99 19,001.66 5. Certificate No. 8140722685, Dauphin Deposit Interest 5.84%; 48 months; due 03/10/01 13,759.80 6. Certificate No. 8140394408, Dauphin Deposit Interest 4.33%; 24 months; Due 11/30/00 35,000.00 7. Certificate No. 8141045695, Dauphin Deposit Interest @ 5.46%; 28 months; Due 06/02/00 31,239.00 8. Certificate No. 31100142343, PNC Bank, N.A. Interest 4.2%; 12 months; due 10/30/99 5,190.89 9. Certificate No. 3120010821, PNC Bank, N.A. Interest 6.05%; 22 months; due 09/05/99 15,000.00 TOTAL ACCUMULATED PRINCIPAL AND INCOME: $243,808.72 ~xNi3ii 2 INCOME ACCOUNT DEBITS 1996 Interest from Certificates of Deposit Interest from Checking Account 1997 Interest from Certificates of Deposit Transfer from Principal Account Interest from Checking Account 1998 Interest from Certificates of Deposit Interest from Checking Account 4835.78 87.67 20,773.60 13,759.80 99.53 9,307.45 153.64 4, 923.45 34,632.93 9.461.09 TOTAL INCOME ALLOCATED FOR EXPENSES FOR ACCOUNTING PERIOD 49,017.47 INCOME ACCOUNT CREDITS 1996 Accounting Allowance Bond Clothing IRS Medical Care Medical Insurance PA Department of Revenue 1997 Accounting Allowance Bond Clothing IRS Legal Fees Medical Care Medical Insurance PA Department of Revenue Transfer to Principal Account 1998 Accounting Allowance Bond Clothing IRS Medical Care Medical Insurance PA Department of Revenue Postage 50.00 520.00 460.00 123.50 1,308.00 455.98 2,302.20 449.00 50.00 520.00 460.00 183.50 1,100.00 360.00 358.07 2,397.60 400.00 28,759.80 60.00 540.00 460.00 142.99 1,240.00 526.00 2,705.40 409.00 6.40 5,668.68 34,588.9 7 6.089.79 TOTAL EXPENDITURES FOR ACCOUNTIlVG PERIOD 46,347.44 TOTAL INCOME ALLOCATED FOR EXPENSES FOR ACCOUNTING PERIOD 49,017.47 TOTAL EXPENDITURES FOR ACCOUNTING PERIOD 46,347.44 ACCOUNTING PERIOD INCOME ACCOUNT BALANCE 2,670.03 INCOME ACCOUNT STARTING BALANCE FROM 1996 ACCOUNT 9,611.72 ACCOUNTING PERIOD INCOME ACCOUNT BALANCE 2,670.03 ENDING INCOME ACCOUNT BALANCE 12/31/98 12,281.75 Assets which transferred to name of Charles O. Bernard upon death of Anna M. Bernard including jointly titled Certificates of Deposit and Life Insurance proceed. Certificates of Deposit 1. Certificate No. 9782, Commerce Bank Interest @ 6.5%; 36 months; Due 12/20/00 $20,000.00 2. Certificate No. 9782, PNC Interest @ 4.5%; 12 months; Due 9/17/99 10,000.00 3. Certificate No. 31800085165; PNC Interest @ 4.07%; 6 months; Due 5/28/99 39,000.00 4. Certificate No. 005261; Pa. State Bank Interest @ 4.65%; 6 months; Due 5/11/99 75,000.00 5. Certificate No. 371714450; Keystone Financial Trust; Interest @ 5.15%; 9 months; Due 6/14/99 10,225.57 6. Certificate No. 3781714419; Keystone Financial Trust; Interest @ 5.15%; 9 months; Due 6/14/99 25,000.00 7. Certificate No. 3781714484; Keystone Financial Trust; Interest @ 4.65%; 9 months; Due 10/16/99 50,000.00 8. Certificate No. 3781714385; Keystone Financial Trust; Interest @ 5.15%; 9 months; Due 6/14/99 10,000.00 9. Certificate No. 1915158774; Harris Bank; Interest 4.35%; 6 months; Due 5/27/99 20,000.00 Life Insurance Proceeds 259,225.57 1. Money Market No. 3619-73446; Fulton Bank 99,284.79 Total 358,510.36 ~XN~ F rl .3 Inventory of Assets of Charles O. Bernard June 1999 1. Certificate No. 2963304995, Harris Savings Interest @ 5.91°10; 36 months; Due 10/24/00 $50,000.00 2. Certificate No. 2963305005, Harris Savings Interest @ 5.91%; 36 months; Due 11/01/00 50,000.00 3. Certificate No. 00775188, Mellon Bank Interest 5.35%; 36 months; Due 10/31/99 24,617.37 4. Certificate No. 00859181, Mellon Bank Interest 6.40%; 9 months; due 12/18/99 19,001.66 5. Certificate No. 8140722685, Dauphin Deposit Interest 5.84%; 48 months; due 03/10/01 13,759.80 6. Certificate No. 8140394408, Dauphin Deposit Interest 4.33%; 24 months; Due 11/30/00 35,000.00 7. Certificate No. 8141045695, Dauphin Deposit Interest @ 5.46%; 28 months; Due 06/02/00 31,239.00 8. Certificate No. 31100142343, PNC Bank, N.A. Interest 4.2%; 12 months; due 10/30/99 5,190.89 9. Certificate No. 3120010821, PNC Bank, N.A. Interest 6.05%; 22 months; due 09/05/99 15,000.00 10. Certificate No. 9782; Commerce Interest 6.5%; 36 months; due 12/20/2000 20,000.00 11. Certificate No. 21001014246; PNC Interest 4.5%; 12 months; due 9/17/99 10,000.00 12. Certificate No. 3180085165; PNC Interest 4.07; 6 months; due 5/28/99 39,000.00 13. Certificate No. 005261; PA State Bank Interest 4.65%; 6 months; due 5/11/99 75,000.00 14. Certificate No. 371714450; Keystone Financial Trust Interest 5.15%; 9 months; due 6/14/99 10,225.57 15. Certificate No. 3781714419; Keystone Financial Trust Interest 5.15%; 9 months; due 6/14/99 25,000.00 16. Certificate No. 3781714484; Keystone Financial Trust Interest 4.65%; 9 months; due 10/26/99 50,000.00 17. Certificate No. 3781714385; Keystone Financial Trust Interest 5.15%; 9 months; due 6/14/99 10,000.00 18. Certificate No. 1915158774; Harris Bank Interest 4.35%; 6 months; due 5/27/99 20,000.00 19. Account No. 361973446; Fulton Bank Money Market Account, 99,582.18 20. Checking Account, Dauphin Deposit 1,233.85 Total 603,849.32 ~x~~ ~~~ r „ F:~FII.ESIDATAFILE~WILL5~S528.WIL s _ ; F t~~ ~) .J~ U LAST WILL AND TESTAMENT I, ANNA M. BERNARD, of Middlesex Township, Cumberland County, Pennsylvania, being of sound and disposing mind and memory, do hereby make, publish and declare this to be my Last Will and Testament, hereby revoking any and all former Wills or Codicils by me made. I direct that all my just debts, funeral expenses, testamentary expenses and all inheritance taxes (whether such taxes may be payable by my estate or by any recipient of any property) shall be paid from my residuary estate as soon as practicable after my decease and as part of the administration of my estate. My Executor shall have no duty or obligation to obtain reimbursement for any such tax so paid, even though on proceeds of insurance or other property not passing under this Will. I give, devise and bequeath all of my estate, both real and personal property, unto my Trustee or Trustees hereinafrer named, in trust, to hold, invest and administer the same and to collect the income and interest therefrom arising, which such income and interest shall be applied for the care, maintenance and support of my son, CHARLES O. BERNARD, for and during the period of his life. Within the sole discretion of my Trustee or Trustees, invasion may be made into such amounts of the principal of said trust fund as shall be deemed necessary for said care, maintenance and support of CHARLES O .BERNARD. In the exercise of such discretion, my Trustee or Trustees may, but shall not be required to, consider any other resources or trust funds in the name of or held for the benefit of said CHARLES O. BERNARD. 3. Upon the death of said CHARLES 0. BERNARD, I give, devise and bequeath all of the accrued income and any remaining principal of my said estate and said trust fund unto my nephews and nieces, DANIEL CERNUGEL, JOSEPH CERNUGEL, CHRISTINA CERNUGEL and CAROL ANN HAGAN, in equal shares. 4. I further provide that it is my express desire that my son, CHARLES, if possible to do so ~-~ • .~ A.M.B. Page 1 of 6 Pages from an economic standpoint, shall be maintained in his home or in a home with a family atmosphere, with a suitable person or persons caring for him. The costs of such support and maintenance shall be paid from the income and principal of this trust as well as other assets available for the use of CHARLES, including reasonable compensation for such persons caring for him. I further provide that this express desire of mine shall be considered, if necessary, by the Orphans' Court Division of the Court of Cumberland County, Pennsylvania, which presently has jurisdiction of an Estate of Charles 0. Bernard presently being administered by my brother, Anthony N. Cernugel. It is my express desire that CHAI'LES should not be confined to any State institution or home as Long as assets are available to provide for his care as herein set forth. Although I have provided for a residuary disposition of income and principal upon the death of CHARLES, my primary purpose and intent is that he be cared for as herein, and whether or not any assets remain for disposition to the remaindermen is completely secondary to me. ~. All principal and income shall, until actual distribution to the said CHARLES O. BERNARD, or his issue, be free of the debts, contracts, alienations and anticipations of my son, or his issue, and the same shall not be liable to any levy, attachment, execution or sequestration while in the hands of my Executor or Trustee or their successors. 6. In addition to the powers conferred by case law, by statute, and by other provisions hereof, my Executor and Trustee and their successors, shall have the following 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. To invest and reinvest all or any part of said property in such stocks, bonds, securities 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; a,~~,~ A.M.B. Page 2 of 6 Pages c. To sell, transfer, exchange 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 of any trust herein, without liability on the purchasers or lessees to see to the application of the proceeds, and to give options for these purchases without the obligation to repudiate them in favor of a higher offer; d. To execute and deliver any deeds, leases, assignments or other instruments as may be necessary to carry out the provisions of any trust hereunder; e. To borrow money, including the right to borrow money from any bank and to mortgage or pledge any asset of the estate as security; f. To assume continuance of the status of any beneficiary with regard to death, marriage, divorce, illness, incapacity and the like in the absence of information deemed reliable without liability for disbursements made on such assumption; g. To pay from the trust, or the income therefrom, 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(s), in their absolute discretion, may cause the share distributed to any distributee to be composed of property similar to or different from that distributed to any other distributee; To exercise any subscription right in connection with any security held hereunder, to consent to or participate in any recapitalization, reorganization, consolidation or merger of any corporation, company or association, the securities of which 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 which I am a part at the time of my death; C.f .~J A.M.B. Page 3 of 6 Pages To compromise claims; m. To continue for whatever period of time as they shall deem necessary any ownership as a tenant in common or as a partner, in real estate or other property and to act as I could have done had I been living; n. To lend money to my estate or to any trust created hereunder or to purchase from the estate or from any trust created hereunder, at the mazket value thereof at the time of purchase, any securities or other property tendered to them by my estate or any trust created hereunder at any time and from time to time within a period of nine (9) months after my death; o. In the event that any amounts are payable hereunder or under any trust created hereunder to a minor, or to a person otherwise under legal disability, or to a person not adjudicated incompetent, but who, by reason of illness or mental or physical disability is, in the opinion of fiduciary(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 beneficiary; (2) To a legally appointed guazdian of such beneficiary for the benefit of such beneficiary; (3) To a person having custody of such beneficiary for the benefit of such beneficiary; (4) By the fiduciary(ies) hereunder using such amounts directly to the benefit of such beneficiary. p. To employ agents, attorneys and proxies and to delegate to them such power as my personal representatives and Trustees consider desirable and to pay reasonable compensation for such services as may be rendered by such agents, attorneys and proxies; q. To do all other acts in their judgment necessary or desirable for the proper management, investment and distribution of my Estate. 7. I nominate, constitute and appoint my brother, ANTHONY N. CERNUGEL, as Executor of ~' A.M.B. Page 4 of 6 Pages my estate. Iri the event he shall be unable or unwilling to serve in such capacity, then 1 appoint CHRISTINA CERNUGEL and CAROL ANN HAGAN to act in such capacity. 8. I nominate, constitute and appoint my brother, ANTHONY N. CERNUGEL, as Trustee under the terms of this Last Wiil and Testament. In the event he shall be unable or unwilling to serve in such capacity, then I appoint CHRISTINA CERNUGEL and CAROL ANN HAGAN to act in such capacity. 9. I direct that neither my personal- representative(s) nor my Trustee or Trustees shall be required to file a bond to secure the faithful performance of their duties in any jurisdiction. 10. I further direct my personal representative(s) and Trustee(s) to employ the firm of MARTSON, DEARDORFF, WILLIAMS & OTTO as attorneys in the settlement of my estate and the administration of the trust created hereunder. IN WITNESS WHEREOF I have hereunto set my hand and seal this C~ day of 1996. ~~/'~~~~ (SEAL) Anna M. Bernard SIGNED, SEALED, PUBLISHED AND DECLARED by the above-named Testatrix, as and for her Last Will and Testament, in the presence of us, who at her request, have hereunto subscribed our names as witnesses thereto, in the presence of the said Testatrix and of each other. _ ~ Page 5 of 6 Pages COMMONWEALTH OF PENNSYLVANIA ) SS. COUNTY OF CUMBERLAND I, Anna M. Bernard, Testatrix, whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my Last Will; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. ~~.~- ~. Anna M. Bernard Sworn or affirmed to and acknowledged before me by Anna M. Bernard, the Testatrix, this (o ~ day of ~ ycecl.~.~ , 1996. Notari:,l Seal ~ , Conine L. Myers, Notary Public ,~,~' ~ ~' Carlisle Boro, C~:mberland County My Commissio:; =~ ~.ires May 27, 1999 Notary Public COMMONWEALTH OF PENNSYLVANIA ) SS. COUNTY OF CUMBERLAND We, LUt ~ ~ t ~ ~-. ~~1Ccr~ae-n (.~.~rtcL- -~-`~~' l~~ ~`~ the witnesses whose names are signed to the attached or foregoing instrument, being duly qualified according to law, do depose and say that we were present and saw Anna M. Bernard, the Testatrix, sign and execute the instrument as her Last Will; that the Testatrix signed willingly and that the Testatrix executed it as her free and voluntary act for the purposes therein expressed; that each of us, in the hearing and sight of the Testatrix, signed the Will as witnesses; and that to the best of our knowledge the Testatrix was at that time 18 or more years of age, of sound mind d under no constraint or undue influence. t _ n n /~ ,, ~ Ill/. Address ~ ~ St"' GLr Its ~c ~~ 1~U13 Address l? -t-~ ~-'/i ~/c ~ I w l 3 ~~ Sworn or affirmed to and subscribed before me this ~ day of ~e">`~ ; 1996. C~~.' Notarial Seal Corrine L. Myers, Notary Public Notary Public Carlisle Boro, Cumberland County My Commission Expires May 27, 1999 Page 6 of 6 Pages -. -~ F:IFILPSIDATAFQ.EIWII1SlS528.C0D ~ ~ ~ D . M1M N l~ ~ ~~ ;,~~~~~(`' CODICIL ~ I, ANNA M. BERNARD, of Middlesex Township, Cumberland County, Pennsylvania, being of sound and disposing mind, memory and understanding, do make, publish and declaze this to be a Codicil to my Last Will and Testament dated September 6, 1996. 1. Item 7 of said Will is hereby deleted and replaced with the following: I nominate, constitute and appoint HELEN CERNUGEL and MATTHEW J. KOSTELAC, or the survivor, as Executor of my estate. 2. Item 8 of said Will is hereby deleted and replaced with the following: I nominate, constitute and appoint HELEN CERNUGEL and MATTHEW J. KOSTELAC, or the survivor, as Trustee under the terms of this Last Will and Testament. 3. In all other respects, I ratify and affirm my said Last Will and Testament dated September 6, 1996. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 12th day of January, 1999. ~% ~ `~~ ? (SEAL) Ai(ifi~a ernazd SIGNED, SEALED, PUBLISHED AND DECLARED by the above-named Testatrix, as and for a Codicil to her Last Will and Testament dated September 6, 1996, in the presence of us, who at her request, have hereunto subscribed our names as witnesses thereto, in the presence of the said Testatrix and of each other. ~~ Page 1 of 2 Pages COMMONWEALTH OF PENNSYLVANIA SS. COUNTY OF CUMBERLAND I, Anna M. Bernard, Testatrix, whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby aclrnowledge that I signed and executed the instrument as a Codicil to my Last Will dated September 6, 1996; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. Anna M. Bernard Sworn or affirmed to and aclrnowledged before me by Anna M. Bernard, the Testatrix, this day of , 199 . Notary Public COMMONWEALTH OF PENNSYLVANIA ) SS. COUNTY OF CUMBERLAND we, +~ 2r)~ m ~~ ~. uk~r~ er CZ.n(~ ~2 ph~r) ~ ..~I ~c~m. the witnesses whose names are signed to the attached or foregoing instrument, being duly qualified according to law, do depose and say that we were present and saw Anna M. Bernard, the Testatrix, sign and execute the instrument as a Codicil to her Last Will dated September 6, 1996; that the Testatrix signed willingly and that the Testatrix executed it as her free and voluntary act for the purposes therein expressed; that each of us, in the hearing and sight of the Testatrix, signed the Codicil as witnesses; and that to the best of our lrnowledge the Testatrix was at that time 18 or more years of age, of sound mind and under no constraint or undue influence. ~--- Address c r G4r2us~ PA / ~ ~ 3 Address ~-, ~ _S~-~~- f~-1. sie .,- ~ I ~c713 Sworn or affirmed to and subscribed before me this ~~ day of ~~~~~- J , 199 Nolaria! Seal Notary Public DArd6e L Nye, Notary Public Ca~isle Boro, Cuumber~and County My Commission Expires Feb. 26, 200' Memher n^^^~~'~"^^'^ e~e~~~,,'.~ gage 2 of 2 Pages f:~FQFSIDATAFILEIFSTATESV S2SiERMM1K TERMS OF PAYMENT FOR CARE OF CHART ES O BERNARD While Charles O. Bernard is in the primary care of Matthew J. Kostelac, Matthew J. Kostelac will be paid, as an independent contractor, by the Charles O. Bernazd Guardianship Estate, the Estate of Anna M. Bernard and/or the Trust under Will of Anna M. Bernard for benefit of Charles O. Bernard, as follows: X25,000 per year payable weekly at rate of $480.77; Credit of 525,000 per year toward the purchase of real estate owned by the Estate of Anna M. Bernard situate in Dauphin County, Pennsylvania, at its appraised value as reported for Pennsylvania inheritance tax purposes. In exchange for such payment as stated above, Matthew J. Kostelac will be responsible, at his own discretion, for the day-to-day proper care and supervision of Charles 0. Bernard and the e eral maintenance and upkeep of the home in which Charles O. Bernard resides, at 132 North Middlesex Road, Carlisle, Pennsylvania. The arrangement as set forth above maybe temvnated by either Matthew J. Kostelac or the relevant Estates and/or Trust upon fifteen days written notice to the other. In the event of such termination, payment and credit shall be prorated based on the number of days in which the arrangement was in effect during that year. Should Charles O. Bernard begin spending the majority of his time in care or activities other than with Matthew J. Kostelac, such that Matthew J. Kostelac is no longer providing Charles O. Bernard with substantial care and supervision as contemplated above, the parties agree that the above terms may be renegotiated, protecting and providing for the best interests of Charles O. Bernard being the pazamount concern in this arrangement. mks The parties sign below, intending to be legally bound, this,3r-~(..day of ~brtr~y, 1999. ~i~~~--- Matthe J.~ Kostelac, individually, as Co- Executor of the Estate of Anna M. Bernard, and as Co-Trustee of the Trust under Will of Anna M. Bernard f/b/o Charles 0. Bernard 1~~~ Helen B. Cernugel, as Guar an of Estate of Charles O. Bernard, Co-Executor of the Estate of Anna M. Bernazd, and as Co-Trustee of the Trust under Will of Anna M. Bernard f/b/o Charles O. Bernard r-- ~~~~x TRUST oF~ o~ ~~'~~ r ~' s ~- ~ ~~ ~..~ __ ____: - TMENT Ins SERVICES ~: P.O. R.>~ ?~(, IN RE: Estate of Charles O. Bernard : IN THE COURT OF COMMON PLEAS Incapacitated Person CUMBERLAND COUNTY, PENNSYLVANIA ORPHAN'S COURT DIVISION NO. 1450 OF 1977 CONSENT Orrstown Bank, 77 East King St., Shippensburg, Cumberland County, Pennsylvania, agrees to accept the appointment as Co-Guardian, along with Helen N. Cernugel of the Estate of Charles O. Bernard, an incapacitated person, and states that it has no interest adverse to the incapacitated person. Date: June 14, 1999 Orrstown Bank By: ~ ~-~ Bradley~S: ~ ~ h Vice President 8c Trust OfEcer ~)Cttl~~i ~' SHIPPENSBURG OFFICE 77 E. K~~~c S~r. • SHiPPHh~sBURC. PA ] 7257 1717) 530-2605 • FAX (717) 532-9342 CARLISLE OFFICE 427 STOnHxe~cr Da. • CARLISL[, PA 17013 (717) 240-0803 • FAX (717) 240-0804 CHAh1BERSBURG OFF1C~1 625 [vlORI A!~D 1~ ~.. • CH ~~i~Eizsisi~uc,. P;; i ~_O1 (7171 262-4?RR • FAX (7171 ~h~_1ia , IN RE: ESTATE OF :IN THE COURT OF COMMON PLEAS :CUMBERLAND COUNTY, PF~TNSYLVANIA CHARLES O. BERNARD :nRPHANS' COURT DIVISION INCAPACITATED PERSON :NO. 1450 RULE WE COMMAND, you that laying aside all business and excuses whatsoever, you be and appear in your proper person before the Honorable Judges of the Common Pleas Court Orphans' Court Division at a session of the said Court there to be held, for the County of Cumberland to show cause why the relief requested within the petition should not be granted. Said Rule is returnable at a hearing to be held the 7th day of July, 1999, at the Cumberland County Courthouse, Courtroom No. 3 at 10:00 A.M. Carlisle, Cumberland County Pennsylvania. witness my hand and official seal of office at Carlisle, Pennsylvania, this 23rd. day of June, 1999. << )~} r W~~ ~/ A,Lr2.~,1 °. ., 1.`-L~ tit _Y • ~ A~.C?L t.~_4 Mary C.Lewis ! Clerk ofOrphans' Court Cumberland County ,~. RULE TO SHOW CAUSE IN RE: PETITION FOR APPO TMENT OF CORPORATE CO-GUARDIAN AND NOW, this day of , 1999, upon consideration of Plaintiff s Petition for Special Relief, a Rule is issued upon the Respondent to show cause why the relief requested within the petitionys~hould not be granted. Said Rule is returnable at a hearing to be held the / day of - ~e , 1999, at the Cumberland County Courthouse, Courtroom No. ~ , at _ f ~~ .m., Carlisle, Cumberland County, Pennsylvania. By the Court, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. 1450 ~ FOURTH ACCOUNT OF HELEN N. CERNUGEL, GUARDIAN OF THE ESTATE OF CHARLES O. BERNARD, AN INCOMPETENT, OF MIDDLESEX TOWNSHIP CUMBERLAND COUNTY PENNSYLVANIA Guardian appointed August 29, 1977 First Triennial Account was confirmed August 25, 1981 Second Account was confirmed August 25, 1992 Third Account was confirmed November 26, 1996 Account Period is to December 31, 1998 The Accountant charges herself with receipt of the items of personalty as set forth herein as debits and claims credit for the items listed herein as credits. PRINCIPAL ACCOUNT DEBITS Principal remaining in the hands of Accountant, which includes accumulation of income not required for expenses of Charles 0. Bernard, is comprised of the following: 1. Certificate No. 2963304995, Harris Savings Interest @ 5.91%; 36 months; Due 10/24/00 $50,000.00 2. Certificate No. 2963305005, Harris Savings Interest @ 5.910Io; 36 months; Due 11/O1/00 50,000.00 3. Certificate No. 00775188, Mellon Bank Interest 5.35%; 36 months; Due 10/31/99 24,617.37 4. Certificate No. 00859181, Mellon Bank Interest 6.40010; 9 months; due 12/18/99 19,001.66 5. Certificate No. 8140722685, Dauphin Deposit Interest 5.840Io; 48 months; due 03/10/01 13,759.80 6. Certificate No. 8140394408, Dauphin Deposit Interest 4.330Io; 24 months; Due 11/30/00 35,000.00 7. Certificate No. 8141045695, Dauphin Deposit Interest @ 5.46%; 28 months; Due 06/02/00 31,239.00 8. Certificate No. 31100142343, PNC Bank, N.A. Interest 4.2%; 12 months; due 10/30/99 5,190,89 9. Certificate No. 3120010821, PNC Bank, N.A. Interest 6.05%; 22 months; due 09/05/99 15,000.00 TOTAL ACCUMULATED PRINCIPAL AND INCOME: $243,808.72 INCOME ACCOUNT DEBITS 1996 Interest from Certificates of Deposit Interest from Checking Account 1997 Interest from Certificates of Deposit Transfer from Principal Account Interest from Checking Account 1998 Interest from Certificates of Deposit Interest from Checking Account 4835.78 87.67 4,923.45 20,773.60 13,759.80 99.53 34,632.93 9,307.45 153.64 9,461.09 TOTAL INCOME ALLOCATED FOR EXPENSES FOR ACCOUNTING PERIOD 49,017.47 INCOME ACCOUNT CREDITS 1996 Accounting Allowance Bond Clothing IR,S Medical Care Medical Insurance PA Department of Revenue 1997 Accounting Allowance Bond Clothing IRS Legal Fees Medical Care Medical Insurance PA Department of Revenue Transfer to Principal Account 1998 Accounting Allowance Bond Clothing IRS Medical Care Medical Insurance PA Department of Revenue Postage 50.00 520.00 460.00 123.50 1,308.00 455.98 2,302.20 449.00 50.00 520.00 460.00 183.50 1,100.00 360.00 358.07 2,397.60 400.00 28,759.80 60.00 540.00 460.00 142.99 1,240.00 526.00 2,705.40 409.00 6.40 5,668.68 34,588.97 6,089.79 TOTAL EXPENDITURES FOR ACCOUNTING PERIOD 46,347.44 TOTAL INCOME ALLOCATED FOR EXPENSES FOR ACCOUNTING PERIOD 49,017.47 TOTAL EXPENDITURES FOR ACCOUNTING PERIOD 46,347.44 ACCOUNTING PERIOD INCOME ACCOUNT BALANCE 2,670.03 INCOME ACCOUNT STARTING BALANCE FROM 1996 ACCOUNT 9,611.72 ACCOUNTING PERIOD INCOME ACCOUNT BALANCE 2,670.03 ENDING INCOME ACCOUNT BALANCE 12/31/98 12,281.75 ~ :~ O ~ ... ~ ~ :w cz d ~; r ° ~ ~ ~ ~ n ' ~ ~ t~ ~ o ~ y ~, ~ ~•~ za r ~ r.. .Q~,, ~ ~ ._. .~, C Cam,,. .L7 ~ ~~"i ~ ~ ~ ~ ~ ~ ~ rr-~ ~ O -y _-- L , 1.2 Ma' F...~ '^ Cam: ~., (`I-1 r _ y ~` = 's p ~ C ~ ~ ~"~ ^ ~i ~+ ~`f7'. ~ ~ a~ 1 ^~ ~ ~ ~ Z ~ v ~~cJ,~n y~Z ,. cc ~ .. ~ ~ x ~ ~ U ~ ~ ~ ~z~ _, r o a~ Z ~ I_ ~ ~ ~ z ~. y ~_ BERNARD STIPULATION/lone 24. 1'l9')/DISK 17 IN RE: ESTATE OF CHARLES O. BERNARD, INCAPACITATED PERSON IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 1450 OF 1977 ORPHANS' COURT DIVISION STIPULATION AND NOW comes CHARLES O. BERNARD, with his attorney, Michael L. Bangs, Esquire, and HELEN N. CERNUGEL, with her attorney, Andrea C. Jacobsen, Esquire, and enter into the following Stipulation: 1. On or about August 29, 1977, the Court appointed Anthony N. Cernugel and Helen N. Cernugel as guardians of the estate of Charles O. Bernard. 2. Anthony N. Cernugel died on May 5, 1998, and since his death, Helen N. Cernugel has served as the sole guardian of the estate of Charles O. Bernard. 3. On or about June 17, 1999, Helen N. Cernugel filed a Petition for Appointment of Corporate Co-Guardian requesting that this Honorable Court appoint Orrstown Bank as a corporate co-guardian to serve with her as guardian of the estate of Charles O. Bernard. 4. Charles O. Bernard did not join in that Petition. 5. Charles O. Bernard believes that it is in his best interest at this time to agree to the appointment of a corporate co-guardian with Helen N. Cernugel as guardian of his estate. BERNARD STIPULATION/loot 24, 1`)99/DI$K 17 6. By entering into this Stipulation, Charles O. Bernard is not admitting the averments of the Petition, rather he is entering into this Stipulation because he believes it is in his best interest to resolve this issue now without further litigation. 7. The Orrstown Bank has filed a Consent which is attached as Exhibit 7 to the Petition for Appointment of Corporate Co-Guardian indicating its willingness to serve as a co-guardian of the estate of Charles O. Bernard. WHEREFORE, Helen N. Cernugel and Charles O. Bernard hereby stipulate and agree that it is in the best interest of Charles O. Bernard to have a corporate co-guardian appointed to serve with Helen N. Cernugel and request the Court to enter the Order as attached. .^ ~~~~ J Michael L. Bangs, ~s 'ire / .~ r„ ~~~ LAC +-. ~ / ~ ''~ _ ~ --~ Andreae. Jacobsen,-~tluire ~.~ a c~ r CHARLES O. BERNARD HELEN N. CERNUGEL BERNARD STIPULATION/J~me 24. 191'1/DISK 17 IN RE: ESTATE OF CHARLES O. BERNARD, INCAPACITATED PERSON AND NOW, this day of of the Petition for Appointment of Corporate 1999, upon consideration Bank, and upon consideration of the Stipulation attached hereto, it is hereby ORDERED and DIRECTED that Orrstown Bank is appointed as a corporate co-guardian of the estate of Charles O. Bernard. BY THE COURT, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 1450 @Z ORPHANS' COURT DIVISION In the Court of Common Pleas of Cumberland Co ty, Pennsylvania Orphans' Court Division In re: Guardianship of Charles Bernard, incapacitated person No: ~-d 1- l aLl - ILJ50 Co-Guardian's Petition for Dischar e and Nomina' on of Successor AND NOW COMES, Helen Cernugel, co-guardian of th estate of Charles BelT\~d, incapacitated person, by and through her attorneys, Saidis, Sh ff, Flower & Lindsay, and'c'in support of her petition for discharge, states the following: 1. The petitioner, Helen Cernugel, was appointed by this cou to serve as co-guardian of the estate of her nephew, Charles Bernard, an incapacitated person fo y-eight years of age. 2. Orrstown Bank was appointed as co-guardian of the estate of Charles Bernard. 3. The quarterly statement of Orrstown Bank dated March 1, 2005, showing investments, income and disbursements during the first quarter of 2005 for t guardianship account for the benefit of Charles Bernard is attached hereto as Exhibit "A". 4. The estate of Charles Bernard consists of the said Orrst wn Bank investment account comprising assets with a total value of approximately two-h ndred eighty-seven thousand ($287,000) dollars, and residential real estate at 132 N. Middle ex Road, Carlisle, soon to be conveyed from the terminating trust of Charles Bernard's decease mother. 5. Charles Bernard resides at the said Middlesex Road re 'dence from Monday through Thursday, and resides at the ACT group home for retarded citiz ns in Camp Hill from Friday through Sunday. 6. The petitioner, who has served as the co-guardian of the estate of Charles Bernard for approximately six (6) years, is past retirement age and wishe to be discharged from her responsibilities. 7. The petitioner nominates as her successor another neph w, and a cousin of Charles Bernard, Joseph M. Cernugel, to ensure continuity of the amily's participation in the guardianship, by appointment of a co-guardian of Charles Bernard' own generation. 8. Joseph M. Cernugel has consented to serve as successor c~-guardian and Orrstown Bank has consented to the discharge of Helen Cernugel and to her repla ement by Joseph M. Cernugel (both consents attached hereto as Exhibits "B" and "C"). [ I I WHEREFORE, the petitioner respectfully prays this court issue ari Order discharging her as co- guardian of the estate of Charles Bernard and appointing as her sucfessor Joseph M. Cernugel. I - Respectfully ubmitted, SAIDIS, SHUFF, FLOW R & LINDSAY 4L---- Dated: W ~ b~ . By: ~ Thomas E. Fl wer S.Ct. #83993 2109 Market Camp Hill, P (717)-737- In the Court of Common Pleas of Cumberland Co ty, Pennsylvania Orphans' Court Division In re: Guardianship of Charles Bernard, incapacitated person No: 2005 VERIFICATION I, Helen Cernuge1, Petitioner, hereby verify that the statements made in the foregoing petition are true and correct to the best of my i~formation, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: ~ J'f- 6.s:- By: .. , I EXHIBIT "A" For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31 000532072 Date: MARCH 31, 2005 HELEN CERNUGEL, CO-GUARDIAN FBO CHARLES BERNARD 5060 FRANKLIN ST HARRISBURG PA 17111 WINTER HAS FINALLV ENDED AND SPRING IS HERE LASTI WITH THE EXCEPTION OF HIGH OIL PRICES. THE E NOMV IS STRONG AND THE MARKETS HAVE BEEN STABLE IN 2005. THE OUTLOOK FOR INVESTORS IS BRIGHT. ESPECIALLV IF ENERGV PRICES DIP LATER IN THE VEAR. MONEV MARKET RATES ARE HIGHER NOW AND WE CON INUE TO INVEST AS OPPORTUNITIES ARISE. 02443 04022005/09:38:09/221/2392 Shares or Par Value Unit Market Total Market Value Est. Annual Current Income Yield For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: MARCH 31,2005 Review of Assets CASH INCOME CASH 0.00 0.00 PRINCIPAL CASH 0.00 0.00 TOTAL CASH 0.00 0.00 CASH EQUIVALENTS MISC CASH EQUIV-TAXABLE 68.15 FEDERATED MONEY MARKET FUND 1.000 68.15 68.15 2 2.52 851-PRINCIPAl TOTAL CASH EQUIVALENTS 68.15 68.15 2 2.52 FIXED INCOME SECURITIES U.S. GOVT AGENCY OBLIGATIONS 50,000 FEDERAL HOME IN BKS 100.656 50 000.00 50,328.00 4,065 8.08 DEB 8.130% 5/19/10 25,000 FEDERAL HOME LOAN BKS 99.250 25 000.00 24,812.50 1,013 4.08 4.050% 08/26/2008 20,000 FEDERAL HOME IN BKS 98.969 20 000.00 19,793.80 750 3.79 DEB 3.750% 12/14/07 10,000 FFCB 5.24 8/8113 99.656 9,965.60 524 5.26 10,000 FED HOME lOAN BK 97.000 9 9,700.00 300 3.09 3.000% 12/19/2011 25,000 FHlB 2.225% 12/29/06 97.156 24,289.00 556 2.29 TOTAL U.S. GOVT AGENCY OBLIGATIONS 139, 75.00 138,888.90 7,208 5.19 CORPORATE BONDS & NOTES 30,000 AT&T CAP CORP MTNS BK EN 100.195 29, 39.00 30,058.50 1,980 6.59 MTNF 6.600% 5/15/05 10,000 HOUSEHOLD FIN 98.943 10, 60.00 9,894.30 550 5.56 5.500% 04/15/2013 TOTAL CORPORATE BONDS & NOTES 39, 99.00 39,952.80 2,530 6.33 Page 04022005/09 :38 :09/221/2393 - For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: MARCH 31,2005 Review of Assets Est. Shares or Unit Inv stment Total Annual Current Par Value Market Co t Basis Market Value Income Yield FDIC INSURED BANK CD 20,000 MDLSEXCD4.759/20/12 97.383 2 000.00 19,476.60 950 4.88 MUTUAL FUNDS-BONDS 1,175.691 VG HI YIELD BOND FUND ADM 6.220 7 124.69 7,312.80 546 7.46 #529 TOTAL FIXED INCOME SECURITIES 206 98.69 205,631.10 11,234 5.46 EQUITIES COMMON STOCK 300 FRESH DEL MONTE PRODUCE INC 30.520 9,156.00 240 2.62 100 CISCO SYS INC 17.890 1,789.00 0 0.00 100 GENERAL DYNAMICS CORP 107.050 10,705.00 160 1.49 300 GENERAL ELEC CO 36.060 10,818.00 264 2.44 200 HEADWATERS INC 32.820 6,564.00 0 0.00 100 HONEYWELL INTL INC 37.210 3, 75.00 3,721.00 83 2.22 100 MIDDLEBY CORP 49.400 1, 71.66 4,940.00 0 0.00 200 MINE SAFETY APPLIANCES CO 38.740 9, 82.05 7,748.00 80 1.03 500 RAVEN INDS INC 20.420 6, 09.14 10,210.00 140 1.37 TOTAL COMMON STOCK 65,651.00 967 1.47 MUTUAL FUNDS-EQUITIES 304.805 EMERALD GROWTH FUND 12.610 3,843.59 0 0.00 98.251 LEGG MASON VALUE TR INC 67.040 6,586.75 0 0.00 NAV VALUE TR 114.462 VANGUARD HEAL THCARE ADM #552 52.790 6,042.45 65 1.07 34.438 VANGUARD 500 INDEX ADMIRAL 108.790 3,746.51 73 1.94 SHS #540 TOTAL MUTUAL FUNDS-EQUITIES 20,219.30 138 0.68 TOTAL EQUITIES 85,870.30 1,105 1.29 - Page 2 04022005/09:38:09/221/2394 Review of Assets For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: MARCH 31, 2005 EX-DIVIDENDS ACCRUED INTEREST Unit 'nv stment Est. Market Total Annual Current Co t Basis Market Value Income Yield 176.57 2,922.36 287 162.04 294,668.48 12,341 4.23 Shares or Par Value GRAND TOTAL 1'> Page 3 04022005/09: 38 :09/221/2395 - " For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1,2005 through MARCH 31,2005 Statement of Transactions Date INTEREST 01/18/2005 INTEREST ON 10000 PAR VALUE HOUSEHOLD FIN 5.500% 04/15/2013 01/20/2005 INTEREST ON 20000 PAR VALUE MDLSEXCD4.759/20/12 02/08/2005 INTEREST ON 10000 PAR VALUE FFCB 5.24 8/8113 02/15/2005 INTEREST ON 10000 PAR VALUE HOUSEHOLD FIN 5.500% 04/15/2013 02/22/2005 INTEREST ON 20000 PAR VALUE MDLSEXCD4.759/20/12 02/28/2005 INTEREST ON 25000 PAR VALUE FEDERAL HOME LOAN BKS 4.050% 08/26/2008 03/15/2005 INTEREST ON 10000 PAR VALUE HOUSEHOLD FIN 5.500% 04/15/2013 03/21/2005 INTEREST ON 20000 PAR VALUE MDLSEXCD4.759/20/12 TOTAL INTEREST ORDINARY DIVIDENDS 01/04/2005 DIVIDEND RECEIVED VG HI YIELD BOND FUND ADM #529 01/04/2005 DIVIDEND RECEIVED VANG ST INVESTMENT ADM #539 01/04/2005 DIVIDEND RECEIVED FEDERATED MONEY MARKET FUND- INCOME 01/04/2005 DIVIDEND RECEIVED FEDERATED MONEY MARKET FUND 851-PRINCIPAL 01/14/2005 DIVIDEND ON 600 SHARES @ 0.055 RAVEN INDS INC COM 01/25/2005 DIVIDEND ON 300 SHARES @ 0.22 GENERAL ELEC CO COM 02/02/2005 DIVIDEND RECEIVED FEDERATED MONEY MARKET FUND-INCOME Income Cash Principal Cash Investment Cost Basis 45.83 80.69 262.00 45.83 80.69 506.25 45.83 72.88 1,140.00 0.00 0.00 110.67 34.87 5.44 22.43 33.00 66.00 I ! I I , ! I I J .14 Page 4 04022005/09:38:09/221/2396 For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31 000532 072 Date: From JANUARY 1,2005 through MARCH 31,2005 Statement of Transactions Income Principal Investment Date Cash Cash Cost Basis 02/02/2005 DIVIDEND RECEIVED 7.94 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 02/02/2005 DIVIDEND RECEIVED 5.78 VANG ST INVESTMENT ADM #539 02/02/2005 DIVIDEND RECEIVED 111.09 VG HI YIELD BOND FUND ADM #529 02/04/2005 DIVIDEND ON 100 SHARES @ 0.36 36.00 GENERAL DYNAMICS CORP COM 03/02/2005 DIVIDEND RECEIVED 9.42 VANG ST INVESTMENT ADM #539 03/02/2005 DIVIDEND RECEIVED 69.11 VG HI YIELD BOND FUND ADM #529 03/02/2005 DIVIDEND RECEIVED .34 FEDERATED MONEY MARKET FUND-INCOME 03/02/2005 DIVIDEND RECEIVED 2.24 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 03/08/2005 DIVIDEND ON 300 SHARES @ 0.20 60.00 FRESH DEL MONTE PRODUCE INC 03/1 0/2005 DIVIDEND ON 200 SHARES @ 0.10 20.00 MINE SAFETY APPLIANCES CO COM 03/10/2005 DIVIDEND ON 100 SHARES @ 0.206251 20.62 HONEYWELL INTL INC COM TOTAL ORDINARY DIVIDENDS 615.09 0.00 0.00 ORDINARY DIVIDENDS REINVESTED 03/22/2005 DIVIDEND ON 113.071 SHARES @ 0.06 6.78 VANGUARD HEAL THCARE ADM #552 REINVESTED IN 0.128 SHARES @ 52.80 03/31/2005 DIVIDEND ON 71.392 SHARES @ 0.454 32.41 VANGUARD 500 INDEX ADMIRAL SHS #540 REINVESTED IN 0.3 SHARES @ 107.99 TOTAL ORDINARY DIVIDENDS REINVESTED 0.00 0.00 39.19 . 1- Page 5 I 04022005/0938 OJ/22112397 ~ Statement of Transactions For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31 000532072 Date: From JANUARY 1,2005 through MARCH 31,2005 Date Income Cash Principal Cash Investment Cost Basis SHORT TERM GAIN DIVIDENDS REINVESTED 03/22/2005 SHORT TERM GAIN DIV ON 113.071 SHS @ 0.037 4.18 VANGUARD HEAL THCARE ADM #552 REINVESTED IN 0.079 SHARES @ 52.80 TOTAL SHORT TERM GAIN DIVIDENDS REINVESTED 0.00 0.00 4.18 LONG TERM GAIN DIVIDENDS REINVESTED 03/22/2005 LONG TERM GAIN DIV ON 113.071 SHS @ 0.553 62.53 VANGUARD HEAL THCARE ADM #552 REINVESTED IN 1.184 SHARES @ 52.80 TOTAL LONG TERM GAIN DIVIDENDS REINVESTED 0.00 0.00 62.53 SOCIAL SECURITY BENEFITS 01/20/2005 MONTHL Y SOCIAL SECURITY BENEFITS 623.00 02/18/2005 MONTHLY SOCIAL SECURITY BENEFITS 623.00 03/18/2005 MONTHLY SOCIAL SECURITY BENEFITS 623.00 TOTAL SOCIAL SECURITY BENEFITS 1,869.00 0.00 0.00 PROCEEDS FROM THE SALE OF ASSETS 01/04/2005 REDEEM 14,386.58 -14,386.58 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 01/11/2005 REDEEM 950.40 -950.40 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 01/13/2005 REDEEM 210.00 -210.00 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 02/01/2005 REDEEM 50.00 -50.00 FEDERA TED MONEY MARKET FUND 851-PRINCIPAL 02/02/2005 REDEEM 227.11 -227.11 FEDERATED MONEY MARKET FUND- INCOME 02/04/2005 REDEEM 3,170.11 -3,170.11 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 02/08/2005 SOLD 1085.358 @ 6.42 6,968.00 -6,577.27 VG HI YIELD BOND FUND ADM #529 Page 6 04022005/09:38:09/221/2398 - Page 7 04022005/09: 38 :09/221/2399 . Statement of Transactions For the Account of: CHARLES O. BERNARD, CO.GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1, 2005 through MARCH 31,2005 I Date Income Cash Principal Cash Investment Cost Basis 03/30/2005 SOLD 37.254 @ 107.37 4,000.00 -3,853.30 VANGUARD 500 INDEX ADMIRAL SHS #540 03/31/2005 REDEEM 7,824.19 -7,824.19 FEDERATED MONEY MARKET FUND 851-PRINCIPAL TOTAL PROCEEDS FROM THE SALE OF ASSETS 1,710.44 57,447.83 -57,663.59 ADJUSTMENTS 01/04/2005 INCOME CASH TRANSFERRED TO PRINCIPAL CASH -4,386.58 4,386.58 01/04/2005 AUTO TRANSFER PRINCIPAL TO INCOME CASH 8,599.75 -8,599.75 01/10/2005 PRINCIPAL CASH TRANSFERRED TO INCOME CASH 950.40 -950.40 02/04/2005 PRINCIPAL CASH TRANSFERRED TO INCOME CASH 3,170.11 -3,170.11 02/09/2005 PRINCIPAL CASH TRANSFERRED TO INCOME CASH 3,896.26 -3,896.26 03/22/2005 AUTO TRANSFER PRINCIPAL TO INCOME CASH 1,404.59 -1,404.59 03/24/2005 PRINCIPAL CASH TRANSFERRED TO INCOME CASH 3,380.00 -3,380.00 03/31/2005 PRINCIPAL CASH TRANSFERRED TO INCOME CASH 7,824.19 -7,824.19 TOTAL ADJUSTMENTS 24,838.72 -24,838.72 0.00 DISBURSEMENTS TO OR FOR BENEFICIARIES 01/03/2005 CHARLES BERNARD -50.00 MONTHL Y ALLOWANCE CHECK NUMBER 19099 02/01/2005 CHARLES BERNARD -50.00 MONTHL Y ALLOWANCE CHECK NUMBER 19491 03/01/2005 CHARLES BERNARD -50.00 MONTHL Y ALLOWANCE CHECK NUMBER 19748 TOTAL DISBURSEMENTS TO OR FOR BENEFICIARIES 0.00 -150.00 0.00 Page 8 04022005/09:38:09/221/2400 Statement of Transactions For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1, 2005 through MARCH 31,2005 Date Income Cash Principal Cash Investment Cost Basis INSURANCE/ANNUITY PREMIUMS 03/16/2005 HIGHMARK BLUE SHIELD -1,669.50 MEMBERSHIP AND BILLING 04/01/05 - 06/30/05 COVERAGE FOR CHARLES O. BERNARD CONTRACT ID#: 1053681360010 CHECK NUMBER 20121 TOTAL INSURANCE/ANNUITY PREMIUMS 0.00 -1,669.50 0.00 FIDUCIARY FEES 01/20/2005 TRUST DEPARTMENT FEE FOR QUARTER ENDED 12/31/04 -621.41 TOTAL FIDUCIARY FEES -621.41 0.00 0.00 OTHER EXPENSES 02/02/2005 ACT, INC -7,432.42 MONTHL Y RESIDENTIAL SERVICES CHARLES BERNARD CHECK NUMBER 19520 03/21/2005 ACT, INC -7,314.57 MONTHL Y RESIDENTIAL SERVICES CHARLES BERNARD CHECK NUMBER 20184 03/22/2005 ACT, INC -6,412.00 MONTHL Y RESIDENTIAL SERVICES CHARLES BERNARD CHECK NUMBER 20191 03/23/2005 PENNDOT -10.00 PHOTO ID RENEWAL APPLICATION FEE FOR CHARLES O. BERNARD CHECK NUMBER 20204 TOTAL OTHER EXPENSES 21,158.99 -10.00 0.00 '" PRESCRIPTIONS 01/10/2005 WAL-MART PHARMACY #10-1886 -950.40 CHARLES BERNARD PRESCRIPTIONS CHECK NUMBER 19292 Page 9 04022005/09: 38 :09/221/240 1 For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1,2005 through MARCH 31,2005 Statement of Transactions Income Principal Investment Date Cash Cash Cost Basis 02/08/2005 WAL-MART PHARMACY #10-1886 -284.01 CHARLES BERNARD PRESCRIPTIONS CHECK NUMBER 19567 03/02/2005 WAL-MART PHARMACY #10-1886 -577.57 CHARLES BERNARD PRESCRIPTIONS CHECK NUMBER 19817 03/14/2005 PEOPLES BENEFIT SERVICES -23.85 QUARTERL Y PRESCRIPTION MEMBERSHIP CHARLES BERNARD/MEMBERSHIP ID # VR31247 CHECK NUMBER 20088 TOTAL PRESCRIPTIONS -1,835.83 0.00 0.00 OTHER INSURANCE PREMIUMS 02/28/2005 HOCKLEY & O'DONNELL INSURANCE AGENCY -460.00 CARLISLE INSURANCE SERVICES TRAVELERS INS RENEWAL POLICY POLICY #: 57029645 / HELEN CERNUGLE INVOICE #: 314845 CHECK NUMBER 19778 TOTAL OTHER INSURANCE PREMIUMS -460.00 0.00 0.00 MISC. MEDICAL EXPENSES 01/13/2005 BRICE D. ARNDT, DDS, PC -210.00 FAMILY DENTISTRY CHARLES BERNARD ACCOUNT #: 525300 CHECK NUMBER 19322 02/15/2005 SUSQUEHANNA INTERNAL MEDICINE -10.73 CHARLES BERNARD (15793) BALANCE DUE CHECK NUMBER 19619 03/09/2005 SUSQUEHANNA INTERNAL MEDICINE -4.60 CHARLES BERNARD BALANCE DUE CHECK NUMBER 19844 03/16/2005 CRUMAY PARNES ASSOC., INC. -11.25 BALANCE DUE FOR CHARLES BERNARD ACCOUNT #: 55697 CHECK NUMBER 20120 Page 10 04022005/09:38:09/221/2402 - f I For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1, 2005 through MARCH 31,2005 Statement of Transactions Income Principal Investment Date Cash Cash Cost Basis 03/24/2005 MID PENN UROLOGY, INC. -27.54 BALANCE DUE FOR CHARLES O. BERNARD ACCOUNT #38883 CHECK NUMBER 20221 TOTAL MISC. MEDICAL EXPENSES 0.00 -264.12 0.00 FEDERAUST A TE TAX PAID 03/18/2005 PA DEPT OF REVENUE -21.00 PAYMENT ENCLOSED 2004 FORM PA40 TAX DUE CHARLES BERNARDITIN # 210-36-0268 CHECK NUMBER 20151 TOTAL FEDERAUSTATE TAX PAID 0.00 -21.00 0.00 PERSONAL TAXES PAID 03/29/2005 PENNY G. DAVIS -9.80 2005 PERSONAL TAX DUE FOR CHARLES O. BERNARD / BILL #: 265 CHECK NUMBER 20260 TOTAL PERSONAL TAXES PAID 0.00 -9.80 0.00 PURCHASES OF ASSETS 01/03/2005 PURCHASE -8,593.68 8,593.68 FEDERA TED MONEY MARKET FUND 851-PRINCIPAL 01/05/2005 PURCHASE -173.41 173.41 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 01/18/2005 PURCHASE -33.00 33.00 FEDERATED MONEY MARKET FUND-INCOME 01/19/2005 PURCHASE -45.83 45.83 FEDERATED MONEY MARKET FUND-INCOME 01/21/2005 PURCHASE -82.28 82.28 FEDERATED MONEY MARKET FUND- INCOME 01/26/2005 PURCHASE -66.00 66.00 FEDERA TED MONEY MARKET FUND- INCOME 02/08/2005 PUR 188.147 @ 10.63 -2,000.00 2,000.00 VANG ST INVESTMENT ADM #539 l_____~______ Page 11 04022005/09:38:Oj/221/2403 " ",p.J'<K TRUSr D # ~J.>~ For the Account of: f~\ CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31 000532072 IN ~TMENT Date: From JANUARY 1, 2005 through MARCH 31,2005 Statement of Transactions '4 SERVICES'" \. Income Principal Investment Date Cash Cash Cost Basis 02/08/2005 PURCHASE -4,968.00 4,968.00 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 02/16/2005 PURCHASE -45.83 45.83 FEDERATED MONEY MARKET FUND- INCOME 02/22/2005 PURCHASE -623.00 623.00 FEDERATED MONEY MARKET FUND- INCOME 02/23/2005 PURCHASE -80.69 80.69 FEDERATED MONEY MARKET FUND- INCOME 03/01/2005 PURCHASE -506.25 506.25 FEDERA TED MONEY MARKET FUND- INCOME 03/03/2005 PURCHASE -81.11 81.11 FEDERATED MONEY MARKET FUND-INCOME 03/09/2005 PURCHASE -60.00 60.00 FEDERATED MONEY MARKET FUND- INCOME 03/1112005 PURCHASE -40.62 40.62 FEDERATED MONEY MARKET FUND- INCOME 03/15/2005 PURCHASE -2,099.93 2,099.93 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 03/16/2005 PURCHASE -45.83 45.83 FEDERATED MONEY MARKET FUND-INCOME 03/23/2005 PURCHASE -3,380.00 3,380.00 FEDERA TED MONEY MARKET FUND 851-PRINCIPAL 03/24/2005 PURCHASE -3,913.35 3,913.35 FEDERATED MONEY MARKET FUND 851-PRINCIPAL 03/30/2005 PURCHASE -4,000.00 4,000.00 FEDERATED MONEY MARKET FUND 851-PRINCIPAL TOTAL PURCHASES OF ASSETS -1,710.44 -29,128.37 30,838.81 Page 12 04022005/09:38:09/221/2404 Summary Statement of Transact Principal Cash Investment Cost Basis For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1,2005 through MARCH 31,2005 BEGINNING BALANCES -1,356.32 313,880.92 RECEIPTS INTEREST ORDINARY DIVIDENDS 615. 9 ORDINARY DIVIDENDS REINVESTED 39.19 SHORT TERM GAIN DIVIDENDS REINVESTED 4.18 LONG TERM GAIN DIVIDENDS REINVESTED 62.53 SOCIAL SECURITY BENEFITS 1,869. 0 PROCEEDS FROM THE SALE OF ASSETS 1,710. 4 57,447.83 -57,663.59 ADJUSTMENTS 24,838. 2 -24,838.72 TOTAL RECEIPTS 30,173. 5 32.609.11 -57,557.69 DISBURSEMENTS DISBURSEMENTS TO OR FOR BENEFICIARIES -150.00 INSURANCEIANNUITY PREMIUMS -1,669.50 FIDUCIARY FEES OTHER EXPENSES -10.00 PRESCRIPTIONS OTHER INSURANCE PREMIUMS MISC. MEDICAL EXPENSES -264.12 FEDERAL/STATE TAX PAID -21.00 PERSONAL TAXES PAID -9.80 PURCHASES OF ASSETS -1,710.4 -29,128.37 30,838.81 TOTAL DISBURSEMENTS -25,786.6 -31,252.79 30,838.81 Page 13 04022005/09:38:09/221/2405 - Summary Statement of Transactl Principal Cash Investment Cost Basis . . For the Account of: CHARLES O. BERNARD, CO-GUARDIANSHIP Account Number: 31000532072 Date: From JANUARY 1,2005 through MARCH 31,2005 ENDING BALANCES 0.00 287,162.04 Page 14 04022005/09:38:09/221/2406 - EXHIBIT "B" In the Court of Common Pleas of Cumberland Cou ty, Pennsylvania Orphans' Court Division In re: Guardianship of Charles Bernard, incapacitated person No: 2005 - f the Estate of Charles Bernard I, Joseph M. Cernugel, hereby consent to serve, if appointed, s co-guardian of the estate of Charles Bernard. Dated: I) Uho(, ,~ 2005. J I By: EXHIBIT "e" In the Court of Common Pleas of Cumberland Cou ty, Pennsylvania Orphans' Court Division In re: Guardianship of Charles Bernard, incapacitated person No: 2005 - The Orrstown Bank, as co-guardian of the estate of Charles ernard, hereby consents to the discharge of Helen Cernugel as co-guardian and to the appointment of Joseph M. Cernugel as her successor co-guardian. Dated: 5/12.-/ oS ,2005. By: ,--- ~ y RECEIVED JUN 142005 In the Court of Common Pleas of Cumberland County, Pennsylvania Orphans' Court Division In re: Guardianship of Charles Bernard, incapacitated person No: ~ -eJ./ -104 -1450 ORDER AND NOW this (" ~y of ~2005, upon consideration of the within petition of Helen Cernugal and of tr'le consents of Orrstown Bank and Joseph M. Cernugel, attached thereto, it is hereby Ordered and Decreed that: (a) Helen Cernugel is hereby discharged and released from her duties as co-guardian of the estate of Charles Bernard, and (b) Joseph M. Cernugel is hereby appointed to serve as successor co-guardian of the estate of Charles Bernard, incapacitated person, Orrstown Bank to continue as corporate co-guardian. J. \)- rb '\9" \l1~ m~C'l. ~u-I"-05\O~ Tnof'f'QS [" ~lou-w,--- b ~l G.e lac r-.- I r ~~ \e.-n CecnLl~1 ~~f h Ce-rI'\W}eJ ~ -1.~