HomeMy WebLinkAbout02-02-06
IN RE:
THE JEAN D. HANCOCK TRUST
: IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
: ORPHANS' COURT DIVISION
:NO.
TRUSTEE'S PETITION TO SUBSTITUTE TRUSTEE AND FOR
APPROVAL OF SALE OF REAL ESTATE
1. This Petition concerns the Jean D. Hancock Trust, a trust that was created on or
about August 22, 2005. A copy of the Trust Agreement is attached hereto, marked "Exhibit
A" and incorporated herein by reference.
2. The Settlor of the Trust is Jean D. Hanock, an adult individual, currently residing at
the Orrstown Personal Care Home, 3329 Orrstown Road, Orrstown, Cumberland County,
Pennsylvania 17244.
3. Prior to hospitalization and residence at the Orrstown Personal Care Home, the
Settlor lived at 204 West Main Street, Walnut Bottom, Cumberland County, Pennsylvania
and had lived in that property since approximately 1951.
4. The undersigned is the Trustee of the Jean D. Hancock Trust, and the nephew of
the Settlor; the undersigned became the Trustee at the Settlor's specific request in August,
2005.
5. The intent of the Trust was to legitimately shield the Settlor's real estate, her lone
major asset, from liquidation in the event that the Settlor were to ever need long term care
outside of her home.
6. At the time that the Trust Agreement was created and at the time at whichtheJ
parties entered into the Trust Agreement, the Settlor was eigh'y'-years, of age . b.~t
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unquestionably of sound mind and disposition, and specifically wanted this type of trust
arrangement because, within six months preceding August, 2005, the Settlor had observed
her older brother suddenly need assisted living, and knew that her brother's assets were
depleted because of that need.
7. In November, 2005, the Settlor suffered a stroke; the Settlor was initially hospitalized
at the Chambersburg Hospital and has since taken residence at the Orrstown Personal
Care Home as described previously.
8. As shown in the Trust Agreement, the trust was initially drafted with the intent that
the Settlor would stay in her Walnut Bottom home for the rest of her life, unless or until she
needed long term care and, in order to insure that the Settlor could continue the quiet
enjoyment of her home, the trust was drafted in such a way that Court approval would be
required for sale of the real estate.
9. With the advent ofthe Settlor's stroke approximately three months after the creation
of the trust, the trust will not serve to shield the Settlor's real estate (now, actually, the
trust's real estate) from liquidation so that cash can be generated for long term care.
10. On or about Sunday, January 15, 2006, the undersigned met with the Settlor, and
the three beneficiaries of the trust, the Settlor's three living adult sons, namely, Dennis W.
Hancock of Shippensburg, Pennsylvania, Teddie R. Hancock of Danville, Pennsylvania and
Kevin T. Hancock of Shippensburg, Pennsylvania.
11. At that meeting, the beneficiaries, the Settlor and the undersigned entered into a
Consent Agreement wherein we all mutually stated that we want the Court to approve the
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IRREVOCABLE TRUST AGREEMENT CREATING THE JEAN D. HANCOCK TRUST
rfihnd
This Irrevocable Trust agreement is made in triplicate this if:":--day of
,2005, between Jean D. Hancock, hereinafter called "Settlor," and
T. McBeth of Harrisburg, Pennsylvania, hereinafter called "Trustee."
RST: Settlor hereby delivers to Trustee the real estate parcel articulated in the
copy of the deed transferring same from Jean D. Hancock to this Jean D. Hancock Trust,
a true and correct copy of the deed attached hereto, marked Exhibit "A" and incorporated
herein by reference, the delivery made to the Trustee so that he may hold the real estate
parcel and distribute it pursuant to the terms of this Trust agreement.
SECOND: The beneficiaries of this Trust are the three living sons of the Settlor,
namely, Dennis W. Hancock of Shippensburg, Pennsylvania, Teddie R. Hancock of
Danville, Pennsylvania and Kevin 1. Hancock of Shippensburg, Pennsylvania.
THIRD: The term of this Trust is for the life of the Settlor. Upon the Settlor's death,
this Trust shall terminate, and Trustee shall cause the real estate that is the corpus of this
Trust to be sold, either publicly or privately as he deems appropriate, and the net proceeds
of said sale shall be divided equally among the beneficiaries named above.
FOURTH: The division of proceeds among the beneficiaries upon the Settlor's
death, shall not be on a per stirpes basis, but shall be limited to equal division among any
or all of the three beneficiaries living at the time of the Settlor's death.
FIFTH: Unless required to do so by an order of a court of competent jurisdiction, the
Trustee shall not under any circumstances convey for any price the corpus of this Trust
while the Settlor is living.
SIXTH: The Settlor shall be permitted to live in the improvements that are situated
on the real estate that is the corpus of this Trust throughout her remaining life, and the
Trustee shall not cause her to be evicted of ejected from same without her express written
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"EXHIBIT All
consent. If written consent from the Settlor can not be obtained because she is suffering
from any physical or mental infirmity at the time that she would otherwise wish to give
written consent, her oral consent will be sufficient if the oral consent is supported by written
affidavit of two disinterested witnesses who have heard Settlor give her express oral
consent. Neither the Trustee, nor any beneficiary, nor any spouse or issue of the Trustee
or any beneficiary are permitted to serve as a witness for purposes of this paragraph.
SEVENTH: In exchange for living in the improvements that are situated on the real
estate parcel that is the corpus of this Trust, Settlor shall pay rent on a monthly basis to the
Trustee. The amount of the rent shall be as agreed by the parties. But, it is specifically
contemplated by this agreement that the rent shall be minimal, and shall be at such an
amount so as to not place any financial hardship on the Settlor.
EIGHTH: Settlor may, from time to time, with the agreement of the Trustee, pay
from her personal funds monies for maintenance and upkeep of the corpus, real estate
taxes duly imposed upon the corpus, and the like. If and when Settlor makes any such
expenditures from her personal funds, such expenditures shall be credited dollar-for-dollar
against any rent obligation of the Settlor.
NINTH: The creation of this Trust is not intended in any respect to violate the
Rule Against Perpetuities. Accordingly, in the unlikely event that the Settlor survives all of
the beneficiaries, this Trust shall terminate upon the death of the last beneficiary, and a
successor Trustee as appointed by a court of competent jurisdiction or as otherwise
assuming the post of Trustee, shall forthwith convey the real estate parcel that is the corpus
of this Trust back to the Settlor.
TENTH: The parties do not contemplate that the Trust will generate any appreciable
income during its existence. Nonetheless, should the Trust generate income, Trustee shall
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distribute such income to the beneficiaries equally, the distribution to occur on March 15 for
income from the previous calender year.
ELEVENTH: While the parties contemplate that the Settlor will from time to time
expend her personal funds on maintenance, upkeep and taxation on the real estate parcel
that is the corpus of this Trust, it shall nonetheless be the duty of the Trustee to make all
expenditures necessary for the maintenance and upkeep of the corpus, including
expenditures for maintenance, repairs and taxes. Trustee may seek contribution to said
expenses from Settlor, but Settlor is not obligated to provide such contribution.
TWELFTH: No income or principal shall be assignable by any beneficiary, or
available to anyone having a claim against any beneficiary before actual payment to any
beneficiary .
THIRTEENTH: No Trustee shall be required to furnish security in any jurisdiction.
FOURTEENTH: This Trust shall be irrevocable and Settlor hereafter shall have no
right to alter, amend or revoke this Trust in any manner whatsoever.
FIFTEENTH: My individual Trustee shall not receive any compensation for its
services.
SIXTEENTH: Questions pertaining to the validity, construction and administration
of the Trusts created under this instrument shall be determined in accordance with the laws
of the Commonwealth of Pennsylvania.
SEVENTEENTH: Words used in the singular may be read to include the plural or
the plural may be read as the singular. Similarly, the masculine form may be read to include
the feminine and neuter; the feminine may be read to include the masculine and neuter; and
the neuter may be read to include the masculine and feminine.
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The parties have signed this agreement on the day and year first above written.
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Witness
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J n D. Hancock, Settlor
COMMONWEALTH OF PE~SYL VANIA
ss.
COUNTY OF
On this 22J. day of ~~ , 2005, before me, the
undersigned officer, personally appeared an D. Hancock known to me (or satisfactorily
proven) to be the person whose name is subscribed to the within instrument, and
acknowledged that she executed the same purposes therein contained.
I have signed my name and affixed my seal.
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EALTH OF PENNlMIA
fIIlIfsu NotaIIaI Seal
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SWORN STATEMENT OF TRUSTEE
I, Anthony T. McBeth, hereby swear that I have read the provisions of the Trust
Agreement regarding the Jean D. Hancock Trust, for which I am appointed Trustee. 1
understand the requirements of the Trust Agreement, and hereby consent my appointment
as Trustee.
CJ1\A;~ R, fY) rlkth-
Witness
COMMONWEALTH OF PENNSYLVANIA
. ss.
COUNTY OF DAUPH~J :
On this 7 J day of Clu &,( A,ni , 2005, before me, the
undersigned officer, personally appeared nthony T. McBeth known to me (or
satisfactorily proven) to be the person whose name is subscribed to the within instrument,
and acknowledged that she executed the same purposes therein contained.
I have signed my name and affixed my seal.
EAL=:S 'N~ ~' ~~
MBIssa S. MjeIs, Notaty PubIc
~orHmtfsbulg. CetJr;tkI CcuIlr
_o.n.lJI'r ,ExplresJune11.2D17 _ N TARY PUBLIC
....... ~.~ Asst1cilllion OfNolalfeli
CONSENT BY ALL INTERESTED PARTIES FOR THE SALE OF REAL ESTATE
CORPUS AND THE SUCCESSION OF TRUSTEE WITH RESPECT
TO THE JEAN D. HANCOCK TRUST
WHEREAS, the Jean D. Hancock Trust was created on or about August 22,2005
with, essentially, the Settlor's (Jean D. Hancock) primary asset (her home and real estate
on which it sits) being placed irrevocably into trust for her benefit so that she could
legitimately avoid liquidating the real estate in order to fund long term care; and
WHEREAS, for the convenience of the Settlor and at her specific request, Anthony
T. McBeth (the Settlor's nephew and an attorney licensed to practice before the Supreme
Court of Pennsylvania) was designated as Trustee and
WHEREAS, circumstances have changed such that the Settlor, the beneficiaries
(who are the Settlor's three and only surviving children) and the Trustee believe that it
would be in the Settlor's best interest to sell the real estate that is the corpus of the trust so
that liquid funds are available for the care and maintenance of the Settlor and
WHEREAS, although there is no written contract at the time this consent is being
drafted, a non-related party has made an arms-length offer in the range of $115,000.00 to
$135,000.00 for purchase of the real estate that is the corpus of this trust and
WHEREAS, all parties in interest desire that Teddie R. Hancock, one of the
beneficiaries and one of the three living sons (who is a Certified Public Accountant with a
Master's degree in that subject from Shippensburg University and who plans to direct the
funds from the sale of the real estate to the trust department of a bank with whose officers
Teddie R. Hancock is familiar) be substituted as Trustee in lieu of Anthony T. McBeth;
''EXHIBIT B"
THE PARTIES IN INTEREST HEREBY AGREE AND STIPULATE AS FOLLOWS:
1. All parties in interest are desirous of the Court of Common Pleas of Cumberland
County, Pennsylvania, or such other Court of competent jurisdiction, entering an Order
allowing the sale of the real estate that is the corpus of the trust;
2. That the real estate be sold to Benjamin Wilson of Walnut Bottom, Cumberland
County, Pennsylvania and/or his spouse (who have expressed serious interest in the
property) or any other eligible buyer, for a price in the ronge:1f $115,000.00 to $135,000.00,
subject to the terms and conditions of a contract for sale of the real estate into which the
Trustee and an interested buyer or buyers plan to enter if the Court approves the sale and
3. That Anthony T. McBeth be removed as Trustee and that Teddie R. Hancock be
substituted as Trustee.
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Date
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I, an D. Hancock, Settlor
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Dennis W. Hancock, Beneficiary
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Teddie R. Han k, Beneficiary _..~.-
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COMMONWEALTH OF PENNSYLVANIA
COUNTY OF( ,WVlP;lCelANO
On this J, st-V'\ day of , 2006, before me, the
undersigned officer, personally appeared Jean D. Ha ock known to me (or satisfactorily
proven) to be the person whose name is subscribed to the within instrument, and
acknowledged that she executed the same purposes therein contained.
ss.
I have signed my name and affixed my seal.
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NOTARY PUBLIC.
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COMMONWEALTH OF PENNSYLVANIA
COUNTY O{'lJJr168<J.J:tNO
On this /5> th. day , 2006, before me, the
undersigned officer, personally appeared Denn' W. Hancock known to me (or
satisfactorily proven) to be the person whose name is subscribed to the within instrument,
and acknowledged that she executed the same purposes therein contained.
ss.
I have signed my name and affixed my seal.
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COMMONWEALTH OF PENNSYLVANIA
COUNTY OF [1 ~tJ
ss.
On this \ ~ rh- day 0 , 2006, before me, the
undersigned officer, personally appeared Teddie R. ancock known to me (or satisfactorily
proven) to be the person whose name is subscribed to the within instrument, and
acknowledged that she executed the same purposes therein contained.
I have signed my name and affixed my seal.
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"\)rfj,.,.~sdoo Expirli;'!S June .i '!, .. 'i'F
COMMONWEALTH OF PENNSYLVANIA
COUNTY ol:fjj(Jtf/J..firJO
On this /5/-fl day 0\ I 2005, before me, the
undersigned officer, personallyappe red Kevin T. ncock known to me (or satisfactorily
proven) to be the person whose name is subscribed to the within instrument, and
acknowledged that she executed the same purposes therein contained.
ss.
I have signed my name and affixed my seal.
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Notarial Seal
Me:'3srl S.l\i1yers. Notary Public
CLy Of 1-ia.:risuJi'g, OJUpfiin County
~~~y!.:'~~ ~~~ June 11,2007
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OT ARY PUBLIC
COMMONWEALTH OF PENNSYLVANIA
COUNTYOF~
On this -'~(-+1 day ~ ' 2006, before me, the
undersigned officer, personally appeared Ar&ony T. McBeth known to me (or
satisfactorily proven) to be the person whose name is subscribed to the within instrument,
and acknowledged that she executed the same purposes therein contained.
ss.
I have signed my name and affixed my seal.
"
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NOTARY PUB IC {/
GOMMONY~I;AL TH OF PENNSfi_ V A.NU'I
Notarial Seal I
Me:'St.a S. Myers. Notary Public
City Of Hc.Ii1ist~Ji1;. O,:uiJ;;i1"; County
My Q:xnmIssion Expires June 11, 2007 . I
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AGREEMENT OF SALE FOR REAL ESTATE
AND NOW, this Agreement made this f1nrt/ day of :rA..vc.',1~v ,
2006, by and between JEAN D. HANCOCK TRUST by her Trustee ANTHONY T. MCBETH
of Harrisburg, Pennsylvania, (hereinafter referred to as "Seller"),
AND
Benjamin H. Wilson, of Shippensburg, Pennsylvania, (hereinafter referred to as "Buyer").
WITNESSETH:
That Seller in consideration of the covenants and agreements hereinafter contained
on the part of Buyer to be kept and performed, agrees to sell and convey unto the said
Buyer, his heirs and assigns, all the land and premises located at 204 West Main Street,
Walnut Bottom, PA 17266 and more fully described in a deed recorded at Book 270, page
2762 in the Cumberland County Recorder of Deeds Office.
1. TERMS OF PURCHASE: Buyer agrees to pay to Seller the total sum of ONE
HUNDRED EIGHTEEN THOUSAND AND 00/100 ($118,000.00) DOLLARS payable as
follows:
a. The sum of $ I rX-X:) Dollars at the time of the signing
,
of this Agreement. This sum shall be referred to as "good faith
money."
b. The balance of the purchase money as follows: $Il~ c>oc;)
Dollars in cash or by certified, cashiers or previously agreed to
attorney's or title agent's escrow account check at the time of
settlement.
2. SETTLEMENT: It is agreed that settlement for the transfer of this property
will occur on or before MARCH 1, 2006, at which time the Seller shall provide the Buyers a
properly drawn and executed Special Warranty Deed providing Buyers with fee simple title,
clear of any liens, encumbrances or judgments of any kind whatsoever and by providing
such title as would be insurable by a licensed title insurance company, without exception.
NOTE: It is hereby acknowledged by the parties that the Seller must obtain a Court Order
releasing the said property from the Trust for sale. Seller has no control of the Court, but
shall act promptly in obtaining this Court Order. Settlement may have to be postponed due
to these conditions. If settlement cannot occur before April 1 ,2006, the Buyer, at Buyer's
option may terminate this agreement and have his good faith money returned to him.
3. POSSESSION: Possession of the demised premises shall be given to
Buyers at the time of settlement.
4. TRANSFER TAXES: Real estate transfer taxes shall be paid equally by
Seller and Buyers at the time of the settlement as set forth herein with each party paying
ONE (1 %) percent of the tax due.
"EXHIBIT e"
5. TAXES AND ASSESSMENTS: Taxes, rents, water and sewer rents and all
other periodic claims and charges upon the above described premises shall be apportioned
at the time of settlement unless otherwise set forth herein. All prior assessments shall be
the responsibility of Seller and all future assessments shall be the responsibility of Buyers.
6. INSPECTION: It is understood that Buyers or their representative have
inspected the property or hereby waive their right to do so and are not relying upon the
representation of Seller or their agents or representatives. Any inspections requested by
the Buyers shall be made within 10 days of execution of this agreement. If any repairs
need to be completed, it shall be the Seller's option to have them repaired. If Seller fails to
have the items repaired, Buyer, at Buyer's option, may withdraw his offer and receive back
his good faith money, or Buyer may proceed with the sale as it, or Buyer and Seller may
negotiate a lower sale price to reflect the need for repairs not completed by the Seller.
Seller shall have the septic tank pumped at Seller's expense.
7. HAZARD INSURANCE: Seller shall maintain the currently existing insurance
in full force and effect until final settlement has been made. Seller shall bear risk of loss
from fire or other casualty until time of settlement. In the even to damage to the property,
by fire or other casualty, Buyer shall have the option of rescinding this agreement and
receiving back the hand or earnest money paid at the signing hereof or otherwise upon
account or of accepting the property in its then condition with the proceeds of any
insurance recovery obtainable by the seller. Buyer is hereby notified that they may insure
their equitable interest in this property as of time of the signing of the agreement. There is
currently homeowner's insurance in effect.
8. DISCLOSURES:
a. Standard Disclosure: Seller has attached a standard Seller's
disclosure form hereto.
b. Lead Paint Disclosure: Seller hereby states that the premises
were built before 1978. Or Seller hereby states that this
premises was built before 1978 and Seller has no knowledge
of the presence of lead-based paint on the property OR has
knowledge of the presence of lead-based paint on the Property
as indicated:
9. FIXTURES AND APPLIANCES: Included in this sale and purchase price are
all existing items permanently installed in the property, free of liens, including
plumbing, heating, lighting fixtures, water treatment systems, garage door
openers and transmitters, antennas, shrubbery and plantings, carpeting,
window treatments, built-in appliances and range/oven unless otherwise
stated. Also included: --
Excluded fixtures and items:
1 O. DEFAULT: The said time for settlement and all other times referred to for
performance of any of the obligations of the agreement are hereby agreed to be the
essence of this Agreement.
11. ENCUMBERING PROPERTY: Seller shall have the right to encumber the
demised premises up to the value or amount of their remaining balance due and owing to
them from Buyer under this Agreement.
IN WITNESS WHEREOF, the said parties to this Agreement have hereunto set their
hands and seals the day and year first above written.
P;g'~&/4 .~
VERIFICATION
I, Anthony T. McBeth, Esquire, Trustee for the Jean D. Hancock Trust in the
foregoing action, verify that the facts set forth in the attached document are true and correct
to the best of my knowledge, information and belief. I so state subject to the penalties of
18 Pa. C. S. ~4904 (relating to unsworn falsification to authorities).
: IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
: ORPHANS' COURT DIVISION
INRE:
THE JEAN D. HANCOCK TRUST
:NO.
CERTIFICATE OF SERVICE
I, Anthony T. McBeth, Attorney for the Trust, hereby certify that I have served the
attached document by placing same in the United States mail, first class, postage pre-paid
addressed as follows:
Jean D. Hancock
Orrstown Personal Care Home
3329 Orrstown Road
Orrstown, PA 17244
Teddie R. Hancock
2 Dogwood Lane
Danville, PA 17821
Kevin T. Hancock
82 Hollar Avenue
Shippensburg, PA 17257
Dennis W. Hancock
88Lenwood Park
Shippensburg, PA 17257
Lisa Greason, Attorney at Law
Attorney for Benjamin Wilson
11 Shearton Drive
P.O. Box 385
Carlisle, PA 170
~
Anthony T. McB
Attorney for the
407 North Front ., First Floor
Harrisburg, PA 17101
(717) 238-3686
Supreme Court I.D. # 53729