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HomeMy WebLinkAbout11-18-05 \ REV 1500 I OFFICIAL USE ONLY COMMONWEALTH OF · '* DEPA:~~;;~~A~~NUEJ INHERITANCE TAX RETURN [ILENUM;E;--~-~254-- _ n~ARRIS~~~~';'~61oi128-0601 _ RESIDENT DE_CEDEN~ _ COUN~ODL-j-;; _ NUMBER_ --l[)ECEDENT'S NAME (LA~Ri)T, AND MIDDLE INITIAW---- ----T SOCiAL SECURITY NUMBE~------ ~ ~~T: ~F ~~~H~~~-~b~~~e rt . ~-pATEOFBIRTH (MM-DD-YEAR) -----t T~~ ~E-T~~ -M9U:T~~ FILED IN DUPLICATE WITH THE- ~ r'O'~;'~';;' ~~"G '""'''' """"L,o ,1,; IN~ ~~~ "'TI"'. . - - --I ""'''~~,~~~.~~ OF WILLS -.:-- \TiJ ~;i~inaIReturn .---0 2~ sup~lementalReturn ----.-0 3. RemainderRetum(date~fdeathpriort~12-13-~- .... lo: ~ U) n 4 Limited Estate o It: lo: ...J' w"-g ~ f al Ii] 6. Decedent Died Testate (Allach D "- copy of Will) _~ _ [] 9. Lltigati~n prOceedS. Rece.ived.... .. / ..[] .1 o.~n~_~~I!ng~~1~5?redit (date of death between 0 11. Election to tax under Sec. 9113(A) (Allach Sch 0) THIS SECTION MUST 8EcoMPLeTiO.At.I.CQRRl!SPQI\IOEt-4CE At4Q90~,oet4TIAL",AX It4FCR...,AtlQtll$f(P\.I!.Q lile[)lR.e~Ti[).'l'~:.J' ~ f., N~AME.. .... .. COMPLETE MAILING ADDRESS ~ J~mes~. Hughe_~_________ lr FIRM NAME (If applicable) ~ SALZMANN HUGHES PC 354 Alexander Spring Road, Suite 1 .. 8_r;L~;~;E;~~~;33 ..-~-=-__ u_ ... -~:~Iisle, PA 1701~~ gf,i 11.ReaIEstate(SChedUleA) (1) None ~~~~~FIC~U~El~NLY . 2. Stocks and Bonds (Schedule B) (2) 502,1 83. 21 ~"; S3 ;; : =~J I 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) ____~o n e_ u' ;; -0 -I, REV-1500 EX + (5-001 ~j 4a. Future Intarest Compromise (date of death efter 12-12-82) 7. Decedent Maintained a Living Trust (Attach copy of Trust) o 5. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes 4. Mortgages & Notes Receivable (Schedule D) (4) None (5) 122,930.45 o (...,) ('0 z o i= ~ :::l l- ii: < () w D:: 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) [J Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G or L) Separate Billing Requested 8. Total Gross Assets (total Lines 1-7) 9. Funeral Expenses & Administrative Costs (Schedule H) 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (9) 41,925.47 ----~--,_._- (10) 8,902.84 (6) None (7) None (8) 625,113.66 11. Total Deductions (total Lines 9 & 10) (11 ) 50,828.31 574,285.35 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 (13) 0.00 not been made (Schedule J) 14. Net Value Subjectto Tax (Line 12 minus Line 13) (14) 574,285.35 ---1- -- -... SEE INSTRU~TIONS O~ REVERSE SIDE F~R APPLICABLE AATE~-----.-~-- z o i= ~ :::l ll. ::E o () x ~ 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116(a)(1.2) 0.00 x .00 (15) 0.00 16. Amount of Line 14 taxable at lineal rate 574,285.35 x .045 (16) 25,842.84 17.Amount of Line 14 taxable at sibling rate 0.00 0.00 x .12 (17) 0.00 x .15 (18) 0.00 (19) 25,842.84 18. Amount of Line 14 taxable at collateral rate 19. Tax Due 20.0 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. ,.,. BE SURE TO ANSWER ALL QUESTIONS Ot4 REVERSE SIDE AND RECHECK MAtH ;C~. ,. f;;." . " 'V:'y,: ",'. "-"h' ',"i,:",>Si ''i~.',.\t,-, Copyright 2002 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00; Decedent's Complete Address: STREET ADDRESS 32 Bullock Circle CITY Carlisle --------- _.._--~---------~---:------_._._--_. ISTATE PA :ZIP 17013 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1 ) 0.00 Total Credits (A + B + C) (2) 3. Interest/Penalty if applicable D. Interest E. Penalty TotallnteresVPenalty (D + E) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. A. Enter the interest on the tax due. B. Enter the total of Line 5 + SA. This is the BALANCE DUE. (3) (4) (5) (5A) (5B) Make Check Payable to: REGISTER OF WILLS, AGENT 25,842.84 0.00 25,842.84 25,842.84 PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes a. retain the use or income of the property transferred;.................................................................................. b. retain the right to designate who shall use the property transferred or its income;.................................... c. retain a reversionary interest; or...... ..... ... ........... .... ... ......... ...... .......... ...... .... ...... .... '" ..... .......... ... .... ............ d. receive the promise for life of either payments, benefits or care?............................................................. 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration?.......................... ................. ............... .......... ....... .... ..... ..... .......... ... ........ ... ..... No 'xl 1'.'J ,-- -. L!.1 [!:] [i] 'xl 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... [J i-xl 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property whichu_ contains a beneficiary designation?. ..... .............. ..... ..... ............. ....... ............. ... .... ... ....................... ........ .... ... ...... Cx.1 IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penalties of pe~ury, I declare t have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and ~omplete~ De~~~~,i~~!2~~~ue _._ era~~~~ _P~T~()~_~_ re~e~~!~v~_i~,~~~~, C?~ a!l_~nf~r~_at_io~~_~!~~r~~r_~_ ~~~,_~~~o~~~~___._______.___ _____ _______ ._,__.~__ SIGNAT OF PE ADDRESS /' I DATE 354 Alexander Spring Road, Suite 1 .. / '/.'.'0' Carlisle, PA 17013 I rlS OJ- -------.- - ----- ------ -------.-- ---.--- - -- bATE n__. -. ---- ---- -----UJ1-itk9S ADDRESS SALZMANN HUGHES PC; 354 Alexander Spring Road, Suite 1, Carlisle, PA 17013 For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P.S. 99116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0% [72 P.S. 99116 (a) (1.1) (ii)]. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is 0% [72 P.S. 99116 (a) (1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5%, except as noted in 72 P.S. 99116 1.2) [72 P.S. 99116 (a) (1 )]. 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. "...--"-.--. Rev-1503 EX+ (6-98) *' SCHEDULE B STOCKS & BONDS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Daugherty, RobertM. FILE NUMBER 21-05-0254 ESTATE OF All property jolnlly-owned with right of survivorship must be disclosed on Schedule F. ITEM CUSIP VALUE AT DATE NUMBER NUMBER DESCRIPTION UNIT VALUE OF DEATH 1 461308108 7,977.15 shares of Investment Co American - Com 30.72 245,058.05 2 552981409 1,004.32 shares of MFS Series Trust V - Total Retrn CL 15.94 16.008.86 B 3 7,657.45 shares of Royal Alliance Associates Inc. - 15.94 122.059.75 MFS Total Return Fund A 4 6,662.37 shares of Royal Alliance Associates Inc. - 17.87 119,056.55 American Balanced FD Inc. TOTAL (Also enter on Line 2, Recapitulation) 502,183.21 (If more space is needed, additional pages of the same size) Copyright (cl 2002 form software only The Lackner Group, Inc. Form PA-1500 SChedule B (Rev. 6-98) Rev-1508 EX+ (8.98) SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Daugherty, RobertM. FILE NUMBER 21-05-0254 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on schedule F. ITEM NUMBER DESCRIPTION 1 Cash VALUE AT DATE OF DEATH 328.00 2 Orrstown Bank - checking account #106002267 49.797.45 3 Cumberland Crossings - residency fee refund 70,000.00 4 Miscellaneous personal property 2.805.00 TOTAL (Also enter on Line 5, Recapitulation) 122.930.45 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule E (Rev. 6-98) REV-1151 EX+ (12.99) . SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Daugherty, RobertM. Debts of decedent must be reported on Schedule I. FILE NUMBER 21-05-0254 ITEM NUMBER A. FUNERAL EXPENSES: DESCRIPTION AMOUNT See continuation schedule(s) attached 6,899.18 B. 1. ADMINISTRATIVE COSTS: Personal Representative's Commissions Janes D. Hughes Social Security Number(s) I EIN Number of Personal Representative(s): Street Address 354 Carlisle Alexander Spring Road, Suite 1 State PA Zip 17013 City Year(s) Commission paid 2006 10,000.00 2. Attorney's Fees SALZMANN HUGHES PC 24,000.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City Relationship of Claimant to Decedent State Zip 4. Probate Fees 502.00 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs See continuation schedule(s) attached 524.29 TOTAL (Also enter on line 9, Recapitulation) 41,925.47 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) Rev.1502 EX+ (5-98) . SCHEDULE H-A FUNERAL EXPENSES continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Daugherty, RobertM. FILE NUMBER 21-05-0254 ESTATE OF ITEM NUMBER DESCRIPTION AMOUNT 1 Ewing Brothers 6.279.60 2 Flowers 45.58 3 Honorariums 450.00 4 The Washington Post - obituary publication 124.00 Subtotal 6.899.18 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-A (Rev. 6-98) Rev-1502 EX+ (6-98) . SCHEDULE H-B7 OTHER ADMINISTRATIVE COSTS continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Daugherty,RobertM. FILE NUMBER 21-05-0254 ESTATE OF ITEM NUMBER DESCRIPTION AMOUNT 1 Cumberland Law Journal - estate notice publication 75.00 2 Masland & Associates - research fee 200.00 3 Register of Wills - filing fee/short certificates 50.00 4 Roy D. Gottshall Auctioneer - appraisal fee 55.00 5 The Sentinel - Legal - estate notice publication 144.29 Subtotal 524.29 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-B7 (Rev. 6-98) Rev-1512 EX+ (6-98) . SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Daugherty, RobertM. FILE NUMBER 21-05-0254 ESTATE OF Include unrelmbursed medical expenses. ITEM NUMBER DESCRIPTION 1 Comcast Cable VALUE AT DATE OF DEATH 102.75 2 Cumberland Crossings 3.274.28 3 Met-Ed - Met-Ed 251.54 4 Patricia A. Rosendale CPA - prepare final income tax returns 250.00 5 Sprint Telephone 121.86 6 UGI 568.40 7 US Treasury - 2004 income tax due 3.720.00 8 USAA, credit card 614.01 TOTAL (Also enter on Line 10, Recapitulation) 8,902.84 <If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) REV.1513 EX+ (9.00) . SCHEDULE .J BENEFICIARIES COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF NUMBER Daugherty, Robert M. NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116(a)(1.2)] RELATIONSHIP TO DECEDENT Do Not List Trusteels) FILE NUMBER 21-05-0254 SHARE OF ESTATE AMOUNT OF ESTATE (Words) ($$$) I. R. M. Daugherty TUW 354 Alexander Spring Road Suite 1 Carlisle, PA 17013 f/b/o Joyce Powers, daughter 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 The Army War College Foundation Inc. 122 Forbes Avenue Carlisle, PA 17013-5248 remainder of Trust TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule J (Rev. 6-98) REV.1647 EX+ (9.00) . SCHEDULE M FUTURE INTEREST COMPROMISE (Check Box 4a on Rev-1500 Cover Sheet) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Daugherty,RobertM. This schedule is appropriate only for Estates of decedents dying after December 12,1982. This schedule is to be used for all future interests where the rate of tax which will be applicable when the future interest vests in possession and enjoyment cannot be established with certainty. Indicate below the type of instrument which created the future interest and attach a copy to the tax return 181 Will 0 Trust 0 Other FILE NUMBER 21-05-0254 ESTATE OF I. Beneficiaries NAME OF BENEFICIARY RELATIONSHIP DATE OF BIRTH N3E1O NEARESTBR1lf)AY 1. Joyce D. Powers daughter 02/11/1944 61 2. The Army War College Foundation Inc. 3. 4. 5. II. For decedents dying on or after July 1, 1994, if a surviving spouse exercised or intends to exercise a right of withdrawal within 9 months of the decedent's death, check the appropriate block and attach a copy of the document in which the surviving spouse exercises such withdrawal right. o Unlimited right of withdrawal o Limited right of withdrawal III. Explanation of Compromise Offer: The Trust is established to supplement the income of Ms. Powers in an amount of $300.00 per month since she is currently a recepient of SSDI. Additionally, the assets in the Trust can be used for her general welfare, medical and living expenses. IV. Summary of Compromise Offer: 1. Amount of Future Interest: 2. Value of Line 1 exempt from tax as amount passing to charities, etc. (also include as part of total shown on Line 13 of Cover Sheet) 3. Value of Line 1 passing to spouse at appropriate tax rate Check One 0 6% 03% 00% (also include as part of total shown on Line 15 of Cover Sheet) 4. Value of Line 1 taxable at lineal rate 06% ~4.5% (also include as part of total shown on Line 16 of Cover Sheet) 5. Value of Line 1 taxable at sibling rate (12%) (also include as part of total shown on Line 17 of Cover Sheet) 6. Value of Line 1 taxable at collateral rate (15%) (also include as part of total shown on Line 18 of Cover Sheet) 7. Total value of Future Interest (sum of Lines 2 thru 6 must equal Line 1) ----- -- - - -- Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule M (Rev. 6-98) LAST ffTILL AND TESL4~~fEjVT I, ROBERT 1\1. DAUGHERTY, of South lvIiddleton Township, Cumberland County, Pennsylvania, being of sound mind, disposing memory and full legal age, do hereby make, publish and declare this to be ~y Last Will and Testament, hereby revoking all Wills and Codicils heretofore made by me. ONE. I direct my Executor or Executrix, as the case may be, to pay all of my debts, funeral and administrative expenses as soon as convenient after my decease. Furthermore, I direct that all state, inheritance, succession and other death taxes imposed or payable by reason of my death and interest and penalties thereon with respect to all property composing of my gross estate for death tax purposes, whether or not such property passes under this Will, shall be paid by the Executor or Executrix of my estate. T\VO. My Executor or Executrix may, at his or her discretion, compromise claims, borrow money, retain property for such length of time as he or she may deem proper; lease and sell property for such prices, on such terms, at public or private sales, as he or she may deem proper; and invest estate property and income without restriction to legal investments unless otherwise provided hereunder. I authorize and empower my Executor or Executrix to sell any realty and/or personalty owned by me at my death and not specifically devised or bequeathed herein, at public or private sale or sales and to give good and sufficient deeds and/or bills of sale therefor, in fee simple, as I could do if living. My Executor or Executrix is authorized and empo\-vered to engage in any business in which I may be engaged at my death, for such period of time after my death as seems expedient to said Executor or Executrix. j& THREE. I hereby give, devise and bequeath all of my estate of \vhatever nature and wherever situate to my daughter, JOYCE D PO\VERS, absolute, provided however, her share shall be held in trust subject however to the terms and conditions of Paragraph Four below. In the event that she predeceases me or disclaims this interest for \vhatever reason, then in that event, this share shall be given, devised and bequeathed to the U.S. Afu\fY WAR COLLEGE FOUN'DA TION. FO DR. For the lifetime of my daughter, JOYCE D. POW'ERS, her inherited share pursuant to Paragraph Three above shall be held in trust by the hereinafter mentioned Trustee according to the follo\ving terms and conditions: The Trustee, as well as my representative, is hereby authorized to retain, unconverted, any property, real or personal, that I may own at my death and shall be under no duty to convert it into legal investments. The Trustee shall have the pmver and authority to sell, transfer, convey, invest and reinvest and to pay over the net income of the trust property, to or for the use of my daughter so as to supplement the other readily available assets and sources of income (including any governmental aid or benefits) then available to my daughter or to accumulate it in the sole discretion of the Trustee. The sums so deemed necessary to supplement the other readily available assets or sources of income (including any governmental aid or benefits), whether all or a part of principal or interest income, may be accumulated or expended by the Trustee for the use and benefit of my daughter as in the Trustee's sole discretion seems proper for her support, maintenance, education, medical care or general welfare, keeping in mind that the main purpose of this trust is to provide a supplement for my daughter, including support for her guardian to be used on her behalf, without disqualifYing her from being eligible for any governmental aid or benefits. In the event that the existence of this trust would disqualifY my daughter trom eligibility for significant governmental aid or benefits or should any interest hereunder, whether income or principal, while undistributed and in the possession of the Truste~ be subject to attachment, execution or sequestration by any creditor, assignee, subrogee or provider of benefits, aid or care of, to or for my daughter, then this trust may, at the sole discretion of the herein named Trustee, be immediately terminated and the then remaining principal and accumulated or undistributed income shall be divided and distributed to the residual beneficiary of this my Last vVill and Testament as set forth in Paragraph Three above. To the extent that the Trustee does not elect to terminate this Trust as stated above, this trust shall continue for the lifetime of my daughter as set forth herein '.'.hereby :2 ~ upon my daughter's death, the then remaIIllng principal and income hereof shall be distributed to the residual beneficiary set forth in Paragraph Three above. FIVE. I make the fol1o\ving provisions pertaining to generation-skipping transfers: A. 1\1y Executor or Executrix, as the case may be, may allocate any part of my generation-skipping tax exemption which I have not irrevocably utilized during my lifetime in such manner as my Executor or Executrix shall determine. B. My Executor or Executrix may elect not to have the deemed allocation provisions of Section 2632(b) of the Internal Revenue Code of 1986, as amended ("the Internal Revenue Code") apply to transfers made by me during my lifetime. C. To the extent that the allocation' of any generation-skipping tax exemption would not result in a particular trust being completely exempt from the generation-skipping tax, the Trustee shall separate such trust into two trusts, one of which is exempt from and one of which is funy subject tot the generation-skipping tax. In the case of a trust .vhich has not received assets at the time the exemption is allocated, the separation shall occur prior to any funding of the trust. A trust which is completely exempt from the generation-skipping tax shall be referred to as an "exempt trust" and a trust which is subject in any part to the generation-skipping tax shall be referred to as a "non-exempt trust". D. If the Trustee separates a trust into an exempt trust and a non-exempt trust under the immediately preceding paragraph: (1) Any person who has a power of appointment with respect to that trust may exercise such po\-ver differently as between the exempt trust and the non-exempt trust. " -' ~ (2) The percentage or traction of principal that a beneficiary may \vithdraw shall be calculated \vith respect to the total principal held in both the exempt and non-exempt trusts. Ho\vever, so long as there is any principal held in the non-exempt trust, to the maximum extent possible any \vithdrawal shall be paid from the non-exempt trust. (3) If the Trustee has the discretionary pO\ver to distribute income of a trust among "skip persons" and "non-skip persons" as defined in Section 2613(b) of the Internal Revenue Code, the Trustee may exercise such power differently as between the exempt trust and the non-exempt trust. E. In making any distributions hereunder for the vanous beneficiaries my fiduciaries may allocate among such distributions assets which are exempt from generation- skipping tax equally or pro rata or on such. other basis as they shall in their sole and absolute discretion determine, taking into account possible needs of beneficiaries for distributions of principal, possible appreciation in the value of trust assets during the lifetimes of the beneficiaries or such other factors as the fiduciaries consider significant. F. The Trustee may combine into a single trust two exempt trusts for the benefit of the same beneficiary; similarly, the Trustee may combine non-exempt trusts for the same beneficiary. G. )\;0 power to expend principal of an exempt trust for a beneficiary who is a "non-skip person" as detined in Section 2613(b) of the Internal Revenue Code may be exercised by the Trustee so long as there is any principal held in a non-exempt trust and in which the trustee has a similar pO\ver to expend principal for such beneficiary. 4 r H. In addition to all other powers set forth in this my Last \ViII and Testament, if at the death of a benetlciary, including a person who becomes a beneficiary pursuant to the exercise of a power of appointment under this Will, there is principal held in a non-exempt trust for that beneficiary and if in the absence of this power of appointment there would be a taxable termination with respect to such trust as defined in Section 2612 of the Internal Revenue Code, such beneficiary shall have the power by will containing a specific reference to this power of appointment to appoint any part or all of such principal outright to anyone or more of his or her creditors and the creditors of his or her estate. Upon the beneficiary's death, to the extent he or she fails to exercise effectively such power of appointment, the Trustee shall pay to the beneficiary's estate or to the tax authorities an amount equal to any increase in estate, inheritance and other death taxes, and interest an.d penalties thereon, payable because of the inclusion of the unappointed principal in the beneficiary's estate for tax purposes. The remaining unappointed principal shall be distributed in accordance with the terms of the trust. SIX. I hereby nominate and appoint JAMES D. HUGHES to be the Executor of this my Last \Vill and Testament. If he has predeceased me, failed to qualify or is not able or does not serv'e for whatever reason, I then appoint REBECCA R. HUGHES to serve as Executrix of my estate, whereby the substitute Executrix shall have the same powers as the original Executor hereunder. SEVEN. No person(s) shall benefit hereunder unless such beneficiary shall surv'ive me by sixty (60) days. EIGHT. No Executrix, Executor, or Trustee acting hereunder shall be required to post bond or enter security in this or any other jurisdiction. r 5 NI~E. No beneficiary may assign or anticipate his or her interest in any income or principal held or distributable hereunder; and no beneficiary's creditors may attach or othef\vise reach any such interest. TEN. The validity and administration of any trust established hereunder and any question or disputes relating to the construction or interpretation of any said trusts shall be governed and construed in,accordance with the laws of the Commonwealth of Pennsylvania. ELEVEN. If any person or institution entitled to share in any distribution under the terms of this my Last \Vill and Testament becomes an adverse party in any proceeding to contest the probate of this Last Will and Testament, such person or institution shall forfeit his, her or its entire interest inherited hereunder and all provisions in favor of such person or institution shall be declared void and of no effe,ct. The share of such person or institution so forfeited shall be distributed as part of the residue pursuant to Paragraph Three hereof except that if such person or institution is entitled to share in the said residue, that interest shall be distributed proportionately to the other residuary distributees, T"VEL VE. The Trustee, as well as my Executor or Executrix, shall have the following powers, in addition to those vested in it by lavi, for my property held for the benefit of my beneficiaries, whether income or principal, exercisable without court approval and effective until the distribution of all property under the terms of the trusts set forth in Paragraphs Four and Five above: The Trustee, at its discretion, may compromise claims, borrow money or retain property for such length of time as it may deem proper, sell lease, pledge, mortgage, transfer, exchange, convert or otherwise dispose of or grant option of all or any portion of trust property ,~ / 6 for such prices and on such terms in public or private transactions as it may deem proper; and invest trust property and income without restrictions to legal investments. The determination of the Trustee with respect to the advisability of making payments out of the income or principal to any heir or beneficiary inheriting hereunder shall be conclusive and binding on all persons howsoever interested in the respective trust. Further, the Trustee shall be authorized to receive additions to the respective trust of any kind or any property whatsoever from sources other than my estate and at any time in the sole discretion of the Trustee. THIRTEEN. I hereby nominate and appoint JA.\1ES D. HUGHES, or if he is not able or does not serve for whatever reason, REBECCA R. HUGHES, to serve as Trustee of the trust created in Paragraph Four hereof FOURTEEN. After much consideration, I hereby specifically exclude from this my Last Will and Testament my grandson, MICHAEL C. CHARLES and his spouse, DIA1"JE CHARLE S. IN \VITNESS \VHEREOF, I have hereunto set my hand and seal this 7-.] day of October, 2003. ~h1U4.Lv~AL) ROBERT M. DAUGHERTY 7 Signed, sealed, published and declared by the above-named person as and for a Last Will and Testament, in our presence, who at said person's request, in said person's presence and in the presence of each other have hereunto set ollr names as subscribing witnesses. 8 ACKN01VLEDG~~lENT AND AFFIDAVIT 'VE, ROBERT 1H. DAUGHERTY, JA)IES D. HUGHES and ANGELA F. UNGER, the testator and witnesses respectively, whose names are signed to the foregoing instrument, being first duly sworn, do hereby declare to the undersigned authority that the testator signed and executed the instrument as his Last Will and Testament, and that he had signed willingly, and that he executed it as his free and voluntary act for the purpose herein expressed, and that each of the witnesses, in the presence and hearing of the testator, signed the Will as a witness and that to the best of their knowledge the testator was, at that time, eighteen years of CO~lMON'VEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND Subscribed, sworn to and acknowledged before me by ROBERT M. DAUGHERTY, the testator herein, and subscribed and sworn to before me by JAMES D. HUGHES and ANGtLA F. UNGER, witnesses, this.::)3rd day of October, 2003. Notarial Seal Tricia L Bailey, Notary Public South MiddlelOn 1'wp., Cumberland County My Commissi,.n Expires Sept. 24. 2006 fJ . (" " '--.;. 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",;,: / .'~.-.. .---d/' ~ ~/,/"'", '/ -c- _ '_'<C'-:;~~' -". ..~ /' tC~ ,,~-,.., ,...1': ,~:./ , />~0:?;<;'.". - .;~ ~ ".,,, -i-:--'.' j?" -""} ;.,.... _~;C S ;~/~/f /' 7// ;'''' ,,,J' ',F .,- ...:;- /"<~ --0"' / /c..,,(d)'/ /', /l.~ p'r:i~' ,.--- 7 (" . 1';' -1 /;/} ;;o,'J; ~:' ~ r- J- -J ;/ ------- #3 3,~- ? - 1 Y/' C>)C~"'.'u~ 2. -_ i' '.- " " ~___,F" ..,': ~.r'- l::: / ..,-....- ""-...-- /~/.- ~ .... , -...'" -- ,( ,r'" .-' ..-.-..... .~~ ! ,., .>' 0~:?:/-??:7"-~ .. ,-;.-, ,,* /..;. j ~.I' :;~ >,,C /;. ~d,", ",' .... f ..~ __ic'~ <!' , ".,.....- ,j'/_ir;..,. "-" /' f'~ I.. - ~>~;y*.;:<~ " .. ......;:.; <f ~"' / ,,';o,of_... i' /' "---"-' l' ,/..,-, ....'- -.. "-.., :;z~,,,C "" .. _ ",;:r.... / /" ",""" ~, .. d~c'/PZ; ~~~' #/~1-7 '?' /,7 ~' ~.'" _.0 ~ " L-> .~".- ~ ,J2-e::t-~-~C;~ / C~~ / Y 3,,5 z~e7 if '1 1':/ ~. L,-- ~7:'- c/d L-J{ \\..- 0\>'V ..... ,\. \. '\,,\ ':) .. ,,',. ~'~,.;t _..' '" ~C' Or ~ \lo . <~ ~ . ...- ~ 'f . ; '1i j''::;-~'''' ':,.-~ 1<..."......<~" , .. 1>::f\1 : ~;, ~~ ~.< . < ....., ~,f:t.. l;:.,t.-J .-<1'0- ,,-""0 .. " .. ;:J.. '\ h <""~ I .. ~ ~'~ . .'.;v ~~- / '"" -r~'-- l('"' J /. , ".'~'; ;; ..~-, / ~ ~ ....... -&-:-">-.....- .---- / /. i __ t::~/ ~ - 01~~~~adc/z~;/:'E-e'z --"-/~Q\vv..\:> 3;6~;C:::5'- AUG 30.2005 9:18AM CALL CENTER 717 530 2624 p. 1 - FROM:' Timrithea:MObse Cust.. Service Specialist P.D.BOX 250 " SHIPPENSBURG Pk17257~0250' ", , RE:I',EST ATE'OF Robert M Qal,Jgherty ".- -. , " '. DATE OF DEATWFe~ruarY40,2005 . iTIS'HEREBY CERtiFIED THAT THe'AsoVENAMED:bECEOENTHA'O,>ON1J1r=ABOVEDAr!=,'THE ;, " FOLLOWING ACC.OUNTSWITHORRSTQWN..BANK; . -' , .., . :.<" " ' , ACCOUNT NO, , . CERTIF1CATE$'OFDlipOSIT .; SAVINGS ACCOUNTS DATE OPENED. . ' . " ~ -Df\Tf" Of OtAnI Vlh.l)fS Holdings by Investor ~---_._._-_. ..-~--- ._._-----~. ~---_.__.._-_._~._----_._--------_.~-~--- ._-~----_.,-~-~--- Robert M Daugherty 32 Bullock Cir Carlisle, PA 17013 BETTY JEAN O'LEAR Royal Alliance Associates, Inc. 12450 Fair Lakes Cir #200 Fairfax, VA 22033 703-818-0800 Combined Account Portfolio Date 02/20/2005 Created 03/29/2005 Robert M Daugherty Acct Name: ROBERT M DAUGHERTY 32 BULLOCK CIR CARLISLE PA 17013-7616 Acct No: 00060194812 AcctType: General MFS TOTAL RETURN FUND-A MSFRX BLEND MFS 7,657.45 Account Total: 15.94 122,059.80 $122,059.80 --_.- -------------_.._--_.~._-~_._-----~-~-_._--_._-----"--.._...~_._.._----_._-_._---- Acct Name: Acct No: ROBERT M DAUGHERTY 32 BULLOCK CIR CARLISLE PA 17013-7616 00068196404 Acct Type: General BLEND AMERICAN 6,662.37 17.87 119,056.62 FUNDS EQUITY AMERICAN 7,977.15 30.72 245,057.89 FUNDS Account Total: $364,114.52 --~._~--~---_._--~--- AMERICAN BALANCED FD INC ABALX AMERICAN FUNDS INV CO OF AMER A AIVSX Acct Name: Acct No: ROBERT M DAUGHERTY 32 BULLOCK CIR CARLISLE PA 17013-7616 08189278112 Acct Type: General MFS TOTAL RETURN FUND-B MTRBX BLEND MFS 1 ,004.32 Account Total: 15.94 16,008.88 $16,008.88 $502,183.20 .---------- -----------~._---~~-----_._-~._- Investor Total: Incomplete if presented without accompanying disclosure page Page 1 of 2 ___________l!oldin~s bJ!Jnvestor Combined Account Portfolio Date 02/20/2005 Created 03/29/2005 Robert M Daugherty 32 Bullock Cir Carlisle, PA 17013 BETTY JEAN O'LEAR Royal Alliance Associates, Inc. 12450 Fair Lakes Cir #200 Fairfax, VA 22033 703-818-0800 . --_._--_._--~- -_._-_._.~--_.~----_.- _.~------_._---.~._~_.._. -._.---- ---------- Disclosure: The information contained in this report reflects activity for periods shown and is based on sources believed to be accurate, however it cannot be guaranteed. It is neither an official statement of your account with Royal Alliance Associates, Inc., nor has the data been audited or verified by Royal Alliance, correspondent, individual sponsor(s) or money manager(s) as to its accuracy. Please refer to the confirmation notices and client statements that you receive directly from them. The figures may be net of applicable fees, charges and expenses. They may include dividends, distributions, additional contributions or withdrawals. Prices, yields and total returns will fluctuate. Some securities listed may not be liquid. Prices shown may reflect an approximate or estimated value, and not necessarily reflect actual selling or market price. Tax deferred accounts/products (such as variable annuities) have various rules and restrictions that apply regarding accessibility of funds, tax consequences and other factors. Page 20f2 NA-PD 9r. (kot . ......,.....--,.~._"..__..