HomeMy WebLinkAbout09-19-05
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REV-1500
INHERITANCE TAX RETURN
RESIDENT DECEDENT
FILE NUMBER
21 05
CQUl'JIY CODEu _ Y~R
- ------ -._-----
SOCIAL SECURITY NUMBER
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
DEPT. 280601
HARRISBURG, PA 17128-0601
.. ..___n_._____
-- .....-
0099
u~UMBER__
DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL)
Wech, Dorothy S.
. DilTEOF DEATH (MM-DD~YEAR) OATE OF BIRTH (MM-DD-YEAR)
162-24-2404
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THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
, 12/20/2004
05/18/1930
REGISTER OF WILLS
i (IF APPLICABLE) SURVIVING SPOUSE'S NAME ( LAST, FIRST AND MIDDLE INITIAL)
[gI 1. Original Return D 2. Supplemental Return
D 4. Limited Estate D 4a. Future Interest Compromise (date of death after
12-12-82)
[gI 6. Decedent Died Testate (Attach copy [gI 7. Decedent Maintained a Living Trust (Attach
of Will) copy of Trust)
D 9. Litigation Proceeds Received D 10. Spousal Poverty Credit (date of death between
I .12-31-91 a'ldJ~_
ITHIS SEl.::TlON MUSTBECOM~LETED. ALL CORRESPONDENCE AN[)CONFIDENTIAL TAXINFORMArlON SHOULD BE DIRECTED. TO:
NAME COMPLETE MAILING ADDRESS
Susan E. Lederer '
D 3. Remainder Return (date of death ~rior to 12-13-82)
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5. Federal Estate Tax Return R~quired
,
8. Total Number of Safe Deposi~ Boxes
D 11.Election to tax under Sec. 91 ~3(A) (Attach Sch 0)
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FIRM NAME (If applicable)
Law Offices of Susan E. Lederer
4811 Jonestown Rd.
Suite 226
Harrisburg, P A 17109
(1 ) None I
(2) None
(3) None
(4) 19,500.00 (n:)
.',
--, . -ri
(5) 17,919.52 ".''')
r~;.\) ITl
(6) ..
36,598.72 .r
N
(7) 799,645.94
(8) 873,664.18
(9) 12,368.56
(10) 690.99
TELEPHONE NUMBER
717/652-7323
1. Real Estate (Schedule A)
2. Stocks and Bonds (Schedule B)
3. Closely Held Corporation, Partnership or Sole-Proprietorship
4. Mortgages & Notes Receivable (Schedule D)
5. Cash, Bank Deposits & Miscellaneous Personal Property
(Schedule E)
6. Jointly Owned Property (Schedule F)
o Separate Billing Requested
7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property
(Schedule G or L)
8. Total Gross Assets (total Lines 1-7)
9. Funeral Expenses & Administrative Costs (Schedule H)
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10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I)
11. Total Deductions (total Lines 9 & 10)
(11 )
13,059.55
.860,604.63
12. Net Value of Estate (Line 8 minus Line 11)
(12)
13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been
made (Schedule J)
14. Net Value Subject to Tax (Line 12 minus Line 13)
(13)
(14)
860,604.63
SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES
15. Amount of Line 14 taxable at the spousal tax rate, x .00 (15)
or transfers under Sec. 9116(a)(1.2)
z 860,604.63 .045 (16)
0 16. Amount of Line 14 taxable at lineal rate x
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0.. 17. Amount of Line 14 taxable at sibling rate x .12
::e
0
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S 18. Amount of Line 14 taxable at collateral rate x .15 (18)
19. Tax Due (19)
38,727.21
38,727.21
CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT.
20. 0
._~---_._~-~----~.~_.~_.._...,.-.-j-------_.__._._._~
>> BE SURE TO ANSWER ALL QUESTlONS ON REVERSE SIDE AND RECHECK MATH << 1
Copyright 2000 form software only The Lackner Group, Inc.
Form REV-1500 ~X (Rev. 6-00)
1 r
Decedent's Complete Address:
STREET ADDRESS
20 Circle Drive
CITY
Mechanicsburg
STATE PA
ZIP 17055
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19)
2. Credits/Payments
A. Spousal Poverty Credit
B. Prior Payments
C. Discount
(1 )
38,727.21
Total Credits (A + B + C)
(2)
,368.42
31,700.00
---- - -----
1,668.42
3. InteresUPenalty if applicable
D. Interest
E. Penalty
TotallnteresUPenalty (D + E) (3)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is thEOVERPA YMENT (4)
Check box on Page 1 Line 20 to request a refund
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is theTAX DUE. (5)
A. Enter the interest on the tax due. (5A)
B. Enter the total of Line 5 + 5A. This is theBALANCE DUE. (5B)
0.00
p,358.79
---+-
5,1:358.79
Make Check Payable to: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE
1. Did decedent make a transfer and: Yes
a. retain the use or income of the property transferred;............................................................................. l8I
~: ~::::~ ~h;e~;~:i~~~~s:~~:r~s~:~. ~~~~I. .u.~~. t~~. :.~~:.~.~y. t.~~.~.sf~~.re.d. .~.r .it:. i.~.~~.~~.;.............................. ~~::::::::::: ~~.'.'. ~
d. receive the promise for life of either payments, benefits or care?.......................................................... 0
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without
receiving adequate consideration?............................ ............................................................. n..................... 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?............................ ................",.,.......",...,....."".,.......,.,..... n...'..,.,.........., l8I
~l
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IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART pF THE RETURN.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements. and to the best of my knowledge and belief, it is true, corr~t and complete. Declaration
preparer other than the personal representative iStJ8sed on all information of which preparer has any knowledge.
SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN ADDRESS
Patricia Ann Wech
Sld~Alu~~~WR~I~iJRN
DATE
P.O. Box 186
Grantham, PA 17027
I
n (1- Ld' os-
: DATE
~i I, "LJo '5
/DATE
ADDRESS
.........~~
SIG ATURE 0 PREPARER OTHER THAN REPRESENTATIVE
Susan E. Lederer
ADDRESS
For dates of death on or after July 1,1994 and before January 1, 199"> thp t<l.,. ,,,'0 ;~M__'" -- ....
surviving spouse is 3% [72 P.S. 99116 (a) (1.1) (i)).
For dates of death on or after January 1, 1995, the tax rate impOSE
[72 P.S. 99116 (a) (1.1) (ii)]. The statutedoes not exempt a transfe
of assets and filing a tax return are still applicable even if the survi
'ue of transfers to or for the u~e of the
For dates of death on or after July 1, 2000:
The tax rate imposed on the net value of transfers from a decease
parent, an adoptive parent, or a stepparent of the child is 0% [72 P
The tax rate imposed on the net value of transfers to or for the use
1.2) [72 P,S. 99116 (a) (1)).
NJ\PD
7, Y~lA '7i
,..) {
he use of the surviving spousle is 0%
, statutory requirements for d~closure
ler at death to or for the use Qlf a natural
4.5%, except as noted in 72Ip.s. 99116
The tax rate imposed on the net value of transfers to or for the use of the 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. I
*'
SCHEDULE D
MORTGAGES & NOTES RECEIVABLE
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
All property jointly-owned with the right of survivorship must be disclosed on Schedule F.
ITEM
NUMBER
]
DESCRIPTION
Car Loan to Patricia A. Wech (February 7, 2004)
FILE NUMBER
2] - 05 - 0099
TOTAL (Also enter on Line 4, Recapitulation)
I
. ---V~LUE AT DATE OF
, DEATH
-----.-
] 9,500.00
19,500.00
.
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
FILE NUMBER
21 - 05 - 0099
Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned wit~ the right of
survivorship must be disclosed on schedule F. !
I
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--I
V,f\LUE AT DATE OF
; DEATH
1,355.00
ITEM
NUMBER
1
2
3
4
5
6
DESCRIPTION
1993 Ford Escort, titled to Dorothy S. Wech
1998 Ford Crown Victoria, titled to Dorothy S. Wech (sale price)
Certificate of Deposit held at Members 1st FCU, Account Number 207485-43, titled to Dorothy S. Wech
(accrued interest $5.28)
Certificate of Deposit held at Members 1st FCU, Account Number 207485-44, titled to Dorothy S. Wech
(accrued interest $1.63)
Cremation Society (refund for overpayment of cremation)
Sale of Personal Property (yard sale)
TOTAL (Also enter on Line 5, Recapitulation)
5,900.00
6,382.06
1,667.46
715.00
1,900.00
17,919.52
*'
SCHEDULE F
JOINTLY-OWNED PROPERTY
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
FILE NUMBER
21 - 05 - 0099
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 DECEDENT
A Patricia A. Wech
714 Range End Road
Dillsburg, P A 17019
Daughter
ITEM LETTER
NUMBER FOR JOINT
TENANT
DATE
MADE
JOINT
DESCRIPTION OF PROPERTY. 0;. OF. D F
Include name of financial institution and bank account number' DATE OF DEATH DECO'S! . A:~~UED~TH
or similar identifying number. Attach deed for jointly-held real . VALUE OF ASSET :lNTERES~ D~CEDENT'S INTEREST
estate. . 1
i u~_j
2,189.841 50%1
JOINTLY OWNED PROPERTY:
A
09/20/2003 Regular Savings Account held at Members 1st FCU,
Account Number 40027-00, titled to Dorothy S. Wech
and Patricia A. Wech (accrued interest $1.14)
1,094.92
2
A
09/20/2003 Holiday Club Account held at Members 1st FCU,
Account Number 40027-02, titled to Dorothy S. Wech
and Patricia A. Wech (accrued interest $.07)
201.20
50%
100.60
3
A
09/20/2003 Money Management Account held at Members 1 st
FCU, Account Number 40027-05, titled to Dorothy S.
Wech and Patricia A. Wech (accrued interest $50.74)
70,086.98
50%
35,043.49
4
A
09/20/2003 Checking Account held at Members 1 st FCU, Account
Number 40027-11, titled to Dorothy S. Wech and
Patricia A. Wech
719.41
50%
359.71
TOTAL (Also enter on line 6, Recapitulation)
36,598.72
ESTATE OF
ITEM
NUMBER
.
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
Wech, Dorothy S.
FILE NUMBER
21 - 05 - 0099
This schedule must be completed and filed if the answer to any of questions 1 through 4 on p~ 2 is yes.
------ -..-------......------------ --...------------ _____...______u__ ------------- 1----------- -- --r--------t- ---------
DESCRIPTION OF PROPERTY 'DATE OF DEATH % OF i I'
Include the name of the transferee, their relationship to decedent and the date of transfer. I LUE 0 ASSE DECO'S EXCLUSION I T MABLE VALUE
Attach a copy of the deed for real estate. IVA F T INTEREST (IF APPLICABLE)
MetLife Total Control Account, Account Number
404-5288334, titled to Dorothy S. Wech, Dorothy S. Wech
Living Trust, beneficiary (accrued interest $98.00)
2
3.798 shares AXP Selective Fund Class A, held in an IRA
Account at American Express, Account Number
0030534438889002, Dorothy S. Wech, owner, Patricia Ann
Wech and Robert Wech, beneficiaries ($8.915)
60,608.15 100%
60,608.15
3
House and Lot located at 20 Circle Drive, Mechanicsburg,
Pennsylvania, titled to Dorothy S. Wech, Trustee of the
Dorothy S. Wech Living Trust (tax assessed value
$151,610.00 X common level ratio factor 1.00)
33.86 100%
33.86
4
Vacant Lot located at Scotch Pine Road, Dillsburg,
Pennsylvania, titled to Dorothy S. Wech, Trustee of the
Dorothy S. Wech Living Trust (tax assessed value $38,400
X common level ratio factor 1.24)
151,61O.00i 100%
151,610.00
5
373 shares of Time Warner stock, CUSIP # 887317105,
titled to Dorothy S. Wech, Trustee of the Dorothy S. Wech
Living Trust ($19.50/sh)
47,616.00 100%
47,616.00
6
73 shares of MetLife stock, CUSIP # 59156R108, titled to
Dorothy S. Wech, Trustee of the Dorothy S. Wech Living
Trust ($40.075/sh)
7,273.50! 100%
7,273.50
7
497.063 shares of Tax Managed Growth Fund 1.1 Class C,
CUSIP # 277911822, held in an account at Eaton Vance,
Account Number 192-5019914836, titled to Dorothy S.
Wech, Trustee of the Dorothy S. Wech Living Trust
($20.30/sh)
2,925.48 100%
2,925.48
8
120.192 shares of Tax-Managed Small-Cap Growth Fund
1.1 Class C, CUSIP # 277911780, held in an account at
Eaton Vance, Account Number 196-5019914836, titled to
Dorothy S. Wech, Trustee ofthe Dorothy S. Wech Living
Trust ($9.52/sh)
10,090.38 100%
10,090.38
Total of Continuation Schedule(s)
1,144.23 100%
1,144.23
TOTAL (Also enter on line 7, Recapitulation)
518,344.34
799,645.94
ESTATE OF
ITEM
NUMBER
*'
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
This schedLlle'!l~~t be compl~~<! a"d fi!ec:Lif the a_ns~Elr!o any_()tglJestionS~!hrou~~4o~J>age2Jsv~~.__
' DESCRIPTION OF PROPERTY ! % OF . I!
Include the name of the transferee, their relationship to decedent and the date of transfer. I DATE OF DEATH, DECD'S EXCLUSION: T~ABLE VALUE
Attach a copy of the deed for real estate ,vALUE OF ASSET (IF APPLICABLE) I
. . INTEREST
----- R-- - -_-1
2,170.50! 100%
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
_ n
----- -
Wech, Dorothy S.
9
296.516 shares of Tax Managed International Equity Fund
Class C, CUSIP # 277911715, held in an account at Eaton
Vance, Account Number 198-5019914836, titled to Dorothy
S. Wech, Trustee ofthe Dorothy S. Wech Living Trust
($7.32/sh)
10
568.459 shares of Tax Managed Value Fund Class C,
CUSIP # 277911673, held in an account at Eaton Vance,
Account Number 199-5019914836, titled to Dorothy S.
Wech, Trustee of the Dorothy S. Wech Living Trust
($14.32/sh)
11
check from MetLife (stock dividend) made payable to
Dorothy S. Wech, Trustee of the Dorothy S. Wech
Revocable Living Trust
12
Non-Qualified Annuity, held at Scudder Gateway Annuities,
Contract Number CB10005240, Dorothy S. Wech, owner,
Patricia A. Wech, beneficiary
13
408(b) IRA, held at Scudder Gateway Annuities, Contract
Number CBI0005215, Dorothy S. Wech, owner, Patricia A.
Wech and Robert Wech Trust, beneficiaries
14
IRA, held at MetLife Investors USA, Contact Number
3200666376, Dorothy S. Wech, owner, Patricia A. Wech
and Dorothy S. Wech Living Trust, beneficiaries
15
check from MetLife (stock dividend) made payable to
Dorothy S. Wech, Trustee of the Dorothy S. Wech Living
Trust
FILE NUMBER
21 - 05 - 0099
8,140.33 100%
!
33.58 100%
22,656.94 100%
404,636.89 100%
80,697.52 100%
8.58 100%
2,170.50
8,140.33
33.58
22,656.94
404,636.89
80,697.52
8.58
Page 2 lof Schedule G
*'
SCI-EDU..E H
FlN:RAl.. EXPENSES &
ADIVIINlSTRA11VE COSTS
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
ITEM
NUMBER
A.
B.
Debts of decedent must be reported on Schedule I.
DESCRIPTION
FUNERAL EXPENSES:
Cremation Society
2
Standard Speaker (obituary)
, FILE NUMBER
21 - 05 - 0099
AMOUNif
1,165.00
55.50
127.38
1,580.00
5,500.00
3,500.00
102.00
60.00
9.95
33.00
235.73
12,368.56
3
Patriot News (obituary)
4
Mt. Laurel Memorial Park (Grave marker)
1.
ADMINISTRATIVE COSTS:
Personal Representative's Commissions
Social Security Number(s) I EIN Number of Personal Representative(s):
2.
Street Address
City
Year(s) Commission paid
Attorney's Fees Law Offices of Susan E. Lederer
Zip
State
3.
Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
Claimant Robert Wech
Street Address 20 Circle Drive
City Mechanicsburg State P A Zip 17055
Relationship of Claimant to Decedent Son
4.
Cumberland County Register of Wills
additional filing fees
Probate Fees
5. Accountant's Fees
6. Tax Return Preparer's Fees
7.
1
Other Administrative Costs
Members 1st FCU (checks)
2
William H. Wessel (retitle Ford Crown Victoria)
Total of Continuation Schedule(s)
TOTAL (Also enter on line 9, Recapitulation)
*'
SchecUe H
FlI1eIaI Expenses &
Adninislrative Cos1s continued
COMMONWEALTH DF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
3
Commonwealth of Pennsylvania (retitle Ford Escort)
4
Cumberland Law Journal (Estate Advertising)
5
Carlisle Sentinal (Estate Advertising)
6
Members 1st FCU (account fee)
7
Uhaul (packing supplies)
8
Postage Fee
I'
FILE NUMBER
21 - 05 - 0099
Page 2 of Schedule H
,
28.50
75.00
80.00
5.00
32.43
14.80
.
SCHEDULE I
DEBTS OF DECEDENT, MORTGAGE
LIABILITIES, & LIENS
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
Include unreimbursed medical expenses.
ITEM
NUMBER
I United Water (water bill)
9
10
DESCRIPTION
2
Montour Oil (heating bill)
3
PPL (electric bill)
4
Waste Management (trash bill)
5
Upper Allen Township (sewer bill)
6
Verizon (telephone bill)
7
Comcast (cable bill)
8
Chern Lawn (lawn care bill)
John Kotukovich (preparation of income tax returns)
U.S. Treasury (federal income tax paid)
FILE NUMBER
21 - 05 - 0099
TOTAL (Also enter on Line 10, Recapitulation)
AMOUNT
15.41
87.00
73.93
48.20
100.00
15.51
40.01
36.93
90.00
184.00
690.99
REY-1513 EX+ i9-00}
.
SCHEDULE J
BENEFICIARIES
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
. FILE NUMBER
I 21 - 05 - 0099
NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY
RELATIONSHIP TO
DECEDENT
___~o NotLlsUrustee(sl-_
I. TAXABLE DISTRIBUTIONS (include outright spousal distributions)
Patricia Ann Wech
714 Range End Road
DiIlsburg, P A 17019
Daughter
See Continuation Schedule(s) attached
Enter dollar amounts for distributions shown above on lines 15'through 18, as appropriate, on Rev 1500 cover sheet
II. NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT
BEING MADE
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
AMOUNT OR SHARE
OF ESTATE
]ointiAccounts held at
Members 1 st,
50% jof IRA held at
Ametican Express,
Non-Qualified
I
Anmjity held at
Scudtler Gateway
I
Anmjities - Contract #
CBl~005240,
50% pf IRA held at
MetI.jife Investors,
50% bf trust assets
TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET
SCHEDULE J
BENEFICIARIES continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Wech, Dorothy S.
i FILE NUMBER
I 21 - 05 - 0099
RELATIONSHIP TO
NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY DECEDENT
.--- --- ___u__________ ___ ---I---.P!' III,,! ListTru_s!e,,!~)
I frAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under ,
. ' Sec. 9116(a)(1.2)]
AMOUNT OR SHARE
OF ESTATE
2
Robert Wech Trust
C/O Patricia Ann Wech, Trustee
714 Range End Road
Dillsburg, P A 17019
Son
Vacalnt lot located at
Scotqh Pine Road,
50% lof IRA held at
Amehcan Express,
50% lof IRA held at
Scud~er Gateway
AnnJities - Contract #
CB 1 0005215,
50% bftrust assets
3
Steven Wech
35 Bass Lake Road
Etters, PA 17319
Grandson
$5,000.00
4
Kevin Wech
7476 Wertzville Road
Carlisle, P A 17013
Grandson
$1,OqO.OO
Page 2 of Schedule J
Last Will and Testament
of
Dorothy S. Wech
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I
I, Dorothy S. Wech, a resident of Mechanicsburg, Cumberland Cou~ty,
Pennsylvania, revoke any prior wills and codicils made by me and declare this to belmy
Last Will and Testament. I
Article One
Family Information
I have two children. Their names and dates of birth are:
Robert Wech, born on December 21,1950 and
Patricia Ann Wech, born on June 22, 1952
Article Two
Distribution of My Property
Section 2.01
Disposition of Tangible Personal Property
I
I ';'irecl liulL ~ny executor shall distribute my tangible personal possessions according tcP a
separate "Personal Property Memorandum" or other similar writing, which shall Ibe
signed by me and kept with my Estate Planning Portfolio. It is my intent that sqch
writing qualifies to distribute my tangible personal possessions under applicable state
law. If such writing is not found at the time of my death, or ruled an improper
disposition, this bequest shall lapse and my tangible personal possessions shall becorre
part of my living trust. If any items of tangible personal property I happen to own are dot
mentioned in such list, such items shall become part of my living trust. If any such g~ft
shall lapse, then such items shall become part of my living trust. '
Page 1 of 9
11
Section 2.02
Pour-Over to My Living Trust
All of my probate estate, excluding any property over which I might have a power of
appointment, and after payment of expenses and taxes which are paid pursuant to this
will, I give to the Trustee of the Dorothy S. Wech Revocable Living Trust dlited
November 14, 2003, and executed prior to this will, to be added to the property of ~hat
trust and direct that the Trustee administer the property as provided in the trust agreement
and any amendments prior to my death.
Section 2.03
Alternate Disposition
If the trust referred to in the foregoing paragraph is not in effect at my death or if for ~ny
other reason the pour-over cannot be accomplished, I specifically and completely
incorporate the terms of the trust into this will by reference. In such a situation, I direct
my executor to establish a trust in accordance with the provisions of such trust and give
the remainder of my estate, excluding any property over which I might have a power of
appointment, to the Trustee of said trust to be administered as provided in the trust
agreement.
Article Three
Designation and Succession of Fiduciaries
Section 3.01
Executor
I nominate Patricia Ann Wech as my executor. If Patricia Ann Wech fails or ceases to
act as my executor, I nominate Debbie Spungin Klabe as my successor executor.
Article Four
Powers of Fiduciaries
Section 4.01
Grant
My executor may perform every act reasonably necessary to administer my estate and
any trust established under my will.
Specifically, my executor may exercise the following powers: hold, retain, invest,
reinvest, sell, and manage real or personal property, including interests in any form of
business entity including, but not limited to, limited partnerships and limited liability
companies, and policies of life, health and disability insurance, without diversification as
Page 2 of 9
\ I
to kind, amount or risk of non-productivity and without limitation by statute or rule of
law. My executor may partition, sell, exchange, grant, convey, deliver, assign, transfer,
lease, option, mortgage, pledge, abandon, borrow, loan and contract. My executor may
distribute the assets of my estate in cash or kind or partly in each at fair market value on
the date of distribution, without requiring pro rata distribution of specific assets. and
without requiring pro rata allocation of the tax bases of such assets. My executor may
hold in nominee form, continue businesses, carry out agreements, deal with itself, dther
fiduciaries and business organizations in which my executor may have an interest. It may
establish reserves, release powers, and abandon, settle or contest claims. It may emPloy
attorneys, accountants, custodians of the trust assets, and other agents or assistant~ as
deemed advisable to act with or without discretionary powers and compensate themiand
pay their expenses from income or principal or both.
Section 4.02
Powers Granted by State Law
In addition to all of the above powers, my executor may exercise all powers gralflted
under applicable state law as set forth in the Pennsylvania Probate, Estates and
Fiduciaries. Code, as amended after the date of my will. I incorporate such Act as it exists
today by reference and make it a part of my wilL .
Section 4.03
Distribution Alternatives
My executor may make any payments under my will:
Directly to the beneficiary;
In any form allowed by applicable state law for gifts or transfers to minors
or persons under disability;
To the beneficiary's guardian, conservator, or caregiver for the benefit of
the beneficiary; or
By direct payment of the beneficiary's expenses.
A receipt by the recipient for any such distribution, if such distribution is made in a
manner consistent with the proper exercise of my fiduciaries' duties hereunder, shall fUilly
discharge my fiduciaries.
Page 3 of9
11
Article Five
Administrative Provisions
Section 5.01
Court Proceedings
If any trust is established under my will that trust shall be administered in a timely and
efficient manner consistent with its terms, free of active judicial intervention and without
order, approval or other action by any court. It shall be subject only to the jurisdiction of
a court being invoked by the trustees or other interested parties or as otherwise prov~ded
bylaw.
Section 5.02
No Bond
I direct that no fiduciary shall be required to give any bond in any jurisdiction, and if,
notwithstanding this direction, any bond is required by any law, statute, or rule of court,
no sureties be required.
Section 5.03
Compensation
Any fiduciary under this instrument shall be entitled to reasonable compensa~ion
commensurate with services actually performed and to be reimbursed for expenses
properly incurred.
Section 5.04
Ancillary Fiduciary
In the event ancillary administration shall be required or desired and my domiciliary
executor is unable or unwilling to act as an ancillary fiduciary, my domiciliary executor
shall have the power to designate, compensate, and remove the ancillary fiduciary. The
ancillary fiduciary may either be a natural person or a corporation. My domicili~y
executor may delegate to such ancillary fiduciary such powers granted to my origipal
executor as my executor may deem proper, including the right to serve without bond or
surety on bond. The net proceeds of the ancillary estate shall be paid over to the
domiciliary executor.
Page 4 of 9
Article Six
Tax Provisions
Section 6.01
Death Taxes and Payment of Expenses
II
!
The trustee of the trust referred to in this will is authorized to pay my funeral and h\.lrial
expenses, claims against my estate, and expenses of estate administration. Accordingly, I
direct my executor to consult with the trustee to determine the preferable soured for
I
payment of such amounts and which, if any, should be requested from the trust.
I
I
I direct my executor to follow any instructions contained in the Dorothy S. Wech
Revocable Living Trust in making any tax election, including, but not limited to,\ the
allocation of my GST Exemption. I direct that the taxes imposed by reason of my d~ath
upon property passing under and outside my will be apportioned and paid in the malmer
I
provided in the Dorothy S. Wech Revocable Living Trust, and I incorporate the \ tax
apportionment provisions of the Dorothy S. Wech Revocable Living Trust as part o~ my
will.
In no event shall any of such taxes be allocated to or paid from property which is I not
included in my gross estate for federal estate tax purposes or which qualifies for I the
federal estate tax charitable deductions. .
Section 6.02
Tax and Administrative Elections
My executor may exercise any available elections under any applicable incotne,
inheritance, estate, succession, or gift tax law. This authority specifically includes [the
power to select any alternate valuation date for death tax purposes and the powet to
determine whether any or all of the administration expenses of my estate are to be use~ as
estate tax deductions or as income tax deductions, and no compensating adjustments n~ed
be made between income and principal as a result of such determinations unless [my
executor shall determine otherwise, in the discretion of my executor, or unless requi~ed
by law. I
My executor shall not be liable to any beneficiary of my estate for tax consequenpes
occasioned by reason of the exercise or non-exercise of any such elections or by rea$on
of the allocation and distribution of property in kind in full or partial satisfaction of ~ny
beneficiary's interest in my estate.
Page 5 of9
Article Seven
General Provisions
Section 7.01
Applicable Law
, I
,
The validity and construction of my will shall be determined by the laws ofl the
Commonwealth of Pennsyl vania.
Section 7.02
Contest Provision
If, after receiving a copy of this paragraph, any person shall in any manner, directl~ or
indirectly, attempt to contest or oppose the validity of my will or my living trust,
including any amendments thereto, or commences, continues or prosecutes any lpgal
proceedings to set this agreement aside, then such person shall forfeit his or her sqare,
cease to have any right or interest in the trust property, and shall for the purposes of It his
agreement be deemed to have predeceased me. i
This Section shall not apply so as to cause a forfeiture of any distribution othed,rise
qualifying for the federal estate tax charitable deduction.
Section 7.03
Construction
Unless the context requires otherwise, words denoting the singular may be construe~ as
denoting the plural. Words of the plural may be construed as denoting the sing~lar.
Words of one gender may be construed as denoting another gender, if appropriate.
Section 7.04
Headings and Titles
The headings and paragraph titles are for reference only.
Section 7.05
Internal Revenue Code, IRC or Code
References to the Internal Revenue Code, the IRC or the Code shall refer to the Inter-pal
Revenue Code of the United States. References to specific sections of the Code shalll, be .
to any sections of like or similar import that replace the specific sections as a resultl, of
changes to the Internal Revenue Code made after the date of my will.
Page 60f9
, r
Section 7.06
Other Definitions
Except as otherwise provided in my will, terms shall be as defined in the Pennsylvania
Probate, Estate and Fiduciaries Code as amended after the date of my will and after my
death.
Section 7.07
Survivorship
For purposes of this will, any beneficiary shall be deemed to have predeceased me if such
beneficiary dies within 30 days after the date of my death.
Section 7.08
Severability
If any part of this instrument shall be adjudicated to be void or invalid, the remaiIl1ing
provisions not specifically so adjudicated shall remain in full force and effect.
I, Dorothy S. Wech, the Testatrix sign my name to this instrument on
NfWr:;mlP/ It! , 2003 and being first duly sworn, do hereby declare to the
undersigned authority that I sign and execute this instrument as my last will and
testament, that I sign it willingly (or willingly direct another to sign for me), that I
execute it as my free and voluntary act for the purposes therein expressed, and that I am
eighteen years of age or older, of sound mind, and under no constraint or undue
influence.
I)~A,/w! uJ~
Dorothy S. ech, TestatrIx
Page 7 of9
II
Signed, sealed, published and declared by DOROTHY S. WEeH, the
testatrix above named, as and for her Last Will and Testament, in our presence, and we in
her presence, and in the presence of each other, have hereunto subscribed our names as
witnesses:
Witnesses:
Address:
\...
;;J. ~ (3.1 r(!. fL J)r, 'w.
~::t~
MpJ.MJ(~ bVV-1 ,:;/1- IlosJ
/
'5 Ch.e-1s~ ~r,,€
~Q Ci't'S b/)'JJ QJIJ 17/ 01
Page 8 of9
l'
SELF -PROVING AFFIDA VIT
COMMONWEALTH OF PENNSYLVANIA )
) ss:
COUNTY OF CUMBERLAND )
We, DOROTHY S. WECR, ~",-c--\A.- ~. M<-JL\.....~d ~~ H. M-"'''-1~-
the testatrix and the witnesses, resp~ctively, whose names are subscribed to the forego~ng
instrument, being first duly sworn, do hereby declare to the undersigned authority thatlthe
testatrix signed and executed the instrument as her Will and that she had signed willingly
and that she executed it as her free and voluntary act for the purposes therein expresse41,
and that each of the witnesses, in the presence and hearing of the testatrix, signed the Will
as witness and that to the best of each such witness's knowledge the testatrix was at th~t
time eighteen (18) or more years of age, of sound mind, and under no constraint or undue
influence.
;J ~ ~L/~f tU'~
DOROTHY .WECR
~ ~ fl~elc~
Witness
f1:~~
Subscribed, sworn to and acknowledged before me by DOROTHY S. WECH, the
testatrix, and subscribed and sworn to before me by AnScl,c,,- M. ''-'\~J~I'"--'''
and ~ ~. \'-'vO~ Q...- , witnesses, this j 1.f ffl day of
( .
Novurnber ,2003.
~,... ,~~ <"", 1 Ii. ,
~ .j R----c~
N~tary Public
Notarial Seal
Susan E. Lederer. Notary Public
Lower Paxton 'IWp.. Dauphin County
My Commission Expires May 3. 2004
Page 9 of9
THE DOROTHY S. WECH REVOCABLE
LIVING TRUST
November 14, 2003
LAW OFFICES
LAW OFFICES OF SUSAN E. LEDERER
ESTATE PLANNiNG AND ADMINiSTRATiON
4811 JONESTOWN ROAD,
SUiTE 226
HARRISBURG, PENNSYLVANIA 17109
(717) 652-7323
1 ~
The Dorothy S. Wech Revocable Living Trust
Table of Contents
Article One
Section 1.01
Section 1.02
Section 1.03
Section 1.04
Section 1.05
Article Two
Article Three
Section 3.01
Section 3.02
Section 3.03
Section 3.04
Section 3.05
Section 3.06
Section 3.07
Section 3.08
Section 3.09
Article Four
Section 4.01
Article Five
Section 5.01
Section 5.02
Section 5.03
Section 5.04
Section 5.05
Section 5.06
Article Six
Section 6.01
Section 6.02
Establishing My Trust ..................................................... 1-'
Identifying My Trust.. ............................ ............ ................... ....... 1-1
Reliance by Third Parties on Affidavit or Certification of
Trust ............ ......... ............................. .... ...... ................. ...... .......... 1-1
Transferring Property to My Trust ...............................................1-~
Powers Reserved by Me as Grantor .............................................1-2
Grantor Trust Status..................... ............... ....... .......................... 1-3
Fami ly Information ...... ........ ...... ..... ..................... ............ 2-1
Trustee Succession Provisions .....................................3-1
Resignation of a Trustee............................................................... 3-}
Trustee Succession During My Lifetime ..................................... 3-}
Trustee Succession After My Death.............................................3-}
Notice of Removal and Appointment........................................... 3-2
Appointment of a Cotrustee ......................................................... 3-~
Corporate Fiduciaries ............................................. ......................3- 3
Incapacity of a Trustee .................................................................3-3
Appointment of Independent Special Trustee .............................. 3-3
Rights and Obligations of Successor Trustees ............................. 3-4;
Administration of My Trust During My Incapacity ........4-1'
Trust Distributions During My Incapacity ...................................4-1
Administration of My Trust Upon My Death ..................5-1
My Trust Shall Become Irrevocable ............................................ 5-1
Administrative Trust..... ................................... ............................ 5-1
Payment of My Expenses and Taxes....... ..... ...................... .......... 5-1
Payment of Death Taxes .............................................................. 5-2,
Coordination with My Executor..................... ..... .........................5- 2'
Tax Elections............. ................................................................... 5- 3'
Specific Distributions and Disposition of Tangible
Perso nal Property.. ........... ...................... ......................... 6-4
Specific Distribution to Robert Wech .......................................... 6-4
Specific Distribution to Steven Wech .......................................... 6-4
Section 6.03
Section 6.04
Section 6.05
Section 6.06
Section 6.07
Section 6.08
Article Seven
Section 7.01
Section 7.02
Section 7.03
Article Eight
Article Nine
Section 9.01
Section 9.02
Section 9.03
Article Ten
Section 10.01
Section 10.02
Section 10.03
Section 10.04
Article Eleven
Section 11.01
Section 11.02
Section 11.03
Section 11.04
Section 11.05
Section 11.06
Section 11.07
Section 11.08
Section 11.09
Section 11.10
Section 11.11
Section 11.12
Section 11.13
Section 11.14
Section 11.15
Section 11.16
Specific Distribution to Kevin Wech ........................................... 6-5
Distribution of Tangible Personal Property by Memoranda ........ 6-5
Distribution of Remaining Tangible Personal Property............... 6-5
Definition of Tangible Personal Property.................................... 6-6
Encumbrances and Incidental Expenses of Tangible
Personal Property............ ......................... ................. .... ............... 6-6
Residuary Distribution...... ........................................................... 6-6
Distribution of My Trust Property.................................. 7-1
Division of Remaining Trust Property......................................... 7-1
Distribution of the Share for Robert Wech ..................................7-1
Distribution of the Share for Patricia Ann Wech .........................7-2
Remote Contingent Distribution Pattern ....................... 8-1
Administration of Trusts for Underage and
Incapacitated Beneficiaries ........... ................... .............. 9-1
Distributions for Underage and Incapacitated Beneficiaries........ 9-l
Methods of Distribution.... ............................................ ............... 9-]
Application of Article..... .............. ................................................9-2
Retirement Plans and Life Insurance Policies ............10-3
Life Insurance Policies...... .... ..................................................... 10-3
Limitation on Liability of Payor ................................................10-41
Collection Efforts.................... ................................................... 10-4
No Obligation to Purchase or Maintain Benefits .......................10-4
Trust Administration .................. ................................... 11-1
Distributions to Beneficiaries ...... ....... ...... .... ...... ...... ..... ........ ..... 11-1
No Court Proceedings ................................................................11-1
No Bond .....................................................................................11-2
Exoneration of My Trustee ........................................................11-2
Trustee Compensation...... ........................ ..... ... ............ ...... ... ..... 11-2
Employment of Professionals.... ............................. ....... ............. 11-3
Exercise of Testamentary Power of Appointment .....................11-3
Determination of Principal and Income .....................................11-3
Trust Accounting..... .......... ........ ........... ............ ..... ..... ................ 11-4',
Action of Trustees; Disclaimer .....:... ... .... ....... ....... ............... ..... 11-4
Delegation of Trustee Authority; Power of Attorney................. 11-5
Additions to Separate Trusts ......................................................11-5
Authority to Merge or Sever Trusts ...........................................11-6,
Authority to Terminate Trusts.................................................... 11- 6'
Merger of Corporate Fiduciary ..................................................11-7
Beneficiary's Status............ ................. ............. ............. ..... ........ 11-7
11
Section 11.17
Section 11.18
Section 11.19
Article Twelve
Section 12.01
Section 12.02
Section 12.03
Section 12.04
Section 12.05
Section 12.06
Section 12.07
Section 12.08
Section 12.09
Section 12.10
Section 12.11
Section 12.12
Section 12.13
Section 12.14
Section 12.15
Section 12.16
Section 12.17
Article Thirteen
Section 13.01
Section 13.02
Section 13.03
Section 13.04
Section 13.05
Section 13.06
Section 13.07
II
Discharge of Third Persons...... .................................................. 11-7
Certificate by Trustee...................................... ........................... 11-7
Funeral and Other Expenses of Beneficiary............................... 11-7
My Trustee's Powers ..................................................... 12-1
Introduction to Trustee's Powers ...............................................12-1
Execution of Documents by My Trustee.................................... 12-1
Investment Powers in General.................................................... 12-1
Banking Powers. ......................................................................... 12-j?
Contract Powers... ...................................................................... 12-j?
Cornman Investments................................................................. 12-2.
Environmental Powers............................................................... 12-3
Insurance Powers.............. .., ...... ......... ...... ......... ........... ........... ... 12-3
Loans and Borrowing Powers ....................................................12-41-
Nominee Powers......... ................. .................. ............ ................ 12-,
Payment of Taxes and Expenses ................................................12-5
Real Estate Powers ..... ..................... ............... ... ...... ..... ..... ......... 12-5
Residences and Tangible Personal Property ..............................12-$
Retention and Abandonment of Trust Property .........................12-6
Securities, Brokerage and Margin Powers .................................12-7
Settlement Powers ..................... ................................................. 12-7
Limitation on My Trustee's Powers........................................... 12-7
General Provisions ........................................................ 13-8
Maximum Term for Trusts .........................................................13-8
Spendthrift Provision.................................................................. 13-8
Contest Provision........ ........ ................ .................... ..... .............. 13-8
Survivorship Presumption.......................................................... 13-9
Changing the Situs of Administration........................................ 13-9
Definitions............ ........................................................ .............. 13-9
General Provisions and Rules of Construction ........................13-13
11l
\ I
The Dorothy S. Wech Revocable Living Trust
Article One
Establishing My Trust
i
I . I J/-
The date of this trust agreement is Novemar J I , 2003. The parties to this
agreement are Dorothy S. Wech (the "Grantor") and Dorothy S. Wech (the "Trustee").
Section 1.01
Identifying My Trust
My trust may be referred to as "Dorothy S. Wec~, Trustee of the Dorothy S. WecTh
Revocable Living Trust dated .f\j(){erJlI~f'''f .I If , 2003, and any amendments
thereto."
For the purpose of traIlsferring property to my t111st, or identifying my trust in any
beneficiary or pay-an-death designation, any description referring to my trust shall be
effective if it reasonably identifies my trust. Any description that contains the date of my
trust, the name of at least one initial or successor Trustee and an indication that m~
Trustee is holding the trust property in a fiduciary capacity shall be sufficient to
reasonably identify my trust.
Section 1.02
Reliance by Third Parties on Affidavit or Certification of
Trust
From time to time, third parties may require documentation to verify the existence of this
agreement, or particular provisions of it, such as the name or names of my Trustee or the
powers held by my Trustee. To protect the confidentiality of this agreement, my Trustee'
may use an affidavit or a certification of trust that (l) identifies my Trustee; (2) sets forth
the authority of my Trustee to transact business on behalf of the trust; and (3) may
include pertinent pages from the trust, such as title or signature pages.
A third party may rely upon an affidavit or certification of trust that is signed by my
Trustee with respect to the representations contained in the affidavit or certification of.
trust. A third party relying upon an affidavit or certification of trust shall be exonerated
from any liability for actions he or she takes or fails to take in reliance upon the
representations contained in the affidavit or certification of trust. A third party dealing'
with my Trustee shall not be required to inquire into the terms of this agreement or the
authority of my Trustee, or to see to the application that my Trustee makes of funds or
other property received by my Trustee.
1-1
II
Section 1.03
Transferring Property to My Trust
Any person or entity may transfer property of any kind, nature and description to my trust
in any manner authorized by law.
(a) Initial Funding of My Trust
By execution of this agreement, I transfer, convey and assign to my
Trustee the trust property described on Schedule A, attached to this
agreement.
(b) Acceptance by My Trustee
By execution of this agreement, my Trustee accepts and agrees to hold the
trust property described on Schedule A. All property transferred to my
trust after the date of this agreement must be acceptable to my Trustee.
My Trustee may refuse to accept any property. My Trustee shall hold,
administer and dispose of all trust property accepted by my Trustee for my
benefit and the benefit of my beneficiaries in accordance with the terms of
this agreement.
Section 1.04
Powers Reserved by Me as Grantor
During my lifetime, I shall retain the powers set forth in this Section in addition to any
powers that I reserve in other provisions of this agreement.
(a) Action on Behalf of My Trust
During any period that I am serving as a Trustee of my trust, I may act for
and conduct business on behalf of my trust without the consent of any
other Trustee.
(b) Amendment, Restatement or Revocation
I have the absolute right, at any time and from time to time, to amend,
restate, or revoke any term or provision of this agreement in whole or in
part. Any amendment, restatement, or revocation must be in a written
instrument signed by me.
(c) Addition or Removal of Trust Property
I have the absolute right, at any time and from time to time. to add to the
trust property and to remove any property from my trust.
1-2
(d) Control of Income and Principal Distributions
I have the absolute right to control the distribution of income and principal
from my trust. My Trustee shall distribute to me, or to such persons or
entities as I may direct, as much of the net income and principal of the
trust property as I deem advisable. My Trustee may distribute trust
income and principal to me or for my unrestricted use and benefit, even to
the exhaustion of all trust property. Any undistributed income shall be
added to the principal of my trust.
(e) Approval of Investment Decisions
I have the absolute right to approve my Trustee's investment decisions.
My approval of investment decisions shall be binding on all other
beneficiaries of this agreement.
Section 1.05
Grantor Trust Status
\ I
By reserving the broad rights and powers set forth in Section 1.04 of this Article, I intenqi
to qualify my trust as a "Grantor Trust" under Sections 671 to 677 of the Intemail
Revenue Code so that, for federal income tax purposes, I will be treated as the owner
during my lifetime of all the assets held in my trust as though I held them in my
individual capacity.
During any period that my trust is a Grantor Trust, the taxpayer identification number of
my trust shall be my social security number, in accordance with Treasury Regulation
Section 301.6109-1 (a)(2).
1-3
Article Two
Family Information
I have two children. Their names and dates of birth are:
Robert Wech, born on December 21,1950 and
Patricia Ann Wech, born on June 22, 1952
All references in this agreement to "my children" are references to these children.
References in this agreement to "my descendants" are references to my children and their
descendants.
2-1
11
Article Three
Trustee Succession Provisions
Section 3.01
Resignation 01 a Trustee
A Trustee may resign by giving notice to me. If I am deceased, a resigning Trustee shaID
give notice to the income beneficiaries of the trust and to any other Trustee then serving.
A Trustee's notice of resignation shall become effective upon the successor Trustee's
acceptance of appointment.
Section 3.02
Trustee Succession During My Lifetime
During my lifetime, this Section shall govern the removal and replacement of my
Tmstees.
(a) Removal and Replacement by Me
I may remove any Trustee with or without cause at any time. If a Trustee
is removed, resigns or cannot continue to serve for any reason, I may serve
as sole Tmstee, appoint a Tmstee to serve with me or appoint a successor
Tmstee.
(b) During My Incapacity
During any time that I am incapacitated, the following shall replace any
then serving Trustee in the order named:
Patricia Ann Wech and then
Robert Wech and Debbie Spungin Klabe
Section 3.03
Trustee Succession After My Death
After my death, this Section shall govern the removal and replacement of my Trustees.
3-1
I'
(a) Successor Trustees
I appoint the following to serve as my successor Trustee upon my death, in
the order named, replacing any then serving Trustee:
Patricia Ann Wech and then
Debbie Spungin Klabe
(b) Removal of a Trustee
A Trustee may be removed only for cause, which removal must be
approved by a court of competent jurisdiction upon the petition of any
beneficiary.
In no event shall the court petitioned to approve thf': removal of a Trustee
acquire any jurisdiction over the trust except to the extent necessary to
approve or disapprove removal of a Trustee.
If a beneficiary is a minor or is incapacitated, the parent or legal
representative of the beneficiary may act on behalf of the beneficiary.
(c) Default of Designation
If the office of Trustee of a trust created under this agreement is vacant
and no designated successor Trustee is able and willing to act as Trustee, a
majority of the income beneficiaries of the trust shall appoint an individual
or corporate fiduciary that is not related or subordinate to the person or
persons making the appointment within the meaning of Section 672(c) of
the Internal Revenue Code as successor Trustee.
Any beneficiary may petition a court of competent jurisdiction to appoint
a successor Trustee to fill any vacancy remaining unfilled after a period of
30 days. By making such appointment, the court shall not thereby acquire
any jurisdiction over the trust, except to the extent necessary for making
the appointment.
If a beneficiary is a minor or is incapacitated, the parent or legal
representative of the beneficiary may act on behalf of the beneficiary.
Section 3.04
Notice of Removal and Appointment
Notice of removal shall be in writing and shall be delivered to the Trustee being removed
and to any other Trustees then serving. The notice of removal shall be effective in
accordance with its provisions.
3-2
l'
Notice of appointment shall be in writing and shall be delivered to the successor Trustee
and any other Trustees then serving. The appointment shall become effective at the time
of acceptance by the successor Trustee. A copy of the notice shall be attached to this
agreement.
Section 3.05
Appointment of a Cotrustee
Any individual Trustee may appoint an individual or a corporate fiduciary as a Cotrustee.
A Cotrustee so named shall serve only as long as the Trustee who appointed such
Cotrustee (or, if such Cotrustee was named by more than one Trustee acting together, by
the last to serve of such Trustees) serves, and such Cotrustee shall not become a
successor Trustee upon the death, resignation, or incapacity of the Trustee who appointed
such Cotrustee, unless so appointed under the terms of this agreement.
Section 3.06
Corporate Fiduciaries
Any corporate fiduciary serving under this agreement as a Trustee must be a bank, trust
company, or public charity that is qualified to act as a fiduciary under applicable federal
and state law and that is not related or subordinate to any beneficiary within the meaning
of Section 672( c) of the Internal Revenue Code.
Section 3.07
Incapacity of a Trustee
If any individual Trustee, other than me, shall become incapacitated, it shall not be
necessary for the incapacitated Trustee to resign as Trustee. A written declaration of
incapacity by the Cotrustee, if any, or, if none, by the party designated to succeed the
incapacitated Trustee, if made in good faith, shall terminate the trusteeship.
Section 3.08
Appointment of Independent Special Trustee
If for any reason the Trustee of any trust created under this agreement is unwilling or
unable to act with respect to any trust property or any provision of this agreement, the
Trustee shall appoint, in writing, a corporate fiduciary or an individual to serve as an
Independent Special Trustee as to such property or with respect to such provision. The:
Independent Special Trustee appointed shall not be related or subordinate to any
beneficiary of the trust within the meaning of Section 672(c) of the Internal Revenue:
Code. The Trustee may revoke any such appointment at will.
An Independent Special Trustee shall exercise all fiduciary powers granted by this
agreement unless expressly limited elsewhere in this agreement or by the Trustee in the
instrument appointing the Independent Special Trustee. An Independent Special Trustee
3-3
, I
may resign at any time by delivering written notice of resignation to the Trustee. Notice
of resignation shall be effective in accordance with the terms of the notice.
Section 3.09
Rights and Obligations of Successor Trustees
Each successor Trustee serving under this agreement, whether corporate or individual,
shall have all of the title, rights, powers and privileges granted to the initial Trustee
named under this agreement. In addition, each successor Trustee shall be subject to all of
the restrictions imposed upon and obligations and duties, discretionary and ministeriali,
given to the initial Trustee named under this agreement.
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Article Four
Administration of My Trust
During My Incapacity
Section 4.01
Trust Distributions During My Incapacity
During any period of time that I am incapacitated, my Trustee shall administer my trust
and distribute its net income and principal as provided in this Section.
(a) Distributions for My Benefit
My Trustee shall regularly and conscientiously make appropriate
distributions of trust income and principal for my general welfare and
comfort under the circumstances existing at the time such distributions are
made.
Distributions under this subsection shall include payments for any of my
enforceable legal obligations. My Trustee may also make distributions for
the payment of insurance premiums for insurance policies owned by me or
by my trust, including but not limited to, life, medical, disability, property
and casualty, errors and omissions and long-term health care insurance
policies.
My Trustee is authorized to honor pledges and continue to make gifts to
charitable organizations that I have regularly supported in the amounts I
have customarily given.
The examples included in this subsection are for purposes of illustration
only a..TJ.d are not intended to limit the authority of my Tmstee to make
distributions for my benefit that my Tmstee determines to be appropriate.
In the event of serious illness, I prefer to remain in my home. Therefore, I
direct my Trustee to make distributions to provide home health care for
me, as long as said care is appropriate.
(b) Manner of Making Distributions
My Trustee may make distributions for my benefit in anyone or more of
the following ways:
To me, but only to the extent I am able to manage such
distributions;
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To other persons and entities for my use and benefit;
To my agent or attorney-in-fact authorized to act for me
under a legally valid durable power of attorney executed by
me prior to my incapacity;
To my guardian who has assumed responsibility for me
under any court order, decree or judgment issued by a court
of competent jurisdiction.
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Article Five
Administration of My Trust
Upon My Death
Section 5.01
My Trust Shall Become Irrevocable
Upon my death, my trust shall become irrevocable and my social security number may no
longer be used to identify my trust. My Trustee shall apply for a separate taxpayer
identification number for my trust.
Section 5.02
Administrative Trust
After my death and prior to the distribution of trust property as provided in the
subsequent Articles of this agreement, my trust shall be an administrative trust but may
continue to be known as the Dorothy S. Wech Revocable Living Trust. My
administrative trust shall exist for a reasonable period of time necessary to complete the
administrative tasks set forth in this Article.
Section 5.03
Payment of My Expenses and Taxes
My Trustee is authorized but not directed to pay from the administrative trust:
Expenses of my last illness, funeral and burial or cremation, including
expenses of memorials and memorial services;
Legally enforceable claims against me or my estate;
Expenses of administering my trust and my estate; and
Court ordered allowances for those dependent upon me.
These authorized payments are discretionary with my Trustee. My Trustee may make
decisions on these payments without regard to any limitation on payment of such
expenses imposed by law and may make payments without obtaining the approval of anY'
court. No third party may enforce any claim or right to payment against my trust by
virtue of this discretionary authority. My Trustee shall not pay any administrative
expenses from assets passing to an organization that qualifies for the federal estate tax
charitable deduction.
My Trustee shall pay death taxes out of the principal of the trust property as provided in
Section 5.04. If, however, a probate estate is opened within six months from the date of
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my death, my executor shall pay claims expenses and death taxes from my probate estate
to the extent that the cash and readily marketable assets included in my probate estate are
sufficient to pay such items unless my Trustee has already paid them.
Section 5.04
Payment of Death Taxes
For the purposes of this Article, the term "death taxes" shall refer to any taxes imposed
by reason of my death by federal, state or local authorities, including but not limited to
estate, inheritance, and gift taxes. For purposes of this Section, death taxes shall not
include any additional estate tax imposed by Section 2031(c)(5)(C), Section 2032A(c) or
Section 2057(f) of the Internal Revenue Code or any other comparable recapture tax
imposed by any taxing authority.
Except as otherwise provided in this Section or elsewhere in this agreement, my Trustee
shall provide for payment of all death taxes from the administrative trust without
apportionment. My Trustee shall not seek contribution toward or recovery of any suc~
payments from any individual.
(a) Protection of Exempt Property
In no event shall death taxes be allocated to or paid from any assets that
are not included in my gross estate for federal estate tax purposes.
(b) Property Passing Outside of My Trust
Death taxes imposed with respect to property included in my gross estate
for death tax purposes but passing outside of my trust shall be apportioned
among the persons and entities benefited in the proportion that the ta.'<.able
value of the property or interest bears to the total taxable value of all
property and interests included in my gross estate for death tax purposes.
The values to be used for the apportionment shall be the values as finally
determined under federal, state or local law as the case may be.
Section 5.05
Coordination with My Executor
The following provisions are intended to help facilitate the coordination between the
executor of my probate estate, if any, and my Trustee. These provisions apply even if the.
executor of my probate estate and my Trustee are the same person or entity.
(a) Reliance on My Executor
My Trustee may rely upon the written request of my executor for
payments authorized under this Article and the amounts included in such
payments without computing the sums involved. If a payment is made
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under this Article to my executor, my Trustee shall not have any duty to
inquire into the application of the payment.
My Trustee may accept distributions from my executor without incurring
any obligation to review the records of my executor.
(b) Purchase of Assets from and Loans to My Probate
Estate
My Trustee is authorized to purchase and retain, as an investment for my
trust estate, any property that forms a part of my probate estate. My
Trustee may make loans, with or without security, to my probate estate.
My Trustee shall not be liable for any loss suffered by my trust as a result
of the exercise of the powers granted to my Trustee in this subsection.
(c) Discretionary Distributions to My Executor
My Trustee is authorized to distribute to my probate estate, as a
beneficiary of this trust, cash or other trust property, including accrued
income, to whatever extent my Trustee determines it to be in the best
interests of the beneficiaries of my trust.
Section 5.06
Tax Elections
Following my death, I authorize my Trustee to make tax elections as provided in this
Section. If, however, a executor is appointed for my probate estate and as executor is the
recipient of specific statutorily delegated authority relative to any tax election, the
discretionary authority granted my Trustee relative to the tax election shall be subordinate
to the statutorily delegated authority.
(a) Tax Elections
My Trustee's authority to make tax elections shall include, but shall not be
limited to, the right to choose the alternate valuation date, the right to elect
whether to take administration expenses as estate tax deductions or income
tax deductions, the right to make special use valuation elections, and the
right to defer payment of all or any portion of any taxes.
My Trustee may elect to treat my administrative trust as part of my estate
for federal or state income tax purposes or both.
My Tr.1stee may' make equitable adjustments
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principal on account of any tax elections made by my Trustee.
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Article Six
Specific Distributions and
Disposition of Tangible Personal Property
Section 6.01
Specific Distribution to Robert Wech
Upon my death, my Trustee shall distribute my land located in Franklin Township,
Dillsburg, York County, Pennsylvania, Lot no. 5, Scotch Pine Road, containing 1.374
acres, recorded in the Office of Recorder of Deeds in and for York County in Deed book
85L page 710 to my son, Robert Wech. My Trustee shall give a minimum of three
months notice to any tenants residing on the property at the time of my death before
making distribution under this Section 6.01.
If Robert Wech should predecease me, this distribution shall lapse and the property shall
then be subject to the exercise of a right of first refusal to purchase said property. I grant
said right of refusal to Robert Brechbiel. This right must be exercised by written notice
to my Trustee within six months of my death. My Trustee shall obtain a qualified
appraisal of the property and may set the purchase price and terms of sale based on the
appraisal and other relevant facts and circumstances. If Robert Brechbiel fails to exercise
said right of first refusal, his right shall lapse and the property subject to this distribution
shall instead be distributed under the other provisions of this agreement.
This specific distribution shall be considered as part of Robert W ech' s share of my Trust
property as outlined in Section 7.01 hereunder.
Property passing under this Section shall pass free of any administrative expenses or
death taxes. However, property passing under this Section shall pass subject to all liens,
security interests or other encumbrances on the property.
Section 6.02
Specific Distribution to Steven Wech
Upon my death, my Trustee shall distribute $5,000 to Steven Wech. I have made no
other provisions for Steven Wech in this Agreement or in my Will because I have made
gifts to him during my lifetime and I feel that he is otherwise well provided for.
If Steven Wech should predecease me, this distribution shall lapse and the property
subject to this distribution shall instead be distributed under the other provisions of this
agreement.
Property passing under this Section shall pass free of any administrative expenses or
death taxes.
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Section 6.03
Specific Distribution to Kevin Wech
Upon my death, my Trustee shall distribute $1,000 to Kevin Wech. I have made no other
provisions for Kevin Wech in this Agreement or in my Will because I have made gifts to
him during my lifetime and I feel that he is otherwise well provided for.
If Kevin Wech should predecease me, this distribution shall lapse and the property
subject to this distribution shall instead be distributed under the other provisions of thi~
agreement.
Property passing under this Section shall pass free of any administrative expenses or
death taxes.
Section 6.04
Distribution of Tangible Personal Property by Memoranda
I reserve the right to make dispositions of items of tangible personal property by a signed
written memorandum executed after I sign this trust that refers to my trust and lists items
of tangible personal property and designates the beneficiary of each item. If I execute a.
memorandum, the memorandum shall be incorporated by reference into this agreement.
I direct that upon my death, my Trustee shall distribute the items of tangible personal
property listed in the memorandum, together with any insurance policies covering such
property and claims under such policies, as provided in the memorandum. Should I leave
multiple written memoranda that conflict as to the disposition of any item of tangible
personal property, the memorandum with the most recent date shall control as to those
items that are in conflict.
Even if the memorandum is not legally binding, the memorandum shall be treated as an
amendment to my trust and I request that my Trustee follow my wishes and distribute
items of tangible personal property listed in the memorandum, together with any.
insurance policies covering such property and claims under such policies, as I have
directed in the memorandum.
Section 6.05
Distribution of Remaining Tangible Personal Property
My Trustee shall distribute any tangible personal property not disposed of by a written
memorandum to my children in shares of substantially equal value, to be divided among
my children as my children shall agree. In the event that my Trustee determines that a
child is incapable of acting the child's best interest, my Trustee shall appoint a person to
represent the child in the division. If my children are unable to agree upon the division of
the property within 6 months after my death, my Trustee shall make the division. My
Trustee may use a lottery or rotation system or any other method of allocation to
determine the order of selection and distribution of the property. Alternatively, my
Trustee may sell all or any portion of the property and distribute the net proceeds equally
among my living children. My Trustee shall incur no liability to any party for any..
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decision made by my Trustee with respect to either the division or sale of my tangible
personal property, and any decision made by my Trustee shall be final and binding on all
of my beneficiaries.
Section 6.06
Definition of Tangible Personal Property
For purposes of this Article, my tangible personal property shall include but not be
limited to my household furnishings, appliances and fixtures, works of art, motqr
vehicles, pictures, collectibles, personal wearing apparel and jewelry, books, sporting
goods, and hobby paraphernalia.
If my Trustee receives property to be distributed under this Article from my probate
estate or in any other manner after my death, my Trustee shall distribute the property,
free of trust, in accordance with this Article. The fact that an item of tangible personaJ.
property was not received by my trust until after my death shall not affect the validity of
the gift. If property to be distributed under this Article is not part of the trust property
upon my death and is not subsequently transferred to my Trustee from my probate estate
or in any other manner after my death, then the specific distribution of property made in
this Article shall be considered null and void, without any legal or binding effect.
Section 6.07
Encumbrances and Incidental Expenses of Tangible
Personal Property
My Trustee shall distribute property under this Article subject to any liens, security
interest or other encumbrances on the property.
My Trustee shall pay, as an administration expense, the reasonable expenses of storing,
insuring, packing, transporting and otherwise caring for my tangible personal property
until each item of property is actually delivered to the appropriate beneficiary.
Section 6.08
Residuary Distribution
Any tangible personal property not distributed under this or prior Articles of this
agreement shall be distributed as provided in the Articles that follow.
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Article Seven
Distribution of My Trust Property
My Trustee shall administer the remaining trust property as provided in this Article.
Section 7.01
Division of Remaining Trust Property
My Trustee shall divide the remaining trust property into separate equal shares for my
living children
My Trustee shall administer the share for each of my living children as a separate share
for the benefit of the child as provided in the Sections that follow.
Section 7.02
Distribution of the Share for Robert Wech
My Trustee shall administer the share set aside for Robert Wech in trust as provided in
this Section.
(a) Distributions of Net Income
At least monthly, my Trustee shall distribute to Robert Wech all of the net
income of his trust.
(b) Distributions of Principal
My Trustee shall distribute to Robert Wech as much of the principal of his
trust as my Trustee determines is necessary or advisable for his health and
emergency financial needs.
(c) Guidelines for Discretionary Distributions
In making discretionary distributions to Robert Wech, it is my desire that
Robert Wech develops a strong work ethic and be a productive and
contributing member of society. Accordingly, my Trustee shall be
mindful of, and always consider, the other known resources available to
Robert Wech before making discretionary distributions. It is my desire
that preservation of principal be a priority for purposes of this trust share
and that genuine need be shown by Robert Wech before my Trustee makes
any discretionary distribution.
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(d) Right to Withdraw Principal
At the intervals set forth below, Robert Wech may withdraw from his
trust, at any time or times, amounts not to exceed in the aggregate:
10% of the accumulated trust income and principal, upon
the funding of the trust created for Robert Wech; and
Increased by 3% three years after the funding of the trust
share, of the accumulated trust income and principal not
already subject to withdrawal (calculated by taking the total
accumulated trust income and principal and deducting any
amount already subject to withdrawal but not actually
withdrawn).
Increased by 3% of the accumulated trust mcome and
principal every three years until said trust mcome and
principal has been exhausted.
These withdrawal rights are cumulative and the amount of each successive
withdrawal right shall be added to any then existing withdrawal right. The
amount of each withdrawal right shall be determined by applying the
applicable fraction to the trust's principal and accumulated income as of
the date Robert Wech first has the right to exercise the withdrawal right.
Robert Wech may exercise this right at any time by delivering written
notice to my Trustee, setting forth the amount he desires to withdraw.
Upon receiving a notice, my Trustee shall convey and deliver to Robert
Wech, free of trust, the amount requested in the notice. This right of
withdrawal is a privilege that may be exercised only by Robert Wech and
shall not be subject to the claims of any creditor or to legal process and
may not be voluntarily or involuntarily alienated or encumbered.
(e) Distribution Upon the Death of Robert Wech
If Robert Wech should die before the complete distribution of his tmst, my
Tmstee shall distribute the remaining tmst property to Patricia Ann Wech,
outright, free of tmst. If Patricia Ann Wech is deceased my Trustee shall
distribute the balance of the trust property as provided in Article Eight.
Section 7.03
Distribution of the Share for Patricia Ann Wech
My Tmstee shall distribute the share set aside for Patricia Ann Wech to Patricia Ann
Wech outright, free of trust. If Patricia Ann Wech should die before complete
distribution of her share, my Trustee shall distribute the balance of the trust property to
Robert Wech under the same terms as Section 7.02.
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Article Eight
Remote Contingent Distribution Pattern
If, at any time, there is no individual beneficiary qualified to receive final distribution of
my trust estate or any part of it, then my Trustee shall distribute any such portion of my
trust estate with respect to which such failure of qualified recipients has occurred to those
persons who would inherit it had I then died intestate owning such property, as
determined and in the proportions provided by the laws of Pennsylvania then in effect.
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Article Nine
Administration of Trusts for Underage and Incapacitated
Beneficiaries
Section 9.01
Distributions for Underage and Incapacitated Beneficiaries
Whenever my Trustee is authorized or directed to make a distribution to a beneficiary
who is younger than 25 years of age, is incapacitated or who is, in my Trustee's sole
opinion, unable to manage the distribution properly, my Trustee may make the'
distribution to the beneficiary or retain the amount to be distributed in any manner my I
Trustee may determine advisable, including without limitation the methods authorized in!
this Article.
I request, but do not require, that before making a distribution to a beneficiary, my
Trustee, to the extent that it is both reasonable and possible, consider the behavior of the
beneficiary with regard to his or her disposition of prior distributions of trust property.
Section 9.02
Methods of Distribution
My Trustee may distribute or retain trust property in anyone or more of the following
methods for the benefit of any beneficiary subject to the provisions of this Article:
(a) Distribution to Beneficiary
My Trustee may distribute trust property directly to the beneficiary.
(b) Distribution to Guardian or Family Member
My Trustee may distribute trust property to the beneficiary's guardian,
conservator, parent or a family member or other person who has assumed
the responsibility of caring for the beneficiary.
(c) Distribution to Custodian
My Trustee may distribute trust property to any person or entity, including
my Trustee, as custodian for the beneficiary under the Uniform Transfers
to Minors Act, or similar statute.
(d) Distribution to Other Persons or Entities
My Trustee may distribute trust property to other persons and entities for
the use and benefit of the beneficiary.
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(e) Distribution to Agent under Durable Power of Attorney
My Trustee may distribute trust property to an agent or attorney-in-fact
authorized to act for the beneficiary under a legally valid durable power of
attorney executed by the beneficiary prior to the incapacity.
(1) Retention in Trust
My Trustee may retain trust property in a separate trust for the benefit of
the beneficiary until the beneficiary attains 25 years of age or, in the
opinion of my Trustee, is no longer incapacitated (as the case may be).
My Trustee shall distribute as much of the net income and principal of any
trust created under this subsection that my Trustee deems necessary or
advisable for the health, education, maintenance or support of the
beneficiary for whom the trust was created. My Trustee shall accumulate
any undistributed net income and add such income to principal.
When the beneficiary for whom a trust is created under this subsection
attains 25 years of age or is no longer incapacitated (as the case may be),
the beneficiary may withdraw from the trust at any time or times any
portion or all of the accumulated trust income and principal.
The beneficiary for whom a trust is created under this subsection shall
have the testamentary general power to appoint all or any portion of the
principal and undistributed income remaining in the beneficiary's trust at
his or her death among one or more persons or entities, including the
creditors of the beneficiary's estate. The beneficiary shall have the sole
and exclusive right to exercise this general power of appointment.
I intend that this testamentary power of appointment be a general power of
appointment as defined in Section 2041 of the Internal Revenue Code.
If the beneficiary fails to validly exercise this testamentary general power
of appointment, my Trustee shall distribute the balance of his or her trust
property to my then living descendants, per stirpes.
If I have no then living descendants, my Trustee shall distribute the
remaining trust property as provided in Article Eight.
Section 9.03
Application of Article
Any decision made by my Trustee under this Article shall be final, controlling and
binding upon all beneficiaries subject to the provisions of this Article.
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Article Ten
Life Insurance Policies
The provisions of this Article shall apply to insurance policies owned by or made payable
to my trust.
Section 10.01 Life Insurance Policies
The following provisions shall apply to life insurance policies owned by or made payable
to my trust.
(a) Provisions During My Life
During my life, I reserve all of the rights, powers, privileges, and options,
with respect to any insurance policy, annuity or any other third-party
beneficiary contract owned by or made payable to my trust, including, but
not limited to, the right to designate and change beneficiaries, the right to
borrow money, the right to surrender the policy, the right to receive any
payments as owner, and the right to make any available elections.
My Trustee shall have no duty to exercise, or refrain from exercising, any
rights, powers, privileges or options with respect to any insurance policy,
annuity contract or other third-party beneficiary contract. My Trustee
shall have no obligation to pay premiums or other contractual amounts
that may be payable under any such policy.
(b) Provisions After My Death
After my death, my Trustee may make all appropriate elections with
respect to such policies and may collect all sums made payable to my trust
or my Trustee under all such policies or contracts.
My Trustee may exercise any settlement options or other options or rights
that may be available under the terms of any policy or contract. My
Trustee shall not be liable to any beneficiary on account of any election
made by my Trustee with respect to any policy or contract.
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Section 10.02 Limitation on Liability of Payor
Persons or entities dealing in good faith with my Trustee shall not be required to see to
the proper application of proceeds delivered to my Trustee, or to inquire into any
provision of this agreement.
A receipt signed by my Trustee for any proceeds or benefits paid shall be a sufficient
discharge to the person or entity making the payment.
Section 10.03 Collection Efforts
My Trustee shall make reasonable efforts to collect the proceeds of all life insurance
policies payable to my trust.
My Trustee may commence legal or administrative proceedings to collect the proceeds of
any life insurance policy to which the trust is entitled; provided, however, that my
Trustee need not commence any such proceedings until my Trustee is indemnified to its
satisfaction for any expenses and liabilities it may incur in connection with the
proceeding.
My Trustee may settle or compromise any and all claims with respect to the collection of
any life insurance proceeds to which my trust may be entitled. A settlement made by my
Trustee shall be binding on all beneficiaries.
Section 10.04 No Obligation to Purchase or Maintain Benefits
None of the provisions of this agreement shall impose any obligation, legal or otherwise,
on me or my Trustee to purchase, invest, or maintain any life insurance policy.
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Article Eleven
Trust Administration
Section 11.01 Distributions to Beneficiaries
Whenever this agreement authorizes or directs my Trustee to make a distribution of net
income or principal to a beneficiary, my Trustee may apply for the benefit of the
beneficiary any property that otherwise could be distributed directly to the beneficiary.
My Trustee shall have no responsibility to inquire into the beneficiary's ultimate
disposition of the distributed property unless specifically directed otherwise by this
agreement.
My Trustee may make distributions in cash or in kind, or partly in each, in proportions
and at values determined by my Trustee. My Trustee may allocate undivided interests in
specific assets to a beneficiary or trust in any proportion or manner that my Trustee
determines, even though the property allocated to one beneficiary may be different from
that allocated to another beneficiary.
My Trustee may make these determinations without regard to the income tax attributes of
the property and without the consent of any beneficiary.
Section 11.02 No Court Proceedings
This trust shall be administered expeditiously, consistent with the provISIOns of this
agreement, free of judicial intervention, and without order, approval or action of any
court. The trust shall be subject to the jurisdiction of a court only if my Trustee or
another interested party institutes a legal proceeding. A proceeding to seek instructions
or a court determination shall be initiated in the court having original jurisdiction over
matters relating to the construction and administration of trusts. Seeking instructions or a
court determination shall not subject this trust to the continuing jurisdiction of the court.
I request that any questions or disputes that may arise during the administration of this
trust be resolved by mediation and if necessary, arbitration in accordance with the
Uniform Arbitration Act. Each interested party involved in the dispute (including my
Trustee, if involved) shall select an arbiter and, if necessary to establish a majority
decision, the arbiters selected shall select an additional arbiter. The decision of a
majority of the arbiters selected shall control with respect to the matter.
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Section 11.03 No Bond
My Trustee shall not be required to furnish any bond for the faithful performance of my
Trustee's duties. If a bond is required by any law or rule of court, no surety shall be
required on such bond.
Section 11.04 Exoneration of My Trustee
No successor Trustee is obligated to examine the accounts, records or actions of any
previous Trustee or of the personal representative of my estate. No successor Trustee
shall be in any way or manner responsible for any act or omission to act on the part of
any previous Trustee or the personal representative of my estate. Unless a Trustee has
received notice of removal, the Trustee shall not be liable to me or to any beneficiary for
the consequences of any action taken by the Trustee that would have been, but for the
prior removal of the Trustee, a proper exercise by the Trustee of the authority granted to
the Trustee under this agreement.
Any Trustee may request and obtain from the beneficiaries or from their legal
representatives, agreements in writing releasing the Trustee from any liability that may
have arisen from the Trustee's acts or omissions to act and indemnifying the Trustee from
liability for the acts or omissions. An agreement described in this paragraph, if acquired
from all the living beneficiaries of the trust or from their legal representatives, shall be
conclusive and binding upon all parties, born or unborn, who may have, or may in the
future acquire, an interest in the trust.
My Trustee may require a refunding agreement before making any distribution or
allocation of trust income or principal and may withhold distribution or allocation
pending determination or release of a tax lien or other lien. This refunding agreement
provision shall not apply to any distribution that qualifies for the federal estate tax
charitable deduction.
Section 11.05 Trustee Compensation
An individual serving as Trustee shall be entitled to fair and reasonable compensation for
the services rendered as a fiduciary. A corporate fiduciary serving as my Trustee shall be
compensated by agreement with an individual Trustee or, in the absence of an individual
Trustee or in the absence of an agreement, in accordance with the corporate fiduciary's
published schedule of fees in effect at the time the services are rendered.
In addition to receiving compensation, my Trustee may be reimbursed for reasonable
costs and expenses incurred in carrying out its duties under this agreement.
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Section 11.06 Employment of Professionals
My Trustee may appoint, employ and remove, at any time and from time to time,
investment advisors, accountants, auditors, depositories, custodians, brokers, consultants,
attorneys, expert advisers, agents, and employees to advise or assist the Trustee in the
performance of its duties. My Trustee may act upon the recommendations of the persons
or entities employed with or without independent investigation.
My Trustee may reasonably compensate an individual or entity employed to assist Of
advise my Trustee regardless of whether the person or entity shall be a Trustee of a trust
established under this agreement or a corporate affiliate of a Trustee and regardless of
whether the entity shall be one in which a Trustee of a trust created under this agreement
is a partner, member, stockholder, officer, director or corporate affiliate or has any other
interest.
My Trustee may pay the usual compensation for services contracted for under this
Section out of principal or income of the trust as my Trustee may deem advisable. My
Trustee may pay compensation to an individual or entity employed to assist or advise my
Trustee without diminution of or charging the same against the compensation to which
the Trustee is entitled under this agreement. Any Trustee who shall be a partner,
stockholder, officer, director or corporate affiliate in any entity employed to assist or
advise my Trustee shall nonetheless receive the Trustee's share of the compensation paid
to the entity.
Section 11.07 Exercise of Testamentary Power of Appointment
A testamentary power of appointment granted under this agreement may be exercised by
valid will or valid living revocable trust that specifically refers to this power of
appointment. The holder of a testamentary power of appointment may exercise the
power to appoint property among the permissible appointees in equal or unequal
proportions, and on such terms and conditions, whether outright or in trust, as the holder
of the power designates. The holder of a testamentary power of appointment may grant
further powers of appointment to any person to whom principal may be appointed,
including a presently exercisable limited or general power of appointment.
My Trustee may conclusively presume that any power of appointment granted to any
beneficiary of a trust created under this agreement has not been exercised by the
beneficiary if my Trustee has no knowledge of the existence of a valid will or valid living
revocable trust exercising the power within 3 months after the beneficiary's death.
Section 11.08 Determination of Principal and Income
My Trustee may determine in a fair, equitable and practical manner how all Trustee's
fees, disbursements, receipts, and wasting assets shall be credited, charged, and
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apportioned between principal and income. My Trustee may allocate capital gain to
income rather than principal.
My Trustee may set aside from trust income reasonable reserves for taxes, assessments,
insurance premiums, repairs, depreciation, obsolescence, depletion, and for the
equalization of payments to or for the beneficiaries. My Trustee may select appropriate
accounting periods with regard to the trust property.
Section 11.09 Trust Accounting
After my death, my Trustee shall render an accounting at least annually to the income
beneficiaries of the trust during the accounting period. The accounting shall include the
receipts, disbursements, and distributions occurring during the accounting period and a
balance sheet of the trust property.
In the absence of fraud or manifest error, the assent by all income beneficiaries to an
accounting of an Independent Trustee shall make the matters disclosed in the accounting
binding and conclusive upon all persons, both those in existence on the date of this
agreement and those to be born in the future who have, or will in the future have, a vested
or contingent interest in the trust property. In the case of a minor or incapacitated
beneficiary, that beneficiary's natural guardian or legal representative shall give the assent
required under this Section.
The failure of any person to object to any accounting by giving written notice to my
Trustee within 60 days of the person's receipt of a copy of the accounting shall be
deemed to be an assent by such person.
The trust's financial records and documentation shall be available at reasonable times and
upon reasonable notice for inspection by trust beneficiaries and their representatives. My
Trustee shall not be required to furnish trust information regarding my trust to any
individual, corporation, or other entity that is not a beneficiary or the representative of a
beneficiary, and is not requesting the information pursuant to a valid court order.
Section 11.10 Action of Trustees; Disclaimer
Unless otherwise provided in this agreement, whenever I am serving as Trustee, I may
make all decisions and exercise all powers and discretions granted to my Trustee under
this agreement without the consent of any other Trustee.
When I am not serving as a Trustee, if two Trustees are eligible to act with respect to a
given matter, the concurrence of both shall be required for action to be taken; if more
than two Trustees are eligible to act with respect to a given matter, the concurrence of a
majority of my Trustees shall be required for action to be taken.
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If my Trustees are unable to concur with respect to a matter as to which they have joint
powers, I request that the matter be settled by mediation and if necessary, arbitration in
accordance with the Uniform Arbitration Act. Each of my Trustees shall select an arbiter
and, if necessary to establish a majority decision, the arbiters so selected shall select an
additional arbiter. The decision of a majority of the arbiters so selected shall control with
respect to the matter.
A nonconcurring Trustee may dissent or abstain from a decision of the majority. A
Trustee shall be absolved from personal liability by registering its dissent or abstention in
the records of the trust. After doing so, the dissenting Trustee shall then act with my
other Trustees in any way necessary or appropriate to effectuate the decision of the
majority.
Notwithstanding any proVIsIOn of this agreement to the contrary, any Trustee may
disclaim or release, in whole or in part, by an instrument in writing, any power it holds as
Trustee, irrevocably or for any period of time that the Trustee may specify. The Trustee
may make the relinquishment of a power personal to the Trustee or may relinquish the
power for all subsequent Trustees.
Section 11.11 Delegation of Trustee Authority; Power of Attorney
Any Trustee may, by an instrument in writing, delegate to any other Trustee the right to
exercise any power, including a discretionary power, granted my Trustee in this
agreement. During the time a delegation under this Section is in effect, the Trustee to
whom the delegation was made may exercise the power to the same extent as if the
delegating Trustee had personally joined in the exercise of the power. The delegating
Trustee may revoke the delegation at any time by giving written notice to the Trustee to
whom the power was delegated.
My Trustee may execute and deliver a revocable or irrevocable power of attorney
appointing any individual or corporation to transact any and all business on behalf of the
trust. The power of attorney may grant to the attorney-in-fact all of the rights, powers,
and discretion that my Trustee could have exercised.
Section 11.12 Additions to Separate Trusts
If on the termination of any separate trust created under this agreement a final distribution
is to be made to a person for whom my Trustee then holds another separate trust created
under this agreement, my Trustee shall add the distribution to the other separate trust
instead of being distributed outright. My Trustee shall treat the distribution for purposes
of administration as though it had been an original part of the other separate trust.
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Section 11.13 Authority to Merge or Sever Trusts
My Trustee may merge and consolidate a trust created under this agreement with any
other trust, if the two trusts contain substantially the same terms for the same
beneficiaries and at least one Trustee in common.
My Trustee may administer the merged and consolidated trust as a single trust or unit. If,
however, a merger or consolidation does not appear feasible, my Trustee may consolidate
the assets of the trusts for purposes of investment and trust administration while retaining
separate records and accounts for each respective trust.
My Trustee may sever any trust on a fractional basis into two or more separate and
identical trusts or may segregate a specific amount or asset from the trust property by
allocation to a separate account or trust. Income earned on a segregated amount or
specific asset after the segregation passes with the amount or asset segregated. My
Trustee shall hold and administer each separate trust upon terms and conditions
substantially identical to those of the trust from which it was severed.
Subject to the terms of the trust, my Trustee may consider differences in federal tax
attributes and other pertinent factors in administering the trust property of fuiY separate
account or trust, in making applicable tax elections, and in making distributions. A
separate trust created by severance must be treated as a separate trust for all purposes
from the date on which the severance is effective; however, the effective date of
severance may be retroactive to a date before the date on which my Trustee exercises the
power.
Section 11.14 Authority to Terminate Trusts
If, at any time, my Trustee, other than an Interested Trustee, in its sole and absolute
discretion, determines that a trust created under this agreement is no longer economical or
is otherwise inadvisable to administer as a trust, or if my Trustee, other than an Interested
Trustee, deems it to be in the best interest of my beneficiaries, my Trustee, without
further responsibility, may terminate the trust and distribute the trust property, including
any undistributed net income, in the following order of priority:
To me, if I am then living;
To the beneficiaries then entitled to mandatory distributions of net income
of the trust and in the same proportions; and
If none of the beneficiaries are entitled to mandatory distributions of net
income, to the beneficiaries then eligible to receive discretionary
distributions of net income of the trust, in such amounts and shares as my
Trustee, other than an Interested Trustee, may determine.
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Section 11.15 Merger of Corporate Fiduciary
If any corporate fiduciary acting as my Trustee under this agreement is merged with or
transfers substantially all of its trust assets to another corporation or if a corporate
fiduciary changes its name, the successor shall automatically succeed to the trusteeship as
if originally named a Trustee. No document of acceptance of trusteeship shall be
required.
Section 11.16 Beneficiary's Status
Until my Trustee receives notice of the incapacity, birth, marriage, death or other event
upon which a beneficiary's right to receive payments may depend, my Trustee shall not
be liable for acting or failing to act with respect to the event or for disbursements made in
good faith to persons whose interest may have been affected by such event. Unless
otherwise provided in this agreement, the parent or legal representative may act on behalf
of a beneficiary who is a minor or is incapacitated.
My Trustee may rely on any information provided by a beneficiary with respect to the
beneficiary's assets and income. My Trustee shall have no independent duty to
investigate the status of any beneficiary and shall not incur any liability for failure to do
so.
Section 11.17 Discharge of Third Persons
Persons dealing in good faith with my Trustee shall not be required to see to the proper
application of money paid or property delivered to my Trustee, or to inquire into the
authority of my Trustee as to any transaction. The receipt from my Trustee for any
money or property paid, transferred or delivered to my Trustee shall be a sufficient
discharge to the person or persons paying, transferring or delivering the money or
property from all liability in connection with its application.
Section 11.18 Certificate by Trustee
A written statement of my Trustee may always be relied upon by, and shall always be
conclusive evidence in favor of, any transfer agent or any other person dealing in good
faith with my Trustee in reliance upon the statement.
Section 11.19 Funerai and Other Expenses of Beneficiary .
Upon the death of an income beneficiary my Trustee may pay the funeral expenses,
burial or cremation expenses, enforceable debts and other expenses incurred due to the
death of the beneficiary from trust property. This Section shall only apply to the extent
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the income beneficiary has not exercised any testamentary power of appointment granted
to him under this agreement.
My Trustee may rely upon any request by the personal representative or members of the
family of the deceased beneficiary for payment without verifying the validity or the
amounts and without being required to see to the application of the amounts so paid. My
Trustee may make decisions under this Section without regard to any limitation on
payment of expenses imposed by statute or rule of court and may be made without
obtaining the approval of any court having jurisdiction over the administration of the
deceased beneficiary's estate.
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Article Twelve
My Trustee's Powers
Section 12.01 Introduction to Trustee's Powers
Except as otherwise specifically provided in this agreement, my Trustee may exercise,
without prior approval from any court, all the powers conferred by this agreement and
any powers conferred by law, including, without limitation, those powers set forth under
the common law or statutory law of the Commonwealth of Pennsylvania or any other
jurisdiction whose law applies to this trust. The powers set forth in Pennsylvania
Probate, Estates and Fiduciaries Code are specifically incorporated into this trust
agreement. The powers conferred upon my Trustee by law, including those powers
conferred by Pennsylvania Probate, Estates and Fiduciaries Code, shall be subject to any
express limitations or contrary directions contained in this agreement.
My Trustee shall exercise these powers in the manner my Trustee determines to be in the
best interests of the beneficiaries. My Trustee shall not exercise any of its powers in a
manner that is inconsistent with the right of the beneficiaries to the beneficial enjoyment
of the trust property in accordance with the general principles of the law of trusts.
The Trustee of a trust may have duties and responsibilities in addition to those described
in this agreement. I encourage my Trustee to obtain appropriate legal advice if my
Trustee has any questions concerning its duties and responsibilities as Trustee.
Section 12.02 Execution of Documents by My Trustee
My Trustee may execute and deliver any and all instruments in writing which my Trustee
considers necessary to carry out any of the powers granted in this agreement.
Section 12.03 Investment Powers in General
My Trustee may invest in any type of investment that my Trustee determines is consistent
with the investment goals of my trust, whether inside or outside the geographic borders of
the United States of America and its possessions or territories, taking into account my
trust's overall investment portfolio.
Without limiting my Trustee's investment authority in any way, I request that my Trustee
exercise reasonable care and skill in selecting and retaining trust investments. I also
request that my Trustee take into account the following factors in choosing investments
for my trust:
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The potential return from the investment, both in the form of income and
appreciation;
The potential income tax consequences of the investment;
The investment's potential for volatility; and
The role the investment will play in the trust's portfolio.
I request that my Trustee, in arranging the investment portfolio of the trust, also consider
the possible effects of inflation or deflation, changes in global and U.S. economic
conditions, transaction expenses, and the trust's need for liquidity.
My Trustee may delegate its discretion to manage trust investments to any registered
investment adviser or corporate fiduciary.
Section 12.04 Banking Powers
My Trustee may establish bank accounts of any type in one or more banking institutions.
that my Trustee may choose. My Trustee may open accounts in the name of my Trustee
(with or without disclosing fiduciary capacity) or in the name of the trust. When an
account is in the name of the trust, checks on that account and authorized signatures need
not disclose the fiduciary nature of the account or refer to any trust or Trustee.
An account from which my Trustee makes frequent disbursements need not be an interest
bearing account. My Trustee may authorize withdrawals from an account by check, draft
or other instrument or in any other manner.
Section 12.05 Contract Powers
My Trustee may sell at public or private sale, transfer, exchange for other property, and
otherwise dispose of trust property for consideration and upon terms and conditions that
my Trustee deems advisable. My Trustee may grant options of any duration for any such
sales, exchanges, or transfers of trust property.
My Trustee may enter into contracts, and may deliver deeds or other instruments, that my
Trustee deems appropriate.
Section 12.06 Common Investments
For purposes of convenience with regard to the administration and investment of the trust
property, my Trustee may invest part or all of the trust property jointly with trust property
of other trusts for which my Trustee is also serving as a Trustee. For this purpose, a
corporate fiduciary acting as my Trustee may use common funds for investment.
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When trust property is managed and invested in this manner, my Trustee shall maintain
records that sufficiently identify that portion of the jointly invested assets that constitute
the trust property of this trust.
Section 12.07 Environmental Powers
My Trustee shall have the right to inspect trust property to determine compliance with or
to respond to any environmental law affecting the trust property. "Environmental law"
shall mean any federal, state, or local law, rule, regulation, or ordinance relating to
protection of the environment or of human health.
My Trustee may refuse to accept property if my Trustee determines that the property is or
may be contaminated by any hazardous substance or is or was used for any purpose
involving hazardous substances that could create liability to the trust or to my Trustee.
My Trustee may use and expend trust property to (i) conduct environmental assessments,
audits or site monitoring; (ii) take remedial action to contain, clean up or remove any
hazardous substance including a spill, discharge or contamination; (iii) institute, contest
or settle legal proceedings brought by a private litigant or any local, state, or federal
agency concerned with environmental compliance; (iv) comply with any order issued by
any court or by any local, state, or federal agency directing an assessment, abatement or
clean-up of any hazardous substance; and (v) employ agents, consultants and legal
counsel to assist my Trustee in these actions.
My Trustee shall not be liable for any loss or reduction in value sustained by my trust as a
result of my Trustee's retention of property on which hazardous materials or substances
requiring remedial action are discovered unless my Trustee contributed to the resulting
loss or reduction in value through willful misconduct or gross negligence.
My Trustee shall not be liable to any beneficiary or to any other party for any decrease in
the value of trust property as a result of my Trustee's compliance with any environmental
law, including any reporting requirement.
My Trustee may release, relinquish or disclaim any power held by my Trustee that my
Trustee determines may cause my Trustee to incur individual liability under any
environmental law.
Section 12.08 Insurance Powers
My Trustee may purchase, accept, hold, and deal with as owner, policies of insurance on
my life, the life of any beneficiary, or on the life of any person in whom any beneficiary
has an insurable interest.
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My Trustee may purchase disability, medical, liability, long-term health care and other
insurance on behalf of and for the benefit of any beneficiary. My Trustee may purchase
annuities and similar investments for any beneficiary.
My Trustee shall have the power to execute or cancel any automatic premium loan
agreement with respect to any policy, and shall have the power to elect or cancel any
automatic premium loan provision in a life insurance policy. My Trustee may borrow
money to pay premiums due on any policy, either by borrowing from the company
issuing the policy or from another source. My Trustee may assign the policy as security
for the loan.
My Trustee shall have the power to exercise any option contained in a policy with regard
to any dividend or share of surplus apportioned to the policy, to reduce the amount of a
policy or convert or exchange the policy, or to surrender a policy at any time for its cash
value.
My Trustee may elect any paid-up insurance or extended term insurance nonforfeiture
option contained in a policy.
My Trustee shall have the power to sell any policy at its fair market value to anyone
having an insurable interest in the policies including the insured.
My Trustee shall have the right to exercise any other right, option, or benefit contained in
a policy or permitted by the insurance company issuing the policy.
Upon termination of the trust, my Trustee shall have the power to transfer and assign the
policies held by the trust as a distribution of trust property.
Section 12.09 Loans and Borrowing Powers
My Trustee may make secured or unsecured loans to any person (including a
beneficiary), entity, trust or estate, for any term or payable on demand, with or without
interest. My Trustee may enter into or modify the terms of any mortgage or security
agreement granted in connection with o.l1Y loan and may release or foreclose on the
mortgage or security.
My Trustee may borrow money at interest rates and on other terms that it deems
advisable from any person, institution or other source including, in the case of a corporate
fiduciary, its own banking or commercial lending department.
My Trustee may encumber trust property by mortgages, pledges and other hypothecation
and shall have the power to enter into any mortgage, whether as a mongagee or
mortgagor even though the term may extend beyond the termination of the trust and
beyond the period that is required for an interest created under this agreement to vest in
order to be valid under the rule against perpetuities.
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My Trustee may purchase, sell at public or private sale, trade, renew, modify, and extend
mortgages. My Trustee may accept deeds in lieu of foreclosure.
Section 12.10 Nominee Powers
My Trustee may hold real estate, securities and any other trust property in the name of a
nominee or in any other form without disclosing the existence of any trust or fiduciary
capacity.
Section 12.11 Payment of Taxes and Expenses
Except as otherwise provided in this agreement, my Trustee is authorized to pay all
property taxes, assessments, fees, charges, and other expenses incurred in the
administration or protection of the trust. All payments shall be a charge against the trust
property and shall be paid by my Trustee out of the income, or to the extent that the
income is insufficient, then out of the principal of the trust property. The determination
of my Trustee with respect to the payment of expenses shall be conclusive upon the
beneficiaries.
Section 12.12 Real Estate Powers
My Trustee may sell at public or private sale, purchase, exchange, lease for any period,
mortgage, manage, alter, improve and in general deal in and with real property in such
manner and on such terms and conditions as my Trustee deems appropriate.
My Trustee may grant or release easements in or over, subdivide, partition, develop, raze
improvements, and abandon, any real property.
My Trustee may manage real estate in any manner that my Trustee deems best and shall
have all other real estate powers necessary for this purpose.
My Trustee may enter into contracts to sell real estate. My Trustee may enter into leases
and grant options to lease trust property even though the term of the agreement extends
beyond the termination of the trust and beyond the period that is required for an interest
created under this agreement to vest in order to be valid under the rule against
perpetuities. For such purposes, my Trustee may enter into any contracts, covenants and
warranty agreements that my Trustee deems appropriate.
Section 12.13 Residences and Tangible Personal Property
My Trustee may acquire, maintain and invest in any residence for the use and benefit of
the beneficiaries, whether or not the residence is income producing and without regard to
the proportion that the value of the residence may bear to the total value of the trust
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property and even if retaining the residence involves financial risks that trustees would
not ordinarily incur. My Trustee may payor make arrangements for others to pay all
carrying costs of the residence, including, but not limited to, taxes, assessments,
insurance, expenses of maintaining the residence in suitable repair, and other expenses
relating to the operation of the residence for the benefit of the beneficiaries.
My Trustee may acquire, maintain and invest in articles of tangible personal property,
whether or not the property is income producing, and may pay the expenses of the repair
and maintenance of the property.
My Trustee shall have no duty to convert the property referred to in this Section to
productive property except as required by other provisions of this agreement.
My Trustee may permit any income beneficiary of the trust to occupy any real property
or use any personal property owned by the trust on terms or arrangements that my
Trustee may determine, including rent free or in consideration for the payment of taxes,
insurance, maintenance, repairs, or other charges.
My Trustee shall have no liability for any depreciation or loss as a result of the retention
of any property retained or acquired under the authority of this Section.
Section 12.14 Retention and Abandonment of Trust Property
My Trustee may retain, without liability for depreciation or loss resulting from retention,
any property constituting the trust at the time of its creation, at the time of my death or as
the result of the exercise of a stock option. My Trustee may retain property,
notwithstanding the fact that the property may not be of the character prescribed by law
for the investment of assets held by a fiduciary, and notwithstanding the fact that
retention may result in inadequate diversification under any applicable Prudent Investor
Act or other applicable law.
My Trustee may hold property that is non-income producing or is otherwise
nonproductive if holding the property is, in the sole and absolute discretion of my
Trustee, in the best interests of the beneficiaries. On the other hand, except when I am
serving as a Trustee, my Trustee shall invest contributions of cash and cash equivalents
as soon as reasonably practical after the assets have been acquired by the trust. My
Trustee is permitted to retain a reasonable amount in cash or money market accounts in
order to pay anticipated expenses and other costs and to provide for anticipated
distributions to or for the benefit of a beneficiary.
My Trustee may abandon any trust property that my Trustee deems to be of insignificant
value.
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Section 12.15 Securities, Brokerage and Margin Powers
My Trustee may buy, sell, trade and otherwise deal in stocks, bonds, investment
companies, mutual funds, common trust funds, commodities, options and other securities
of any kind and in any amount. My Trustee may maintain margin accounts with
brokerage firms and may pledge securities to secure loans and advances made to my
Trustee or to or for the benefit of a beneficiary.
My Trustee may place all or any part of the securities held by the trust in the custody of a
bank or trust company. My Trustee may have all securities registered in the name of the
bank or trust company or in the name of its nominee. My Trustee may appoint the bank
or trust company as the agent or attorney in fact to collect, receive, receipt for and
disburse any income and generally to perform the duties and services incident to a
custodian of accounts.
My Trustee may employ a broker-dealer as a custodian for securities held by the trust and
may register the securities in the name of the broker-dealer or in the name of a nominee
with or without the addition of words indicating that the securities are held in a fiduciary
capacity. My Trustee may hold securities in bearer or uncertificated form and may use a
central depository, clearing agency or book-entry system, such as The Depository Trust
Company, Euroclear or the Federal Reserve Bank of New York.
My Trustee may participate in any reorganization, recapitalization, merger or similar
transaction. My Trustee may exercise or sell conversion or subscription rights for
securities of all kinds and description.
My Trustee may give proxies or powers of attorney that may be discretionary and with or
without powers of substitution. My Trustee may vote or refrain from voting as to any
matter.
Section 12.16 Settlement Powers
My Trustee may settle, by compromise, adjustment, arbitration or otherwise any and all
claims and demands in favor of or against the trust. My Trustee may release or abandon
any claim in favor of the trust.
Section 12.17 Limitation on My Trustee's Powers
All powers granted to my Trustee under this agreement or by applicable law shall be
limited as set forth in this Section, unless explicitly excepted by reference to this Section.
The limitations set forth in this Section shall not apply to me.
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(a) An Interested Trustee Limited to Ascertainable
Standards
An Interested Trustee may not exercise or participate in the exercise of
discretion with respect to the distribution of income or principal, or the
tennination of the trust to or for the benefit of a beneficiary, to the extent
that the exercise of such discretion is other than for the health, education,
maintenance or support of a beneficiary as described under Sections 2041
and 2514 of the Internal Revenue Code.
Article Thirteen
General Provisions
Section 13.01 Maximum Term for Trusts
Notwithstanding any other provision of this agreement to the contrary, unless terminated
earlier under other provisions of this agreement, each trust created under this agreement
shall terminate 21 years after the last to die of the descendants of my maternal and
paternal grandparents who are living at the time of my death.
At that time, the remaining trust property shall vest in and be distributed to the persons
entitled to receive mandatory distributions of net income of the trust and in the same
proportions. If no beneficiary is entitled to mandatory distributions of net income, the
remaining trust property shall vest in and be distributed to the beneficiaries entitled to
receive discretionary distributions of net income of the trust, in equal shares per capita at
each generation.
Section 13.02 Spendthrift Provision
Neither the income nor the principal of the trust property shall be assigned, anticipated or
alienated in any manner by any beneficiary, nor shall it be subject to attachment,
bankruptcy proceedings or any other legal process, or to the interference or control of
creditors or others.
Nothing contained in this Section shall restrict in any way the exercise of any power of
appointment granted in this agreement.
Section 13.03 Contest Provision
If, after receiving a copy of this Section, any person shall, in any manner, directly or
indirectly, attempt to contest or oppose the validity of this agreement, (including any
amendment to this agreement), or commences, continues or prosecutes any legal
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proceedings to set this agreement aside, then such person shall forfeit his or her share,
cease to have any right or interest in the trust property, and shall, for purposes of this
agreement be deemed to have predeceased me.
This Section shall not apply so as to cause a forfeiture of any distribution otherwise
qualifying for the federal estate tax charitable deduction.
Section 13.04 Survivorship Presumption
If any beneficiary is living at my death, but dies within 30 days after my death, then the
beneficiary shall be deemed to have predeceased me for purposes of this agreement.
Section 13.05 Changing the Situs of Administration
My Trustee may, at any time, remove all or any part of the property or the situs of
administration of the trust from one jurisdiction to another. My Trustee may elect, by
filing an instrument with the trust records, that the trust shall thereafter be construed,
regulated and governed as to administration by the laws of the new jurisdiction. My
Trustee may take action under this Section for any purpose my Trustee deems
appropriate, including the minimization of any taxes in respect of the trust or any
beneficiary of such trust.
If necessary, the beneficiaries entitled to receive distributions of net income under the
trust may, by majority consent, appoint a corporate fiduciary in the new situs. If a
beneficiary is a minor or is incapacitated, the parent or legal representative of the
beneficiary may act on behalf of the beneficiary.
Section 13.06 Definitions
For purposes of this agreement, the following terms shall have the following meanings:
(a) Adopted and Afterborn Persons
A legally adopted person in any generation and his or her descendants,
including adopted descendants, shall have the same rights and be treated in
the same manner under this agreement as natural children of the adopting
parent, provided such person is legally adopted prior to attaining the age
of 18 years. A person shall be deemed to be legally adopted if the
adoption was lel!al in the jurisdiction in which it occurred at the time that
.... _ oJ " . - --- -
it occurred.
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(b) Agreement
The term "this agreement" means this trust agreement and includes all
trusts created under the terms of this agreement.
(c) Descendants
The term "descendants" shall include a person's lineal descendants of an
generations.
(d) Education
The term "education" is intended to be an ascertainable standard in
accordance with Section 2041 and Section 2514 of the Internal Revenue
Code and shall include, but not be limited to:
Enrollment at private elementary, junior and senior high
school including boarding school;
Undergraduate and graduate study in any field at a college
or university;
Specialized, vocational or professional trammg or
instruction at any institution, including private instruction;
and
Any other curriculum or activity that my Trustee may deem
useful for developing the abilities and interests of a
beneficiary including, without limitation, athletic training,
musical instruction, theatrical training, the arts and travel.
The term "education" shall also include distributions made by my Trustee
for expenses such as tuition, room and board, fees, books and supplies,
tutoring and transportation and a reasonable allowance for living expenses.
(e) Grantor
The term "Grantor" shall have the same legal meaning as "Settlor,"
"Trustor" or any other term referring to the maker of a trust.
(f) Incapacity
Except as otherwise provided in this agreement, a person shall be deemed
incapacitated in anyone of the following circumstances.
(1) The Opinion of Two Licensed Physicians
An individual shall be deemed incapacitated whenever, in
the opinion of two licensed physicians, the individual is
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unable to effectively manage his or her property or
financial affairs, whether as a result of age, illness, use of
prescription medications, drugs or other substances, or any
other cause.
An individual shall be deemed restored to capacity
whenever the individual's personal or attending physician
provides a written opinion that the individual is able to
effectively manage his or her property and financial affairs.
(2) Court Determination
An individual shall be deemed incapacitated if a court of
competent jurisdiction has declared the individual to be
disabled, incompetent or legally incapacitated.
(3) Detention, Disappearance or Absence
An individual shall be deemed incapacitated whenever he
or she cannot effectively manage his or her property or
financial affairs due to the individual's unexplained
disappearance or absence for more than 30 days, or
whenever he or she is detained under duress.
An individual's disappearance or absence or detention
under duress may be established by an affidavit of my
Trustee, or, if no Trustee is serving, by the affidavit of any
beneficiary. The affidavit shall describe the circumstances
of the individual's disappearance, absence or detention and
may be relied upon by any third party dealing in good faith
with my Trustee in reliance upon the affidavit.
(9) Income Beneficiary
The term "income beneficiary" means any beneficiary who is then entitled
to receive distributions of the net income of the trust, whether mandatory
or discretionary.
Unless otherwise provided in this agreement, the phrase "majority of the
income beneficiaries" means any combination of income beneficiaries
who, if all accrued net income were distributed on the day of a vote by the
beneficiaries, would receive more than 50% of the accrued net income.
For purposes of !pjs calculation, beneficiaries ;\Tho are eligible to receive
discretionary distributions of net income shall be deemed to receive the
income in equal shares.
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(h) Independent Trustee
The term "Independent Trustee" means a Trustee who is not an Interested
Trustee as defined in subsection (i). Only an Independent Trustee may
exercise those powers granted exclusively to an Independent Trustee and
when the phrase "other than an Interested Trustee" is used. Whenever this
agreement specifically prohibits an Interested Trustee from exercising
discretion or performing an act, then only an Independent Trustee may
exercise that discretion or perform that act. An Independent Trustee shall
not be liable to any person for any good faith exercise or nonexercise of its
discretion under this agreement.
(i) Interested Trustee
The term "Interested Trustee" means (~; a Trustee who is a transferor of
property to the tmst (including a person whose qualified disclaimer
resulted in property passing to the tmst); (2) a Trustee who is a beneficiary
of the trust; or (3) a Trustee whom a beneficiary of the trust can remove
and replace by appointing a Trustee that is related or subordinate to the
beneficiary within the meaning of Section 672(c) of the Internal Revenue
Code.
For purposes this subsection "a beneficiary of the trust" means a person
who is or in the future may be eligible to receive income or principal from
the trust pursuant to the terms of the tmst. A person shall be considered a
beneficiary of a trust even if he or she has only a remote contingent
remainder interest in the trust; however, a person shall not be considered a
beneficiary of a trust if the person's only interest is as a potential
appointee under a testamentary power of appointment.
(j) Internal Revenue Code and Treasury Regulations
References to the "Internal Revenue Code" or to its provisions are to the
Internal Revenue Code of 1986, as amended from time to time, and the
corresponding Treasury Regulations, if any. References to the "Treasury
Regulations," are to the Treasury Regulations under the Internal Revenue
Code in effect from time to time. If a particular provision of the Internal
Revenue Code is renumbered, or the Internal Revenue Code is superseded
by a subsequent federal tax law, any reference shall be deemed to be made
to the renumbered provision or to the corresponding provision of the
subsequent law, unless to do so would clearly be contrary to my intent as
expressed in this agreement. The same rule shall apply to references to the
Treasury Regulations.
(k) Legal Representative or Personal Representative
As used in this agreement, the term "legal representative" or "personal
representative" means a person's guardian, conservator, executor,
13-12
\ I
administrator, Trustee, or any other person or entity personally
representing a person or the person's estate.
(I) Qualified Retirement Plan
The term "qualified retirement plan" means a plan qualified under Section
401 of the Internal Revenue Code, an individual retirement arrangement
under Section 408 or Section 408A or a tax-sheltered annuity under
Section 403. The term "qualified retirement benefits" means the amounts
held in or distributed pursuant to a plan qualified under Section 401, an
individual retirement arrangement under Section 408 or Section 408A, a
tax-sheltered annuity under Section 403 or any other benefit subject to the
distribution rules of Section 401(a)(9).
(m) Shall and May
Unless otherwise specifically provided in this agreement or by the context
in which used, I use the word "shall" in this agreement to command, direct
or require, and the word "may" to allow or permit, but not require. In the
context of my Trustee, when I use the word "may" I intend that my
Trustee may act in its sole and absolute discretion unless otherwise stated
in this agreement.
(n) Trust
The terms "this trust," "this revocable living trust," or "this trust
agreement" shall refer to this agreement and all trusts created under the
terms of this agreement.
(0) Trustee
The term "my Trustee" or "Trustee" refers to the Trustee named in Article
One and to any successor, substitute, replacement or additional person,
corporation or other entity that is from time to time acting as the Trustee.
The term "Trustee" refers to singular or plural as the context may require.
(p) Trust Property
The phrase "trust property" shall be construed to mean all property held by
my Trustee under this agreement, including all property that my Trustee
may acquire from any source.
Section 13.07 General Provisions and Rules of Construction
The following general provisions and rules of construction shall apply to this agreement:
13-13
(a) Duplicate Originals
This agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original. Any person may rely upon a
copy of this agreement certified under oath by my Trustee to be a true
copy, to the same effect as if it were an original.
(b) Singular and Plural; Gender
Unless the context requires otherwise, words denoting the singular may be
construed as plural and words of the plural may be construed as denoting
the singular. Words of one gender may be construed as denoting another
gender as is appropriate within the context. The word "or" when used in a
list of more than two items may function as both a conjunction and a
disjunction as the context requires or permits.
(c) Headings of Articles, Sections, and Subsections
The headings of Articles, Sections, and subsections used within this
agreement are included solely for the convenience and reference of the
reader. They shall have no significance in the interpretation or
construction of this agreement.
(d) Governing State Law
This agreement shall be governed, construed and administered according
to the laws of the Commonwealth of Pennsylvania as from time to time
amended, except as to trust property required by law to be governed by the
laws of another jurisdiction and unless my Trustee elects to change the
Situs of Admipistration as provided in Section 13.05.
(e) Notices
Unless otherwise stated, whenever this agreement calls for notice, the
notice shall be in writing and shall be personally delivered with proof of
delivery, or mailed postage prepaid by certified mail, return receipt
requested, to the last known address of the party requiring notice. Notice
shall be effective on the date personally delivered or on the date of the
return receipt. If a party giving notice does not receive the return receipt
but has proof that he or she mailed the notice, notice shall be effective on
the date it would normally have been received via certified mail. If notice
is required to be given to a minor or incapacitated individual, notice shall
be given to the parent or legal representative of the ITJnor or incapacitated
individual.
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(f) Severability
The invalidity or unenforceability of any provision of this agreement shall
not affect the validity or enforceability of any other provision of this
agreement. If a court of competent jurisdiction determines that any
provision is invalid, the remaining provisions of this agreement shall be
interpreted and construed as if the invalid provision had never been
included in this agreement.
I have executed this agreement on the day and year first above written. This agreement
shall be effective when signed by me, whether or not now signed by a Trustee.
I certify to the officer taking my acknowledgment that I have read this revocable living
trust, that I understand it, and that it correctly states the provisions under which my trust
property is to be administered and distributed by my Trustee.
'} 1" J
/-1 c'iAC[.Jv. .4/ 2C)- ~--/?.-f
Dorothy S. w"&h, Grantor
,f! -u' 1 I.~
U rJ'~'~ .I., ?L-I ~ oJ
Dorothy S. Wec , Trustee
13-15
COMMONWEALTH OF PENNSYLVANIA )
) ss.
COUNTY OF C.........,.-. '-=c.r-~---.c;,\ )
On this day, !\!ovtrn b:?A/ If, 2003, before me personally appeared Dorothy
S. Wech, as Grantor and as Trustee, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the individual whose name is subscribed to the
foregoing Revocable Living Trust, and acknowledged that she executed the same as her
voluntary act and deed for the purposes therein contained.
Witness my hand and official seal.
[Seal]
.J ~
X~.--c--- <----.
N OlarY Public
~-~"LL---CA _
My commission expires:
Notarial Seal
Susan E. Lederer, Notary Public
Lower Paxton Twp., Dauphin County
My Commission Expires May 3. 2004
13-16
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Schedule A
Ten Dollars Cash
A -1
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The First Amendment
to the
Dorothy S. Wech Revocable Living Trust
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.
On November 14, 2003, 1, Dorothy S. Wech signed the Dorothy S. Wech Revocable
Living Trust more formally known as:
Dorothy S. Wech, Trustee, or her successors in trust under the Dorothy S. Wech
Revocable Living Trust, dated November 14, 2003, and any amendments thereto.
Article Four of my living trust permits me to amend my trust in writing at any time. I
n0", ~'Aercise that right and amend lJ.l) trust as follows:
I add the following new paragraphs to Article Four, Section 4.01:
(c) Distributions for the Benefit of Persons Dependent on Me
My Trustee also may distribute as much of the net income and principal as my
Trustee deems necessary for the support of persons that my Trustee determines to be
dependent on me for support.
(d) Guidance for My Trustee Regarding Distributions
In making distributions under subsections (a) and (c), my Trustee shall give
consideration first to my needs, and then to the needs of those persons dependent on
me.
A distribution made to a beneficiary under this Section shall not be considered an
advance and shall not be charged against the share of the beneficiary that may be
distributable under any other provision of this agreement.
I revoke Article Eight of my living trust and substitute the following:
Article Eight
Remote Contingent Distribution Pattern
If, at any time, there is no individual beneficiary qualified to receive final distribution of
my trust estate or any part of it, then my Trustee shall distribute any such portion of my
trust estate with respect to which such failure of qualified recipients has occurred, in
equal shares, to Mark Cressman and David Cressman.
I executed this amendment on :::e"v~ \ ~ '- 00--\
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,
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I certify that I have read the foregoing amendment to my revocable living trust
agreement, and that it correctly states the changes I desire to make in my trust. I approve
this amendment to my revocable living trust in all particulars, and request my Trustee to
execute it.
/ j) o--td/~ J -t!.A-)~-k
Dorothy S. W ch, Grantor
1-1 ~~~./ stJ:eclu
Dorothy S. We , Trustee
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF C-~b~ (-\ ~
)
) ss.
)
On this day, ~~ c.,,--..... \ \.c , 200~ before me personally appeared Dorothy
S. Wech, as Grantor and as Trustee, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the individual whose name is subscribed to the
foregoing instrument, and acknowledged that she executed the same as her voluntary act
and deed for the purposes therein contained.
Witness my hand and official seal.
[Seal]
)~~- .~-~Q~
Notary Public
My commission expires:
Notarial Seal
Susan E. Lederer, Notary Public
Lower Paxton 'IWp.. Dauphin County
My Commission Expires May 3. 2004
II
Register of Wills of Cumberland County, Pennsylvania
INVENTORY
Estate of Wech, Dorothy S.
-- --- ------------------- ---------- - --- --~-- --- ----- ----
No. 21 - 05 - 0099
also known as
Date of Death 12/20/2004
, Deceased
Social Security No. 162-24-2404
Patricia Ann Wech
--- ----- -
The Personal Representative(s) of the above Estate, deceased, verify that the items appearing in the following Inventory
include all of the personal assets wherever situate and all of the real estate located in the Commonwealth of Pennsylvania
of said Decedent, that the valuation placed opposite each item of said Inventory represents its fair value as of the date of the
Decedent's death, and that the Decedent owned no real estate outside of the Commonwealth of Pennsylvania exqept that
which appears in a memorandum at the end of this Inventory. l!We verify that the statements made in this Inventorry are true
and correct. I/We understand that false statements herein are made subject to the penalties of 18 Pa. C. S. Section 4904
relating to unsworn falsification to authorities.
Attorney:
Susan E. Lederer
Personal Representative
Signature: _ 2o..~~~LU~."
Patricia Ann Wech
1.0. No.:
44861
Signature:
~- l--
Signature:
Address:
Address: P.O. Box 186
Grantham, P A 17027
k__'_::
4811 Jonestown Rd.
Suite 226
Harrisburg, P A 17109
Telephone: 717/652-7323
Telephone: 717-432-3051
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Dated:
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Personal Property
Car Loan to Patricia A. Wech (February 7, 2004)
19,500.00
1993 Ford Escort, titled to Dorothy S. Wech
1,355.00
1998 Ford Crown Victoria, titled to Dorothy S. Wech (sale price)
5,900.00
Certificate of Deposit held at Members 1st FCU, Account Number 207485-43, titled to
Dorothy S. Wech (accrued interest $5.28)
6,382.06
Certificate of Deposit held at Members 1 st FCU, Account Number 207485-44, titled to
Dorothy S. Wech (accrued interest $1.63)
1,667.46
Cremation Society (refund for overpayment of cremation)
715.00
Sale of Personal Property (yard sale)
1,900.00
Total Personal Property
$37,419.52
(Attach additional sheets if necessary)
Total Personal Property and Real Estate
$37,419.52
COMMONWEAL TN OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
DEPT. 280601
HARRISBURG, PA 17128-0601
REV-1162 EX(11-96l
RECEIVED FROM:
PENNSYLVANIA
INHERITANCE AND ESTATE TAX
OFFICIAL RECEIPT
WECH PATRICIA ANN
714 RANGE END ROAD
DlllSBURG, PA 17019
nu____ fold
ESTATE INFORMATION: SSN: 162-24-2404
FilE NUMBER: 2105-0099
DECEDENT NAME: WECH DOROTHY S
DATE OF PAYMENT: 09/19/2005
POSTMARK DATE: 09/19/2005
COUNTY: CUMBERLAND
DATE OF DEATH: 12/20/2004
NO. CD 005813
ACN
ASSESSMENT
CONTROL
NUMBER
AMOUNT
101 I $5,358.79
I
I
I
I
I
I
I
I
TOTAL AMOUNT PAID:
REMARKS:
CHECK# 345
SEAL
INITIALS: JA
RECEIVED BY:
REGISTER OF WILLS
$5,358.79
GLENDA FARNER STRASBAUGH
REGISTER OF WillS