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HomeMy WebLinkAbout01-31-06 IJ-1500 EX (6-00) OFFICIAL USE ONLY I COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 REV -1500 INHERITANCE TAX RETURN RESIDENT DECEDENT FILE NUMBER ~L COUN1Y CODE ~L 0931 ___ YEAR NUMBER j w C DECEDENTS NAME (LAST, FIRST, AND MIDDLE INITIAL) Wert Elwood DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) 9/13/2005 6/18/1913 (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) W SOCIAL SECURITY NUMBER 183-07-8851 THIS RETURN MUST BE FII.ED IN DUPI.ICATE WITH THE REGISTER OF WILLS SOCIAL SECURITY NUMBER ~~Cf.I I~ g:~ 00 ..J lXl a. <( [Xl 1. Original Return D 4. Limited Estate [i] 6. Decedent Died Testate (Attach copy of Will) D 9. Litigation Proceeds Received D 2. Supplemental Return D 3. Remainder Retum (date of death prior to 12-13-82) D 4a. Future Interest Compromise (date of death after 12-12-82) [i] 5. Federal Estate Tax Return Required D 7. Decedent Maintained a Living Trust (Attach copy oITruS!) L B. Total Number of Safe Deposit Boxes D 10. Spousal Poverty Credit (date Df dnth between 12-31-91 and 1-1-95) D 11. Election to tax under Sec. 9113(A) (AttachSch 0) THIS SECTION MUST BE COMPLETED, ALL COR.RESPONDENCEAND CONFIDENTIAt.:tAX INFORMATIONSHOlJLD BE blRE CTEDTe: NAME COMPLETE MAILING ADDRESS . D.. Ul . CPA 5006 E Trindle Rd Wa oner Fruti er & Daub TELEPHONE NUMBER 717-506-1222 Mechanicsburg, PA 17050 I 1. Real Estate (Schedule A) (1) o o o o 500 o OFFICIAL USE ONLY 2. Stocks and Bonds (Schedule B) (2) I 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) ;-." 4. Mortgages & Notes Receivable (Schedule 0) (4) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) (5) ',~. ) , 5 . u t 6. Jointly Owned Property (Schedule F) (6) D Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) (Schedule G or L) -,....~ -","" -~ 1,489,006 B. Total Gross Assets (total Lines 1-7) (B) 27,235 530 (11) (12) (13) (14) r~ 1, 48f:~06 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 11. Total Deductions (total Lines 9 & 10) 27,765 1,461,741 o I 12. Net Value of Estate (Line B minus Line 11) 13. Charitable and Governmental Bequests/See 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) 1,461,741 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) I~ <( l- II )( <( II- 18. Amount of Line 14 taxable at collateral rate x.O ~(15) X.O 45 (16) x.12 (17) x .15 (18) (19) o 65,778 o 16. Amount of Line 14 taxable at lineal rate 17. Amount of Line 14 taxable at sibling rate o 19. Tax Due 20. D 65,778 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT > > BE SURE TO ANSWER ALL QUESTIONS ON REVERSESIDEANDRECHECK MATH < < IW46451.000 L ~ ). <::~/ ~" " " 1;-. , .....""' :-<: ~ ~. ,~ '-J I Decedent's Complete Address: I STREET ADDRESS 129 E Green Street Cumberland CITY -r STATE I ZIP Shiremanstown PA 17011- I Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments I A. Spousal Poverty Credit 8. Prior Payments C. Discount (1) 65,778 o 61. 750 3,250 I Total Credits (A + 8 + C) (2) 65,000 3. Interest/Penalty if applicable D. Interest E. Penalty o o I Total Interest/Penalty (0 + E) (3) o I 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 (4) o 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 778 I A. Enter the interest on the tax due. (5A) o I 8. Enter the total of Line 5 + 5A. This is the BALANCE DUE. Make Check Payable to: REGISTER OF WILLS, AGENT (58) 778 PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS I I 1. Did decedent make a transfer and: Yes a. retain the use or income of the property transferred;. . . . . . . . . . . . . . . [Z] b. retain the right to designate who shall use the property transferred or its income; . [Z] c. retain a reversionary interest; or . . . . . . . . . . . . . . . . . . . . . . . . [Z] d. receive the promise for life of either payments, benefits or care? . . . . . . . . . D 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? . . . . . . . . . . . . . . . . . . . . . . . . . . .. D 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? D 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. D [j 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 that I have examined this retum, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer other than the personal representative is based on al' rm tion of whi pre parer has any knowledge. No D D D [Jl [}g og I I oner, CPA I SIGNA 1URE OF PERSON RESPONSIBLE FOR FILING RE1URN David EWert ADDRESS 24025 Ellis Lane SIGNA1URE OF PREPARER OTHER THAN REPRESENTATIVE Newberg, OR 97132 I Timoth ADDRESS 5006 E Trindle Rd ,~ L DATE 1/20 (> b I Mechanicsburg, PA 17050 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. S 9916 (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 retum are still applicable even if the surviving spouse is the only beneficiary. I I 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. 9 9116(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. S 9116(1 ,2) [72 P.S. 9 9116(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. 9 9116(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. 3W4646 1.000 I I I -'f) I, I I I I I I. I, I) I I I I I I Ij I r. Employment of Agents My Trustee shall have the power to employ agents including attorneys, accountants, investment advisors, custodians, appraisers or others to advise or assist my Trustee and to delegate to them fiduciary powers and to indemnify them against liability for positions taken in good faith and with reasonable basis. s. Corporate Fiduciary If any stock of a corporate Trustee or of any affiliate.or successor of a corporate Trustee shall be included in the assets of the trust, the Trustee shall have full authority in the Trustee's sole discretion and notwithstanding any regulation or rule of law to the contrary to retain the stock and any increases resulting from stock dividends and stock splits and from the exercise of purchase rights and the purchase of fractional shares needed to round out fractional share holdings that may arise concerning the stock. The Trustee shall vote the stock either directly or by proxy except to the extent the Trustee is prohibited by law from voting the stock in accordance with the\vritten instructions of a majority of the living beneficiaries then entitled to current distributions of income or their personal representatives. In the event there are no eligible beneficiaries to give instructions, the Trustee is authorized to vote the stock in the best interests of the beneficiaries in view of the purposes for which the trust was created. t. Investment Transactions \Vith regard to record keeping for investment transactions, my Trustee need not provide copies of confIrmations or similar notifications each time a trade or investment transaction occurs, but investment transactions shall be set forth in my Trustee's periodic accounting. u. Repairs and Improvements My Trustee shall have the power to make ordinary or extraordinary repairs or alterations in buildings or other structures, to demolish any improvements, to raze existing or erect new party walls or buildings. v. Business Personnel My Trustee shall have the power to elect or employ directors, officers, employees, partners or agents of any business and to compensate such persons whether or not any such person is a Trustee, director, officer, partner or agent of a Trustee or a beneficiary of the trust. 14-6 I I I I I I I I I I- I- I I - w. Farm or Ranch Property ) With respect to farm or ranch property, my Trustee shall have the' power to participate in and operate any farming (including tree farming) or ranch operation personally or with hired labor, tenants or sharecroppers to lease any farm for cash or a share of crops under a lease which permits or precludes the material participation of my Trustee, to fertilize and improve the soil, to employ conservation practices, and to participate in government programs and to perform any other acts deemed necessary or desirable to operate the property. In making a decision whether to materially participate in farming or ranch operations, my Trustee shall consider whether an election should be made or has been made under IRC ~ 2032A to qualify for special farm-use valuation. x. Ancillary Trustees I If for any reason my Trustee deems it advantageous to act through an ancillary Trustee, my Trustee may designate an ancillary personal representative or Trustee qualified to serve in the jurisdiction where such ancillary Trustee is to act and may delegate to such ancillary Trustee such of the powers granted under this agreement as my Trustee deems advisable without being chargeable with loss if any arising out of such designation or delegation. My Trustee may specify whether any corporate Trustee or any person or persons acting in an ancillary capacity hereunder shall serve with or without bond. Except as may be otherwise specifically provided, no ancillary Trustee need comply with the provisions of any Uniform Trustee's Accounting Act, the Uniform Trust Act or similar acts in force in any state where the Trustee may be acting. y. Retention of Closely Held Interest My Trustee shall have the power to retain any real estate interests, closely held securities or affiliated companies or business interests and to sell. or dispose of such interests only after careful consideration and after determining that sale or disposition is in the existing circumstances in the best interests of the trust or its beneficiaries. If at any time, this trust holds any stock in an S corporation, and my Trustee deems it appropriate for such corporation to maintain its Subchapter Selection, my Trustee may take all of the necessary actions to segregate the S corporation stock and assets of this trust, and in my Trustee's sole but reasonable discretion, and othenvise consistent with the terms of this trust to the greatest extent possible, may form new trusts and may amend the terms of this trust agreement as would be necessary to establish Qualified Subchapter S Trusts to hold the said S corporation stock and assets in compliance with Internal Revenue Code Sections 1361(b) and 1361(d)(3). } 14-7 I I .~) I I I I I I I I" i (I I I z. Exercise of Authority Except as otherwise provided in this agreement, my Trustee shall have the power to do all acts that might legally be done by an individual in absolute ownership and control of property. aa. Powers of an Interested Trustee Any Trustee who has an interest as a beneficiary in my trust agreement or any trust created by it shall be an interested Trustee. In all instances where an interested Trustee distributes or participates in the distribution of trust income or principal to or for the benefit of such Trustee which is limited by any standard other than the standards of education, health, maintenance and support, then the distribution shall be limited by the ascertainable standards of education, health, maintenance and support. - ) j 14-8 I I I I I I I I I I I) I - - ) Article Fifteen General Provisions Section 1. Spendthrift Protection Neither the principal nor the income of any trust created or contained under my trust agreement shall be liable for the debts of a beneficiary nor shall the same be subject to seizure by any creditor of any beneficiary under any lien or proceeding at law or equity. Except to the extent otherwise expressly provided in my trust agreement, no beneficiary shall have the authority or power to sell, assign, transfer, encumber or in .any manner to dispose of a beneficial interest whether income or principal. The limitations herein shall not restrict the exercise of any power of appointment or the right to disclaim by any beneficiary. Section 2. The Rule Against Perpetuities Unless sooner terminated or vested in accordance with other provisions of my trust agreement, all . interests not otherwise vested including but not limited to all trusts and powers of appointment created hereunder shall terminate one day prior to twenty-one (21) years after the death of the last survivor of the group composed of me and my lineal descendants living on. the date of my death. At that time, distribution of all principal and all accrued, accumulated and undistributed income shall be made to the persons then entitled to distributions of income or principal and in the manner and proportions herein stated irrespective of their then attained ages. Section 3. Incapacity A person shall be considered incapaCitated in the event such person has been determined to be legally incompetent by a court of competent jurisdiction; has been certified to be unable to property handle his or her own affairs by reason of physical illness or mental illness; or is unable freely to communicate for a period of 90 days. Section 4. Income and Principal Payments All payments of income or principal shall be made in such of the following ways as my Trustee determines appropriate: a. To each respective beneficiary in person upon his or her personal receipt; 15-1 I I -~) I I I I I I I ~) I . ) ./ b. Deposited in any bank to the credit of such beneficiary in any account carried in his or her name or jointly with another or others; c. To the parent or legal representative of the beneficiary; d. To a Custodian under a Uniform Transfers to Minors Act or Uniform Gifts to ~linors Act selected by my Trustee for such period of time under applicable law as my Trustee determines appropriate; e. To some near relative, friend or institution having primary responsibility for the care and custody of the beneficiary; f. By my Trustee using such. payment directly for the benefit of such beneficiary; or g ...' To the Trustee of any revocable trust of which the beneficiary is the Trustor. Section 5. Limit on Trustee's Discretion Notwithstanding any other provisio'n in my trust agreement, other than my Surviving Spouse with respect to a Survivor's Trust, no individual Trustee who is also a beneficiary hereunder shall have any right, power, duty or discretion concerning my trust estate if such right, power, duty or discretion conferred upon such Trustee under my trust agreement is determined to be a general power of appointment under Code Section 2041 or 2514 wlllch would cause any assets of my trust estate to be included in the estate of such Trustee-beneficiary. Any such right, power, duty or discretion with such effect shall be null and void with respect to such Trustee-beneficiary. No Trustee who is under a legal obligation to any beneficiary of my trust agreement or other person shall under any circumstances partake in any decisions relating to any discretionary distributions of income or principal of my Trust which can be used to discharge any such legal obligation of such Trustee. Section 6. No-Contest Clause If any person or entity, other than me, singularly, or in conjunction with any other person or entity, directly or indirectly, contests in any court the validity of my trust agreement, including any amendments thereto, then the right of that person or entity to take any interest in my trust estate or to act in any fiduciary capacity shall cease, and that person (and his or her descendants) or entity shall be deemed to have predeceased me. 15-2 I I I, I I I I I I I I') . - \ I ./ Section 7. Disclaimer by Beneficiary A beneficiary shall be entitled to accelerate any distribution to the beneficiary or to terminate his or her trust interest and thereafter receive outright distribution by use of a disclaimer. Section 8. Captions The captions of Articles, Sections and Paragraphs used in my trust agreement are for convenience of reference only and shall have no significance in the construction or interpretation of my trust agreement. Section 9. Severability Should any of the provisions of my trust agreement be for any reason declared invalid, such invalidity shall not affect any of the other provisions of my trust agreement, and all invalid provisions shall be wholly disregarded in interpreting my trust agreement. Section 10. Statutory References Unless the context clearly requires another construction, each statutory reference in my trust agreement shall be construed to refer to the statutory section mentioned, related successor sections and corresponding provisions of any subsequent law including all amendments. Section 11. Gender and Number In my trust agreement where appropriate except where the context otherwise requires, the singular includes the plural and vice versa and words of any gender shall not be limited to that gender. Section 12. Simultaneous Deaths If any beneficiary under my trust agreement and I die under circumstances in which the order of deaths cannot be established, I shall be deemed to have predeceased the beneficiary and my trust agreement shall be construed accordingly. 15-3 I I I) I I I I I I I ) /' I . ) ./ . Section .13. Governing State Law My trust agreement and the trusts created under it shall be construed, regulated and governed by and in accordance with the laws of the Commonwealth of Pennsylvania. Section 14. Definitions The following terms as used in my trust agreement are defined as indicated: a. Beneficiary Designation The term "Beneficiary Designation" means any document executed by me which affects the manner of payment of amounts held in a plan (of whatever type) subject to the distribution rules of section 401(a)(9) of the Code, or any commercial annuity or any similar deferred payment arrangement. b. Code The term "Code" means the Internal Revenue Code of 1986, as amended from time to time. The terms "gross estate," "adjusted gross estate," "taxable estate," "unified credit," "state death taxcredit," "maximum marital deduction," "marital deduction, r. and any other form which from the context in which they are used refer to the Code, shall have the same meaning as such terms have for the purposes of applying the Code to my trust agreement. c. Child, Children, Issue and Descendants The terms "child" or "children" means lawful blood descendants in the first degree of the parent designated: and "issue" and "descendants" mean the lawful blood descendants in any degree of the ancestor designated provided, however, that if a person has. been adopted, that person shall be considered a child of such adopting parent and such adopted child and his or her issue shall be considered as issue of the adopting parent or parents and of anyone who is by blood or adoption an ancestor of the adopting parent or either of the adopting parents. The terms "child," "children," "issue," "descendant" and "descendants" or those terms preceded by the terms "living" or "then living" shall include the lawful blood descendant in the appropriate degree of the ancestor designated even though such descendant is born after the death of a parent. 15-4 I I I I I I I I I I d. Death Taxes The term "death taxes" means all inheritance, estate, succession and other similar taxes that are payable by any person on account of that person's interest in the estate of the decedent or by reason of the decedent's death, including penalties and interest but excluding the following: 1. Any addition to the federal estate tax for any 11 excess retirement accumulation" under Code Section 4980A; 2. Any additional tax that may be assessed under Internal Revenue Code Section 2032A; and 3. Any federal or state tax imposed on a generation- skipping transfer, as that term is defined in the federal tax laws, unless that generation-skipping transfer tax is payable directly out of the assets of a trust created by my trust agreement. e. Deceased Trustor The term "Deceased Trustor" means a Trustor who has died. ) f. Education The term II education" shall be given broad interpretation and may include but not be limited to: . 1. High School Education at public or private elementary or. high schools, including boarding schools. 2. College Undergraduate and graduate study in any and all fields . whatsoever, whether of a professional character in colleges or other institutions of higher learning. ) 15-5 I I .~ I } I I I I I I I- ) 3. Specialized Training Specialized formal or informal training.in music, the stage, the handicrafts, the arts, or vocational or trade schools whether by private instruction or otherwise. 4. Other Educational Activities Any other activity including foreign or domestic travel which shall tend to develop fully the talents and potentialities of each beneficiary regardless of age. g. Heirs at Law References to someone's "heirs at law" mean individuals, who are living at the event when property is directed to be distributed to them. Those individuals' identities, and the-shares of the distributable property which they each receive, shall be determined under the intestacy laws of the Commonwealth _ of Pennsylvania which then govern the distribution of the personal property of a resident dying then. without creditors, owning only the distributable assets. h. Personal Representative The term "Personal Representative" means trustee, executor, executrix, administrator, administratrix, conservator, guardian, custodian or any other type of personal representation. i. Per Stirpes In every case in which a disposition of an interest is to be made to the issue of a person "per stirpes" it is intended that such disposition shall be made in accordance with the principle of representation. This principle in relation to my trust agreement means that whenever property is to be distributed to the issue of a person such property shall be divided into as many shares as there are, at the time of disposition, living issue in the nearest degree of kinship to such person and then deceased issue in the same degree who left issue who are then living, each then living issue in the nearest degree receiving one share and the share of each then deceased issue in the same degree being divided among his or her issue in the same manner. \ I -_./ 15-6 I I I I I I I I I I j. Trust Estate All of the property, real and personal, intangible and tangible, which has been transferred to my Trustee, whether or not listed on any Exhibits. k. Trustee's Discretion The term "discretion" with regard to a Trustee means such Trustee's sole but reasonable judgment. In exercising any discretionary power with respect to my Trust, my Trustee shall at all times act in accordance with fiduciary principles and shall act reasonably under the circumstances and not in bad faith or in disregard of the purposes of my Trust. l. Unp.sed Generation Skipping Tax Exemption Equivalent _ 1 ./ The term "Unused Generation Skipping Tax Exemption Equivalent" means the generation-skipping transfer tax exemption provided in section 2631 of the Code in effect at the time of death of a Trustor, reduced by the aggregate of (1) the amount, if any, of such exemption allocated by a Trustor or by operation of law to a Trustor's lifetime transfers and (2) the amount, if "any, a Trustor or a Trustor's Personal Representative or a Trustee has specifically allocated to property other than property to which such exemption is directed to be allocated by any applicable provision of my trust agreement. For purposes of my trust agreement, if at the time of death of a Trustor, such Trustor has made lifetime transfers of property to which an inclusion ratio of greater than zero would be applicable and for which the gift tax return due date has not expired (including extensions) and a return has not yet been fIled, it shall be deemed that the generation-skipping transfer exemption has been allocated to such transfers to the extent necessary and possible to exempt such transfers from generation-skipping transfer tax. m. Unused Unified Credit Equivalent The term "Unused UnifIed Credit Equivalent" means that the value of a Deceased Trustor's taxable estate determined without regard to the marital deduction which can be transferred at death without causing any federal estate tax liability because of: 1. Any available Unified Credit, 2. The Credit for State Death Tax to the extent it does not increase the amount of death taxes payable to any state, ) ------ 15-7 .ELWOOD W. vVERT LIVING TRUST Article One Trust Creation Section 1.. Parties to My Trust This trust :.greement dated OCT 1.:1. 1997 Trustor, aJ]ti the following initial Trustee(s): I is made between ELWOO) W. WERT, the ELWOOD W. WERT ALVENA K. WERT S t' " f:C IOn ... Name of My Trust This trust may be referred to as the: ~ ) '.. l' ELWOOD W. WERT LIVING TRUST, dated OCT 14 1997 The formed name of my trust arid the designation to be used for the transfer of title tt) the name of my trult is: ELWOOD W. WERT and ALVENA K. WERT, Trustees, or their successo;;s in tIust, under the ELWOOD W. WERT LIVING TRUST dated OCT 14 1997_ and any an I endments thereto Section 3. Revocable Living Trust My trust is a revocable living trust. Notwithstanding the preceding sentence. my trust agreement may cre:31e an irrevocable family and irrevocable survivor's retirement subt:ust fa:: retirement 1::enetits planning. Such irrevocable retirement subtrusls shall be administered without regard to qny ameIldments to my trust agreement other than an amend~ent which elimir ales either or both such Tru!:ts. J 1-1 3. The Credit for Prior Transfers, 4. Allowable exclusions from the Taxable Estate; and which is in excess of the net value of all property includable in the taxable estate of a .Deceased Trustor which does not qualify for the marital deduction or any other deduction and which passes outside of this Trust (whether by way of joint tenancy, life insurance contract, will, or otherwise) and under other provisions of this Trust. I have executed my trust agreement on the date set forth on the first page of my trust agreement. I certify that I have read my trust agreement and that it correctly states the terms and conditions under which my trust estate is to be held, managed and disposed of by my Trustee. I approve this revocable living trust in all particulars and request my Trustee to execute it. !!:~kl. u LeAr ELWOOD W. RT, Trustor ejJA~ ,t<)M(- ELWOOD W. T, Trustee ~~A -/ k (J~ ALVENA K. WERT, Trustee 15-8 ~) , - } . .-' - - - . - . iiii . . I I L/t I STATE OF PENNSYLVANIA ) SS COUNTY OF DAUPHIN ) On this the I~ft day of ~ot , 1997, before me, Lr1Jbl:--.L~ fe:rreJ8HJr:P- , the undersigned officer, personally appeared ELWOOD W. WERT, Trustor, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained. . In witness whereof I hereunto set my hand and official seal. VJ Uf Y?J~.' /.) ~M .', ..' , .~ Notary Public . Notarial Seal . Linda L. Fetterhoff. Notary Public T i'\ n County Title of Officer My Commission Expires Nov. 8, 1999 Member, Pennsylvania Association of Notaries STATE OF PENNSYLVANIA ) 55 COUNTY OF DAUPHIN ) On ti-lis the t~tt\.;day of &eJ:-. 1997, before me, LttJ()/J.-l. k~ , the undersigned officer, personally appeared ELWOOD W. WERT and ALVENA K. WERT, Trustees, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument and acknowledged that they executed the same for the purposes therein contained. In witness whereof I hereunto set my hand and official seal. ~~~ . (I J-ffi~ Notary Public Title of Officer Notarial Seal . Linda L. Fetterhoff. Notary Public Derry Twp.. Dauphin County 0 9 My Commission ExpIres Nov. 8, 1 ~9 . Member, Pennsylvania Msociation of Notanes 15-9 I I I) I II I I I I I I ) 1--- I I I I I II I I ) -.~ - - - THE ELWOOD W. WERT LIVING TRUST ~ NAME OF TRUST: ELWOOD W. WERT LIVING TRUST DATE ESTABLISHED: OCT 1 A- 1997 PRIMARY DISABILITY TRUSTEE: ALVENA K. \VERT SUCCESSOR DISABILITY TRUSTEE(S): DAVID ELWOOD \-VERT PRIMARY DEATH TRUSTEE: ALVENA K. WERT SUCCESSOR DEATH TRUSTEE(S): DAVID ELWOOD WERT INFORMAL TRUST NAME: ELWOOD W. WERT LIVING TRUST, dated OCT 1 4. 1997 FORMAL TRUST NAME: (TITLE TO ALL ASSETS IN THE TRUST ARE VESTED IN THIS NA1\IE) ELWOOD W. WERT and ALVENA K. WERT, Trustees, or their successors in trus~ under the ELWOOD W. WERT LIVING TRUST dated . ueT 14 1997 and any amendments thereto THIS SUMMARY IS NOT PART OF THE TRUST II I. I I I I I I I I I I- I I I I iiiii !!!!II !!!!i Assignme~t. of Personal Property ELWOOD:W.~)VERT, does hereby transfer an~ assign, without consideration and in order to change formal title only, all right, title and interest which he now has in that Personal Property listed below, to ELWOOD W. WERT ~d ELVENA K. WERT, Trustees, or their successors in trust, under the ELWOOD W. WERT LIVING TRUST dated OCT 14. 10.97 and any amendments thereto: Personal Propertv Assil!ned Personal Effects Furniture, Furnishings and Appliances Jewelry This assignment was executed on OCT 1 4 1997 e.~ fA). uJSl-r + ELWOOD W. WERT ST A TE OF PENNSYLVANIA ) 55 COUNTY OF DAUPHIN ) -rrf . ~ L' ' On this the )/l day of 0c:.--r , 19 q 7 , before me, A )CY.)C?l.j . U-Lc4.u L~ ' the undersigned officer, personally appeared ELWOOD W. WERT, known to me (or satisfac orily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained. In witness whereof I he~eunto set my hand and official seal. ~ ~. ~I~I~: Notary Publ Title of Off~ ~ NOTARIAL SEAL . NANCY L. LUDWIG, Notary PUblic i Hummelstown, Dauphin CountY My Commissioil Expires Nov. 20. 2000 I. I I I I I I I I I I I I I I I I I I Certification of Trust The undersigned Trustor and Trustee( s) hereby certify the following: 1. This Certification of Trust refers to the ELWOOD W. WERT LIVING TRUST, dated October 14, 1997, under a revocable trust agreement executed by ELWOOD W. WERT as Trustor. 2. The address of the Trustor is 129 East Green Street, Shiremanstown, Pennsylvania 17011. 3. The initial Trustee of my Trust is: ELWOOD W. WERT 4. The present Trustee is: ELWOOD W. WERT 5. The incapacity trustee(s) of my Trust are: DAVID ELWOOD WERT; THEN :MICHAL A. WERT 6. The death trustee(s) of my Trust are: DAVID ELWOOD WERT; THEN :MICHAL A WERT 7. Unless otherwise provided in my Trust Agreement, when I am serving as Trustee under my Trust, I may conduct business and act on behalf of my Trust without the consent of any other Trustees. Further, when my Spouse is serving as an Initial Co-Trustee under my Trust, my Spouse may conduct business and act on behalf of my Trust without my consent, subject, however, to those rights and powers set forth in Section 1.04 of Article One of my Trust Agreement, which are reserved solely unto me. I' I I 8. My Trustee(s) under my Trust Agreement is/are authorized to acquire, sell, convey,. encumber, lease, borrow, manage and otherwise deal with interests in- real and personal property in my Trust name. All powers of my Trustee(s) are fully set forth in Article Fifteen of my Trust Agreement. I 9. My Trust has not been revoked and there have been no amendments limiting the powers of my Trustees over trust property. I I 10. No person or entity paying money to or delivering property to my Trustee shall be required to see to its application. All persons relying on this document regarding my Trustee(s) and their powers over trust property shall be held harmless for any resulting loss or liability from such reliance. A copy of this Certification of Trust shall be just as valid as the original. I I The undersigned certify that the statements in this Certification o~t are true and correct and that it was executed in the County ofDaupbin, Pennsylvania on l. 7 2004 . Trustor: I I '" 17 J..' I L C }?1AfO:-~-, W , U.J, ELWOOD W. WERT I Trustee: I c~-?.-J . ~ 1 . LJ fUz-t ELWOOD W. WERT '-' = . I REV-1506 EX + (6-96) COMMONWEAL1H OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY I ESTATE OF Elwood W Wert FILE NUMBER 21 05 0931 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointfy-owned with the right of survivorship must be disclosed on Schedule F. ...ITEM _UMBER . DESCRIPTION VALUE AT DATE OF DEATH I 1 1990 Chevrolet CP Value determined by executor 500 I I I I I W46AD 1000 TOTAL (Also enter on line 5, RecaDitulation) $ (If more space is needed, insert additional sheets of the same size) 500 I REV-1510 EX + (6-98) SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY I COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ~TATE OF FILE NUMBER rlwOOd W Wert 21 05 0931 This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. ITEM UMBER 1. DESCRIPTION OF PROPERTY IN:LLOE Tt€ NAME OF TIE TRANSFEREE. THEIR RELATIONSHIP TO t'ECEOENT AND TIE DATE OF TRANSFER. ATTACHACOPY OF THE DEED FOR REAL ESTATE DATE OF DEATH VALUE OF ASSET % OF DECO'S INTEREST EXCLUSION (IF APPUCABLE' TAXABLE VALUE I Commerce Bank NA - checking account # , titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 Value per attached copy of bank statement 5,303 100.0000 o 5,303 I 2 Edward Jones brokerage account # 270-11580-1-2 titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 Interest accrued to 9/13/2005 121,870 100.0000 683 100.0000 o 121,870 683 I I 3 I Janney Montgomery Scott brokerage account # HB07 8651-8840 titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 Interest accrued to 9/13/2005 525,395 100.0000 2,530 100.0000 o 525,395 2,530 I 4 Janney Montgomery Scott cash in brokerage account # HB07 8651-8840 titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 67 100.0000 o 67 I . - 5 Legg Mason brokerage account # 363-05646 titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 Interest accrued to 9/13/2005 418,209 100.0000 3,469 100.0000 o 418,209 3,469 6 Merrill Lynch brokerage account # 872-49578 titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 Interest accrued to 9/13/2005 102,689 100.0000 446 100.0000 o 102,689 446 7 Merrill Lynch cash in brokerage account # 872-49578 titled in the name of Elwood W Wert Living Trust DTD 10/14/1997 174,550 100.0000 o 174,550 Total from continuation sched les 133,795 TOTAL (Also enter on line 7, Recapitulation) $ 1.489.006 (If more space is needed, insert additional sheets of the same size) v46AF 1.000 I I Estate of: Elwood W Wert Schedule G (Page 2) lem ~o. Descr~ption I 8 Personal Property, DOD value based on sell~ng pr~ce at auct~on on Jauary 5, 2006 I I 9 Residence - House and lot at 129 E Green Street Shiremanstown, Cumberland Co, PA 17011, t~tled in the name of Elwood W Wert L~ving Trust DTD 10/14/1997. DOD value based on selling price. See attached copy of settlement sheet. I I I I Total (Carry forward to main schedule) DOD Value of Asset % Interest 1,795 100.0000 132,000 100.0000 Exclusion 183-07-8851 Taxable Value o 1,795 o 132,000 133,795 I I I I I I-- I I I Commerce .Bank Commerce Bank/Harrisburg N.A 100 Senate Avenue Camp Hill Pa 17011 888-937 ~004 ~-- --- --- ELWOOD WERT ALVENA K WERT LIVING TRUST DATED 10/14/97 129 E GREEN STREET SHIREMANSTOWN PA 17011 1 CHECK G ACCOUNT NUMBER 0082002130 ~OUS--STATEMEN'1'--BAliANeB--AS---o!'-()9ff}-91 05-- ;--.--; -;--. ~--;--;--;-;-;--;-;-;- -;- .;-:-~--;--;-.-;- ----- PLUS 1 DEPOSITS AND OTHER CREDITS ................ ... LESS 2 CHECKS AND OTHER DEBITS .......... ............ CURRENT STATEMENT BALANCE.AS OF 10/10/05 ................... ...... NUMBER OF DAYS IN THIS STATEMENT PERIOD 31 paqe 1 of 2 I nMmmNT DAn I to/10/05 I 100..002130 ACCOUNT NO. CLOSED -S-,-!-69~--- .26 5,369.77 .00 ----------------------------------------------------------------------------------- *** CHECKING ACCOUNT TRANSACTIONS *** DATE DESCRIPTION 09/13 AC-PP - -ELEC BILL 09/22 I~ST PAYMENT 09/22 COUNTER WITHDRAWAL DEBITS 66.49 5,303.28 cm:DITS .26 5,303.02 09/22 ----------------------------------------------------------------------------------- *** BALANCE BY DATE *** 09/09 5,369.51 09/13 .00 23-2324730 8.20 . PAYER FEDERAL ID NtlMBER INTEREST PAID YEAR TO DATE ---------------------------------------------------- *** :INTEREST EARNED TH:IS STATEMENTPElUOD DAYS IN PERIOD ......................... INTEREST EARNED ..................... ... ANNUAL PERCENTAGE Y:IELD EABNED (APY).... *** 12 .26 0.15% ---------------------------------------------------- NOTE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION Member FDIC I I Estate Valuation Date of Death: 09/13/2005 Valuation Date: 09/13/2005 Processing Date: 01/19/2006 Account: Estate of: Estate of Elwood W. Wert Elwood W Wert Living Trust DTD 10/14/97 Report Type: Date of Oeath Number of Securities: 31 File 10: Wert I I I I I I I I I I Shares or Par Security Description Mean and/or Oiv and Tnt Security Adjustments Accruals Value High/ASk Low/Bid 1) 25000 PITTSBURGH PA SCH DIST GO BDS (7252765M7) Financial Times Interactive Data OTD: 10/01/2004 Mat: 09/01/2023 4.25% 09/13/2005 Int: 09/01/2005 to 09/13/2005 35.42 99.94700 Mkt 99.947000 24,986.75 2) 50000 BANK AMER CORP SUB INTNTS BE (06050XSKOl Financial Times Interactive Data DTD: 10/28/2004 Mat: 10/15/2029 5.5% 09/1312005 Int: 07/15/2005 to 09/13/2005 443.06 97.89420 Mkt 97.894200 48,947.10 3) 50000 GE CAPITAL INTERNOTES (36966RXH4) Financial Times Interactive Data OTO: 05/19/2005 Mat: 05/15/2025 5.25% 09/1312005 Int: 08/15/2005 to 09/13/2005 204.17 95.87150 Mkt 95.871500 47,935.75 ' 4 ) 50000 LEHMAN BROS BK WILMINGTON DE (52519CJ41) Financial Times Interactive Data DTD: 02/19/2003 Mat; 03/02/2015 5% 09/1312005 Int: 09/02/2005 to 09/13/2005 50000 GENERAL MTRS ACCEP CPSMARTNBE (37042G3KO) Financial Times Interactive Data DTO: 05/06/2003 Mat: 05/15/2008 5.1% 09/1312005 Int: 08/15/2005 to 09/13/2005 25 PENNSYLVANIA INSD MUNS INCOME (708838529) UT SER 25 M Miscellaneous 09/13/2005 2,066.00 97.64250 Mkt 97.642500 48,821.25 ' 76.39 5) 93.51050 Mkt 93.510500 46,755.25 198.33 61 82.64000 A/B 82.640000 7) Carryover & Daily Interest Int: 0.35 Ex: 09/07/2005 Rec: 09/09/2005 Pay: 09/25/2005 20 PENNSYLVANIA INSD MUNS INCOME (708838586) UT SER 22 M Miscellaneous 09/13/2005 57.00 8.75 252.31000 A/B 252.310000 5,046.20 8} 9) Carryover & Daily Interest Int: 1.33 Ex: 09/07/2005 Rec: 09/09/2005 Pay: 09/25/2005 174550.36 Cash (CASH) 1100 BLACKROCK INCOME TR INC (09247F100) COM New York Stock Exchange 09/13/2005 79.40 26.60 174,550.36 6.49000 6.42100 H/L Oiv: 0.036780 Ex: 09/13/2005 Rec: 09/15/2005 Pay: 09/30/2005 6.455500 + 0.036780 6.492280 7,141.51 ./ 10} 2055.267 DRYDEN MUN SER FO (262468762) PA SER CL A Mutual Fund (as quoted by NASDAQ) 09/13/2005 10.21000 Mkt 10.210000 20,984.28 This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsys.com. {Revision 7.0.41 Page 1 I Date of Death: 09/13/2005 Estate of: Estate of Elwood W. Wert I Valuation Date: 09/13/2005 Account: Elwood W Wert Living Trust DTD 10/14/97 Processing Date: 01/19/2006 Report Type: Date of Death Number of Securities: 31 File 10: Wert I Shares Security Mean and/or Div and Int Security or Par Description High/Ask Low/Bid Adjustments Accruals Value 11) 2000 WELLS FARGO CAP VI (9497 8B205) I GTD CAP 6.95% New York Stock Exchange 09/13/2005 26.20000 26.07000 H/L 26.135000 52,270.00 v I 12) 50000 BANK HAPOALIM B M NEW YORK BRH (062512GG7) Financial Times Interactive Data DTD: 11/21/2001 Mat: 11/21/2016 6% 09/13/2005 101. 324 60 Mkt 101. 324600 50,662.30 / I Int: OS/21/2005 to 09/13/2005 933.33 I 13) 50000 FIRSTBANK P R (337627EC3l Financial Times Interactive Data DTD: 02/13/2004 Mat: 08/13/2019 5.5% I 09/13/2005 98.37980 Mkt 98.379800 49,189.90 / Full coupon paid on 09/13/2005 14) 50000 FIRSTBANK P R 1337627KZ5) I Financial Times Interactive Data OTO: 09/16/2004 Mat:: 03/16/2020 5.5% 09/13/2005 98.14190 Mkt 98.141900 49,070.95 {/ Int: 08/16/2005 to 09/13/2005 206.25 / I 15) 50000 HUNTINGTON NATL BANK (446438EJ8) Financial Times Interactive Data DTO: 04/30/2003 Mat: 04/30/2015 5% 09/13/2005 97.54820 Mkt 97.548200 48,774.10 I Int: 08/31/2005 to 09/13/2005 90.28 16) 50000 LEHMAN BROS BK FSB DE (52519HHNO) Financial Times Interactive Data OTD: 08/27/2004 Mat: 08/27/2019 5.5% I 09/13/2005 98.36290 Mkt 98.362900 49,181.45 Int: 08/27/2005 to 09/13/2005 122.22 " 17) 50000 MERRILL LYNCH BK USA. SALT LAKE (59020WSF9) . Financial Times Interactive Data DTD: 04/07/2004 Mat: 04/08/2019 5% -- 09/13/2005 95.54070 Mkt 95.540700 47,770.35 Int: 09/08/2005 to 09/13/2005 34.72 / 18) 50000 TREASURY BK ALEXANDRIA VA (89465AGB8) Financial Times Interactive Data OTO: 02/25/2004 Mat: 02/25/2019 5.5% 09/13/2005 98.57450 Mkt 98.574500 49,287.25 Int: 08/25/2005 to 09/13/2005 137.50 f 19) 50000 TREASURY BK ALEXANDRIA VA (89465AJB5) Financial Times Interactive Data DTO: 04/16/2004 Mat: 04/16/2024 5.25% 09/13/2005 93.11390 Mkt 93.113900 46,556.95 Int: 08/16/2005 to 09/13/2005 196.88 20) 20000 WEST SHORE PA AREA HOSP AUTH H REV BDS (955817CRO) Financial Times Interactive Data OTD: 12/01/2001 Mat: 01/01/2006 4.35% 09/13/2005 99.99200 Mkt 99.992000 19,998.40 Int: 07/01/2005 to 09/13/2005 174.00 Page 2 This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsys.com. (Revision 7.0.4) Date of Death: 09/13/2005 Valuation Date: 09/13/2005 Processing Date: 01/19/2006 Estate of: Estate of Elwood W. Wert Account: Elwood W Wert Living Trust DTD 10/14/97 Report Type: Date of Death Number of Securities: 31 File ID: Wert 21) . 22) I 24) I I 25) I 26) I 27) I I I I I I I I Shares or Par Securi ty Description Mean and/or Div and Int Security Adjustments Accruals Value High/Ask Low/Bid 28) 20 PENNSYLVANIA INSD MUNS INCM TR (70884B679) UT SER 111 S Miscellaneous 09/13/2005 225.36000 A/B 225.360000 4,507.20 / Carryover & Daily Interest 93.80 / 30000 NORTH POCONO SCH DIST PA G.O. SCH (661684GL8) Financial Times Interactive Data DTD: 07/01/2001 Mat: 09/15/2005 3.65% 09/13/2005 100.00000 Mkt 100.000000 30,000.00 Int: 03/15/2005 to 09/13/2005 541. 42 25000 GENERAL MTRS ACCEP CORP (370425SE1) Financial Times Interactive Data DTD: 08/29/2002 Mat: 08/28/2012 6.875% 09/13/2005 92.59520 Mkt 92.595200 23,148.80 Int: 08/28/2005 to 09/13/2005 71.61 100000 HOUSEHOLD FIN CORP INT NT BE (44181EKR8) Financial Times Interactive Data DTD: 08/08/2002 Mat: 08/15/2022 7.45% 09/13/2005 102.88820 Mkt 102.888200 102,888.20 Int: 08/15/2005 to 09/13/2005 579.44 50000 GENERAL MTRS ACCEP CORP (3704AOVZ2) Financial Times Interactive Data DTD: 01/19/2005 Mat: 01/15/2025 7.25% 09/13/2005 78 . 90320 Mkt 78.903200 39,451.60 i Int: 08/15/2005 to 09/13/2005 281. 94 50000 FEDERAL HOME LN MTG CORP (3133FOX38) Financial Times Interactive Data DTD: 07/17/2003 Mat: 07/15/2019 5% 09/13/2005 97.76730 Mkt 97.767300 48,883.65 Int: 08/15/2005 to 09/13/2005 194.44 100000 FEDERAL HOME LN MTG CORP (3133FOD97) Financial Times Interactive Data DTD: 02/27/2003 Mat: 02/15/2023 5% 09/13/2005 96.66850 Mkt 96.668500 96,668.50 i Int: 08/15/2005 to 09/13/2005 388.89 5000 PLEASANT HILLS PA IIUTH SWR REV GTD SWR R (7284 66CV3) Financial Times Interactive Data OTO: 05/15/2001 Mat: 09/01/2008 4.125% 09/13/2005 103.13200 Mkt 103.132000 5,156.60 Int: 09/01/2005 to 09/13/2005 6. 88 .~ 29) 30) 25000 SOUTH BUTLER CNTY PA SCH DIST G.O. REF (836891CY5) Financial Times Interactive Oata OTO: 08/15/2001 Mat: 10/01/2009 4.1% 09/13/2005 100.99800 Mkt Int: 04/01/2005 to 09/13/2005 461.25 100.998000 25,249.50 31) 25000 SOUTH BUTLER CNTY PA SCH DIST G.O. REF (836891CZ2) Financial Times Interactive Data DTD: 08/15/2001 Mat: 10/01/2010 4.2% 09/13/2005 100.99800 Mkt Int: 04/01/2005 to 09/13/2005 472.50 100.998000 I 25,249.50 I This report was produced with EstateVa1, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evPsys.com. (Revision 7.0.4) Page 3 Date of Death: 09/13/2005 Valuation Date: 09/13/2005 Processing Date: 01/19/2006 Shares or Par Estate of: Estate of Elwood W. Wert Account: Elwood W Wert Living Trust DTD 10/14/97 Report Type: Date of Death Number of Securities: 31 File 10: Wert Security Description High/Ask Low/Bid 32) 50000 PENNSYLVANIA HSG FIN AGY REV BOS (7087927U4) Financial Times Interactive Data OTO: 09/04/2003 Mat: 04/01/2012 4.5% 09/13/2005 103.02600 Mkt 1nt: 04/01/2005 to 09/13/2005 Total Value Total Accrual Total $1,349,841.62 . I I I I I I I I I I I I This report was I Page 4 Mean and/or Div and Int Security Adjustments Accruals Value 103.026000 51,513.00 / 1,012.50 " $1,342,712.65 $7,128.97 produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsys.com. (Revision 7.0.4) - . OMS NO. 2502~26 ,r A. B. TYPE OF LOAN: 1.0FHA 2.DFmHA 3. DCONv. UNINS. 4. OVA 5.0CONV.INS. U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT 6. FILE NUMBER: 17. LOAN NUMBER: SETTLEMENT STATEMENT n5-1.s~ 8. MORTGAGE INS CASE NUMBER: C. NOTE: This form is furnished to give you a statement of ~ctu"_ttlement costs. Am~unts JM!d to 600 by the settlement egent .~ shown. Items marked -[pOCr were paid outside the cloSlllg; they are shown here for lllformationlfl purposes and are not frlcluded III the totals. 1.0 3/98 (05-1436.p~14361'2D) D. NAME AND ADDRESS OF BORROWER: E. NAME AND ADDRESS OF SELLER: F. NAME AND ADDRESS OF LENDER: EML Associates EMIood W. Wert Estate 129 east Green Street Shire/Tllnstown, PA 17011 G. PROPERTY LOCATION: H. SETTLEMENT AGENT: 23-2850082 I. SETTLEMENT DATE: 129 East Green Street White Rose Settlement Services, Inel05-1436 Shiremanstown. PA 17011 January 5, 2006 Cumberland County, Pennsytvanla PLACE OF SETTLEMENT , 1441 East Market Street York, Pennsylvania 17403 J. SUMMARY OF BORROWER'S TRANSACTION K SUMMARY OF SELLER'S TRANSACTION 1100. GROSS om:: FRnM 400. II'" 101. Contract Sales Price 132000.00 401. Contract Sales Price 132000.00 102. Personal Property 402. Personal Property 103. Settlement Charges to Borrower (Une 1400) 1 805.50 403. 104. 404. 105. 405. in ltdVlfnce P.irl .rlvlln,.... 106. CitvITown Taxes to 406. CitvITown Taxes to 107. County Taxes to 407. Countv Taxes to 108. School Taxes 01105106 to 07101/06 S02.n 408. School Taxes 01105106 to 07101106 B02.n 109. 409. 110. 410. ",. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER 134.608.27 420. GROSS AMOUNT DUE TO SELLER 132,802.n 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 600. REDUCTIONS IN AMOUNT DUE TO SELLER: 201. Deposit or earnest money 13200.00 501. Excess DeDOsit (See Instructions) 202. Principal Amount of New Loan(s) 502. Settlement Charoes to SeUer (Une1400) 1415.00 203. Existing loan(s) laken subiect to 503. Existing loan(s) taken subject to 204. 504. Payoff of first Mortgage 205. 505. Payoff of second Mortgage 206. 506. 207. 507. (DeDOsit disb. as proceeds) 208. SOS. 209. 509. p,alUstmenrs ror Items UnIMIU a Y i:>fH/ef Adiustmen s ror Items unDBKI Bv :Seller 210. CilvITown Taxes to 510. CilvlTown Taxes to 211. County Taxes 01101/06 to 01105106 5.47 511. County Taxes 01101/06 to 01105/06 5.47 212. School Taxes to 512. School Taxes to 213. Sewer 1st Quarter 01/01/06 to 01/05106 1.33 513. Sewer 1 st Quarter 01/01/06 to 01105/06 1.33 214. 514. 215. 515. 216. 516. 217. 517. 218. 518. Auction to Ziealer Auction Co. ~.904.50 219. 519. 220. TOTAL PAID BYIFOR BORROWER 13,206.80 520. TOTAL REDUCTION AMOUNT DUE SELLER 6,326.30 300. CASH AT SETTLEMENT FROMITO BORROWER: 600. CASH AT SETTLEMENT TOIFROM SELLER: 301. Gross Amount Due From Borrower (Line 120) 134,608.27 601. Gross Amount Due To Seller (Une 420) 132,802.77 302. Less Amount Paid BylFor Borrower (Line 22()) ( 13,206.80) .602. Less Reductions Due Seller (Line 520) ( 6,326.30. 303. CASH ( X FROM) ( TO) BORROWER 121 401.47 603. CASH ( X TO) ( FROM) SELLER 126,476.47 The undersigned hereby acknowledge receipt of a colTllleted copy of pages 1 &2 of this statement & a~n:~ to JZt-:-ft.. Borrower Seller "// V/.t, . ., (l/iL5TT'f EML Associates ( 'EtNood W. Wert Estate / 5"'" I I I I I I I I I I I I I I Page 2 L. SETTLEMENT CHARGES 700. TOTAL COMMISSION Based on Price S e PAlO FROM PAID FROM Division of Commission (line 7001 .IS Follows: BO~S SElLER'S 701. $ to FUNDS AT FUNDS AT 702.$ to SETTLEMENT SETTLEMENT 703. Conmission Paid at Settlement 704. to 800. ITEMS PAYABLE IN CONNECTlON WITH LOAN 801. Loan Origination Fee % to 802. Loan Discount % to 803. Appraisal Fee to 804. Credl Report to 805. Lender's Inspection Fee to 806. MorlQage Ins. ApP. Fee to 807. Assul11'tion Fee to 808. 809. 810. 811. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Interest From to @' $ Iday ( days %) 902. MIP Totlns. for LifeOfloan for months to 903. Hazard Insurance Premium for 1.0 years to 904. 905. 11000 RESERV . 1001. Hazard Insurance months (l:I! $ per month 1002. Mortgage Insurance months @ $ per month 1003. CitvlTown Taxes months iBI $ per month 1004. CountvTaxes months ft $ per month 1005. School Taxes months @$ per month 1006. months @ $ per month 1007. months @ $ per month 1008. AlIareaate Accountina Adiustmt months e $ per month 1100. TITLE CHARGES 1101. Selllement or Closlno Fee to White Rose Settlement Services 250.00 1102. Abstract or Trlle Search to White Rose Settlemert Services 150.00 1103. TltIe Examination to 1104. TIlle Insurance Binder to 11OS. Document Preparation to White Rose Settlemert Services deed 75.00 1106. Notary Fees to Notary Public 10.00 1107. Attorney's Fees to (includes .bove item numbers: ) 1108. Title Insurance to While Rose Settlement Services Inc. (includes .bove item numbers: 11 02 1103 1104 1111 ) 1109. Lender's Coverage $ 1110. Ov.ner's Coverage $ 1111. While Rose Settlement Services! Old RepubUc 1112. Closing Service Letter Old Republic national Trlle Insurance Company Ins. Letter 1113. Electronic Doc Retrieval Fee 1200. ANU 1201. Recording Fees: Deed $ 40.50 : Mortgage $ ; Releases $ 40.50 1202. CilvlCounty TaxlStarnps: Deed 1,320.00' Mortaaae 1,320.00 1203. State TaxlStamps: Transfer Tax ; Mortaaae 1,320.00 1,320.00 1204. 12OS. 1300. ADDITlONAL SETTLEMENT CHARGES 1301. Survev to 1302. Pestlnspeclion to 1303. Tax Certification to Judy C. ProweU 5.00 1304. OvemiahtlDeivery Fee to While Rose Settlement Serv/DHL pkgllproceeds 20.00 13OS. Sewer 1st Quarter to Lower Allen Township 30.00 1400. TOTAL SETTLEMENT CHARGES (Enter on Lines 103, Section J and 502, Section K) 1,805.50 1,415.00 By signing page 1 of this statement, the signatories aclcnowledge receipt of a col11'leted copy of page 2 of this two page statement. I I I I I I I I I I I I I I I I Certified to be a true copy. White Rose Settlement Services. Inc. Selllernent Agent I (~14361~1436/20) V-1511 EX + (12-99) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF --%' 1~09~c:l W Wert ITEM NUMBER 1. B. 1, . . - I I 2. I 3, I I 4, 5. I' 6. 7, I 1 I I 1'46AG 1.000 FUNERAL EXPENSES: Hoover Funeral Home ADMINISTRATIVE COSTS: Personal Representative's Commissions Name of Personal Representative(s) SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS Debts of decedent must be reported on Schedule I. DESCRIPTION Social Security Number(s) I EIN Number of Personal Representative(s) Street Address City Year(s) Commission Paid: Attorney Fees State Zip Claimant Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Street Address City Relationship of Claimant to Decedent Probate Fees Accountant's Fees Tax Return Preparer's Fees Capital City Oil Heating oil State Zip Total from continuation schedules . FILE NUMBER 21 05 0931 TOTAL (Also enter on line 9, Recapitulation) (If more space is needed, insert additional sheets of the same size) $ AMOUNT 5,310 6,000 212 15,713 27 235 I I Estate of: Elwood W Wert I II 2 II 3 I 183-07-8851 Schedule H Part 7 (Page 2) CMA annual fee Annual fee Merrill Lynch CMA account 125 David EWert House maintenance from 9/13/05 to 1/6/06 397 II 4 Del ta Air Executor's airfare from Newberg, OR 1,274 I 5 6 I 7 I I 8 9 II 10 I 11 I 12 II 13 I 14 15 I 16 I 17 FedEx Kinkos Copy charges 5 FedEx Kinkos Copy charges 24 Help U Move Moving expense for personal property 814 Lenk Tree Service Tree removal 530 Levina House cleaning 40 Lower Allen Twnshp 30 NE Waste Service Trash bill 32 Novco Supply Co Furnace repair 3,225 Novinger Enterpr Plumbing Plumbing repairs 361 PA American Water 96 PDX Parking fee at airport 40 PP&L 108 Sewer Sewer Bill 30 II Total (Carry forward to main schedule) 7,131 I I Estate of: Elwood W Wert 183-07-8851 I I 18 I 19 I 20 21 I I I I I I I !! . . - iiii !! II - - - Schedule H Part 7 (Page 3) Verizon Telephone 406 Wrightstone, Sara Lawn care 50 Ziegler Auction Advertising for auction 600 Ziegler Auction Auctioneer expenses on sale of residence and personal personal property 7,526 - ;; Total (Carry forward to main schedule) 8,582 R EV-1512 EX + (12-03) SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX REnJRN RESIDENT DECEDENT _ ESTATE OF FILE NUMBER - rlwood W Wert 21 05 0931 Report debts incurred by the decedent prior to death which remained unpaid as of the date of death, including unreimbursed medical expenses. ITEM UMBER 1. I Family Internal Doctor bill I 2 Pinnacle Health Hospice care I I I I I I I I I I I DESCRIPTION W46AH 2.000 TOTAL (Also enter on line 10, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) VALUE AT DATE OF DEATH 30 500 530 "t::V-1513 EX+ (9-00) SCHEDULE J BENEFICIARIES COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT "'STATE OF :lwood W Wert NUMBER I 1 NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] David E. Wert 24025 Ellis Lane Newberg, OR 97132 80% Residue: 1,169,385 2 Eric W. Wert 24025 Ellis Lane Newberg, OR 97132 - iiiii I 3 I, I 10% Residue: 146,173 Michal A. Wert 24025 Ellis Lane Newberg, OR 97132 General Bequests: 10 10% Residue: 146,173 FILE NUMBER 21 05 0931 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE Do Not List Trustee(s) OF ESTATE Son Grandson Daughter-in-law 1,169,385 146,173 146,183 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 I I I I I I W46A11.000 B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET (If more space is needed, insert additional sheets of the same size) $ o f. Death of Disabled or Underage Beneficiary Upon the death of a beneficiary under this Section, my Trustee shall distribute all of such beneficiary's remaining trust share, including the trust principal and accrued and undistributed income, to any person or entity, and upon any trust, terms, and conditions, or to or in favor of the estate of such deceased beneficiary, as he or she may direct by his or her last will or living trust agreement. No exercise of this general power of appointment shall be effective unless it refers to this trust agreement and expressly indicates an intention to exercise this general. power of appointment. ) ',-' 11-5 I I I) I I I I I I I- ) 1.->' I I I ~rticle1rlVelve Distribution if No Designated Beneficiaries NONE ;; !!!! ) ----' 12-1 I I I I I I I I I I I' j I I Article Thirteen Trustee Administration Section 1. Co~ Trustees to Act by Majority Vote At any time that there are two or more Trustees serving under this agreement they shall act by majority vote and any exercise of a power or discretion by a majority of the Trustees shall have the same effect as an exercise by all of them. If the Trustees are not able to reach agreement on any decision as set forth in this Section they shall petition a court of competent jurisdiction for instructions and shall take no action on the disputed matter until a court order deciding the issue has been rendered. Section 2. Power to Delegate Notwithstanding any other provision of this agreement, anyone or more of the Co-Trustees serving under this agreement may from time to time delegate to another Co-Trustee or Co- Trustees routine acts of trust administration. Section 3. No Bond Required No Trustee under this agreement shall be required to post any bond for the faithful perfonnance of its responsibilities. Section 4. Trustee Compensation My Trustee shall be entitled to reasonable compensation for services rendered payable without the need for a court order. In calculating the amount of compensation customary charges for siinilar services in the same geographic area for the same time period shall be used as guidelines. My Trustee shall also be entitled to reimbursement for reasonable costs and expenses. incurred during the exercise of its duties under this agreement. Any corporate fiduciary shall be entitled to receive compensation for its services in accordance with its published fee schedule in effect from time to time. 13-1 I I I) I I I I I I 1-,. ) I I . - Section 5. Change in Corporate Trustee Any corporate successor to the trust business of any corporate Trustee named under this agreement or acting hereunder shall succeed to the capacity of its predecessor without reconveyance or transfer of trust property. Section 6. Power to Divide or Combine Trusts My Trustee shall have the power to divide a single trust into separate shares each to be administered in accordance with the terms and conditions of the single trust from which they were created when my Trustee in its discretion determines that division is desirable or advisable in view of tax considerations, including considerations related to the income tax, the gift tax, the estate tax or the generation-skipping transfer tax or other objectives of the trusts and their beneficiaries. :My Trustee shall not be required to make a physical segregation or division of the various trust shares created under this trust agreement except as segregation or division may be required by reason of the termination and distribution of any of the trusts, but my Trustee shall keep separate accounts and records for different undivided interests. My Trustee in its discretion shall have the fmiher power to combine two or more trusts having substantially the same terms into a single trust for purposes of administration when tax or other factors indicate that such combination would be desirable or advisable. In deciding whether to combine trusts, my Trustee should consider the generation-skipping "inclusion ratio" of the trusts to be combined. Trusts having the same inclusion ratios may be combined. Trusts having different inclusion ratios should generally not be combined unless their inclusion ratios are maintained unchanged through substantially separate and independent shares of different beneficiaries within the meaning of LR.C. Section 2654(b), and the applicable regulations thereunder. Specifically, my Trustee has the authority to allocate any portion of my exemptions under Internal Revenue Code Section 2631(a) to property as to which I am the transferor, including any property transferred by me during my lifetime as to which I did not make an allocation prior to my death, and my Trustee has the authority to make the special election under Internal Revenue Code Section 2652(a)(3). If Internal Revenue Code Section 2631(a) or 2652(a)(3) is not interpreted as to allow a Trustee to exercise such election, then my personal representatives is authorized to allocate my exemptions and to exercise the said special election. 13-2 I I 1- ) I I I I I I I , ) 1- - I ) _./ If my Trustee considers that any distribution from a trust or share hereunder, other than pursuant to a power to withdraw or appoint, is a taxable distribution subject to the federal generation-skipping transfer tax payable by the distributee, my Trustee may increase the distribution by an amount which my Trustee would estimate to be sufficient to pay that tax, and shall charge the same against the trust or share to which the tax relates. If my Trustee considers that any termination of an interest in the trust property hereunder is a taxable termination subject to the federal generation-skipping transfer tax, my Trustee may pay that tax from the portion of the property to which the tax relates, without any adjustment of the relative interests of the beneficiaries. Section 7. Termination of Small Trust My Trustee shall have the power in its discretion to terminate any trust created under this trust agreement whenever it becomes so small in relation to the costs of administration as to make continuing administration uneconomical. Upon termination my Trustee shall distribute the principal and any accrued or undistributed net income to the income beneficiaries in proportion to their shares of the income. If no fixed amount of income is payable to specific beneficiaries, my Trustee shall distribute the principal and any accrued or undistributed net income in equal 'Shares to those beneficiaries who would then be entitled to income payments from the trust. Section 8. Limit on Trustee's Discretion Notwithstanding any language purporting to confer absolute, sole or unrestricted discretion on my Trustee in exercising any discretionary power with respect to this trust, my Trustee shall at all times act in accordance with fiduciary principles and shall not act in bad faith or in disregard of the purposes of my trust. Notwithstanding any other provision in this trust agreement, no individual Trustee who is also a beneficiary hereunder shall have any right, power, duty or discretion concerning this trust if such right, power, duty or discretion conferred upon such Trustee under this trust agreement is determined to be a general power of appointment under Internal Revenue Code Section 2041 or 2514 which would cause any assets of this Trust to be included in the estate of such Trustee-beneficiary. Any such right, power, duty or discretion with such effect shall be null and void with respect to such Trustee-beneficiary. No Trustee who is under a legal obligation to any beneficiary of this trust or other person shall under any circumstances partake in any decisions relating to any discretionary distributions of income or principal of this trust which can be used for any such legal obligation to any such beneficiary or other person. 13-3 I I. I) I" I I I I I I., ) 1-- . ._~) Section 9. Written Notice to Trustee Until my Trustee. receives written notice of any death or other event which triggers the right to payments from any trust created under this agreement it shall IDCur no liability for distributions made in good faith to persons whose interests may have been affected by such event Section 10. Duty to Account My Trustee shall render accounts, upon request, to the income beneficiaries under this trust agreement at least annually, at the termination of a trust created hereunder, and upon a change in the Trustees in the manner required by law. Section 11. No Court Supervision No trust created under this agreement shall require the active supervision of any state or federal court. 13-4 I I I } I I I I I I I I) I I = ) Article Fourteen Trustee Investment Powers Section 1. Trustee's Powers To carry out the purposes of the trusts created under this agreement and subject to any limitations stated elsewhere in this instrument my Trustee shall have all of the following powers, in addition to all of the powers now or hereafter conferred on Trustees by law: a. Retention of Property My Trustee shall have the power to retain any property received into the trust at its inception or later added to the trust without regard to whether the trust investments are diversified as long as my Trustee considers that retention is in the best interests of the trust or in furtherance of my goals in creating the trust. My Trustee shall have the power to invest and reinvest in any property that may be considered by applicable state law to be underproductive or unproductive in nature, and specifically to be exempt from any minimum income requirements called for under local law. b. Additions My Trustee shall have the power to receive additions to the assets of the various trusts created under this agreement from any source. c. Business Participation My Trustee shall have the power to terminate, to continue or to participate in the operation of any business enterprise including a corporation a sole proprietorship or a general or limited partnership and to effect any form of incorporation, dissolution, liquidation, reorganization including but not limited to recapitalization and reallocation of classes of shares or other change in the form of the business enterprise or to lend money or make a capital contribution to any such business enterprise. 14-1 I I I) I I I I I I 1,\ ) 1- d. Permissible Investments My Trustee shall have the power to invest and reinvest the assets of the trust as my Trustee may determine to be in the best interests of the trust without limitation by any law applicable to investments by fiduciaries. The permitted investments and reinvestments may include securities such as common or preferred stock, mortgages, notes, subordinated debentures and warrants of any corporation and any common trust fund administered by a corporate fiduciary or other property, real or personal, including savings accounts. and deposits and interests in mutual or money market funds or investment trusts, annuities and insurance whether or not such investments are unsecured or of a wasting nature. . My Trustee shall have the power to obtain, by purchase or by gift (or by conversion, reissue, consolidation or by any other means), and hold as an asset of this trust, policies of insurance on my life or any other beneficiary of this trust. . My Trustee is authorized and empowered to exercise, either before or after my death, all of the rights, options, elections or privileges exercisable in connection with such policies. These rights and options should include, but not be limited to, disability benefits, the right to borrow money with which to pay premiums (or other charges) on any policy owned by this trust (including any automatic premium loan feature) or for any other trust purpose, the right to elect among settlement options offered by the insurance company which issued such policy, the right to convert such policy to paid-up insurance, e>...iended term insurance or to any different form of insurance, and the right to arrange for the automatic application of dividends in reduction of premium payments (or other charges), with regard to any policy of insurance held in the trust estate. e. Dealing with Property My Trustee shall have the power to acquire, grant or dispose of property, including puts, calls and options (including .options on stock owned by the estate), for cas}1 or on credit including maintaining margin accounts with brokers at public or private sale upon such terms and conditions as the fiduciary may deem advisable and to manage, develop, improve, exchange, partition, change the character of, abandon property or any interest therein or otherwise deal with property. Specifically, my Trustee shall have the power to use and expend the trust income and principal to conduct environmental assessments, audits, and site monitoring to determine compliance with any environmental law or regulation thereunder; to take all appropriate remedial action to contain, clean up or remove any environmental hazard including a spill, release, discharge or contamination, either on my Trustee's own accord or in response to an actual or threatened ) 14-2 I I I ) I I I I I I I 1-) violation of any environmental law or regulation thereunder; to institute legal proceedings concerning enviromnental hazards or contest or settle any such legal proceedings brought hy any local, state or federal agency concerned with environmental compliance, or by a private litigant; to comply with any local, state or federal agency order or court order directing an assessment, abatement or cleanup of any environmental hazards; to employ agents, consultants and legal counsel to assist or perform the above undertakings or actions; and in general to take all appropriate actions to prevent, identify, or respond to any actual or threatened violations of any environmental law or regulation thereunder. No Trustee under this trust agreement shall be liable for any loss or depreciation in value sustained by this trust as a result of the Trustee retaining any property upon which there is later discovered to be hazardous materials or substances requiring remedial action pursuant to any federal, state or local environmental law, unless the Trustee contributed to the loss or depreciation in value through willful default, willful misconduct, or gross negligence. Moreover, no Trustee . shall be obligated to accept any property on behalf of this trust without first having the opportunity to satisfy itself, in its sole discretion, that such property is not contaminated by any hazardous or toxic materials or substances, and that such property is not being used and has never been used for any activities directly or indirectly involving the generation, use, treatment, storage, disposal, release, or discharge of any hazardous or toxic materials or substances. Finally, . such Trustee shall have the power to disclaim any power which, in its sole discretion, will or Inay cause such Trustee to be considered an "owner" or "operator" of property held in my trust estate under the provisions of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), as amended from time to time. This power to disclaim as contained herein shall apply to any such power, whether actually set forth under this trust agreement, incorporated by reference herein, or granted or implied by any statute or rule of law. f. Borrowing Authority My Trustee shall have the power to borrow funds from any person including my Trustee guarantee indebtedness or indemnify others in the name of the trust and to secure any such obligation by mortgage, pledge, security interest or other. encumbrance and to renew, extend or modify any such obligation for a term within or extending beyond the administration of the term of the trust. No lender shall be bound to see to or be liable for the application of the proceeds of any obligation and my Trustee shall not be personally liable for any obligation. .4_- / 14-3 I I -----.., I) I I I I I I g. Leasing Authority. My Trustee shall have the power to make, renew orm:nend for any purpose a lease as lessor or lessee for a term within or beyond the term of the trust with or without option to purchase. h. Natural Resources My Trustee shall have the power to enter into any arrangement or agreement including a lease, pooling or unitization agreement, for exploration, development, operation, conservation and removal of minerals or other natural resources. i. V oting Rights My Trustee shall have the power to vote a security in person or by general or limited proxy, to participate in or consent to any voting trust, reorganization, dissolution, liquidation or other action affecting any securities and to deposit securities with and transfer title to a protective or other committee. j. Title to Assets 1_- -) j My Trustee shall have the power to hold securItIes and other property in negotiable form or in the name of a nominee (including "street name" of a broker) or by deposit to a clearing corporation with or without disclosure of the Trustee relationship, but my Trustee shall be responsible for the acts of any nominee or clearing corporation in connection with the property. .k. Insurance My Trustee shall have the power to insure the assets of the trust against any risk' and my Trustee against liability with respect to third persons. I. Settlement of Disputes My Trustee shall have the power to payor contest any debt or claim and to compromise, release and adjust any debt or claim and to submit any matter to arbitration. ID. Payment of Expenses My Trustee shall have the power to pay any taxes, assessments, reasonable compensation of my Trustee and other expenses incurred in the collection, management, care, protection and conservation of the trust property. ) 14-4 I I I j I I I I I I I n. Principal and Income My Trustee shall have the power to allocate items of income or expenditure to either income or principal and to create reserves out of the income all as provided by law and to the extent not so provided to allocate or create reserves as my Trustee in its discretion deems appropriate and my Trustee's decision made in good faith with respect thereto shall be binding and conclusive on all persons. Notwithstanding the preceding sentence, if the Survivor's Trust (or a share hereunder) is the beneficiary or owner of a Retirement Account, income earned after the participant's death in the account shall be income of the Trust or share, and if my Trustee is required to pay all of the trust income to abeneficiary, my Trustee shall collect and pay the income of the account to the beneficiary at least quarterly (and to the extent that all of the income cannot be collected from the account, the deficiency shall be paid from the principal of the trust). o. Division of Trust ;;... I .--- My Trustee shall have the power to make any distribution or payment in kind or in cash or partly in kind and partly in cash and to cause any share to be composed of cash, property or undivided interests in property different in kind from any other share either pro rata or non pro rata without regard to differences in the tax basis of such property and without the requirement of making any adjustment of the shares by reason of any action taken pursuant hereto. Any division, allocation, apportionment or valuation of the property to distribute the assets to or among any of the trusts or beneficiaries shall be made by my Trustee and the good faith determination of my Trustee shall be binding and conclusive on all parties. p. Merger of Trust If at any time the Trustees are Trustees of two or more Trusts or Shares with substantially the same terms and benefiting the same beneficiaries, created hereunder, or under any other instrument by the Trustors or by any other person, the Trustees may cormningle the assets of such Trusts or Shares and hold them as a single Trust or Share. q. Litigation My Trustee shall have the power to prosecute or defend actions, suits, claims or proceedings for the protection or benefit of the trust and my Trustee in the performance of my Trustee's duties. 14-5 I I I J I I I I I I I I) I I I I I I 1 I \ J / Article Eight Survivor's Trust Section 1. Rights of Surviving Spouse in the Survivor's Trust. My Trustee shall hold, administer and distribute the assets of Survivor's Trust as follows: a. Payment of Income My Trustee shall pay to or apply for the benefit of the surviving spouse so long as the surviving spouse lives the entire net income of the Survivor's Trust in monthly or other convenient instalhnents agreed upon by the surviving spouse and my Trustee, but not less often than annually. If my Trustee is entitled to payments from any Retirement Account, it shall allocate to income from payments received in any calendar year an amount equal to the income earned by the account in such year, and. any excess shall be allocated to principal, and if the payments in such year shall be less than the amount equal to the income earned by the account in such year, my surviving spouse shall have the continuing right to require my Trustee to withdraw from the account and pay to him/her as income an additional amount so that he/she can be paid an amount equal to such income. Notwithstanding the preceding sentence, if the Internal Revenue Service should determine that for the Survivor's Trust to qualify for the marital deduction all of the income earned by the account does not have to be distributed to my surviving spouse or be subject to his/her withdrawal right, then only the amount required for such qualification shall thereafter be distributed to himlher or be subject to his/her withdrawal right. b. General Power of Appointment Over Undistributed Net Income Upon the death of the surviving spouse, my Trustee shall distribute all of the accrued and undistributed income, to any person or entity and upon any trust, terms and conditions, or to or in favor of the estate of the surviving spouse as the surviving spouse may direct by his or her last will or living trust agreement. No exercise of this general power of appointment shall be effective unless it refers to my trust agreement and expressly indicates an intention to exercise this general power of appointment. My Trustee may rely upon any instrument admitted to probate as the last will of the surviving spouse in carrying out the terms of the power of appointment and shall not be liable for any good faith act in reliance upon that will even if for any reason it is later determined to be 8-1 I I I) I I I I I I I, ) I I I I I I I ) invalid with respect to its purported exercise of this power of appointment. If my Trustee receives no notice of the existence of a will of the surviving spouse v,rithin six (6) months after the death of the surviving spouse, my Trustee may distribute the trust assets and income as though this power of appointment had not been exercised and shall in that event be conclusively presumed to have acted in good faith, even if a valid will is thereafter discovered. c. Discretionary Payment of Principal At any tin1e or times during the trust term my Trustee shall pay to or apply for the benefit of the surviving spouse so much of the principal of the Survivor's Trust as my Trustee deems proper for the surviving spouse's health, maintenance, support and education. In exercising discretion my Trustee shall give the consideration that my Trustee deems proper to all other income and resources then readily available to the surviving spouse for use for these purposes that are then known to my Trustee. d. Limited Power of Appointment By either a last will or by a living trust agreement the surviving spouse shall have the limited testamentary power to appoint to or for the benefit of my descendants some or all of the principal and any accrued but undistributed net income of Survivor's Trust as it exists at the death of the surviving spouse. The surviving spouse may appoint trust assets under this limited testamentary power among my descendants in equal or unequal amounts, either directly or in trust as the surviving spouse directs. This limited testamentary power of appointment shall not be exercised in favor of the surviving spouse's estate, the creditors of the surviving spouse, the creditors of the surviving spouse's estate or in any way which would result in any economic benefit to the surviving spouse. Section 2. Trustee's Discretion to Pay Debts and Taxes The Survivor's Trust shall terminate upon the death of the surviving spouse. My Trustee, shall hold and administer the unappointed balance or remainder of the Survivor's Trust as follows: a. Surviving Spouse's Debts and Taxes My Trustee, in its sole discretion, may payaH or any part of the surviving spouse's following expenses, debts, claims and taxes becoming due or payable by reason of the surviving spouse's death: 8-2 I I If I I I I I I I I} I I I I I I I~ I 1.. Final medical expenses and all funeral costs; 2. Legally enforceable claims against the surviving spouse or the surviving spouse's estate; 3. Reasonable expenses of administration of this trust and the surviving spouse's probate estate if any; 4. Any allowances mandated by a court of competent jurisdiction to those dependent upon the surviving spouse; 5. Any estate, inheritance, succession, death or similar taxes payable by reason of the death. of the surviving spouse; and 6. Any penalties or interest on any of the above claims, debts or taxes owed by the surviving spouse or the surviving spouse's estate. Section 3. Payment by My Trustee or Personal Representative My Trustee in its sole discretion may make distributions authorized under this Article either directly to the person or entities to whom payment is owed or to the personal representative of the surviving spouse's probate estate. Written statements by the surviving spouse's personal representative that such sums are due and payable by the estate shall be sufficient evidence of their amount and propriety for the protection of my Trustee. My Trustee shall be under no duty to see to the application of any such payments made to the surviving spouse's personal representative. Section 4. Tax Elections With regard to the payment of any income tax, gift tax, estate tax, inheritance tax or. any other tax required because of the death of the surviving spouse, my Trustee shall have the right to make any available elections allowed under the law. My Trustee is authorized to sign and file any tax return required because of the death of the surviving spouse. Section 5. Administration of Survivor's Trust Remainder After payment of debts, expenses and taxes, my Trustee shall hold and administer the unappointed balance or remainder of the Survivor's Trust as provided in the Articles that follow. 8-3 I I 'I) I, I I I I I I I- ) I' I I I ) ......_1 Article Nine Family Trust Section 1. Rights of Surviving Spouse in the Family Trust My Trustee shall hold, administer and distribute the assets of the Family Trust as follows: a. Payment of Income My Trustee shall pay to or apply for the benefit of my surviving spouse, so long as my surviving spouse lives, the entire net income of the Family Trust, in montWy or other convenient installments agreed upon by my surviving spouse and my Trustee, but not less often than annually. b. Discretionary Payment of Principal At any time or times during the trust term, my Trustee shall pay to or apply for the benefit of my surviving spouse so much of the principal of the Family Trust as my Trustee, in its discretion, deems proper for my surviving spouse's health, maintenance, support and education. c. Guidelines for Trustee's Discretion No amount paid or applied need thereafter be repaid to my Trustee or restored to my trust. In exercising discretion, my Trustee shall give the consideration that my Trustee deems proper to all other income and resources that are known to my Trustee and t..lJat are readily available to my surviving spouse for use for these purposes. My Trustee shall accunlUlate and add to principal any net income not distributed. d. Surviving Spouse's Right to Withdraw Principal :My surviving spouse shall have the power to \vithdraw from the Family Trust principal each calendar year those amounts that shall not exceed the greater of five thousand dollars ($5,000) or five (5) percent of the assets, valued as of the end of the preceding calendar year. My surviving spouse shall exercise this power by a written instrument signed by him or her and delivered to my Trustee. This power is noncumulative and to the extent it is not exercised by the end of January of each calendar year, it shall lapse. This power shall exist each year until the death of my surviving spouse. 9-1 I I I I I I I I I I 1-) I I - ) / Section 2. Termination of the Family Trust On the death of my surviving spouse, the Family Trust shall terminate. All undistributed trust assets, including any accrued and undistributed net income, shall be held, administered and distributed in the Articles that follow. 9~2 I I I) I I 1 I I I I, ) I .~ I - Article Ten Common Pot Trust After the death of the Trustor my Trustee shall not create a Common Pot Trust. All trust property that has not been distributed under prior Articles of this trust agreement shall be held, administered, divided and distributed according to the provisions of the Articles that fo11o\v. 10-1 I I I J I I. I I I I I 1-) I } J Section 1. Article Eleven Division and Distribution of Trust Property Division of Trust Property Into Shares My Trustee shall divide all trust property not previously distributed into separate shares as follows: Section 2. Beneficiary Name DAVID ELWOOD WERT ERIC WESTON WERT MICHAL AVIS WERT Distribution of Trust Shares for My Beneficiaries Share .80% 10% 10% The trust share of each beneficiary named in Section 1. of this Article who survives me shall be held, administered and distributed as follows: a. Distribution of Trust Share for DAVID ELWOOD WERT The trust share set aside for DAVID ELWOOD WERT shall be held, administered and distributed as follows: 1. Distributions of Net Income My Trustee shall immediately pay to, or apply for the benefit of such beneficiary all accumulated net income, free of the trust. 2. Distributions of Principal My Trustee shall immediately pay to, or apply for the benefit of, DAVID EL WOOD WERT all principal, free of the trust. 11-1 I I ..:\ I.' I I I I I I I., -) 3. Distribution on Death of Beneficiary If such beneficiary should die before the complete distribution of the trust share, such trust shall terminate and my Trustee shall distribute the balance of the trust property to such beneficiary's then living issue, per stirpes. If such beneficiary has no living issue, my Trustee shall distribute the balance of the trust property as provided for in the Articles that follow. b. Distribution of Trust Share for ERIC WESTON WERT The trust share set aside for ERIC WESTON WERT shall be held, administered and distributed as follows: 1. Distributions of Net Income My Trustee shall immediately pay to, or apply for the benefit of such beneficiary all accumulated net income, free of the trust. 2. Distributions of Principal My Trustee, in its sole and absolute discretion, shall apply to, or for the benefit of, ERIC WESTON WERT so much of the principal as my Trustee deems advisable for the education, health, maintenance and support. At my death, my Trustee shall distribute one-third of the accumulated net income and principal 'to ERIC WESTON WERT, free of the trust. Three years after my death, my Trustee shall distribute one- third of the accumulated net income and principal to ERIC WESTON WERT, free of the trust. Six years after my death, my Trustee shall distribute the remainder of the accumulated net income and principal to ERIC WESTON WERT, free of the trust. j I /' 11-2 I I I } I I I I I I 3. Distribution on Death of Beneficiary If such beneficiary should die before the complete distribution of the trust share, such trust shall terminate and my Trustee shall distribute the balance of the trust property to such beneficiary's then living issue, per stirpes. If such beneficiary has no living issue, my Trustee shall distribute the balance of the trust property as provided for in the Articles that follow. c. Distribution of Trust Share for MICHAL AVIS WERT The trust share set aside for MICHAL A VIS WERT shall be held, administered and distributed as follows: 1. Distributions of Net Income My Trustee shall immediately pay to, or apply for the benefit of such beneficiary all accumulated net income, free of the trust, so long as she has not remarried. - ) 2. Distributions of Principal My Trustee shall immediately pay to, or apply for the benefit of, MICHAL A VIS WERT all accumulated net income and principal, free of the trust, so long as she has not remarried. 3. Distribution on Remarriage or Death of Beneficiary If such beneficiary should remarry or die before the complete distribution of the trust share, such trust shall terminate and my Trustee shall distribute the balance of the trust property to such beneficiary's then living issue, per stirpes. If such beneficiary has no living issue, my Trustee shall distribute the balance of the trust property as provided for in the Articles that follow. ) 11-3 I I -I) I.. I I I I I I I. .J I I I I - ) Section 3. Distributions to Underage or Disabled Beneficiaries Notwithstanding any other provision in this trust agreement, if any person otherwise entitled to receive a distribution of trust property is under 25 years of age or is mentally disabled or legally incompetent as defined in Article Twelve, my Trustee shall retain and administer that person's trust property for his or her benefit as follows: a. My Trustee's Discretion My Trustee may pay to or apply for the benefit of such beneficiary so much of the net income and principal of the trust as my Trustee, .in its discretion, deems proper considering all other sources of income and resources available to such beneficiary and known to my Trustee. b. Payments Made to Beneficiary or Personal Representatiye My Trustee is authorized to make payments under this Section either directly to the beneficiary, to the beneficiary's personal representative or to any other person my Trustee may deem proper to be used for the benefit of the beneficiary. c. Trustee's Decisions are Final All decisions by my Trustee as to those it makes payment to, the purposes for which these payments are made, and the amounts to be paid out of the trust are within my Trustee's sole but reasonable discretion. d. Undistributed Net Income All undistributed net income shall be accumulated and added to the principal of the trust. e. Termination and Distribution My Trustee shall distribute the trust property to a beneficiary underthis Section when such beneficiary reaches age 25, or when he or she is no longer disabled as determined by a court of competent jurisdiction, or upon certification by 1\\'0 licensed physicians that such beneficiary is able to properly care for his or her property and person. 11-4 I I I I I I' I I I I I I I I I I I I I Last Will of ELWOODW. WERT I, ELWOOD W. WERT, the Testator. a resident'of Cuniber1and,.county~ Pennsylvania, declare' that this is my Last Will. I hereby revoke all my previous wills and codicils. , ,Arti.'d' "0" ib;'" ,', ",.., , " , ' ,,' e,;, n"",,, ''':' .... Introductory Provisions Section 1. Marita) Status 1 was married to AL VENA K. WERT who died on May 1. 2001. Section 2. Children AU references to "my children", subject to the exclusion of any child under subsequent provisions of this Section 2, are to aU of the children so identified in this Section 2, but only to those children and any children born to or adopted by me subsequent to the execution otthis, my Last Will. a. My Children The names and birth date of my children are: , "" Names " '. .. \.;.....t;~':......~ti::~:I.::;.!':'.~J.\o:;.._?-'-~..........~'~~I" v:,u -:"'- 'Biitli"DkIe's' .....~-_.......;......." ""~=, -- ~, :, ,. :';'~'IooI"'!-"'rl""'J;:""'!'(~'~'?';"'''"-i'' DAVID ELWOOD WERT December 30, 1942 I I I I I I I I I I I I I I I I I I I " Article Two Appointment of My Personal Representatives Section 1. Nomination of My Personal Representatives I appoint the following to be my Personal Representative(s) in the order of priority in which their names appear: DAVID ELWOOD WERT; THEN MICHAL A. WERT If, for any reason, the PersOOal Representative(s)named above are unable or unwilling to.s'erve, the next successor Personal Representative(s) shall serve in the order of priority listed until the list has been exhausted. Unless .otherwise specified, if Co-Personal Representatives are serving, the next named successor Personal Representative shall serve only after all of the Co-Personal Representatives cease to act as Personal Representatives. Section 2. Waiver of Bond No bond or undertaking shall be required of any Personal Representative nominated in this Last Will. Section 3. General Powers My Personal Representative shall have full authority to administer my estate under the laws of the Commonwealth of Pennsylvania relating to the' powers of fiduciaries. My Personal Representative shall have the power to administer my estate under the Pennsylvania Probate, Estates and Fiduciaries Code. I I I I I I I I I I I I I I I I I I I Article Three Disposition of My Property Section 1. .Estate Planning Letter or Memorandum To the extent permitted by state law and not necessary to fully utilize my Unused Applicable Credit Equivalent, my Personal Representative shall distribute such of my personal or household items to sucb persons as I may direct by a written instrument signed by me an.d delivered to my Personal Representative. I Section 2. Distribution to My Revocable Living Trust I give aU the res~ residue and remainder of my property of whatever nature and kind and wherever located to the then acting Trustee(s) of my revocable living trust of which I am a Trustor known as the: ELWOODW. WERT LIVING TRUST, dated October 14, 1997~ and any amendments thereto. I executed said revocable living trust prior to the execution.ofthis Last Will. Section 3. Alternate Disposition If n1Y revocable living trust is not in effect for any reason, I give all of my property to my Personal Representative under this viill as Trustee who shall hold, administer and distribute my property as a testamentary trust the. provisions of which are identical to those of my revocable living trust on the date of execution of this Last Will, or as thereafter amended. I I I I I I I I I I I I I I I I I I I Article FOQr DeatbTaxes Section 1.. Definition of Death Taxes The term fldeath taxes," as used in this will, shall mean all inheritance, estate, succession, and other similar taxes that are payable by any person on account of that person's interest in the estate of the decedent or by reason of the decedent1g death, including penalties and interest, but excluding the following: R. . . '.' ': :dI\nY&i~itiol1alto. #tefederal.~state~fo~~y:.<~~)(c~ss'~tii~,l~)fit'W:aCij~mufati?p,~:.i under Internal Revenue Code Section 4980A. . . ......... . .' b. Any additional tax that may be assessed under Internal Revenue Code Section 2032A or 2057~ and c. Any federal or state tax imposed on a Generation Skipping Transfer, as that term is defined in the federal tax laws, unless the applicable tax statutes provide that the Generation Skipping Transfer Tax is payable directly out of the assets of my gross estate. Section 2. Payment of Death Taxes Pursuant to the terms of my revocable living trust, all. death taxes whether Qr not attributable to property inventoried in my probate estate shall be paid by the Trustee from my Trust. However, if my Trust does not exist at the tiine of my death or if the assets of my Trost are insufficient to pay the death taxes in full, I direct my Personal Representative to pay any death taxes that cannot be paid by my Trustee from the assets of my probate estate by equitably prorating and apportioning those taxes among the beneficiaries of this will. Unless specifically provided otherwise in my Trust, aU death taxes incurred byreasol) of assets. being transferred outside of my Trust or probate estate shall be assessed against those persons receiving such property. Section 3. Waiver of Right of Reimbursement Under Code Section 2207A I hereby waive my estate's right of reimbursement under Code Section 2207A. Article Five ~1...';":'H@t)';"'.\;'~~80f<f!~H!;i,':j;f;V":1#1!i)1,~f;t$~~~~~1~t1t~it~?r,f~'::::'. SectioJl2~" Captions! I I I I I I I I". . . I I I The captions of Articles, Sections and Paragraphs used in this Last Will are for convenience of reference only and shall have no significance in the construction or interpretation of this Last Will. Section 3. Severability Should any of the provisions of this Last Will be for any reason declared invalid, shall not affect any of the other provisions of this will and ail invalid provisions disregarded in interpreting this Last Will. Section 4. Governing Law This Last Will shall be construed, regulated and governed by and in accoRlance with the laws of the Commonwealth of Pennsylvania. . -., .... '.' .... I ......-.- .. ~ ."1r..... ~:[~_~n~ ..:t.X;1..11~.: '.. ..' . . ":.' ,....;;. "~" :;;". '~~,--;/ '".~:..' <. ~i "_ ,,-,1 .~/'~.. ,'.::: ~_~.};~;~~~., SIgn~ 1:r:1fS..,~~t'.;yy"l~'On '.'." ,,;""-1"'" "'. .;"",.,('0..,'" . '..',','" ,. ""'."," ...,',..._",'. , // ' ' ,. fl' "~';'~;""_:'~ ", :' "";'" " ' ,',,' ": ' , :, 'i; "';:'~~","?i~i""""",< f i'LV"~X I ') f ~ )_.~ . ,.' ". .: ....\',<;'.'i:<';,y('L,'... Et WOOD w. WEd I I I I I ,I., I I I I I I I I I I I I I COMMONWEALTH OF PENNSYLVANIA COUNTY OF DAUpmN We, ELWOOD W. WERT, tluSCtnM. C.Jl11...u>oole and 8 ( !aJJLlh ty. f..ck. . the Testator and the witnesses, respectively. whose names are signed to the attached or foregoing instrument, being duly first swom,do hereby the foregoing instrument as his Last Will; that the Testator signed h'\.Viningly~ or direCt~dt:~9ilitt to sign it for the Testator. that it was executed as his free and voluntary act for the purposes therein expressed; that each subscribing witness in the presence and hearing of the Testator signed the LastWm as a witness; and that to the best of our knowledge the Testator was at the time of sound mind and memory, ofJawful age, and under no constraint or undue influence. ~ ~'.~ "'::;.5':~V~~i'~J ~ r- I! ; " , ,1 UJ 4 LJJL ELWOOD W. WERT xl r, >n~ 4' ~ _ ',..{ lxlCuY--- I. -of, ?}u, Witness ! r)-~ ~~ ~. Ca-t Witnes SUBSCRIBED. SWORN TO and ACKNOWLEDGED before me, a notary public, by ELW90D W. WERT. the Testator, and S u<;a.n It'1. ~V-~~co !FL and Ell mhLfJ, S, E tk , the witnesses, on this 200~ ~j)'~){~m~ /1' LlrM /T./~. . ','" 4_ ' ,; Notary Public C,..'" I-/! ~.r" V""'~'P-'NWf:A-t. "i'H" -. , - OF Pt:NNSYlV. . t,~ Sea! ' ~NlA UnctaL.F~~, . M Derry TWp" 0al~Pubik: Y Commi..,sn., E-'/f ~ Memb " ..... esNov.8 ~ ~, P""""'1" " ,-..vi .... H<); ....~w A ' -,. :SSC';laliol'l Of Notaries I I I I I ., I I I I I I I I I I I I I ATTESTATION CLAUSE On this MAY 27 2004 , ELWOOD W. \VERT, Testator, personally Published and Declared the foregoing instrument, as and for his Last Will and Testament, in the presence of each of us and all Of11S together, who, at his request. in his presence, and in the presence of each other, also signed the said instrument as witnesses. We further state that each of llS believes that at the time he executed the foregoing instrument he was of sound mind and memory, of lawful age, and did so execute 1t as his own free act and deed and not under the constraint or undue influence of any person. o :~~~ q~~;~ WItnesS /, 3 . i7'7. hA J)~t:~ . . 6T1.oL Street Address IJ It J I' i)3f] /"1 j ~ ). t[,~ 1 LI Lf..(f1\&:f;t 6t/l/( Street Address fl:ktl)yY) e.(~fDwn tfJIt lio3t City, State, Zip I, I I } I I I 1 1 1 1 I) 1 1 1 1 I 1 I, ) - - --~) I The ELWOOD W. WERT LIVING TRUST prepared for ELWOOD W. WERT JAMES, SMITH & DURKIN Attorneys-at- Law 134 Sipe Avenue Hummelstown, Pennsylvania 17036 (717) 533-3280 FAX (717) 533-2795 <<:) James, Smith & Durkin All Rights Reserved I I I) 1 I 1 I 1 I 1-., ) 1 1 I I 1 I I I ) -~/ 1 Article One o Article Two Article Three l~..rticle Four Article Five Article Six Article Seven Article 0 Eight Article Nine Article Ten Article Eleven Article Twelve Article Thirteen Article Fourteen Article Fifteen ELWOOD W. WERT LIVING TRUST Table of Contents Trust Creation .............:........................ 1-1 The Trust Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-1 Appointment of Trustees. . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ . .. 3-1 Trustor's Lifetime Rights. ....:......................... 4-1 Trust Administration Upon My Death . . . . . . . . . . . . . . . . . . . . .. 5-1 Specific Distributions of Trust Property . . . . . . . . . . . . . . . . . . . .. 6-1 Division into Survivor's Trust and Family Trust. . . . . . . . . . . . . . .. 7-1 The Survivor's Trust. ................................. 8-1 The Family Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9-1 Common Pot Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10-1 Division and Distribution of Trust Property. ... . . . . . . . . . . . . .. 11-1 V Distribution If No Designated Beneficiaries. .. . . . . . . . . . . . . . .. 12-1 Trustee Administration ............................... 13-1 Trustee Investment Powers . . . .. . . . . . . . . . . . . . . . . . . . . . . .. 14-1 General Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . 0.. . . . . . .. 15-1 I, I I ' I I I I I I I IJ I I I I I I I I - ~- ELWOOD W. WERT LIVING TRUST Article One Trust Creation Section 1. Parties to My Trust This trust agreement dated 0 C T 1 4. 1997 Trustor, and the following initial Trustee(s): is made between ELWOOD W. WERT, the ELWOOD W. WERT AL VENA K. WERT Section 2. Name of My Trust This trust may be referred to as the: ELWOOD W. WERT LIVING TRUST, dated OCT 14 1997 The formal name of my trust and the designation to be used for the transfer of title to the name of my trust is: ELWOOD W. WERT and ALVENA K. WERT, Trustees, or their successors in trust, under the ELWOOD W. WERT LIVING TRUST dated OCT 14 1997 and any amendments thereto Section 3. Revocable Living Trust My trust is a revocable living trust. Notwithstanding the preceding sentence, my trust agreement may create an irrevocable family and irrevocable survivor's retirement subtrust for retirement benefits planning. Such irrevocable retirement subtrusts shall be administered without regard to any amendments to my trust agreement other than an amendment which eliminates either or both such Trusts. . 1-1 I I -') I 1 I I I I I I- ) I I I ... } ----- Section 4. Trustor as Trustee Unless otherwise provided in this trust agreement, when I am serving as Trustee under this trust, I may conduct business and act on behalf of my trust without the consent of any other Trustee, Section 5. My Family a. Marital Status I am cunently married and my spouse's name is ALVENA K. WERT. All references to my spouse in this trust agreement are to her. b. The name(s) and birth date(s) of the children of ELWOOD W. WERT are: Name Birth date DAVID ELWOOD \VERT December 30, 1942 All references to the children of EL WOOD W. WERT in tins instrument are to these children and any children subsequently born to or adopted by him. Section 6. Creation of Internal Revenue Code Section 401 (a) (9) Retirement Subtrusts Nonvithstanding any other provision of my trust agreement, the irrevocable retirement subtrust of any Trust described in Article Seven is hereby deemed to be irrevocable upon execution of my trust agreement. Any such irrevocable retirement subtrust shall remain unfunded until funded at my death. 1-2 I I I I I I I I I I I-} I I I I I' - . Article Two The Trust Estate Section 1. Initial Transfer of Property I hereby assign, convey, transfer and deliver to my Trustee all property set forth on Schedule "A", attached hereto, and made part of this trust agreement. My Trustee acknowledges receipt of all assets listed on the attached Schedule. All assets titled in the name of my trust or in the name of my Trustee, but not listed on Schedule "A", shall be considered a part of my trust estate as if they had been set forth on the attached Schedule. Section 2. Additional Transfer of Property My Trustee is authorized to a~cept additional transfers of property interests of all kinds, at any time in any manner by me or 'any other person or entity. All property interests received by transfer, assignment, gift, bequest, devise or beneficiary designation shall be<::ome a part of my trust estate unless disclaimed by my Trustee. Section 3. Com position of Trust Property In addition to the property described in the previous Sections, my trust estate shall include the following: a. All insurance policies transferred to my trust or policies in which my trust is named as beneficiary plus the proceeds of those policies; b. Any interest in any pension, retirement or death benefit, bonus, profit-sharing or employee's savings plan or any similar contract created or entered into by an employer for the benefit of some or all employees which is transferred to my trust or in which my trust is named as beneficiary and all proceeds of any such benefit, bonus, plan or contract; and c. Any other property or interest in property which becomes subject to my trust. 2-1 I I I ) I 1 1 I 1 1 1-,. ) J 1 1 I I 1 1 I I~) I Section 4. Acceptance of Trust Property All property transferred to my trust and not disclaimed by my Trustee shall be held, administered and distributed according to the terms of this agreement. Section 5. Trust Property Schedule The trust property transferred to my trust is set forth on Schedule "A". 2-2 I, I If I I I I 1 1 I 1</ I I I I I I I } -~ ii . ;;;;;;;;0 Article Three Appointment of Trustees Section 1. Definition of Trustee All references in this agreement to "Trustee" shall be deemed a reference to the person or entity who is then serving as Trustee and shall include alternate or successor Trustees or Co-Trustees unless the context requires otherwise, Section 2. Resignation of a Trustee Any Trustee may resign at any time without court approval by giving written notice to me or to my personal representatives. If I am not living, written notice shall be given to my successor Trustee, or if there is no successor, to the beneficiaries then entitled to receive income or principal distributions under this agreement, to their respective personal representatives, or if such beneficiaries then be minors, to the persons having the care or custody of them. Section 3. Removal of a Trustee Any Trustee may be removed under this agreement as follows: a. While I am Both Alive and Competent While I am both alive and legally competent, I shall have the right to remove any Trustee appointed under this agreement at any time with no requirement that the removed Trustee receive any reason for such termination. b. Removal by Others After my death or legal incompetency, any Trustee may be removed by a majority vote of the beneficiaries then entitled to receive income or principal distributions under this trust agreement or their personal representatives at any time for cause. 3-1 I I \ I I I I I I I I I) I I I ) j ,-/' c. Notice to Removed Trustee Written notice of removal under this agreement shall be effective immediately when signed by the person or persons authorized to make the removal and delivered to the Trustee personally or deposit by United States certified mail, return receipt requested. The written notice removing a Trustee shall designate a successor Trustee. d. Transfer of Trust Property The Trustee so removed shall promptly transfer and deliver to the successor Trustee all property of the trust under its possession and control. Section 4. Designated Successor Trustees \Vhenever a Trustee is removed, dies, resigns, becomes legally incapacitated or is otherwise unable or unwilling to serve, that Trustee shall be replaced as follows: a. The Death or Disability of a Trustee 'Vhile I am Serving as Trustee I may serve as the only Trustee or I may name any number of Trustees to serve with me. If any of these other Trustees subsequently die, resign, become legally incapacitated or are otherwise unable or unwilling to serve as a Trustee, I may or may not fill the vacancy. b. Disability Trustees of ELWOOD W. WERT Upon the disability of ELWOOD W. WERT, if he is then serving as an initial. Trustee he shall be replaced by the following Disability Trustee(s): AL VENA K. WERT If, for any reason, the Disability Trustee(s) named above are unable or unwilling to serve, the following successor Disability Trustee(s) shall serve until the successor Disability Trustee(s) on the list have been exhausted. Unless otherwise specified, if Co-Disability Trustees are serving, the next following named successor Disability Trustee shall serve only after all of the Co-Disability Trustees cease to act as Trustees. DA VID ELWOOD WERT 3-2 I, I I' ) , I I I I I I I. I} I I '- ./' c. Death Trustees of ELWOOD W. WERT Upon the death of ELWOOD W. WERT, if he is then serving as an initial Trustee he shall be replaced by the following Death Trustee(s): AL VENA K. WERT If, for any reason, the Death Trustee(s) named above are unable or unwilling to serve the following successor Death Trustee(s) shall serve until the successor Death Trustee(s) on the list have been exhau'sted. Unless otherwise specified, if Co-Death Trustees are serving the next following named successor Death Trustee shall serve only after all of the Co-Death Trustees cease to act as Trustees. DAVID ELWOOD WERT Section 5. Definition of Disability A Trustee shall be considered disabled in the event that a court of competent jurisdiction determines that such Trustee is legally incompetent, or in the event that a Trustee is not adjudicated incompetent but, by reason of illness or mental disability, such Trustee has been certified by two licensed physicians to be unable to properly handle his or her own affairs. Section 6. No Designated Successor Trustees If at any time there is no Trustee acting under this agreement and there is no person or institution designated and qualified as a successor Trustee, a majority of the beneficiaries then eligible to receive distributions of income or principal under this agreement or their legal representatives shall appoint a successor Trustee. If any trust existing under this agreement lacks a Trustee and no successor is appointed pursuant to this Section, the vacancy shall be filled by a court of competent jurisdiction. Section 7. Responsibility of Successor Trustees A successor Trustee shall have the same rights, powers, duties, discretions and immunities as if it had been named as initial Trustee under this agreement. No successor Trustee shall be personally liable for any act or failure to act of any predecessor Trustee or shall have any duty to examine the records of any earlier Trustee. A successor Trustee may accept the account rendered and the property delivered by or on behalf of a predecessor Trustee as a full and complete discharge of the duties of the predecessor Trustee without incuning any responsibility or liability for so doing. 3-3 I I I~) I I I I I I 1-, "/) I I I - } ~/ Article Four Trustor's Lifetime Rights Section 1. Rights While I am Alive and Legally Conlpetent During my lifetime while I am legally competent, I shall have the following powers over the trust property and my Trustee: a. Right to Trust Income My Trustee shall pay to me or apply for my benefit all the net income from this trust monthly or in other convenient installments. as I may direct. b. Right to Trust Principal My . Trustee shall pay to me or apply for my benefit such sums from the principal of this trust as I may direct. I may not, however, direct my Trustee to make gifts from trust property to third parties. If my Trustee inadvertently makes a distribution I intended as a gift directly fromllie trust to a third party, that distribution shall be construed as a distribution to me first then a gift to the third party from me. c. Right to Add and Remove Property By \vritten direction delivered to my Trustee, I may add other property to my trust or withdraw property in any amount and at any time. d. Right to Amend or Revoke My Trust Except as to the irrevocable Family and Survivor' sRetirement Subtrusts, while am alive, I may at any time or times, by "WTitten notice filed with my Trustee, amend any provision hereof or revoke my Trust Agreement in whole or in part. e. Delivery of Property After Revocation After any revocation or termination of any trust created by this agreement my Trustee shall promptly deliver the designated trust property to me. 4-1 I, I I I I. I I I I I 1_ J I I I . \ i f. Trustee's Retention of Assets Upon Revocation In the event of any revocation of all or part of my trust, my Trustee shall be entitled to retain sufficient assets to reasonably secure the payment of liabilities my Trustee has lawfully incurred in administering the trust and any fees that have been earned by my Trustee until such time as those liabilities have been discharged and fees paid, unless I indemnify my Trustee against loss or expense. Section 2. Power to' Direct Investments I shall have the right to direct investments of trust property as follows: a. Invest trust funds in specified securities, properties or other forms of investment; b. Retain as part of the trust estate for specified periods of time securities, properties or other forms of investment held in trust under this instrument; and . c. Sell, encumber, lease, abandon or dispose of any trust property. My Trustee shall not be liable for any losses sustained as a direct or indirect result of any action taken in accordance with the terms of the written direction. All directions shall be in a writing signed by me, specifying, if applicable the period of time during which the instructions shall remain in effect and describing any other conditions affecting the directions. Section 3. Trustor's Rights During Disability a. Disability Defined I shall be considered disabled in the event a court of competent jurisdiction determines that I am legally incompetent or, in the event that I am not adjudicated incompetent but by reason of illness or mental disability, I am in the opinion of two licensed physicians unable to properly handle my own affairs. b. Income and Principal Distributions My Trustee during the period of my disability shall pay to or apply for my benefit as much of the net income and principal of my trust estate as my Trustee in its sole discretion shall deem necessary or advisable. 4-2 I I I ) I I I I I I I) I I I I I I I L) I c. Payment of Obligations My Trustee during the.period of my disability shall from time to time, pay my valid obligations, my medical expenses and provide for my comfortable maintenance and welfare taking into consideration my other income or resources. d. Income and Principal Distrih.utions for Spouse My Trustee shall pay to or apply for the benefit of my spouse as much of the principal and net income of my trust estate as my Trustee in its sole discretion shall deem necessary or advisable from time to time for my spouse's health, maintenance, support and education, taking into consideration my spouse's other income or resources. e. Trustee Guidelines In making distributions under. this Section my Trustee shall give primary consideration to my needs and secondary consideration' to the needs . of my spouse. f. Tax Planning During my life if I should become disabled, my Trustee may exercise the following powers as attorney in fact on my behalf, either alone or in conjunction with any other attorney in fact under a durable power of attorney, but the primary concern of my Trustee shall be for my welfare and secondarily for the welfare of my lineal descendants for tax planning: 1. My Trustee may make additional distributions to my lineal descendants equally by class for the purpose of continuing any gift program initiated by me which my Trustee reasonably determines will achieve beneficial results for estate and/or income tax planning purposes. 2. lv1y Trustee may imtiate a gift 'program on my behalf which my Trustee reasonably determines will achieve beneficial results for estate and/or income tax planning purposes by making distributions to my lineal descendants equally by class so long as such distributions are made in the form which qualify for and are limited to the anImal exclusion for federal gift tax purposes. 4-3 I I I I I I I I I I 1/ I I I I I I I I } J 3. During any period when I am disabled, my Trustee shall be under no obligation to initiate, recommend or consider any tax planning objective or program for me and any exercise of its discretion in this regard when conducted in good faith shall not subject it to liability to any person affected thereby. Section 4. Exercise of Trustor's Rights and Powers by Others Any right or power that I could exercise personally under the terms of this agreement except the power to amend, revoke or terminate any trust created by this agreement may be exercised for and on behalf of me by any attorney in fact who, at the time of the exercise, is duly appointed and acting for me under a valid and enforceable durable power of attorney executed by me or, if there is no such attorney in fact, by my duly appointed and acting conservator after petition to a court of competent jurisdiction. The power to amend, revoke or terminate any trust created by this agreement is personal to me and may not be exercised by any other person or entity. Section 5. Rights Concerning Standby Property It is contemplated that certain assets may be added to the trust estate from time to time with the possession and control thereof retained by or redelivered to me. If I execute and deliver to my Trustee an instrument effectively transferring such assets to my Trustee together with any further documentation necessary to effect the record transfer thereof, in the event of my death or incapacity the assets shall be deemed to be assets of the trust estate and held by me as the nominee of my Trustee. During the period such assets are in my possession they shall be subject to the following terms and conditions: a. I may receive directly and devote to my own use and benefit any dividends, interest, income or distributions from or upon such assets and neither I nor my Trustee shall have any duty of accounting to the other or to any other person with regard thereto. b. Any sale, exchange or other transfer of such assets by me shall constitute a withdrawal of such assets from the trust estate and my Trustee shall have no further interest therein or duties with regard thereto. Though not a condition precedent to any such withdrawal, I agree to notify my Trustee of all such withdrawals. 4-4 I I .-.-..... .'\ ~ I 1 I I I I I I 1--, ) I - - ' I I I I I I I I-~) I c. d. e. Section 6. I shall be. responsible for the reporting of the income from such assets to the appropriate taxing authorities and my Trustee shall have no responsibility for including such income on any fiduciary returns prepared by it or for the preparation of any other income tax return with respect thereto unless I duly notify my Trustee of such income items and a full and adequate accounting thereof is made and presented to my Trustee. I shall protect and indemnify my Trustee against all losses, liabilities and expenses which may result directly or indirectly from my use, possession, management or control of such assets. Upon my death or incapacity, my Trustee shall be entitled to the possession thereof and thereafter shall have all the rights, powers and duties with respect to such assets which are otherwise granted to my Trustee herein. It is understood that my Trustee shall be responsible only for the assets which actually Gome into its possession and control. However, it is also understood that my Trustee shall use any reasonable and prudent means to secure possession of any trust assets of which it has knowledge. My Trustee shall have no duty, accountability or responsibility to me or to any other person with respect to any assets of which it has no knowledge or of which it is unable to obtain possession a..l1d control. Trustor/Trustee Bank Accounts It is contemplated that I may establish a joint bank account or accounts with my Trustee and create powers of attorney in respect thereof in other persons. Deposits from time to time made by me or other authorized persons into such an account shall constitute transfers to the trust estate and \vithdrawals therefrom which may be made without the co-signature of my Trustee shall constitute withdrawals from the trust estate. However, my capacity and other authorized persons with respect to any such account shall be that of nominee of my Trustee not co-owner. At any given time the trust estate shall include the then balance of any such account. Section 7. Life Insurance Policies and Retirement Plans Unless otherwise provided in this trust agreement or elsewhere, I shall have all powers over life insurance policies and retirement benefits owned by or made payable to my trust, including the following: 4-5 I I I I I I I I I I I I I I I I I I I a. Payment of Premiums I shall be responsible for the payment of premiums and other charges on each policy or insurance owned by or made payable to my trust. My Trustee shall have no duty to make any payment or be responsible to determine whether such payments have been made. b. Custody of Policies My Trustee shall not be responsible for the custody or safekeeping of any life insurance policy before its actual delivery to my Trustee nor after its withdrawal by its owner. . c. Change Beneficiaries I shall have the right to change the beneficiary and to receive any dividends or other earnings of such policies or plans without accoUntability therefor to my Trustee or any beneficiary in this agreement. d.' Assignment I may assign any policy or plan benefits to any lender to the extent allowed by law induding my Trustee as security for any loan to me or any other person. J e. Surrendered Policies If any life insurance policy is surrendered or if the beneficiary of any policy is changed, this trust agreement shall be revoked with respect to such policy. However, no revocation of the trust with respect to any policy whether pursuant to the provisions of the preceding sentence or otherwise shall be effective unless the surrender or change in beneficiary of the policy is accepted by the insurance company. Section 8. Undistributed Net Income Any net income not distributed under the provisions of this Article shall be added to the trust. principal. 4-6 I I I.~) I I I I I I 1-) / I I I I I I ) -_/ The First Amendment to the Elwood W. Wert Living Trust On October 14, 1997, we, Elwood W. Wert and the AlvenaK. Wert, signed the Elwood W. Wert Living Trust, more formally known as: Elwood W. Wert and Alvena K.. Wert, Trustees, or their successors in trust, under the Elwood W. Wert Living Trust, dated October 14, 1997, and any amendments thereto. Pursuant to Article Four of my Living Trust, which permits me to amend my Living Trust in 'writing at any time, I now wish to ~end my Living Trust as follows: Article Five of my Living Trust is hereby revoked in its entirety and amended as follows: Section 1. Trustee's Payment of Debts and Taxes After my death, unless other provisions for payment have been made, my Trustee shall pay all or any part of the following expenses, debts, claims and taxes from my Trust Estate: a. Final medical expenses and all funeral costs; b. Legally enforceable claims against me; c. Reasonable expenses of administration of my Trust, including those attributable to my probate estate or those attributable to the distribution of any bequest; d. .Any allowances mandated by a court of competent jurisdiction to those dependent upon me; e. .Any estate, inheritance, succession, generation skipping transfer, or similar taxes payable by reason of my death; and f. Any penalties or interest on any of the above expenses, claims, debts or taxes owed by me or my probate estate. 1 I I I I I I I I I I I- I I / -j Section 2. Payment by My Trustee or Personal Representative My Trustee, in my Trustee's discretion, may make distributions authorized under this Article either directly to the person or entities to whom payment is owed or to the Personal Representative of my probate estate. Written statements by my Personal Representative that such sums are due and payable by my estate shall be sufficient evidence of their amount and propriety for the protection of my Trustee. My Trustee shall be under no duty to . see to the application of any such payments made to my Personal Representative. Section 3. Tax Elections If no Personal Representative has been appointed, with regard to the payment of any income tax, gift tax, estate tax, inheritance tax, Generation Skipping Transfer Tax or any other tax due because of my death, my Trustee shall have the right to make any available elections allowed under the law or to sign and file any tax return. Ira Personal Representative has been appointed, the Personal Representative shall have the foregoing rights and duties. Section 4. Payment of Death Taxes, Claims and Expenses a. Payment Out of Trust Property All death taxes, claims and expenses' payable under the provisions of this Article may be paid by my Trustee out of my Trust Estate except as specifically provided for elsewhere in my Trust Agreement. Such payments may be allocated, partly or wholly, in my Trustee's discretion, to income or principal; but, to income only to the extent such allocation does not constitute a material limitation upon any trust portion that would otherwise qualify for the federal estate taX Marital Deduction or decrease any otherwise allowable Charitable Deduction. b. Exception for Property Passing Outside of My Trust Notwithstanding Section 4.a of this Article, unless specifically directed otherwise by another separate provision of my Trust Agreement, all death taxes, claims and expenses attributable to assets passing outside of my Trust or my probate estate shall be assessed against those persons receiving such property; provided, however, that under no circumstances shall any transfer to any beneficiary that qualifies for the federal estate tax Marital or Charitable Deduction cause the '. property transferred or such beneficiary t6 bear any such taxes. 2 I I -----, I } 1 1 I I I 1 1--) / I I I . \ J Section 5. Apportionment of Expenses, Claims and Taxes Notwithstanding Section 4.a of this Article, unless specifically directed otherwise by another separate provision of my Trust Agreement, all expenses, claims and taxes attributable to any specifically distributed property shall be apportioned to the share of the beneficiaries of such specific distributions. Any distribution of specific trust property under my Trust Agreement shall pass subject to all liens, mortgages or encumbrances attributable thereto. Section 6. Exception to Apportionment of Death Taxes Notwithstanding any provision in my Trust Agreement to the contrary, it is my intent, and I hereby direct, that to the extent practicable no death taxes shall be apportioned to or against any part of my estate or the trusts or shares created by my Trust Agreement, or any beneficiary thereof, which qualifies for the federal estate tax Marital Deduction or Charitable Deduction. Further, notwithstanding any above provisions, Death Taxes chargeable among trusts hereunder that are substantially identical except that one trust is Exempt and the other Trust is Non-Exempt shall be charged first to the Non-Exempt Trust until exhausted and then to the Exempt Trust. The preceding sentence shall not apply to the extent that charging and paying such taxes as provided in such sentence increases the Inclusion Ratio of any Exempt Trust hereunder. Furthermore, should the payment of expenses, claims and taxes from any Qualified Retirement Plan or Individual Retirement Account ("IRA") assets which comprise my Trust Estate cause my Trust to be disqualified as a "Qualified Beneficiary" Trust, it is my intent, and I hereby direct, that to the extent practicable, no expenses, claims and taxes be paid from such Qualified Retirement Plan or IRA. assets. All other articles are hereby ratified and confirmed. I executed this amendment on ~ _ /01 0 0 I I certify that I have read the foregoing amendment to my Living Trust, and that it correctly states the changes I desire to make in my Living Trust. I approve this amendment to my Living Trust in all particulars, and request my Trustees to execute it. t~~..tLJ1Vt7/ Elwood W. Wert, Trustor ?~,(jJd Elwood W. Wert, Trustee ag~~(~~ Alvena K. Wert, rustee 3 I I II I I I I I I 1---- / I-- I . - i _/ ACKNOWLEDGEMENT COMMONWEALTH OF PENNSYLVANIA : SS COUNTY OF DU...,-L l'tti~ Cu m ~ r- The foregoing amendment to the Elwood W. Wert Living Trust was acknowledged before me on ~1loAfW..( I~/;J.OO/, by Elwood W. Wert, as Trustor and Trustee. Witness my hand and official seal. NOTARIAL SEAL JUDITH ANN VALENTINE, Notary PUblic Califsle, Cumberland County My Commission expires Nov. 12, 2002 My commission expires: ~k~fUSf - Public COMMONWEALTH OF PENNSYLVANIA : ss COUNTY OF JR ~ ~~Q.v t'Y\ ts Cfl2....L ~'\J.D e foregoing amendment to the Elwood W. Wert Living Trust was acknowledged before me on lZ..u IS. ~ , by Alvena K. Wert as Trustee. Witness my hand and official seal. My commission expires: ~~~ No . Public 4 NOTARIAL SEAL JUDITH ANN VALENTINE, Notal)' Public Carlisle, Cumberland County My Commission Expires Nov. 12, 2.002 I I I I I I I I I I I I Article Five General Provisions Section 1. No Contest Clause If any person or entity singulaIly or in conjunction with any other persOtf;~t.?~ indirectly, contests in any court the validity of this Last Will i,n{:luding apy.tX)~~!~Jlr. ........-'. the right of that person or entity to take any interest in my estate shall cease and'die;:~~~Of that .person (and his or her descendants) or enti.ty shall be deemed to have occurred prior to mine. Section 2. CaptionS " ,,). :::-::~~\,,",..:i,1~i.f~~;,:~,:~,';:h-':)J:t!:~:'NI' , The captions of Articles, Sections and Paragraphs used in this Last Will are for convenience of reference only and shall have no significance in the construction or interpretation of this Last Will. Section 3. Severability Should allY of the provisions of this Last Will be for any reason declared invalid.' shall not affect any of the other provisions of this will and aU invalid provisions disregarded in interpreting this Last Will. = Section 4. Governing Law This Last Will shall be construed, regulated. and governed by and in accordance with the laws of the Commonwealth of Pennsylvania. . ;~~, ,>"" . ~- - ,'- - - '~_ -, ',- - --.; -: - - ,.,':.. .', - , .', " - . ',- - -._ ;:', ,"., ", ." .:.'; _ :~"-~> :-.:.~~\, h :,;-.<!;;~;;;:i;~ j, :;~::>~""~.t~~,<,i'~~'j/~;-,"~:J,::J;~::~~'~w~;~;_t~~~+:~~-:;f~~:A~~;~~:.t lc~fgn. &I tJus,a1Y-Wt WtU;Oll"""" ...'."e..../,~I..;y;J."'.....,.,,'.!k'. ""e."',-,""',,v', ........"."...,"". , .. ....,;',;;;:,:\{';':',?6ty'({.;,'."::'.'.,;.]:,,.., . ....',""'\i".:..<',':'.':<:/. Pl~~A'l'.~ J~ ELWOOD W. . T ATfESTATlON CLAUSE On this MAY 272004 _, ELWOOD W. WERT. TeslalOl', personally Pub\isb.ed and !)ecIllred the foregoing ~ as and for bis Last Will8tlC1 TestaIDent. in the presence or each of oS and all oms togethet, who, at his rcqoest, in his pr- and in the preseoce of each othe<, also signed the said inslnJtI100t as witneSses. We t\nIIIet stale that each ofus believes that at the time he executed the foregoing insttWllent bo WIlS of sound mind and lIleD1OIY, of \aWful age. and did so execute it as his own liee act and deed 8tIC1 not under lbe coosttaint 0< undue influence of any person. l I I I I ~l'lVl''Ll11. rl~1RfY~ Witness . Q 17'7 rt. ;)4".?'f;t'1.d.- - Street Address ~~~ /.M. AIt flfl).!k (dM iJ.U:k l ~M" Wltn~ ILl LUfY\o.j;(,. ~tr It. Street Address 1/;lwl ft'\ tb h /iJ (\ 1M 110?:,/. City, State, Zip I I I I I I I I I I I I I COMMONWEALTH OF PENNSYLVANIA COUNTY OF DAUPHIN We. ELWOOD W. WERT, \)~J'~~n ... tYLC'/}11~6if" and ttl,ta:JJdh ~'. ELk . the Testator and the witnesses, respectively, whose names are signed to the attached or foregoing instrument. being duly first swom. do hereby declaretotbe.und~~~.aWbQtit;yi:~:~~n~~~;.~~.Jb:e..:re$Ultor.signand~cute . :_., _ _ ;", - '" _ ',' ,0,'" C" :,'1.';~':~'~~:'>:',~'~? ';:<"""\}_":"",: _ "':::_:_ ",' _,i: the foregoing instrument as bis LElStWilh .th:Jt the :Testator sisnedit' \\lIJingly,or direeted.~Qtliet to sign it for the Testator. that it was executed as bis free and voluntary act for the purposes therein expressed; that each subscribing witness in the presence and hearing of the Testator signed the Last Will as a witness; and that to the best of our knowledge the Testator was at the time of sound .mind and memory, of lawful age, and under no constraint or undue influence. e~.t&~ .~)d- ELWOODW. WER'r Jd~ l.tj(~ Yn.('p~1'}{n~ Wiiness r ~~ A. tCu. SUBSCRIBED, SWORN TO and ACKNOWLEDGED before me, a notary public. by ~~'Y90D W. WERT, the Testator. and ,stJ~a..n 1Yl. )J~ool€- and 'El rtohuJ, S. Ed( , the witnesses, on this _ Z(IO; ,;-/ '!. \....-; ,-1, J:.h, .L " ". f j '. ,~LLM/J!~ lA' ~ Notary Public ....-. ~fi:..1~.\rJWe" - ... .1..rH OFr12~~fVS'f.l..V.b'" ~~4~~~ ~ ~1\~ ~ 1~.PuIJIie .MfCcitJmls~"~. ~~ ~.... .. :Nl"'~esIQ>.8,~ ., 11l..,"",P~::;;4U Ii;. ". ~:;~II(lt: or No~ I I ':\ 1/ I I I I I I I- --) I I . ) Article Six Specific Distributions of Trust Property Section 1. Fractional Gift of Income in Respect of a Decedent After my death, my Trustee shall distribute a fraction of all items of income in respect of a decedent of my trust estate to the. Family Trust. Any income in respect of a decedent not distributed to the Family Trust shall be distributed to the Survivor's Trust. The fraction to be distributed to the Family Trust shall be determined by dividing my Unused Unified Credit Equivalent, after taking account of all property passing which is includable in my gross estate, other than by any form of Beneficiary Designation, by the value of all items of income in respect of a decedent in my trust estate or received by my Trustee du~ to my death. Section 2. . No Other Specific Distributions My Trustee shall make no other specific distributions of trust property to any beneficiaries under my trust agreement upon my death. All distributions of trust property shall be made in accordance with the Articles that follow. 6-1 I I I' I I I I I I I I) I I ) Article Seven Division into Survivor's Trust and Family Trust Section 1. Division of the Trust Estate Upon my death my Trustee shall allocate and distribute the remaining trust estate including any property that becomes distributable or payable to my Trustee at my death into two separate shares to be identified as the Survivor's Share and the Family Share. a. Property Transferred to the Survivor's Share The Survivor's Share shall consist of assets having a value equal to the minimum amount necessary to eliminate or to reduce to the maximum extent possible any federal estate tax at my death, taking into account the following: 1. The net value for federal estate tax purposes of all other property that passes or has passed to my Surviving Spouse under my trust agreement, my probate estate or otherwise that qualifies for the federal estate tax marital deduction; 2. All federal estate tax deductions actually allowed other than the marital deduction; 3. The unified credit available to my estate; 4. The credit for state death taxes available to my estate, to the extent that the use of that credit does not result in or increase any death tax payable to any state; and 5. Any other allowable credits available to my estate, except the credit for tax on prior transfers from a "transferor", as defmed in Code Section 2013, who dies within two years after the date of my death but only to the extent that those credits do not disqualify this gift from receiving the marital deduction. 7-1 I I _.-~'\, I I I I I I I I) ~ I . I } b. Survivor's Share to be Administered as Survivor's Trust The Survivor's Share shall be held, administered and distributed according to the provisions of the .Survivor's Trust as set forth in Article Eight of my trust agreement. My Trustee,. however, shall allocate to a separate irrevocable subtrust of the Survivor's Trust, to be known as the Survivor's Retirement Subtrust, all assets to be received by reason of any Beneficiary Designation. Except for the irrevocability of the Survivor's Retirement Subtrust, my Trustee shall administer the Survivor's Trust and the Survivor's Retirement Subtrust with like effect as if each, separately, were the Survivor's Trust. c. Property Transferred to the Family Share The Family Share shall consist of all assets not distributed to the Survivor's Share. d. Family Share to be Administered as Family Trust The Family Share shall be held, administered and distributed according to the provisions of the Family Trust as set forth in Article Nine of my trust agreement. My Trustee, however, shall allocate to a separate irrevocable subtrust of the Family Trust, to be known as the Family Retirement Subtrust, all assets to be received by reason of any Beneficiary Designation. Except for the irrevocability of the Family Retirement Subtrust, my Trustee shall administer the. Family Trust and the Family Retirement Subtrust with like effect as if each, separately, were theFamily Trust. e. Administration ~of Irrevocable Retirement Subtrusts under Internal Revenue Code Section 401(a)(9) Any irrevocable retirement subtrusts created under this Section shall be held, administered, divided and distributed in accordance with the provisions outlined in this Section; provided, however, that my Trustee, in its sole discretion, may continue the method of distribution from such plans which was being used by me prior to my death. Section 2. Allocation and Valuation of Assets In allocating assets between the Survivor's Share and the Family Share, my Trustee shall allocate the trust assets that qualify for the marital deduction between the Survivor's Share and the Family Share in cash or in kind or partly in each on a pro rata or non pro rata basis and in undivided interests or not; subject, however, to the following: 7-2 I I I' J I I I I I I I 1-) I I a. Qualification for Marital Deduction Only assets that qualify for the marital deduction shall be allocated to the Survivor's Share. b. Valuations of Allocations in Kind Assets allocated in kind shall be deemed to satisfy the marital deducti.on amount on the basis of their values as finally determined for federal estate tax purposes provided, however, that my Trustee shall act impartially, consistent with equitable principles requiring impartiality anlong beneficiaries in allocating assets in satisfaction of the marital deduction share so that any distribution of assets in satisfaction of the marital deduction share shall be made of assets including cash fairly representative of appreciation or depreciation in the value of all property thus available for distribution. c. Income The Survivor's Share shall be entitled to a pro rata share of the income earned on deceased Trustor's residuary probate and trust assets from the date of deceased Trustor's death including a share of income earned on assets used to discharge liabilities. d. Foreign Death Tax Credit My Trustee shall not allocate assets that qualify for the foreign death tax credit to the Survivor's Share unless all other assets or interests available for allocation have been so allocated. e. Insurance on the Life of My Sunriving Spouse My Trustee shall not allocate any policy of insurance on the life of my Surviving Spouse to the Survivor's Share that is my separate property. f. Insurance on the Lives of Others Any incidents of ownership to a policy of insurance on the life of a person other . than me shall be allocated to the Family Share. g. Lack of Property to Fully Fund the Survivor's Share If there is insufficient property qualifying for the federal estate tax marital deduction to fully fund the Survivor's Share, the funding to the Survivor's Share shall be reduced accordingly. ) 7-3 Section 3. Intention that Survivor's Share Qualify for Marital Deduction I intend that the Survivor's Share qualify for the federal estate tax marital deduction and this agreement shall be construed accordingly. All other provisions of my trust agreement shall be subordinate to that intent. If the granting of any right, power, privilege, authority, or immunity to my Trustee or another person and the imposition of any duty upon my Trustee or another person by any provision of my trust agreement would disqualify any share or interest of a beneficiary hereunder from qualifying for the federal estate tax marital deduction provided by Section 2056 of the Code, such provision shall be ineffective if and to the extent that the same if effective would so disqualify such share or interest. The provisions of this Section shall also apply to my probate estate, personal representative and all beneficiaries, devisees and legatees. Notwithstanding any other provision in my trust agreement to the contrary, my Surviving Spouse at any time shall have the right to direct my Trustee in writing to convert within a reasonable time any unproductive trust property to income producing property. Section 4. Disclainler of Property _Any property or portion of property that is disclaimed by my Surviving Spouse shall be held, administered or distributed according to the following terms: a. Property Disclaimed My Surviving Spouse may disclaim any property held or distributed to or for the benefit of my Surviving Spouse under my trust agreement. b. Time to Disclaim My Surviving Spouse may disclaim within the time limits and under the conditions permitted by the laws regulating disclaimers. c. Delivery of Disclaimer to My Trustee A disclaimer by my Surviving Spouse may be exercised by the delivery to my Trustee of an irrevocable and unconditional refusal to accept any or all property interests passing to my Surviving Spouse or the Survivor's Share. d. Disclaimer of Survivor's Share Ifmy Surviving Spouse exercises a disclaimer with respect to any or all property set aside as the Survivor's Share, such disclaimed interest shall be added to the Family Share. } i ---/' 7-4 I I I ) I I I I I I I I ) e. Disclaimer of Family Share If my Surviving Spouse exercises a disclaimer with respect to any or all property set aside as the Family Share, such disclaimed interest shall be distributed under the relevant terms of this agreement as though my Surviving Spouse had predeceased me. Section 5. Retirement Accounts If my Trustee is named the beneficiary of an interest in one or more plans which are qualified under Code Section 401 or one or more Individual Retirement Accounts qualified under Code Section 408 (hereinafter IlRetirement Accounts"), then my Trustee shall allocate the benefits payable from such Retirement Accounts to the Survivor's Trust (or a share hereunder) without rmderfunding the Family Trust, if possible. . Furthermore, if one or more Retirement Accounts are distributed to the Survivor's Trust in installment payments, the following provisions shall apply: a. Amount To Be Distributed My Trustee shall pay to or apply for the sole benefit of my Surviving Spouse, at least quarterly, the greater of (i) all of the net income earned by the Retirement Account, or (ii) the amount required to be distributed from such Retirement Account under Code Section 401(a)(9). My Trustee ~hall take all of the necessary action to cause the Retirement Account to distribute to the Survivor's Trust the amount required to be distributed to the Surviving Trustor under this paragraph. . b. Qualifying Income Interest My Trustee shall take all of the necessary action to assure that the interest of my Surviving Spouse qualifies as a qualifying income interest for life pursuant to Code Section 2056(b)(7). c. Principal and Income Allocation My Trustee shall allocate to the income of the Survivor's Trust all of the net income earned by the Retirement Account and paid to that trust regardless of whether the Retirement Account is allocated to principal for trust accounting purposes. My Trustee shall allocate to principal of the Survivor's Trust all other distributions from the Retirement Account. '7-5 I I -~ I, I I I I I I 1-, --) I d. Underproductive Property The Surviving Spouse shall have the power to direct my Trustee to compel any Retir.ement Account from which distributions are made to the Survivor's Trust to be invested in income-producing assets. e. Power to Accelerate Distributions My Trustee shall elect an option under each Retirement Account which allows my Trustee in its discretion to accelerate distributions and to receive one or more lump sum payments from such Retirement Account.so that my Trustee has the flexibility to withdraw principal in its discretion from the Retirement Account. If such an option is not available under the Retirement Account, my Trustee shall take all of the necessary action to cause such Retirement Account to be transferred to an Individual Retirement Account which offers such flexibility and which is titled in the participant's name and is qualified under Code Section 408; provided however, that such transfer is not tre'ated as a taxable distribution for income tax purposes. . ) 7-6