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HomeMy WebLinkAbout08-08-05 REV-1500EX{6-OO) w ... ",Sn O~ ~~ U a.a; lL <( OFF1CIAL.USEONLY COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT FILE NUMBER ~L -9L 0472 ___ COUNTY coce YEIIR NUMBER SOCIAL SECURITY NUMBER 204-30-6510 nus ftETURN MUST BE FILED IN DUPl..ICATE WITH THE I- Z I1l C I1l () I1l C DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) Finkenbinder Lee DATE OF DEATI-I (MM-OIJ..YEAR) DATE OF BIRTH (MM-DD-YEAR) 10/2/2004 10/26/1931 OF APPLICABLE) SURVIVING spouse's NAME (LAST, FIRST, AND MIDDLE INITIAL) Finkenbinder, Maril CXJ 1. Original Retum o 4. limited Estate [X] 6. Decedent Died Testate (Attach copy of Will) D 9. litigation Proceeds Received REGISTER OF WILLS SOCIAl seCURllY NUMBER K 184-26-4577 o 2. SupPlemental Retum 0 3. Remainder Retum (date of death priclrto 12-13-82) D 4a. FultJre Interest Compromise {date of death after 12-12-8.2} D 5. Federal Estate Tax Retum Required D 7. Decedent Maintained a Living Trust (Attach copy of Trust) _ 8. Total Number of Safe DepOSit Boxes D 10. Spousal Poverty Credit l~ale of~Ulh between 12.31_91 ancIM_95) 0 11. Election to tax under Sec. 9113(A)(AtlaChSchOI >- z w o z o .. "' i:! a: o u THIS SECTION MUST BE COMPLETED, ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: NAME COM'LETE MAILING ADDRESS James D. Hu has, Es ire FIRM NAME (If Applicable) SALZMANN HUGHES PC TELEPHONE Nl.Jf.IIBER 717:"249-6333 95 Alexaneler Spring Roael, Suite 3 Carlisle, PA 17013 "', => ( ~.:..J \~ z o i= :5 ::;) l- ii: c( () I1l a.:: :0 1. Real Estate (Schedule A) , -, .,il"e2"-US~Y ""j-T1 I ~-:::'I.J ill . -~n >-.;:,: ',:>('=' -u i C::) < tTl '.~ L-:J CJ , --'-1 -n c'S " (1) 2. Stocks and Bonds (SchedUle B) (2) 3. Closely Held COl'pOI"ation, Partnership or Sole-Proprietorship (3) ;;; ~ 4. Mortgages" Notes Receivable (Sehedule D) (4) 5. Cash, Balk Deposits & Miacellaneous Personal Property (Schedule E) (5) :::~ i',) = 0" -':.1" 6. J~ OW1ed Property (Schedule F) U Separate Billing Requested 7. InterNivos transfers & Miscellan80lls Non.Probate Property (7) (Schedule G or L) (6) 8. Total Gross Assets (total lines 1-7) 642,405 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 10. Debt$ of Decedent, Mortgage Liabilities, & Liens (Sd1eclUlel) (10) 11. Total Deductions (lotal Lines 9 & 10) 9.229 633,176 o 12. Net Value of Estate (Une 8 minus Line 11) 13. Charitable and GOliemmental SequestsJSec 9113 Trusts for 'Mlich an election to tax has not been made (Schedule J) 14. Net Value Subject to rax (Line 12 minus Line 13) SEE INSTRUCTIONS Q\I REVERSE SIDE FOR APPLICABLE RATES 633,176 15. Amount of Line 14 taxable at the spousal tax 633,176 ..0 LI1.) z rate, or transfers under Sec. 9116 (a)(1.2) 0 0 45 (16) ;:: 16. Amountofline 14 taxable at lineal rate , .0 .. ... ::> 17. Amount of Line 14 taxable at sib6ng rate 0 x .12 (17) lL ::E 0 Amount of Line 14 taxable at collateral rate 0 x.15 (1.) 0 1.. >< .. 19. Tax Due (19) I- o D o o o 20 0 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT > > BE SURE TO ANSWER ALL QUESTIONS ON REVERSE SIDE AND RECHECK MATH < < 3W46451.000 Decedent's omplete Ad ress: Sl1lEET ADDRESS 2108 Newville Road Cumberland cny I STATE I ZIP Carlisle PA 17013 C d Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Cred~ 8. Prior Payments C. Discount (I) o o o 3. InteresVPenalty if applicable D. Interest E. Penalty Total Credits (A + 8 + C) (2) o o TotallnteresVPenalty (0 + E) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 to request a refund (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) A. Enter the interest on the tax due. (SA) 8. Enter the total of Line 5 + SA. Yes D D D D without receiving adequate consideration? . . . . . . . . . . . . . . . . . . . . . . . . . . .. 0 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? 0 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary deSignation? ...... ... ... " .... .............. IX] 0 IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penalties of perjury. I Cleclare that I have ellaminad ll'1is retllm, indtldlnq accompanying sch4dIJJessnd statements, and to the best of my knowleQge II'ICI belief, itlsll\le, lXIrrect.,d complete. Declaration of preparer other than the personal repl'llS8rltaWe is based on a111ntormation of wtlich preparer has any knowledge, SIGNlt..TlRE OF PEt<SO'l RESPONSIBlE FOR FILING RETURN _ Marilyn M. Finkenbinder 17J.~ 'n),:;uJ..d;,,,~d,~ AllORESS 2108 Newville Road Carlisle, PA 17013 SlGNATLflEOF PARER 0 1HAN RE (58) PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BlOCKS 1. Did decedent make a transfer and: a. retain the use or income af the property transferred;. . . . . . . . . . . . . . . b. retain the right to designate who shall use the property transferred or its income; . c.retainareversianaryinterestor .. . . ..... .. ... .......... d. receive the promise for life of either payments, benefits or care? . . . . . . . . . 2. If death occurred after December 12, 1982, did decedent transfer property within ane year of death o o o o o o o No O!l O!l O!l UI []g []g CATE 'V16.3 /6.5-- J / p5,-- 95 Alexander Spring Road, Carlisle, PA 17013 :ig-&;f!i~4iU;rYb"%'ur;n\.f:i':#1\1G:WJi%~~'1~hJt?0iX'ffithj$]ifL%:_ 't%.fL'iJi;:M&W'mc' '~;dtJkYf;~y: For dates of death on or after July 1, 1994 and be~ e January 1 995, thetax' rate imposed on the net W1ue of transfers to or for the use dthesuNiving spouse is 3% (72 P.S.~ 99'6 (0) (1.1)@. For dates of death on or after January 1, 1995, the . posed on the net value cttransfers to or for the use cAthe survilling spouse is 0% (72 P.S. ~ 9116 (a) (1.1) (U)l The statute doe$ not exempt a transtBf" to a survi\ling spouse from tax. and the statutory requirements for diSClosure cA assets and filing a tax return are stiU applicable even if the surlliwng spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty..ooe years of age or younger at death to or for the use a a l\8Iural parent, an adoptiw parent, or a stepparent Of the child is 0% [72 P.S. 99116(a}(1.2)]. The tax rate impoSed on the net valLie Of transfers to or for the use ot the dececUlnI:'s lineal benefic:ial\es Is 4.5%, lJlaPt as noted in 72 P.S. 13 9116(1.2) [72 P.S. s9116(a)(1)). The tax rate imposed on the net \I8Iue of transfers to or for the use 01 the deoec:lent's siblings is 12% (72 P.S. S 9116(a)(1.3)1. A sibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. 'IW4646 1.000 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESDENT DECEDENT SCHEDULE A REAL ESTATE REV-1502 EX + (~96) ESTATE OF FILE NUMBER Lee K. Finkenbinder 21 D5 0472 All real property owned solely or.as a tenant in common must be reported at fair market value. Fair market value is defined as the price at v.tlich property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both hEMng reasonable knOltiedge of the relevant fads. Real property which is jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1. DESCRIPTION VALUE AT DATE OF DEATH 2108 Newville Road, West Pennsboro Township, Cumberland County, Pennsylvania (appraisal attached) 616,000 3W46951.oo0 TOTAL (Also enter on line 1, Recapitulation) (If more space is needed, insert additional sheets of the same size) $ 616,000 REV-1510 EX + (6-96) SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY COWONVvEAL TH OF PENN$YL VANIA INHERITANCE TAX RElURN RESIDENT OECEDEI'IT ESTATE OF Lee K. Finkenbinder FILE NUMBER 21 05 0472 This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. DESCRIPTION OF PROPERTY ..zs~, IN:l..l..QOl}ENA.MEOFMTRANSFeREE, ~tR RELAl'lONSHP TO QECEDENl' JlN) DATE OF DEATH % OF DECD'S EXCLUSION TAXABLE "lH:OATEOf'lR!lNSFER ATTI'GlACOPV O!O n-e DEED !OOR REAL ESTATE. VALUE OF ASSET INTEREST IIF APPUCABlE) VALUE 1. Western-Southern Life Assurance Company, annuity paid to spouse 26,405 100.0000 0 26,405 TOTAL (Also enter on line 7. Recapitulation) $ 26 405 (If more spac:eis needed, insert additional sheets of the same size} 3W46AF 1.000 ,REV-1511 EX + (12-99) COMMONWEALTH OF PENNSYLVANIA INf-ERITANCE TAX RETURN RESDENT DECEDENT ESTATE OF Lee K. Finkenbinder SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS Debts of decedf:!nt must be reported on Schedule I. FILE NUMBER 21 05 0472 ITEM NUMBER DESCRIPTION AMOUNT A. FUNERAL EXPENSES: 1. None S. ADMINISTRATIVE COSTS: 1. Personal Representati\r'e's COmmissions Name of Personal Representative(s) Social Security Number(s) I EIN Number of Personal Representative(s) - - Street Address City State Zip Year(s) Commission Paid: 2. Attorney Fees 5,000 3. Family Exemption: (If decedent's address is not the same as claimant's, attach elCplanation) 3,500 Claimant Marilyn Finkenbinder Street Address 2108 Newville Road City Carlisle Slate PA Zip 17013 ," Relationship of Claimant to Decedent SPOUSE 4. Probate Fees 344 5. Accountant's Fees 6. Tax Retum Preparer's Pees 7. 1 DivQrsi.fied Appraisal Services 350 2 Register of Wills 35 TOTAL (Also enter on line 9, Recapitulation) $ 9.229 3W46AG 1000 (If more space is needed. insert additional sheets of the same size) REV-1513 EX+ (9-00) SCHEDULE J BENEFICIARIES COMMONVVEAL TH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lee K. Finkenbinder NUMBER I NAME AND ADDRESS OF PERSON(S) RECEMNG PROPERTY TAXABLE DISTRIBUTIONS [include outright spousal distributions. and transfers under Sec. 9116 (a) (1.2)J Lee K. Finkenbinder TUW FBO Marilyn M. Finkenbinder Barry L. Finkenbinder, Trustee 6 Watson Drive Carlisle, PA 17013 1 RELATIONSHIP TO DECEDENT 00 Not List Trustee(s) Trust FILE NUMBER 21 05 0472 AMOUNT OR SHARE OF ESTATE $633,176.00 II ENTER DOLlAR AMOUNTS FOR DlSTRIBUllONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-150a COVER SHEET NON-TAXABLE DISTRIBUTIONS: A SPOUSAL DISTRIBUllONS UNDER SECTION 9113. FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 3W46A11.000 TOTAL OF PART II . ENTER TOTAL NON-TAXABLE DISTRIBUTlONS ON LINE 13 OF REV-150a COVER SHEET (If more space IS needed. Insert additional sheets of the same sIZe) $ o LAST WILL AND TESTAMENT I, LEE K. FINKENBINDER, of West Pennsboro Township, Cumberland County, Pennsylvania, being of sound mind, disposing memory and full legal age, do hereby make, publish and declare this instrument to be my Last Will and Testament, hereby expressly revoking all Wills and Codicils heretofore made by me. ONE. I direct my Executor or Executrix, as the case may be, to pay all of my debts, funeral and administrative expenses as soon as may be done conveniently after my decease. Furthermore, I direct that all state, inheritance, succession and other death taxes imposed or payable by reason of my death and all interest and penalties thereon with respect to all property composing of my gross estate for death tax purposes, whether or not such property passes under this Will, shall be paid by the Executor or Executrix of my estate. TWO. My Executor or Executrix, as the case may be, may, at his or her discretion, compromise claims, borrow money, retain property for such length of time as he or she may deem proper; lease and sell property for such prices, on such terms, at public or private sales, as he or she may deem proper; and invest estate property and income without restriction to legal investments unless otherwise provided hereunder. I authorize and empower my Executor or Executrix to sell any realty and/or personalty owned by me at my death and not specifically devised or bequeathed herein, at public or private sale or sales and to give good and sufficient deeds and/or bills of sale therefor, in fee simple, as I could do ifliving. My Executor or Executrix is authorized and empowered to engage in any business in which I may be engaged at my death, for such period of time after my death as seems expedient to said Executor or Executrix ..J: . (/ , (. /.... THREE. I hereby give, devise and bequeath all of my estate of every nature and wherever situate to be distributed IN TRUST, for my spouse, rvIARIL YN M. FINKENBINDER, subject to the following provisions: A. The estate shall be divided by the Trustee into two separate trusts, hereinafter referred to as Trust A (the Marital Trust), and Trust B (the Family Trust). B. Trust A, the Marital Trust, shall consist of all of my assets other than those allocated to Trust B, the Family Trust. C. Trust B, the Family Trust, shall consist of assets equal in value to the maximum amount, if any, that are necessary to permit my estate to use in full any federal estate tax unified credit which has not been claimed for distribution during my lifetime after considering any adjusted taxable gifts and bequests by Will which do not quality for the marital deduction and all charges to principal of the estate which are not deducted in computation of the federal estate tax of my estate; provided, however, that the allocation of the Family Trust shall be satisfied with assets as of the date of allocation or distribution; and provided further that any assets which do not quality for the federal estate marital deduction shall be used first to satisfy the allocation to this Family Trust. D. From the Marital Trust, the Trustee shall pay all of the net income to my spouse, MARILYN M. FINKENBINDER, in monthly payments. My spouse also has the right to receive from the Trustee all or a portion of the principal from the Marital Trust and to change the beneficiaries of this Marital Trust in my spouse's discretion. At the death of my spouse, the Trustee shall distribute the remaining principal and accumulated income of the Marital Trust in equal shares to my children, BARRY L. FINKENBINDER, BETTY J. BUTLER and KEVIN G. FINKENBINDER, per stirpes, which provides that :tk'.r 2 the child or children of any deceased child taking the share their parent would have taken if living. E. From the Family Trust, the Trustee shall pay all of the net income to my spouse, MARILYN M. FINKENBINDER, in monthly payments. The Trustee may distribute to my spouse such amounts from the principal of the Family Trust as provided hereunder, up to the whole thereof, as the Trustee, in his or her discretion, shall deem necessary or advisable to provide for the care, maintenance and support of my spouse, so as to support my spouse in my spouse's accustomed manner of living, provided, however, the Trustee shall consider any other sources of income available to my spouse when making payment hereunder. The Trustee shall, when requested by my spouse, pay five (5%) percent of the principal or $5,000.00, whichever amount is greater, annually to my spouse during my spouse's lifetime, but in no way shall the Trustee distribute more of the principal of this Family Trust to my spouse than in the above amounts. This limited right to make withdrawals from the principal of the trust estate is noncumulative, so that an amount which might have been withdrawn during a particular year may not be withdrawn in any subsequent year. At the death of my spouse, the Trustee shall distribute the remaining principal and accumulated income of the Family Trust in equal shares to my children, BARRY L. FINKENBINDER, BETTY 1. BUTLER and KEVIN G. FINKENBINDER, per stirpes, which provides that the child or children of any deceased child taking the share their parent would have taken if living. F. If any of my beneficiaries or heirs are under the age of twenty-five (25) years of age at the time of my death or the death of my spouse and inherit any assets hereunder by virtue of my death, then in that event, the Trustee shall hold all of their respective share(s) IN TRUST according to the following terms and conditions: (, (/"" t. { ,-, 3 Upon the creation of this Trust, the Trustee shall divide this trust principal into individual shares in the name of each heir or beneficiary in the amount equal to the amount that said heir or beneficiary inherited hereunder. The Trustee, as well as my representative, is hereby authorized to retain, unconverted, any property, real or personal, that I may own at my death and shall be under no duty to convert it into legal investments. The Trustee shall have the power and authority to sell, transfer, convey, invest and reinvest and to pay over the net income of the trust property, to or for the use of said heir or beneficiary, or to accumulate it in the sole discretion of the Trustee. The Trustee is also authorized and empowered to pay over to, or for the use and benefit of my heirs or beneficiaries such portion of or all of the principal of the trust estate as in the Trustee's sole discretion seems proper for their support, maintenance, education, or medical care. My primary objective is to insure the support, maintenance, education and medical care of my heirs and beneficiaries until they reach the age of twenty-five (25) years. However, notwithstanding the above, the Trustee shall have the sole discretion throughout the duration of this trust in which to distribute any of the trust .principal or income for the benefit of any of my heirs or beneficiaries for any such purpose as the Trustee deems reasonable under the circumstances such as but not limited to the purchase of real property, tuition for further education or any other purpose which would in the Trustee's sole discretion advance the best interest of said heir or beneficiary. When each respective heir or beneficiary reaches the age of twenty-five (25) years, then whatever remains of income or principal of the said heir's or beneficiary's divided share under this trust estate shall be distributed to said heir or beneficiary, per stirpes. In the event that any said heir or beneficiary becomes deceased prior to the final distribution hereunder without leaving surviving issue, said deceased heir's or beneficiary's share shall be divided equally between all of the heirs and beneficiaries who are a part of this trust and distributed in accordance J. / i1./{. !- 4 with this Paragraph. For whatever reason there are no heirs and beneficiaries remaining as a part of this trust, then in that event, the rest, residue and remainder hereof shall be distributed in equal shares to the residual beneficiaries set forth in Paragraph Three G. below. G. In the event that my spouse predeceases me, dies simultaneously or I choose for whatever reason during my lifetime to withdraw all of the assets from the Marital Trust set forth in my spouse's Last Will and Testament or if I have accumulated any other assets which are not being held in trust hereunder or under any written trust document executed by me during my lifetime, then iii that event, I hereby give, devise and bequeath all the rest, remainder and residue of my estate to be divided and distributed in equal shares to my children, BARRY L. FINKENBTh.'DER, BETTY 1. BUTLER and KEVIN G. FINKENBINDER, per stirpes, which provides that the child or children of any deceased child taking the share their parent would have taken if living. FOUR I make the following provisions pertaining to generation-skipping transfers: A My Executor or Executrix, as the case may be, may allocate any part of my generation-skipping tax exemption, which I have not irrevocably utilized during my lifetime in such manner as my Executor or Executrix shall determine. B. For purposes of fully utilizing my generation-skipping tax exemption ifmy spouse survives me, my Executor or Executrix may make the election provided for in Section 2652(a)(3) of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code") to the extent my Executor or Executrix has elected to treat all or part of ,~ (-; ,__J.--' - I , ,.- D/"{(, , 5 the property passing under this will or under any deed of trust of which I am the settlor as "qualified terminable interest property" under Section 2056(b )(7) of the Internal Revenue Code. C. My Executor or Executrix may elect not to have the deemed allocation provisions of Section 2632(b) of the Internal Revenue Code apply to transfers made by me during my lifetime. D. To the extent that the al1ocation of any generation-skipping tax exemption would .not result in a particular trust being completely exempt from the generation- skipping tax, the Trustee shalt separate such trust into two trusts, one of which is exempt from and one of which is fully subject to the generation-skipping tax. In the case of a trust which has not received assets at the time the exemption is alto cat ed, the separation shall occur prior to any funding of the trust. A trust which is completely exempt from the generation-skipping tax shall be referred to as an "exempt trust" and a trust which is subject in any part to the generation-skipping tax shalt be referred to as a "non-exempt trust". E. If the Trustee separates a trust into an exempt trust and a non-exempt trust under the immediately preceding paragraph: (1) Any person who has a power of appointment with respect to that trust may exercise such power differently as between the exempt trust and the non- exempt trust. (2) The percentage or fraction of principal that a beneficiary may withdraw shall be calculated with respect to the total principal held in both the /; .~ t 1<. (. 6 exempt and non-exempt trusts. However, so long as there is any principal held in the non-exempt trust, to the maximum extent possible any withdrawal shall be paid from the non-exempt trust. (3) If the Trustee has the discretionary power to distribute income of a trust among "skip persons" and "non-skip persons" as defined in Section 26I3(b) of the Internal Revenue Code, the Trustee may exercise such power differently as between the exempt trust and the non-exempt trust. F. In making any distributions hereunder for the vanous beneficiaries my fiduciaries may allocate among such distributions assets which are exempt from generation-skipping tax equally or pro rata or on such other basis as they shall in their sole and absolute discretion determine, taking into account possible needs of beneficiaries for distributions of principal, possible appreciation in the value of trust assets during the lifetimes of the beneficiaries or such other factors as the fiduciaries consider significant. G. The Trustee may combine into a single trust two exempt trusts for the benefit of the same beneficiary; similarly, the Trustee may combine non-exempt trusts for the same beneficiary. H. No power to expend principal of an exempt trust for a beneficiary who is a "non-skip person" as defined in Section 2613(b) of the Internal Revenue Code may be exercised by the Trustee so long as there is any principal held in a non-exempt trust and in which the trustee has a similar power to expend principal for such beneficiary. 1. In addition to all other powers set forth in my Will, if at the death of a beneficiary other than my spouse, including a person who becomes a beneficiary pursuant -./' .../ .' II J--- ii-\' - 7 to the exercise of a power of appointment under my will, there is principal held in a non- exempt trust for that beneficiary and if in the absence of this power of appointment there would be a ta'{able termination with respect to such trust as defined in Section 2612 of the Internal Revenue Code, such beneficiary shall have the power by will containing a specific reference to this power of appointment to appoint any part or all of such principal outright to anyone or more of his or her creditors and the creditors of his or her estate. Upon the beneficiary's death, to the extent he or she fails to exercise effectively such power of appointment, the Trustee shall pay to the beneficiary's estate or to the tax authorities an amount equal to any increaSe in estate, inheritance and other death taxes, and interest and penalties thereon, payable because of the inclusion of the unappointed principal in the beneficiary's estate for tax purposes. The remaining unappointed principal. shall be distributed in accordance with the terms of the trust. FIVE. The Trustee, as well as my Executor or Executrix, shall have the following powers, in addition to those vested in it bylaw, for my property held for the benefit of my beneficiaries, whether income or principal, exercisable without court approval and effective until the distribution of all property under the terms of the trusts set forth in Paragraph Three or Paragraph Four above: The Trustee, at its discretion, may compromise claims, borrow money or retain property for such length of time as it may deem proper, sell, lease, pledge, mortgage, transfer, exchange, convert or otherwise dispose of or grant option of all or any portion of trust property for such prices and on such terms in public or private transactions as it may deem proper; and invest trust property and income without restrictions to legal investments. The determination of the Trustee with respect to the advisability of making payments out of the income or principal to any heir or beneficiary inheriting hereunder /1 --. ),,/(.(, 8 shall be conclusive and binding on all persons howsoever interested in the respective trust. Further, the Trustee shall be authorized to receive additions to the respective trust of any kind or any property whatsoever from sources other than my estate and at any time in the sole discretion of the Trustee 5LX. I hereby nominate and appoint my spouse, MARIL YN M. FINKENBINDER, to be the Executrix of this my Last Will and Testament. If my spouse has predeceased me, failed to qualify, renounced or ceased to serve as Executrix for whatever reason, I then appoint BARRY 1. FINKENBINDER to serve as substitute Executor of this my Last Will and Testament. In the eveni. that he has predeceased me, failed to qualify, renounced or ceased to serve as Executor for whatever reason, I then hereby appoint BETTY 1. BUTLER to serve as substitute Executrix of this my Last Will and Testament. In the event that she has predeceased me, failed to qualify, renounced or ceased to serve as Executrix for whatever reason, I then hereby appoint KEVIN G. FINKENBINDER to serve as substitute Executor of this my Last Will and Testament, whereby the .said substitute personal representatives shall have the same powers as are given to the original Executrix hereof. SEVEN. I hereby nominate and appoint BARRY 1. FINKENBINTIER, or if he is unable to serve for whatever reason, I then nominate and appoint BETTY J. BUTLER, or is she is unable to serve for whatever reason, I then nominate and appoint KEVIN G. FINKENBINDER to serve as Trustee of all the trust(s) created in Subparagraph Three F. herein. With respect to Marital Trust and Family Trust set forth in Paragraph Three and the trust(s) set forth in Paragraph Four above, I hereby nominate and appoint my children, BARRY 1. FINKENBrNDER, BETTY J. BUTLER and KEVIN G. FINKENBINDER, or the survivors of the three of them, as Co- Trustees thereof. ~ll( ,F 9 EIGHT. No Executrix, Executor, or Trustee acting hereunder shall be required to post bond or enter security in this or any other jurisdiction. NINE. No person or persons shall benefit hereunder unless such beneficiary shall survive me for a period of at least sixty (60) days. TEN. In the event of a common disaster causing the death of myself, my spouse and all of my children, without surviving issue, all within a period of sixty (60) days, and no other disposition of the residue of my estate is directed by this Will, then in that event only, I give, devise and bequeath the .rest, residue and remainder of my estate, real and personal, to St. Matthews Evangelical Luthern Church, Plainfield, in memory of Lee K. and Marilyn M. Finkenbinder to be used for its general purposes. No beneficiary may assign or anticipate his or her interest in any income or ELEVEN. principal held or distributable hereunder; and no beneficiary's creditors may attach or otherwise reach any such interest. TWELVE. If any person or institution entitled to share in any distribution under the terms of this my Last Will and Testament becomes an adverse party in any proceeding to contest the probate of this Last Will and Testament, such person or institution shall forfeit his, her or its entire interest inherited hereunder and all provisions in favor of such person or institution shall be declared void and of no effect. The share of such person or institution so forfeited shall be distributed as part of the residue pursuant to Paragraph Three G. hereof except that if such person or institution is entitled to share in the said residue, that interest shall be distributed proportionately to the other residuary distributees " ( . .,/ / r. A', /\. ~ 10 THIRTEEN. The validity and administration of any trust established hereunder and any question or disputes relating to the construction or interpretation of any said trusts shall be governed and construed in accordance with the laws of the Commonwealth of Pennsylvania. IN WITNESS WHEREOF, I have hereunto set my hand and seal this) c: day of February, 2004. ~ l/~l/ 1 ~' /) ,~, '\ )'L.; 1.47 ! (,r;:, (1'lti..,v LEE K. 'FL.~KENBIN ER (SEAL) Signed, sealed, published and declared by the above-named person as and for a Last Will and Testament, in our presence, who at said person's request, in said person's presence and in the presence of each other have hereunto set our names as subscribing itnesses. )' . L:-:-t[ ?~ " \1 ACKNOWLEDGMENT AND AFFIDA VIT WE, LEE K. FL"lKENBINDER, JAMES D. HUGHES and CHRISTL"lA N. YOST, the Testator and witnesses respectively, whose names are signed to the foregoing instrument, being first duly sworn, do hereby declare to the undersigned authority that the Testator signed and executed the instrument as his Last Will, and that he had signed willingly, and that he executed it as his free and voluntary act for the purpose herein expressed, and that each of the witnesses, in the presence and hearing of the Testator, signed the Will as a witness and that to the best of their knowledge the Testator was, at that time, eighteen years of age or older, of sound mind and under no constraint or undue influence. ,.\ I', "i1v'; /V!,' .! . , '. ) . , , ./ ^-- Ii', -: J_. )". "-'/'_, C /1/ iL ti:,!" If II,,' ( CHRISTINA N. YOST COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND Subscribed, sworn to and acknowledged before me by LEE K. FINKENBINDER the Testator herein, and subscribed and sworn, to before me by JAMES D. HUGHES and CHRISTINA N. YOST, witnesses, this X-e. day of February ,2004. ~J/\~ . Notary Pub ic COMMONWEALTH OF PENNSYLVANIA Notarial Se.1 Angela F. Unger, Notary Public Sou!h Middleton TWJ?. Cumberland County Mv Cf)mmlSSion i:.x...ires Oct. 7 2004 Member, Pennsylvania Association of Notaries 12 APPRAISAL REPORT 2108 NEWVILLE ROAD CARLISLE, PENNSYLVANIA PREPARED FOR THE ESTATE OF LEE K. FINKENBINDER BY LARRY E. FOOTE DIVERSIFIED APPRAISAL SERVICES 35 EAST HIGH STREET, SUITE 101 CARLISLE, PENNSYLVANIA 17013-3052 (717) 249-2758 II .. .. II . . . . . . . . i ~ -- , ~ , III , .. .. .. . SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 2108 Newville Road Carlisle, Pennsylvania TAX PARCEL NUMBER: 46-07-0475-026 IMPROVEMENTS: One-story detached single-family dwelling. PROPERTY RIGHTS: Fee simple interest. OWNERSlllP illSTORY: The subject property is owned by Lee K. Finkenbinder. The property was transferred on July II, 2001 for a reported consideration of $1.00 and ownership transferred on Deed Book 247, Page 2096. SCOPE OF THE ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of the property's highest and best use, consideration of all three approaches to value, and the application of those relevant to the valuation of the subject. OBJECTIVE: To estimate the market value of the subject property as unencumbered. EFFECTIVE DATE: October 2, 2004. illGHEST AND BEST USE: Continued use as a single-family residence. COST APPROACH: N.A. SALES APPROACH: $616,000 INCOME APPROACH: N.A. FINAL VALUE CONCLUSION: $616,000 2 ~ ~ ~ " , , ~ \ APPRAISAL CERTIFICATION I hereby certifY that upon application for valuation by: THE ESTATE OF LEE K. FINKENBINDER the undersigned personally inspected the following described property: All that certain piece or parcel of land, with the improvements thereon erected, situate in West Pennsboro Township, Cumberland County, Pennsylvania, bounded and described as follows: t : ~ " ~ II " If .. .. .. . . Beginning at a point in the center of State Highway Route 641 leading from Carlisle to Newville, which point is a comer of land now or formerly of Walter Moose; thence along land of the latter, South 00 degrees 30 minutes West, a distance of 1,937 feet to a post; thence along land formerly of J. Zimmerman and land formerly ofW. Stine, South 85 degrees 30 minutes East, a distance of 1,518 feet to a stone; thence along lands formerly of Miss Mary Bear, North II degrees 30 minutes West, a distance of 1,827 feet to a point in the center of said State . Highway Route 641; thence by the center of said Highway Route 641, in a westwardly . direction, a distance of 717.5 feet, more or less, to a point; thence by the center of said State Highway Route 641, North 82 degrees West, a distance of 733.5 feet, more or less, to a point in the center of State Highway Route 641, the place of beginning. Containing 61 acres and 10 perches, more or less, according to a survey made by G. Frank Wetzel, registered Surveyor, March 1942. Less, however, all those certain tracts ofland conveyed on deed 20- Y-935, 21-J-296, 21-U-1126, 20-V-525 and 23-C-448, leaving a net area of 56 acres, more or less. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this appraisal nor the compensation is contingent upon the value reported, and that in my opinion the Market Value as of October 2, 2004 is: SIX HUNDRED SIXTEEN THOUSAND DOLLARS $616,000 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein. '. ~ Larry E. Foote Certified General Appraiser GA-OOOOI4-L 3 . . PURPOSE OF THE APPRAISAL . The purpose of this appraisal is to estimate the Market Value of the subject property as of October 2,2004. . Market Value is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: . . . . . . a. Buyer and seller are typically motivated. b. Both parties are well informed or well advised, and each acting in what he considers his own best interest. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in u.S. dollars or in terms of financial arrangements comparable thereto. e. The price represents the normal .consideration for the property sold, unaffected by special or creative fmancing or sales concessions granted by anyone associated \vith the sale. Source: Office of the Comptroller of the Currency, 12 eFl S34.42(f). . IDGHEST AND BEST USE . .- .- .. .. II ... ... Highest and Best Use is defined by the Appraisal Terminology and Handbook, published by the Appraisal Institute, as "the most profitable likely use to which a property can be put". The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed, or likely to be in demand, in the reasonable near future. However, elements affecting value that depend upon events or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. Based on the above definition and after seeing the site, neighborhood, and area, it is my opinion that subdivision of residential lots along the Newville Road and agricultural use of the remaining acreage is its Highest and Best Use. 4 SITE DATA ADDRESS: 2108 Newville Road TOWNSHIP: West Pennsboro COUNTY: Cumberland STATE: Pennsylvania ZONING: Residential District. LOT SIZE: Approximately 56 acres. SEWERS: On-site septic system. Public sewer stops next door. WATER: On-site well. ELECTRICITY: PP&L LANDSCAPING: Typical for the area, with a sodded lawn, trees and shrubs. DETRIMENTAL INFLUENCES None. Pride of ownership is evident throughout the neighborhood. DESCRIPTION OF IMPROVEMENTS GENERAL DESCRIPTION: One-story detached single-family dwelling containing approx- imately 1,650 square feet of gross living area above grade. CONDITION: Exterior: Good Interior: Good ROOMS: First Floor: Living room, eat-in kitchen, three bedrooms, full bath- room and one-half bathroom. Basement: Full, with family room. EXTERIOR: Foundation: Walls: Sash: Gutters: Roof: Concrete block. Permastone Double-hung thermopanes. Aluminum, painted. Gable, with shingles. ~ 5 INTERIOR, PRINCIPAL ROOMS: Flooring: Walls: Ceilings: Trim: KITCHEN: Cabinets: Counters: Walls: Flooring: Sink: BATHROOM: Flooring: Walls: Bathtub: Lavatory: Water closet: CONSTRUCTION: . Joists: Columns: Plumbing: HEATING: Carpet Drywall Drywall Wood, stained and varnished. Wood, stained and varnished. Formica Wood paneling and papered drywall. Vainy Double-bowl, stainless steel. Vinyl Ceramic tile and papered drywall. Built-in, with shower. Vanity, double-bowl. Two-piece. Wood Steel Copper and plastic. Heat pump and radiant heat in the ceiling. COOLING: Central air conditioning from the heat pump. HOT WATER: Electric, SO-gallon. ELECTRIC: Circuit breaker system, 200-ampere.' OTHER: There is a permastone fireplace with woodburning stove insert in the basement and the dwelling is equipped with a central vacuum system. Attached to the dwelling is a two-car garage with one-half bathroom, covered front porch and covered rear porch. Also located on the site is a 400 square foot concrete block storage building and a 1,656 square foot concrete block garage. GENERAL CONDITION: All improvements are considered to be in good condition on the interior and on the exterior, with mechanical systems appearing to be adequate and functioning properly. ~ 6 THE APPRAISAL PROCESS Three approaches to value are generally included in an appraisal report. These techniques include the cost approach, sales comparison approach, and income approach to value. The cost approach to value is based on the assumption that the reproduction cost of a building plus land value, tends to set the upper limit to value. A key assumption is that a newly constructed building would have advailtages over the existing building, therefore an evaluation focuses upon disadvantages or deficiencies (depreciation) of the existing building compared to a new facility. Due to the age of the subject improvements, the cost approach is considered to be inappropriate and has, therefore, not been included in the development of this appraisal report. The sales comparison approach to value assumes that under normal conditions, a given number of parties acting intelligently and voluntarily, tend' to set a pattern from which value can be estimated. Application of this approach relies on a comparison of the subject with a sufficient number of recent transactions of comparable properties in the market, based on a coinmon unit, such as price per square foot of building area. The income approach concerns itself with present worth of the future potential benefits of a property. The initial estimate involves the net income, which a fully informed person is justified in assuming the property will produce during its remaining useful life. This estimated net income is then capitalized into a value estimate, based upon the level of risk as compared with that of a similar type and class. Since homes similar to the subject are not typically utilized as income-producing investment properties, the income approach to value is considered to be inappropriate and has, therefore, not been included in the development of this appraisal report 7 SALES COMPARISON APPROACH In arriving at this conclusion of the value of the subject property, the appraiser made a survey of properties that have sold in the area of the subject property. Consideration was given and adjustments were made on each comparable sale as to time of sale, size, location, as well as all other factors that might affect value. A resume of some of the sales considered by the appraiser is as follows: SALE NO. 1: Location: Date of Sale: Sale Price: Size: Unit Price: SALE NO.2: Location: Date of Sale: Sale Price: Size: Unit Price: SALE NO.3: Location: Date of Sale: Sale Price: Size: Unit Price: 19 Mt. Rock Road, Ne\\<ville. July 15, 2004. $120,500 1,600 square feet. $75.31 per square foot. 329 Greenspring Road, Ne\wille. August 31,2004. $133,500 1,596 square feet. $83.65 per square foot. 1654 Newville Road, Carlisle. October 7, 2004. $139,900 1,400 square feet. $99.93 per square foot. The appraiser, in addition to the sales listed, also considered several additional sales in arriving at his final opinion of value. On the Sales Comparison Analysis fOrol that follows this page are dollar adjustments reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than. the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is inferior to, or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. After making all of the necessary adjustments, it is the appraiser's considered opinion that the indicated value of the subject property by the Sales Comparison Approach is $505,000. 8 SALES COMPARISON ANALYSIS ITEM SUBJECT COMPARABLE #1 COMPARABLE #2 COMPARABLE #3 2\ 08 Newvill. Road 19 Mt Rock Read 329 Greenspring Road 1654 Newville Road Address Carlisle Newville Newville Carlisle Proximity to Subject Sale Price ~ . Priee J Sq. Ft GLA NA $75.31 $83.65 $99.93 . Data SOW'Ce Inspection Central Penn Multi.List Central Penn Multi.List Central Penn Multi.List ADJUSTMENTS DESCRlPTION DESCRIPTION $ Adjwt. DESCRIPTION $ Adjust DESCRIPTION SAdjust. Sales or Financing Concessions None None None Date of Sale I Time As of 10-2.;)4 7.15..04 8-31-04 10-7.Q4 LOOation :A. verage Similar .' Similar S<milar Site/View 56 acres .34 acn= +445,300 .46 acre +444,300 .81 acre +441,500 Design and Appeal One-stul)' de1llcbed Similar Similar Similat Construction PemlL'tDne Brick Brick Vinyl siding +10,000 ~. 31 years 47 years 34 years 12 years Condition Good Average +12,100 Average +13,400 Good Above Grad< Tot. Bed. Bath Tot. Bed Bath ToI. Bed Bath Tot. Bed. Bath Room Count +2,000 6 3 5 3 II> 5 2 1 I 6 3 2 -4,000 Gross Living Area 1.650 square feet 1.600 square feet 1,5% square feet 1,400 square li:et +10,000 Ba:rement &Fini.sbed Full basement with Full basement with Rooms Below Grade family room. Full basement +2,000 Full basement +2,000 bdnn. & family room -2,000 . Functional Utili' A verag;e Similar SiIr.ilar Similar Heatin. J Coolin. Heat """,p, radiant ht Heat pump 8sM ~lec. w/cen. air Baseboard electric +3,000 Gara.. I Carport Two-car WU1Ule Two l-ca.raara2es Two..car@r8lZe Two-car garaae Porches. Patios TWQ perches. two Ig. Pools etc. storap;e buildinp;s. Porch +21,000 Porch +21.000 Porch, patio +20,000 Special Eo"'ll}' Typical for the EfficiClltlterns ~ion. Similar Similar Similar F' s Fnlc. wlwoodbmll stv FireDlace +1,000 None +2.000 None +2,000 Ollu:r (..g. kitchan equip., remodeling) Built-ins. Similar Similar Similar NetAdj, (total) +483,4<J0 +482,700 +4811,500 Indicated Value of Subiect 603,900 616,200 620.400 FINAL INDICATED VALUE OF SUBJECT PROPERTY: $616,000 9 CORRELATION Correlation may be defined as '"the bringing together of parts in a proper relationship." The parts of this appraisal report are the following approaches to value your appraiser used: Value Indicated by Cost Approach Value Indicated by Sales Comparison Approach Value Indicated by Income Approach N.A. $616,000 N.A. These approaches are representative of the market value of the subject property. I have carefully reexamined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confinned the original conclusions. The Cost Approach will result in an excellent estimate if all elements are figured accurately, because no prudent person will pay more for a property than the cost to produce a substitute property with equal desirability and utility. Purchasers of the type of dwelling typical of the subject property are more concerned with amenities than with hypothetical replacement of the property. Due to the age of the subject improvements, the Cost Approach is considered to be inappropriate and has not been included in this appraisal report. The Sales Comparison Approach was based on several recent sales of properties similar to that of the subject., all of which are located in the same general area. The adjusted sales prices are most consistent under comparison. This approach is the most reliable because it reflects the reactions of tYpical buyers and sellers in the market. The Income Approach is most applicable to income producing properties or properties that are primarily utilized for income producing purposes. Purchasers of income producing properties are willing to pay no more for a particular property than the net operating income will support. Since the majority of properties similar to the subject are not utilized for income producing purposes, this approach to value has not been included in this appraisal report. Therefore, as a result of this appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, as of October 2, 2004, is: SIX HUNDRED SIXTEEN THOUSAND DOLLARS $616,000 10 ern-Southern Life Assurance Company Single Premium Deferred Annuity 980 L;~,-_'"i-~~f)_'tU,<tt,B~P~~!L"" . -,~~ Prepared on 03/25/2004 Owner LEE K FINKENEINDER 2108 Newville RD Carlisle PA 17013 Page 1 of 1 Western-Southern Ute appreciates your business. = = - - = - - - """""" - - - = - ===== Annuitant Contract Number Contract Date Contract Type LEE K FINKENBINDER W 20627791 03/25/2002 IRA * * * INFORMATION ABOUT YOUR CONTRACT *. * '" > Total interest earned during any contract year will be impacted by any withdrawals, including systematic withdrawals, from the contract during that year. For example, if you select the systematic withdrawal plan, the interest you receive will be less than the amount indicated by the effective annual interest rate because interest is being paid out rather than accumulated. SUMMARY OF ACTIVITY 03/25/2003 through 03124/2004 Beginning Contract Value plus Interest Credited" less Systematic Withdrawals Partial Withdrawals Surrender Charges Ending Contract Value Surrender Value- $ 25,219.86 1,185.33 .00 .00 .00 26,405.19 24,979.31 The effective annual interest rate for the contract year indicated above was 4.70% and is 4.85% for the current year. The Pacesetter guarantees interest rates each year for two 5-year periods. During the first 5-year guarantee period, the interest rate will increase by .15% each year. The initial rate for the second 5-year guarantee period will be set at the current market rate at that time and will not be less than 3.00%. The interest rate will again increase by .15% each year. The minimum guaranteed interest rate in years 11 and later is 3.00%. - Amount available after deducting any applicable charges if you cancel your contract. " For further information about your Pacesetter annuity contract, including interest rates, contact your sales representative or call A.nnuity Operations. ANNUiTY OPERATIONS Western-Southern Life Assurance Company PO Box 2918 Cincinnati, Ohio 45201-2918 1-800-926-1702 Customer Service Hours; Monday - Thursday, 8 a.m. to 6 p.m., Eastern Time Friday, 8 a.m. to 5 p.m., Eastern Time