HomeMy WebLinkAbout09-13-05
REV-l500EX j6-00) REV-1500
COMMONWEALTH OF
PENNSYLVANIA
DEPARTMENT OF REVENUE INHERITANCE TAX RETURN FILE NUMBER
DEPT 280601 21 05 0531
HARRISBURG, PA 17128-0601 -
RESIDENT DECEDENT COUNTY CODE YEAR - NUMBER- --
DECEDENTS NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER
l- MARY C, ROHRBACH 186-34-2591
Z
w -
0 DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
W 05/31/2005 01/26/1944 REGISTER OF WILLS
U
w (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST. FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER
0 N/A
w o 1. Original Return o 2. Supplemental Return o 3. Remainder Return (dale of deall1 prior to 12-13-62)
....
"'~.. D 4. Limited Estate D 4a. Future Interest Compromise (dale of death after 12.12-82) D 5. Federal Estate Tax Return Required
0"''''
w"O
,,00 D 6. Decedent Died Testate (Attach copy of Will) D 7. Decedent Maintained a Living Trust (AllachcopyofTrusl) 8. Tota! Number of Safe Deposit Boxes
0"'-'
..Ill -
.. D 9. Litigation Proceeds Received o 10. Spousal Poverty Credit (dale of death between 12+31.91 and 1.1.95) o 11. Election to tax under Sec. 9113(A) (Mach Sell 0)
..
....
z COMPLETE MAILING ADDRESS
w NAME
0 ROBERT C_ MAY
z 4330 CARLISLE PIKE, CAMP HILL PA 17011
0 FIRM NAME (II Applicable)
..
.. THE LAW FIRM OF MAY & MAY, PC.
w
'"
'" TELEPHONE NUMBER
0
0 (717) 612-0102
1. Real Estate (Schedule A) (1) 0.00
4,909.32 ""
2. Stocks and Bonds (Schedule B) (2) '-"" :TJ
;~") =
en rn
3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) 0.00 :~O U'> ()
-.::-;:1 t"'1 0
--;-" :-~O
4. Mortgages & Notes Receivable (Schedule D) (4) 0.00 -~C) "'U C..:J
'iil - rn
C::J
5. Cash, Bank Deposits & Miscellaneous Personal Property (5) 1,902,00 ~ w
/' C.:)
Z (Schedule E) ---',.--'. -0 --n
0 -',T1 ~ ~:!:!
(6) 5,632.80 - _~"(J
~ 6. Jointly Owned Property (Schedule F) f:'? - r-n
o Separate Billing Requested '__"0
0 n
...J 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) 0.00 CO
~
l- (Schedule G or L)
c: 8. Total Gross Assets (total Lines 1.7) (6) 12,444.12
<l:
U 9, Funeral Expenses & Administrative Costs (Schedule H) (9) 13,930_00
W
D:: 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 1,976.00
11. Total Deductions (total Lines 9 & 10) (11) 15,906.00
12. Net Value of Estate (Une 8 minus Une 11) (12) 0.00
13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been (13) 000
made (Schedule J)
14. Net Value Subject to Tax (Une 12 minus Line 13) , (14) 0.00
SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES
Z 15. Amount of Line 14 taxable at the spousal tax
0 0.00 x ,0 L (15) 0,00
!ci: rale, or transfers under Sec. 9116 (a)(1.2)
16. Amount of Line 14 taxable at lineal rate Oll.Q. x .0 ~ (16) 000
I-'
~ 0.00 x .12 0_00
II. 17. Amount of Une 14 taxable at sibling rate (17)
:i:
0 18. Amount of Line 14laxable at collateral rate 0.00 x ,15 (16) 0.00
U
>< 19. Tax Due (19) 0.00
~ 20.0 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT
Decedent's Complete Address:
STREET ADDRESS
7407 Wertzville Road
CITY Carlisle I STATE PA I ZIP 17013
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19) (1) 0.00
2. Credits/Payments 0,00
A. Spousal Poverty Credit
B. Prior Payments 0.00
C. Discount 0.00
Total Credits ( A + B + C ) (2) 0.00
3 InteresVPenalty if applicable 0.00
D. Interest
E. Penally 000
TotallnteresVPenalty ( D + E ) (3) 0,00
4. II Line 21s greater than Line 1 + Line 3, enler the difference. This is the OVERPAYMENT.
Check box on Page 1 Line 20 to request a relund (4) 0,00
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 0.00
A. Enter the interest on the tax due. (SA) 0.00
B, Enter the tolal of Line 5 + SA. This is the BALANCE DUE. (5B) 0.00
Make Check Payable to: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS
1, Did decedent make a lransfer and: Yes No
a, retain lhe use or income of the property l,aosler,OO;."""".""".""""""""..."""""...""."".".""."""".."""""", ~ 0
b. relain the righl to designate who shall use the property transferred or its income; ,,""""'.."""""".'''''''''''''''''' ~ 0
c. retain a reversionary interest; or.............................................. .........................................................................,. 0 [KJ
d. receive the promise for life of either payments, benefits or care? ............... ........... .......................................... [KJ 0
2. If death occurred after December 12, 1982, did decedent Iransler property wilhin one year of death
without receiving adequate consideration?. ........ .....................,. ........... ..".............. ................w............ ......... 0 [KJ
3, Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? .............. D IKI
4, Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ................................................................................................................ ........ 0 [KJ
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN,
Ur.dl!\" pell-alties of pe-ljury.' rledare that \ have examined \his return, induding accompanying schedules and statements, and to the best of my knowledge and beliel, il is trUe, correct and complete
Declaration of preparer olher than the personal representative is based on all information of which preP8rer has any knowledge.
SIGNAT~~~~~~~tfk.: FlUNG R2Z DATE / /
Z7 / ~ q /2. z,.o<;
ADDRESS ~ ~ ~
... _ ___1_ Q? ()~J' v,J.L~____~(pr bLe~_12Q.13 .---. ---- ~~ ~... ..
SIGNATURE1Ij:.k~RTHA~ DATE I
__!Ji!...?L2~_.
ADDRESS 4. Cor/. k. ~ Co.r.-..{' If tit P1 (?::J l\
:5X/ l.r ,~
::1\!;;: TE'{':i ;+,51;?;"'~ ":;;;1'" """"\"",,"" ;T;L::)ij$dJ"'/ . "".;;;;;;n;TI{ "''''::;';.' w;;;r;'A[nn::' L';:~>H
For dates of death on or after July 1. 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3%
[72 P.S. 99116 (a) (1,1) (i))
For dates of death on or after January 1, 1995, Ihe tax rate imposed on the net value of transfers 10 or for Ihe use of the surviving spouse is 0% [72 P.S. 99116 (a) (1.1) (ii)].
The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable e\len if
the surviving spouse is the only beneficiary.
For dales of dealh on or after July I, 2000:
The tax rate imposed on the net value of transfers from a deceased child twenty~one years of age or younger at death to or for the use of a natural parent, an adoptive parent,
or a stepparent of the child is 0% [12 P.S. ~9116(a)(1.2ll.
The tax rate imposed on the nel value of transfers to or for the use of the decedent's lineal beneficiaries is 4,5%, except as noted in 72 P.S. 99116(1.2) [72 P.S. 99116(a)(111.
The lax rale imposed on the net value of translers to or for Ihe use of Ihe decedent's siblings is 12% [72 P.S. 99116(a)(1.3)]. 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.
REV-1503 EX+ 16.9.* SCHEDULE B
COMMONWEALTH OF PENNSYLVANIA STOCKS & BONDS
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
MARY C. ROHRBACH 21-05-0531
All property jointly.owned with right of survivorship must be disclosed on Schedule F.
ITEM VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1- PRUDENTIAL FINANCIAL, INC. (PRU - NYSE) COMMON STOCK 78 SHARES @ 62.94/SHARE 4,90932
TOTAL (Also enter on line 2. Recapitulation) $ 4,909.32
(If more space is needed, insert additional sheets of the same size)
REV.150B EX+ (6.96) *' SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN PERSONAL PROPERTY
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
MARY C, ROHRBACH 21-05-0531
Include the proceeds of litigation and the date the proceeds were received by the estate.
All property jolntly-owned with right of survivorship must be disclosed on Schedule F.
ITEM VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1 wearing apparel, household goods & furnishings, books, and other miscellaneous langible personalty 0.00
2 Trust Funds Held, The Law Firm of May & May, P.C. 4330 Carlisle Pike, Camp Hill, PA 17011 1,90200
TOTAL (Also enter on line 5, Recapitulation) $ 1,902.00
(If more space is needed, insert additional sheets of the same size)
REV.'S09 EX. 16.98* SCHEDULE F
COMMONWEALTH OF PENNSYLVANIA JOINTLY-OWNED PROPERTY
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
MARY C, ROHRBACH 21-05-0531
If an asset was made joint within one year of the decedent's date of death, It must be reported on Schedule G.
SURVIVING JOINT TENANT(S) NAME ADDRESS RELATIONSHIP TO DECEDENT
A. BOBBIE CRONE 7407 WERTZVILLE RD., CARLISLE, PA 17013 DAUGHTER
B.
C
JOINTLY-OWNED PROPERTY:
LETTER DATE DESCRIPTION OF PROPERTY %0' DATE OF OEATH
ITEM FOAJOINT MADE INClUDE NAME OF FINANCIAL INSTITUTION AND BANK ACCOUNT NUMBER OR SIMILAR DATE OF DEATH DECO'S VALUE OF
NUMBER TENANT JOINT IDENTIFYING NUMBER. ArrACH DEED FOR JQINnV-HELO R[AL ESTATE. VALUE OF ASSET INTEREST DECEOENT'S INTEREST
,. A. 07/01/01 Acct 366929720, Bank of Landisburg, Landisburg, PA 11,265.60 50 5,632,BO
TOTAL (Also enter on line 6, Recapitulation) $ 5,632BO
(If more space is needed, insert additional sheets of the same size)
The ~~?1~ ~LfNb~~~l~~~ur~ ESTABLISHED 1903
August 29-05
To Whom It May Concern:
This joint savings account was opened on 2/05/02, in names
Mary C. Rohrbach or Bobbie Jean Crone, held jointly.
Questions feel free to call-7l7-582-85ll.
'9=;;;J::o~
SHERMANS GALE O~fl-'-=e
lH.E BANK OJ:.: LAj\!UiSSUH'G
~.. il25 SPJiJr<:; ;;.),;0
.' P.O_ BOX tiO
SHEflLlANi DAl..E. PA 17'090
Cf!Jffi:e0
LANDISBURG - 717-789-3213 . BLAIN - 536-3118 . SHERMANS DALE - 582-8511
AEV-1510 EX+ (6-9B)
.. SCHEDULE G
COMMONWEALTH OF PENNSYLVANIA INTER-VIVOS TRANSFERS &
INHERITANCE TAX RETURN MISC. NON-PROBATE PROPERTY
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
MARY C. ROHRBACH 21-05-0531
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
ITEM INClUOE THE NAME OF lllE TRANSFEREE. THEIR RElATlONSHIPTO OECEOENT ANa DATE OF DEATH % OF DECD'S EXCLUSION TAXABLE
NUMBER THE OATE OF TRANSFER. ATTACH ACOPY OF THE OEEO FOR REAL ESTATE VALUE OF ASSET INTEREST IFAPPLICABLE) VALUE
1- RemalnderDf Life Estate in 7407 Wertzville Rd, Carlisle PA 17013 131,580.00 100 131,580,00 000
attached is Deed conveying property to daughter Bobble Crone, upon which
Ms. Crone moved in wilh Decedent to care for her all her personal needs,
including but not limited to cODking, cleaning, transportation, baby-sitting, and
handling finances, as Decedent was extremely ill, needing Dxygen at all times.
Under reasoning of PA Supreme Court in the Estate of Beck, Estate Df
Rohrbach claims that80bbie Crone provide<:! "moneys wDrth" in personal care
by promising to care for her mother for life in exchange for the Remainder
Interest in the house.
Also attached is Ihe Family Agreement of the beneficiaries agreeing tD this
treatment of Ihe Remainder interest.
Also attached is the assessment of the property on the date of transfer July
31,2003 - $106,890. Mary was 59 years old on the date of transfer.
TOTAL (Also enter on line 7 Recapitulation) $ O.DO
(If more space is needed, insert additional sheets of the same size)
RECORD & RETURN TO:
THE LAW FIRM OF MAY & MAY, P.C.
4330 CARLISLE PIKE TAX PARCEL NO: 21-11-3031-004
CAMP HILL, PA 11011 DllE'
. '~.B ?Il i' ftJ. .......
. .' .M 1$' ,
,{ ~ 'LI/'
> f ... .. ~ .;' ,;-~;' ~,:,,-4 o^ j ._'f'
This Deed, made the 31 st day of July, in the year Two Thousand and Three (2003),
Between MARY C. ROHRBACH, an adult individual of Carlisle, Pennsylvania (Grantor),
AND
BOBBIE JEAN CRONE, an adult individual of Carlisle, Pennsylvania (Grantee), daughter of the said
Grantor.
Witnesseth, that in consideration of One Dollar ($1.00), in hand paid, natural love and affection and
other good and valuable consideration, the receipt whereof is hereby acknowledged, the said Grantor
does hereby grant and convey, with QUITCLAIM COVENANTS, to the said Grantee, her successors
and assigns,
ALL that certain house and lot of ground situate on the South side of
Wertzville Road, being known as 7407 Wertzville Road, in the
.~",.{l:o}!fJlSIlif.l.4"iOf Middlesex, County of Cumberland and State of
Pennsylvania, bounded and described as follows, to wit:
BEGINNING at a point on the southern side ofWertzville Road, Pa.
Routes 944 and 569, (L.R. 21001) (60 feet ROW), said point of
b(lgirming peing measured two hundred ninety-nine and fifty-eight
/....". (./.:. : c.e hundredths (299.58) feet from the western extremity ofa curve having a
:"'J .c:J :.- t..n radius of twenty (20) feet and a length of thirty-one and seventy-three
__J L...i t--
(,;) lLJ Z :::: hundredths (31.73) feet, connecting the southern line ofWertzville Road
lJ.j c.;::)
J"-.,J ~~_ 0. e: and the western line of Oak Lane, being also the northwestern comer of
00 a:: Lot No.5 on the hereinafter mentioned Plan of Lots; thence by Lot No,
c..: r.z 0 !::: .'::!:; ::r- 5 South 13 degrees 12 minutes 48 seconds West a distance of one
:.:: ;g ~ <==> hundred sixty-six and forty-three hundredths (166.43) feet to an iron pin
.~: ,::;,:: iE at Lot No. 10 Section B of the Plan of Regency Woods; thence by Lot
'" .':.' ,. C'? No. 10 and Lot No, lIon said Plan North 63 degrees 54 minutes 20
~) seconds West a distance of ninety-one and nine hundredths (91.09) feet
to a concrete monument thence by Lot No, lIon said pian North 73
degrees 13 minutes 50 seconds West a distance of seventeen and thirty-
six hundredths (17.36) feet to an iron pin at Lot No.3 on the hereinafter
mentioned Plan; thence by Lot No.3 North 15 degrees 40 minutes 47
seconds East a distance of one hundred sixty-four and fifty-nine
hundredths (164.59) feet to an iron pin on the southern side ofWertzvilJe
Road; thence by WertzvilJe Road South 65 degrees 42 minutes 25
seconds East a distance of one hundred and ninety-two hundredths
(100.92) feet to an iron pin, the Place of BEGINNING.
NO TRANSFER TAX IS DUE ON THIS INTER-FAMILY TRANSFER
BEING the same Lot 4 of Section A of Regency Woods which Ray E.
Hench and Selma A. Hench his wife granted and conveyed unto Robert
E. Rohrbach and Mary C. Rohrbach his wife by Deed dated March 13,
1979 and recorded in the Office of Recorder of Deeds in and for
Cumberland County in Deed Book 128, Page 100, and, which upon the
subsequent death of Robert E. Rohrbach passed sole title to Mary C.
Rohrbach, Grantor herein.
HA VlNG THEREON ERECTED, a dwelling house.
AND FURTHER BEING Lot No.4 on the Resubdivision Plan of Lots
1-7 on Section A, Regency Woods, as recorded in Cumberland County
Plan Book 31, Page 16,
AS SURVEYED by GerritJ, BetzAssociates, inc. November 11,1976,
drawing No. 76558-D and containing 16,878 square feet.
There is expressly excluded from this conveyance, and the Grantor does hereby reserve
for herself, the full use, control, income, and possession of all the premises for the remainder
of her life. The Grantor shall not have the power to sell, mortgage, exchange, or dispose of
the premises. The interest reserved in this paragraph is hereinafter referred to as the "Life
Estate." The Life Estate may be terminated only by the death of the Grantor or by an
instrument of release, executed by the Grantor or Grantor's legal representative in a form
suitable for recording and delivered to the Grantee, or her heirs or legal representative.
The Grantor hereby agrees that during the Life Estate, she will do the following at her
own cost and expense;
1. Keep the residence on the premises insured against loss or damage by fire in an
amount sufficient to avoid being deemed a co-insurer and naming Grantefl, or her heirs
or legal representative, as the additional insured;
2. Pay all real estate taxes assessed on the premises, and if the expiration of the Life
Estate is on a date other than at the commencement or expiration of any fiscal year, the
taxes in such year shall be apportioned between the Grantor and Grantee, or her heirs
or legal representative; and
3. Keep the premises in substantially such repair, order, and condition as the same are
in on the date hereof, reasonable use and Wear excepted.
In Witness Whereof, the said Grantor has hereunto set her hand and seal the day and year
first above written.
Signed, Sealed and Delivered
In the Presence of
.
r+aP~~ :
:
:
Commonwealth of Pennsylvania:
: ss.
County of Cumberland :
On this, the 31st day of July, 2003, before me, the undersigned officer, personally appeared MARY
C. ROHRBACH, known to me (or satisfactorily proven) to be the person whose name is subscribed to the
within instrument, who acknowledged that she executed the foregoing instrument for the purpose therein
contained.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal. .~:~:j'~:'1;; ~"'"
. .' ~ ., --
'. .-
: ......
;;Z~ ~94<y- - ..- J"
NolariaI Seal ~ "'r\\'''\
K8rlln B.M~1c
Camp HII Bora, Coun~ ':.', ~ -- . . .
My COmmission Expires Jan. 17, "'. j .., ' ,
"''''''
I hereby Certify that the precise address of the Grantee herein is 7407 Wertzville Road, Carlisle, PA
170\3.
.~~f c~
Commonwealth of Pennsylvania:
: ss.
County of Cumberland :
Recorded in the office for Recording of Deeds in and for Cumberland County, in
Record Book No. Page Etc. Witness my hand and seal of Office
this day of , Anno Domini 2003.
Recorder
LexisNexis(TM) Basic Case Law & Statutes I Search - 1 Result - Page 10f7
Service: Get by LEXSEE@
Citation: 489 Pa. 276
489 Pa. 276, *; 414 A.2d 65, **;
1980 Pa. LEXIS 616, ***
ESTATE of Katherine M. BECK, Appeal of Emma FOSTER
Supreme Court of Pennsylvania
489 Pa. 276; 414 A.2d 65; 1980 Pa. LEXIS 616
October 16, 1979, Argued
April 30, 1980, Decided
PRIOR HISTORY: [***1]
No, 453 January Term, 1977, Appeal from the decree entered January 31, 1977 of the Court
of Common Pleas of Schuylkill County, Orphans' Court Division
COUNSEL: Leonard G. Schumack, Shenandoah, for appellant.
Vincent J, Dopko, Deputy Atty. Gen., for appellee.
JUDGES: Eagen, C. J., and O'Brien, Roberts, Nix, Manderino, Larsen and Flaherty, JJ.
Manderino, J., did not participate in the decision of this case.
OPINION BY: NIX
OPINION: [*278] [**66] OPINION
Appellant appeals from the decree of the Court of Common Pleas of Schuylkill County,
Orphans' Court Division levying an inheritance tax on the estate of Katherine M, Beck. n 1
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n1 The Supreme Court has jurisdiction over this appeal pursuant to 42 pa.C.S"lLS]22(3j.
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -
Decedent, Katherine M. Beck, and her sister, Elizabeth Viola Johns, owned property as
tenants in common at 34 South Nichols Street, St. Clair, Schuylkill County, Pennsylvania, On
September 25, 1959, Beck and Johns conveyed the Schuylkill County property to themselves
and their niece, Emma L. Foster. [***2] The recorded deed provided:
. . . to have and to hold the said premises with all and singular the
appurtenances belonging to the said [*279] parties of the second part, the said
Katherine Beck and Elizabeth Johns for and during the terms of their natural lives
with remainder in fee, upon the death of the survivor of them to Emma L. Foster,
her heirs and assigns. . , n2
[**67] Both prior to and after the 1959 conveyance, Beck, Johns and Foster reSided at the
http://www3.1exisnexis.comlbc1s/auth?cacheKey= 11704995&srv=01s _ LexseeRetrieve&for... 9/12/2005
LexisNexis(TM) Basic Case Law & Statutes I Search - 1 Result - Page 2 of7
Schuylkill County property,
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n2 The Commonwealth and the appellant construe the conveyance as vesting the remainder
immediately in Emma L. Foster, subject to concurrent life estates in Beck and Johns.
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -
On January 8,1975, Katherine M, Beck died testate. Emma L. Foster was appointed executrix
of the estate and letters of administration were granted. The executrix filed the requisite
inheritance tax return, but failed to include as taxable the Schuylkill County property, On July
25, 1975, the Inheritance Tax Department of the Commonwealth[***3] of Pennsylvania
appraised the value of the Schuylkill County property at $ 7,500,00. The Department
determined that half of the property's value, $ 3,750.00, was subject to a 15 percent
inheritance tax. The executrix appealed the $ 562.50 inheritance tax to the Orphans' Court.
The court held that the estate was properly taxed since the 1959 inter vivos transfer was
made without consideration and the transferor reserved for her life the possession and
enjoyment of the property. The executrix has filed an appeal from the decree of the Orphans'
Court to this court.
On appeal, appellant disputed the applicability of the Pennsylvania Inheritance and Estate
Tax Act of 1961, Act of June 15, 1961, P.L. No. 373, art. II, 99 221, 224, 72 P.S. 99 2485-
221(a), 2485-224 n3 to the facts and circumstances [*280] surrounding the conveyance,
Specifically, appellant argues that the 1959 conveyance was not one intended to take effect
in possession and enjoyment until after the transferor's death, In the alternative, appellant
asserts that, even if the conveyance was one intended to take effect after the death of the
transferors, the transferee has tendered valuable consideration for the[***4] property.
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n3 Section 221, 72 P,S. 9 2485-221(a) provides:
(a) Consideration. All transfers of property, specified in sections 222-226, which
are made during his lifetime by a resident or a non-resident, to the extent that
they are made without valuable and adequate consideration in money or money's
worth at the time of transfer, are subject to tax under this act.
Section 224, 72 P.S. 9 2485-224 provides:
A transfer conforming to Section 221(a), and under which the transferor
expressly or impliedly reserves for his life or any period which does not in fact
end before his death,
(1) the possession or enjoyment of, or the right to the income from, the property
transferred, or
(2) the right, either alone or in conjunction with any person not having an
http://www3.lexisnexis.comlbc1s/auth ?cacheKey= 11704995&srv=0Is _ LexseeRetrieve&for... 9/12/2005
LexisNexis(TM) Basic Case Law & Statutes I Search - 1 Result - Page 3 00
adverse interest, to designate the persons who shall possess or enjoy the
property transferred or the income therefrom, is subject to tax under this act.
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -
The Pennsylvania Inheritance Estate Tax is not a tax on property, but upon the right of
[***5] succession or the privilege of receiving property possessed by the decedent. Remmel
Estate. 425 Pa. 325. 228 A.2d 889 (1967); Tack's Estate. 325 Pa. 545, 191 A. 155 (1937).
The Inheritance and Estate Tax Act of 1961, Act of June 15, 1961, Art. I-XII, 72 P.S. Ii 2485-
101 et seq., is effective as to estates of decedents dying on or after January 1, 1962. n4 All
transfers n5 of property by will or by intestate law are subject to this tax. Section 211, 72
P,S. 92485-211. Additionally, all inter vivos transferors specified in 72 P.S, 99 24B5-221-226
which are made during a person's lifetime, to the extent that they are made without valuable
and adequate consideration in money or money's worth at the time of transfer, are taxable,
Section 221, 72 P.S. 9 2485-221(a). Section 224, 72 P,S. 9 2485-224 taxes all inter vivos
transfers made without valuable consideration and in which the transferee's interest in
exclusive enjoyment and possession is postponed until or after the transferor's death.
Therefore, if an inter vivos [*281] transfer is made for valuable consideration, the fact that
the life estate was retained, 9 224, 72 P,S. 9 2485-224, or a promise[***6] made to care
for the transferor in the future, 9 225, 72 P.S, 9 2485-225, [**68] would not destroy the
tax-free aspect of the transfer.
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n4 The Pennsylvania Inheritance and Estate Tax Act has been continuously revised since its
initial enactment in 1919. However, the concept of taxing gratuitous inter vivos transfers has
remained intact. See, 1963 Report -- Joint State Government Commission, Proceeding
Section, 72 P.S. 9 2485-221.
n5 A transfer is defined by Section 102, 72 P.S, 9 2485-102(22) as including "the passage of
ownership of any property, or any interest therein or income therefrom in possession or
enjoyment, present, or future, in trust or otherwise."
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -
When a transferor expressly or impliedly reserves for himself an interest in possession and
enjoyment for his life or any period which does not end before his death, the transfer may be
subject to inheritance tax. Mver's Estate. 359 Pa. 577, 60 A.2d 50 (1948): Todd Trust. 358
Pa. 530, 58 A.2d 135 (1947); Glasser Trust. 355 Pa, r***71 210.49 A.2d 401 (1946). In
c;ommisslonery... Est<!teofQU.!rcl1.,J35l..l.S,ji32,69..S.....ct......3.22,..93..!...Ed,288.. (1948), the
Supreme Court discussed the origin of the "possession or enjoyment" provisions appearing in
the inheritance tax laws. n6 The Court noted that the language originated in Pennsylvania
inheritance tax law in 1825. Note, Origin of the Phrase, "Intended to Take Effect in
Possession or Enjoyment At Or After. . . Death," 56 Yale !..,J. 176 (1946), Early in
Pennsylvania case law, our courts stated that the clause did not involve a mere technical
question of title, but that the law imposed the tax unless one parted during his life with
possession, his title, and his enjoyment. Reish v. Commonwealth. 106 Pa. 521. 526 (18841-
Our courts have also held that the test of "intended" is not a subjective one, that the
question is not what the parties intended to do, but what the transaction actually effected as
to title, possession and enjoyment. Oliver's Estate, 71 Lack.Jur. 168, 21 Fid. 43 (1970).
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n6 The phrase "intended to take effect in possession or enjoyment" appears in the Federal
http://www3.Iexisnexis.comlbcIs/auth ?cacheKey= 11704995&srv=0Is _ LexseeRetrieve&for... 9/12/2005
LexisNexis(TM) Basic Case Law & Statutes I Search - 1 Result- Page 4 00
Tax Code as well as in most state tax codes. Commissioner v. Estate of Church, suora, 355
U.S. at 639,69 S.Ct, at 326.
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -[***8]
On appeal, our scope of review of an Orphans' Court decision is "limited to whether [the]
findings of fact are supported by sufficient evidence and whether there has been an error of
law or abuse of discretion," !::fei!J~YWiI!,455!'a.574,3ULA,2d]QQ(l9Z4); S/Jewchllk
Estate, 444 Pa, 249, 260, 282 A.2d 307, 313 (1971). An examination of both [*282] the
language of the deed and the transaction actually effected reveals that there was sufficient
evidence for the Orphans' Court to conclude that the 1959 transfer was one intended to take
effect in possession and enjoyment after the transferor's death. By deed on September 25,
1959, Katherine Beck reserved a concurrent life estate in the Schuylkill County property for
herself and her sister, and transferred the remainder interest to Emma Foster. After the
deed's execution, the transferor exercised her right to the retained life estate and continued
to reside at the premises. The remainderman also continued to reside at the premises, but
her interest in the exclusive enjoyment and possession of the realty was postponed until the
death of the survivor of the life tenants. Hence, the Orphans' Court properly concluded that
[***9] the transferor did not irrevocably part with all interest, title, possession and
enjoyment of the realty in her lifetime.
Although a transfer may be one intended to take effect in possession and enjoyment upon
and after the death of the transferor, the transferor's estate may be exempt from tax if the
transferee has tendered valuable consideration, Kelly's Estate, 46 Pa.D. & e.2d.lUl968};
Graver's Estate, 43 Northampt. 63 (1977), Consideration is a bargained for exchange,
evidenced by a benefit to the promisee and a detriment to the promisor. Williston, Williston
on Contracts, Ch. 6 (3rd Edit. 1957). In Commissioner v. Wemyss, 324 U.S. 303, 307, 65
S,Ct. 652, 654, 89 L.Ed, 958 (1945), the Supreme Court explained the rationale for the
consideration requirement in the Federal Revenue Act of 1932, 47 Stat. 169, 245, 247, 26
U,S,C;, && 1001. 1002, The Federal Gift Tax !i 502, n7 The Court stated:
[*283] [**69] The section taxing as gifts transfers that are not made for
'adequate and full [money] consideration' aims to reach those transfers which are
withdrawn from the donor's estate. To allow detriment to the donee to satisfy the
requirement of 'adequate[***10] and full consideration' would violate the
purpose of the statute and open wide the door for evasion of the gift tax.
The requisite kind of consideration was enunciated by the Tax Court in Estate of John M,
Goetchius, 17 T.e. 495,503 (1951):
Accordingly, the exemption from tax is limited to those transfers of property
where the transferor or donor has received benefit in full consideration in a
genuine arm's length transaction; and the exemption is not to be allowed in a
case where there is only contractual consideration but not 'adequate and full
consideration in money or money's worth.'
Adequate consideration is "one which is equal or reasonably proportioned to the value of that
for which it is given." 1 Story, Eq.Jur. !is 244-247.
http://www3.1exisnexis.comfbcls/auth?cacheKey=11704995&srv=01s _ LexseeRetrieve&for... 9/1212005
LexisNexis(TM) Basic Case Law & Statutes I Search - I Result - Page 5 of7
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n7 The language in Section 503 is similar to the language in Section 221, 72 P.S. 9 2485-
221. Section 503 provides:
"Sec. 503. Transfer for less than adequate and full consideration.
Where property is transferred for less than an adequate and full consideration in
money or money's worth, then the amount by which the value of the property
exceeded the value of the consideration shall, for the purpose of the tax imposed
by this title, be deemed a gift, and shall be included in computing the amount of
gifts made during the calendar year." (emphasis added)
In Merril v. Fahs. 324 U,S, 308. 65 S.Ct. 655. 89 L.Ed. 963 (1945). the Supreme Court
stated that the phrase "transfers for other than 'an adequate and full consideration in money
or money's worth'" in the Gift Tax Act and in the Estate Tax Act are to be given identical
construction,
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - - [* ** 11]
During the Orphans' Court proceeding, Foster testified on direct examination that she resided
at the Schuylkill County premises both before and after the September 25, 1959 conveyance.
On the issue of tendering adequate and full consideration, Foster stated that after the deed
was recorded, "then I took over the expenses." (N.T, 12). On cross examination, Ms. Foster
admitted that "I've been helping to pay them [the bills] for a long time before that [the
conveyance]." (N,T. 13). Foster also indicated that her aunts continued to contribute to some
household expenses, Foster's testimony on cross examination concerning whether her
assumption of household expenses was pursuant to a bargained for exchange, was as
follows:
[*284] Q. SO, was there. . . Prior to the 25th day of December, 1959, to the
best of your recollection, was there ever any agreement made between you and
your aunt?
A, You mean as to me taking over the house, or what?
Q, Yes.
A, Yes, there was, I always knew I would get the house eventually.
Q. You're saying this was an assumption on your part. It was your
understanding; is that correct?
A. Well. . . Do you mean as opposed to me having it in[***12] writing; is that
what you mean?
Q, Yes,
http://www3 .lexisnexis.comlbcls/auth?cacheKey= 11704995&srv=0Is _ LexseeRetrieve&for... 9/12/2005
LexisNexis(TM) Basic Case Law & Statutes I Search - I Result - Page 6 of7
A. Well, no, I don't remember that there was. (N,T. L3-14).
Appellant asserts that Emma Foster tendered valuable and adequate consideration for the
Schuylkill County property. The alleged benefits conferred by Foster in exchange for the
realty are Foster's assuming all household expenses, contributing to the well being and
existence of Beck, and permitting Beck to live rent free at the Schuylkill County residence.
However, Foster's testimony reveals that she did not assume the household expenses in
exchange for the real estate since she paid the household expenses both prior to and after
the 1959 conveyance. Additionally, Foster was not responsible for all the expenses. Also,
since Beck retained a life estate in the property, it was Beck who gave Foster a rent-free
residence. Thus, it appears that the transferor did not receive "adequate and full
consideration in money or money's worth."
We do not dispute the fact that Foster suffered a detriment from paying the household
expenses and that Beck received a benefit from having the household expenses paid by
Foster, However, there is no evidence that Foster's detriment was incurred[***13] pursuant
to a bargained for exchange or that Beck's conveyance was induced by Foster's agreement to
assume the household expenses. There is no written agreement, no testimony concerning an
oral [**70] agreement, and no circumstances from which a court may rationally [*285]
infer that there was an arrangement whereby Foster would assume household expenses in
exchange for the transfer of real estate. There is only Foster's testimony that she knew she
would get the house "eventually." Thus, the Orphans' Court did not err in holding that there
was no consideration for the inter vivos transfer of the Schuylkill County property.
In conclusion, since we find that the decedent's inter vivos transfer did not vest in possession
and enjoyment until after her death and that there was no consideration for the transfer, an
inheritance tax was properly levied on decedent's estate pursuant to 72 P,S. !i!i 2485-221,
2485-224. n8
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -
n8 Appellant also argues that the Department of Revenue improperly assessed an inheritance
tax on one-half of the value of the Schuylkill County property. We find no error in the
Department's valuation of the realty or its tax levy on the estate.
- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -[***14]
The decree of the Orphans' Court is affirmed.
Appellant is to pay court costs,
Service: Get by LEXSEE@
Citation: 489 Pa. 276
View: Full
DatelTime: Monday, September 12, 2005 - 10:32:37 AM EDT
Pro.g_.y.Gt$_&..S.~r.v.1.~~ IL~v5i.~N~~i~J3_QQ!9;;JQ(e I J..e.x,'.;?Ne_",i_$J~y.J:;[e:J;Ht.C,~rq I feeQ,t:)~_cJs I $,ignnQff I tl.e1p
About LexisNexis \ Terms and Conditions I SUDoort Identifier
http://www3.lexisnexis.comlbcls/auth?cacheKey= 11704995&srv=01s _ LexseeRetrieve&for... 9/12/2005
LexisNexis(TM) Basic Case Law & Statutes I Search - 1 Result - Page 7 of7
CODvriah~ 2004 LexisNexis, a division of Reed Elsevier, Inc. All rights reserved.
http://www3.lexisnexis.comlbcls/auth ?cacheKey= 11704995&srv=ols _ LexseeRetrieve&for... 9/12/2005
ROHRBACH FAMILY AGREEMENT (page 1 of2)
THIS F AMlL Y AGREEMENT, is made by and among Bobbie Jean Crone, Victoria Magaro and
Christina Rohrbach. NOW THEREFORE, for good and valuable consideration, and intending to be
legally bound the parties hereto agree as follows:
I. Our mother, Mary C. Rohrbach, died on May 31, 2005 after a long illness and having suffered
from health problems and an inability to be employed or fully care for herself. Our mother had assigned
the family house to Bobbie Jean Crone on July 31, 2003, which assignment was in consideration of the
agreement by Bobbie Jean Crone to move in with our mother and care for all her personal needs, such as
cooking, cleaning, transportation, handling personal business and finances, and attending to her illnesses
as best as possible. Bobbie Jean Crone has agreed to pay all inheritance taxes associated with the family
house, ifany, and each of us has agreed to allow Bobbie Jean Crone to own, independently of any claim
or asserted right of the other sisters, the family house now owned or possessed or to be owned or
possessed in the future by Bobbie Jean Crone.
2. We have physically divided all of our mother's personal property between ourselves to our
mutual satisfaction, and we each agree that none of our mother's personal property, such as wearing
apparel, household goods and furnishings, and all other miscellaneous tangible property, have any
monetary value whatsoever. Each shall own, independently of any claim or asserted right of the other, all
items of personal property of any kind now owned or possessed or to be owned or possessed in the future
by her.
3. The Inventory of the remaining assets of our mother computed is $12,443.80, all of which has
been converted, after expenses, to cash. The Inventory shall not be contested. Our mother's final
expenses, as allowed under Pennsylvania law, totaled $12,406.00, which amount shall not be contested,
as follows:
Funeral Expenses $7,710.00
Final Medical Expenses $1,976.00
Legal and accounting fees $2,402.00
Filing Fees and Newspaper advertising $ 318.00
4. The net value of the Estate under Pennsylvania law, before the Family Exemption and before
taxes, is $37.80, all of which is in a savings account. Bobbie Jean Crone, being the only beneficiary who
lived with Mary Rorhbach, and therefore, the only beneficiary eligible for the $3,500.00 Family
Exemption, shall take the $3,500.00 Family Exemption allowed under Pennsylvania law.
5. Bobbie Jean Crone, in consideration of her sisters' agreement not to contest the Inventory or
transfer of the family house from her mother to her, hereby agrees to pay all Inheritance Taxes on the
Estate and any additional final expenses, if any, and, in addition, gives to her sisters each $3,346.29, as
well as the entire amount of appreciation on the shares of Prudential stock in the total amount of $307 .42,
for a final accounting of:
VictoTia: $3,346.29 from Bobbie, and $153.71 stock appreciation;
Christina: $3,346.29 from Bobbie; and $153.71 stock appreciation;
Bobbie: $37.80 from Estate; ($6,692.58) gifts to Victoria/Christina.
6. Bobbie Jean Crone shall deliver checks of $3,500.00 each to Victoria/Christina, in full
payment of the amounts accounted for above under this Family Agreement.
ROHRBACH FAMILY AGREEMENT (page 2 of2)
IN WITNESS WHEREOF, and intending to be legally bound, the undersigned hereby set
their hands and seals to this FAMILY AGREEMENT with respect to the Estate of Mary C.
Rohrbach, this 12th day of September, 2005.
~~~
,V~ /Y>'lfJM/
Victoria Magaro
--,._-
w;_~.L~.
Form View - public tax file 6-26-03.fp5 Page 1 of1
Form View public tax file 6-26-03.fp5 Home I J:!g!p,
~ Table View
Viewing; 1 of 1
District_Number 21
ParceUdentifier 21-11-3031-004
Map_Suffix_Number
House_Number 7407
Direction
Street WERTZVILLE ROAD
Owner_Name_1 ROHRBACH, ROBERT E & MARY C
Owner_Name_2
Land_Usa_Code R
Property-Description
LMn9-Araa 1988
CurrenCLand_ Value 23940
Cu"en'_lmprovemen'_VeJue ~
Current_TotaCValue 06890
CurrenCPreferred_Value
Acreage (~
CleanGreen_Status
Taxable_or_Exempt 1
Sale_Amount 33000
Sale_Month 03
Sale_Day 13
Sale_Century 19
$aI8_ Year 79
Oeed_Book_and]age 00281-00100
Year_Built 1971
.
http://205.247.227.59:591/FMResIFMPro?-db=public%20tax%2()fi]po/., ?(ll;_ ')1; '" 1'...< 0_ ,.., ,-.,- - --
REV.tS" EX. (12-991* SCHEDULE H
COMMONWEALTH OF PENNSYLVANIA FUNERAL EXPENSES &
INHERITANCE TAX RETURN ADMINISTRATIVE COSTS
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
MARY C. ROHRBACH 21-05-0531
Debts of decedent must be reported on Schedule I.
ITEM
NUMBER DESCRIPTION AMOUNT
A. FUNERAL EXPENSES:
" SulliYan's Funeral Home 7,710.00
B. ADMINISTRATIVE COSTS:
1. Personal Representative's Commissions 0.00
Name of Personal Representative(s)
Social Security Number(s)/EIN Number of Persona! Representative(s) -
Streel Address
City . State Zip
Year(s) Commission Paid:
2. Attorney Fees 1.902.00
3. Family Exemption: (If decedent's address is not the same as claimant's. attach explanation) 3,50000
Claimant Bobbie Crone
Slreel Address 7407 Wertzville Road
City Carlisle State PA .Zip 17013
Relationship of Claimant to Decedent Daughter
4. Probate Fees 132.00
s. Accountant's Fees 0,00
6. Tax Return Preparer's Fees 500.00
7. Newspaper Notices 186.00
TOTAL (Also enter on line 9, Recapitulation) $ 13,930.00
(If more space is needed, insert additional sheets of the same size)
REV-1512 EXt (12-03) '*
SCHEDULE I
COMMONWEALTH OF PENNSYLVANIA DEBTS OF DECEDENT,
lNHERllANCE TAX RETURN MORTGAGE LIABILITIES, & LIENS
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
MARY C. ROHRBACH 21--05-0531
Report debts incurred by the dec.dent prior to death which remained unpaid as of the date of death, including unreimbursed medical expenses.
ITEM VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1. Stonebridge Nursing Home 870.00
2 Messiah Village 750.00
3 Quantum Imaging 304.00
4 Conner Rich 52.00
TOTAL (Also enter on line 10, Recapitulation) $ 1,976.00
(If more space is needed, insert additional sheets of the same size)
""
= :TJ
C) =
:0 en \-\1
(/) C.-)
~ rr1 (=)
-r-1 :-::J
'0 "'U CJ
. ,-
-. Register of Wills of Cumberland County :.T'. - f"'-'
;: .-.1 W 0
".'-;:';:", )c:->
--, r'-) --n toOl
-~, - .I--i -r1
INVENTORY - (~
~ en
-:-J,,"':)
Esta.e of Mary C. Rohrbach Estate No. 21-2005-05312 c:>
Also known as Mary C. Heckard 5-31-2005 '-"
Date of Death
, Deceased Social Security No. 186-34-2591
Bobbie Crone . Personal Representativt(s) of
lhc: above Estate, deceased, verify that the items appearing on the following inventory include all oCthe personal assetS wherever situate and all of lhe
real estate in the Commonwealth of Pennsylvania of said Decedent, that the valuation placed opposite each item of said inventory represents its fair
value as orlhe date oCthe Decedent's death, and that Decedent owned no real estate outside the Commonwealth ofPcnnsylvania except that which
appears in a memorandum at the end of this inventory (PEF ~ 3301). l/We verify that the statements made in this in'VentOl)' arc true lUld correc\.
llWe understand thai false statements herein made are subject to the penalties of 18 Pa.e,S. Section 4904 relating to unsworn falsification to
authorities,
Name of Attomey: Robert C. May Personal Representative: Bobbie Crone
J.D. No.: 65602 Address: 7407 WertzYille Road
Address; 4330 Carlisle Pike Carlisle, PA 17013 ~
Camp Hill, PA 17011
Signature: ~~.AJ 'J.hG,
Telephone: 717-612-0102 Dale g I \ "L! 2 0.::>$
Description Value
Bank of Landisburg Savings Account $5,632.80
78 Shares of Prudential Common Stock $4,909.32
Funds held by Personal Attorney $1,902,00
Miscellaneous Personal Property/Effects $0.00
Total $12,443,80
(Attach Additional Sheets if necessary)
NOTE: The Memorandum ofreal estate outside the Cortunonwealth of Pennsylvania may, at the election oftke persona.l representative. include the
value of each item, but such figures should not be extended into the total of the Inventory.
RW-4
THE LAW FIRM OF
May & May, P.C.
4330 Carlisle Pike Telephone 717-612-0102
Camp Hill, PA 17011 Robert C. May Facsimile 717-612-0103
Karen Brothers May bob@mayandmay.com
www.mayandmay.com
September 12, 2005
Cumberland County - Register ofWi\1s
One Courthouse Square
Carlisle, PA 17013
Re: Estate of Mary C. Rohrbach 21-05-0531
Dear Register of Wills:
Enclosed for filing is:
(I) An executed original of the Inheritance Tax Return Resident Decedent and check for
$15.00 payable to "Register of Wi \Is";
(2) A duplicate for the Pennsylvania Department of Revenue ofthe Inheritance Tax Return
with copy of Will attached as an Exhibit;
(3) An executed original of the Inventory and check for $15.00 payable to "Register of
Wi\1s";
(4) Status Report under Rule 6.12 reporting the closing this Estate, including a copy of the
Family Agreement;
(5) Copies of (I), (3), and (4) above for date-stamping; and
(6) Self-Addressed Stamped envelope for return of items in (5) above.
Please file, date-stamp and return as requested. Thank you.
Y ery truly yours,
MAY & MAY, P.C.
BY:1}JC~
,,~. .
J
Robert C. May .
cc: Bobbie Jean Crone