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HomeMy WebLinkAbout09-23-81 (4) .- .... If .1 ~ ~ Ii ii iI !; !I ~ I [! !i IN RE ESTATE :i , i! ;j .' :i ii GRACE E. HEMPT ;i II Ii I I i I I I for the Department of Revenue, and William Fearen,Esquire, IN THE COURT OF COMMON PLEAS OF . . CUMBERLAND COUNTY, PENNSYLVANIA . . ORPHANS' COURT DIVISION DECEASED 21-78-683 . . STIPULATION AND NOW, Dorothy L. Keeney, Assistant Counsel, Counsel Counsel for the Estate of Grace E. Hempt, hereby make the following stipulation: 1. Grace E. Hempt died on December 8, 1978, a resident of York County. , :i 2. On or about September 6, 1979, Robert H. Kalbock, I Executor, filed the Inheritance Tax Return for the estate with I II the Register of Wills of Cumberland County. 'i h li 3. The assets of the estate included 6,000 shares of :1 I, il II cornman stock of C. A. Hempt Estate, Inc. This represents one- I i fourth of the shares outstanding, all of which are owned by i ! Hempt family members. ; 4. On October 12, 1979, the Executor filed with the .' , ,I __.~_" __. .J.A.~ f I I _ _ _ J._~ -.--_____'T''''''"': '. 5. On July 3, 1980, the appraiser for the Department of Revenue filed an appraisement increasing the value to $38.55 iper share, for a total of $231,314.49, based on a valuation of i ,I $42.83 per share minus a 10% discount for minority interest and. 'I II Ii lack of marketability. 'I j, !i 6. On or about November 10, 1980, the united States il iiInternal Revenue Services appraised the 6,000 shares at $19.98 d II per share based on a valuation of $39.96 per share minus a 50% !I '. Ijdiscount for ~inority interest and lack of marketability. { 7. On August 29, 1980, the Executor filed a protest with r r i the I d :iMay Commonwealth Department of Revenue Board of Appeals. On 21, 1981, the Board of Appeals adjusted the value of the 'shares to $31.97 per share for a total of $191,820 based on the Internal Revenue Service valuation of $39.96 per share minus a 20% for minority interest and lack of marketability. 8. On or about July 7, 1981, the Executor filed an I il 11 Appeal with the Court contesting the valuation as set by the Board of Appeals. holding. As a result of those discussions and in order to I I l I I I 9. Counsel for the respective parties have discussed the value of the stock, the effect of the restriction of sales to family members, and the minority interest of the decedent's 'j settle this matter without litigation, it is hereby agreed ! I that the value of the stock should be $21.98 per share for a -2- .' ;'~-'""--'<:';""""""'-'" ' I,L 117 ~ .~ ,7!>::..~' .~ I! <. I, ;1 !; I 'I Ii " I, j: :1 'j total value of $131,880 for the 6,000 shares held by the ii ! ~ I' ;1 decedent. I! \: II II 'I attached order reducing the appraised value of the II 11 of C. A. Hempt Estate, Inc. stock from $191,820 to $131,880. I I I i I I \ " 10. Counsel respectfully request that the Court issue the 11. Upon issuance of the Order of Court the Department of I Revenue will ~nstruct the Register of Wills to amend the inheri- I tance tax records to conform with the Order. i 'I I: (1 , I ~~.~e~ Assistant Counsel Counsel for Department r///?'I of Revenue William Fearen, Esquire Counsel for Estate of Grace E. Hempt I '\ -3- ~~-:-.'-,~-.:' ~ '..---'_....,_~,~ --'-r:'-:::-,-"''''''!:'''''''Iillr-.U:~ ~."(---'-- IN RE ESTATE IN THE COURT OF COMMON PLEAS OF . . CUMBERLAND COUNTY, PENNSYLVANIA GRACE E. HEMPT . . ORPHANS' COURT DIVISION DECEASED . . No. 21-78-763 'I I, il !i ORDER OF COURT d ;\ il 11 !, I' I i I: AND NOW, to wit, this day of , 1981, in consideration of the foregoing Stipulation, it is hereby ORDERED AND DIRECTED that the appraised value of the 6,000 shares of C. A. Hempt Estates, Inc., as determined by the Department of Revenue Board of Appeals, is reduced from $191,820 or $31.97 per share to $131,880 or $21.98 per share j: , and the inheritance tax shall be reassessed in accordance with this Order. BY THE COURT ORPHANS' COURT DIVISION P.J. , i Ii ,I Ii ! ;1 'I I' :1 ii : ~ 1 I .' ! I , I '-'-'--'-'''---'-''~~',':~'''-''~"...,,,!,~~~_:",,--..J,,",,c-'''''' .""'lk-,_..;...;:;.,J '''-~~'-'~;.,,!,' 7.~~~.~~~-w"",,~~ )'A~~-_~'c.<.~_.~~_.:'."",~~,,:_:.~--r'''.- CLECKNER AND FEAREN ATTORNEYS AT LAW 31 NORTH SECOND STREET RICHARD W. CLECKNER WilLIAM FEAREN KENT H. PATTERSON MICHAEL IRA lEVIN p. DANIEL ALTLAND GARY C. BENDER JOHN D,ClEMENTE HARRISBURG. PENNSYLVANIA 17101 AREA CODE 717 238-1731 September 9, 1981 The Honorable George E. Hoffer Orphans' Court Division Cumberland County Courthouse Carlisle, Pennsylvania 17013 Re: Grace E. Hempt Estate No. 21-78-763 Dear Judge Hoffer: In accordance with information furnished to you by the Department of Revenue several days ago, the parties have agreed to a settlement of the matter which prompted our appeal from the inheritance tax assessment in the above matter. In connec- tion therewith, I enclose a copy of a letter dated September 1, 1981, received from Dorothy L. Keeney, Assistant Counsel for the Tax Division of the Department of Revenue, together with the Stipulation and Order of Court referred to therein. If you find these papers in order, we respectfully request that you sign the Order of Court which is attached. If there is any thing further that you require in this matter, we shall be glad to accommodate you. with kindest regards. Yours sincerely, CLECKNER AND FEAREN L,. .".~ -, . . .'" ------. llllam Fearen . Enclosures - cfA" ~? ., WF : j a 1 ~ .... IN RE: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ESTATE OF GRACE E. HEMPT : : ORPHANS' COURT DIVISION : NO. 21-78-683 CITATION WE COMMAND, you that laying aside all business and excuses whatsoeyer, you be and appear in your proper person aefore the Honorable Judges of the Common Pleas Court, Orphans' Court Division at a session of the said Court there to be held, for the Cannty of CUmSerland to show cause why the Appeal of Robert H. Kalbach from the appraisement for inheritance tax purposeS dated June 4, 1981, on the Estate of Grace E. Hempt, deceased, should not be sustained, and the i.l1lherit.ance tax be assessed at the applicable rates on the clear value of the Estate as shown on petitioner's Report and Appraisal thereof filed on September 6, 1979. Returnable according to law on Friday, August 28, 1981, at 9:30 A.M. in Courtroom III. Witness my hand and official seal of office at Carlisle, pennsylvania this 13th day of July, 1981 ~",L l1.J!::ti ' Deputy Clerk of Orp ns' Court Division, Cumberland County, Carlisle, Penna. My Corom. Exp. 1st. Mon.Jan.1982.