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HomeMy WebLinkAbout06-26-06 . . . . . REV. 1500 EX (6-00) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT DECEDENTS NAME (LAST, FIRST, AND MIDDLE INITIAL) !z Wa ner Lee Ann ~ DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) ~ 8/16/2005 4/1/1926 W (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) C B . . OFFICIAL USE ONLY FILE NUMBER . . 2L COUNTY CODE .-9~ 0859 _ _ _ YEAR NUMBER SOCIAL SECURITY NUMBER 209-12-0765 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS SOCIAL SECURITY NUMBER W I- ::.:: SUl uO::::':: wo..u J:OO uO::....J o..lD 0.. < 001. 04 006 09 o 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) D 5. Federal Estate Tax Return Required D 7. Decedent Maintained a Living Trust (Attach copy ofTrust} _ B. Total Number of Safe Deposit Boxes r --_) D 10. Spousal Poverty Credit (d.te of de.th between 12.3'.91 .nd '.'.95) D 11. Election totex under Sec. 91 '13(A)I Att"hSch c:t;~ Original Return limited Estate Decedent Died Testate (Attach copy of Will) Litigation Proceeds Received I- Z w o z o a- U) w a: a: o t) Elaine C. Britt, Es ire FIRM NAME (If Applicable) Fox Rothschild LLP TELEPHONE NUMBER P.O. Box 5231 1. Real Estate (Schedule A) (1) Princeton, NJ 08543-5231 o (~, . 'C(FFjCIAL USE ONL'r'~ 609-896-3600 2. Stocks and Bonds (Schedule B) (2) 3 Closely Held Corporation. Partnership or Sole-Proprietorship (3) 4, Mortgages & Notes Receivable (Schedule D) (4) 5 Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) (5) Z 6, Jointly Owned Property (Schedule F) (6) 0 o Separate Billing Requested ~ :5 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) :::l (Schedule G or L) !::: a.. B. Tolal Gross Assets (total Lines 1-7) <i: U W 9 Funeral Expenses & Administrative Costs (Schedule H) (9) 0:: 10. Debts of Decedent, Mortgage Liabilities, & Liens (ScI\edule I) (10) 11. Total Deductions (total Lines 9 & 10) 12, Net Value of Estate (Line 8 minus Line 11) 13 Charitable and Governmental BequestslSec 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) SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES z o i= < I- ::J a.. :ii o U >< < I- 15. Amount of Line 14 taxable at the spousal tax rate. or transfers under Sec. 9116 (a)(1.2) 0 x .0 ~(15) 0 x .0 45 (16) 70,862 x .12 (17) 0 x .15 (18) (19) 16, Amount of Line 14 taxable at lineal rate 17. Amount of Une 14 taxable at sibling rate 18, Amount of Line 14 taxable at collateral rate 19 Tax Due 20,0 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT 3W4645 1,000 o ",~ ..~,'.,,','.' <:'., ", .., )- . ; '., i . . i.. " "-"-, ,'" . -- '.,_,----1 ;,', +..f'~ I ." o o 65,447 o 28,885 (8) 22,903 567 (11 ) (12) (13) (14) 94,332 23,470 70,862 o 70,862 8,503 8,503 ) ) / '1 .J ') -1 ) :n o o o . . . . . . . . . Decedent's Complete Address: SffiEET ADDRESS CITY I STATE I ZIP Carlisle PA 17013- Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1 ) 8,503 o 7,600 400 Total Credits (A + B + C) (2) 8,000 3 Interest/Penalty if applicable D. Interest E. Penalty o o Total Interest/Penalty (0 + E) (3) o 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) 503 A. Enter the interest on the tax due. (SA) o B. Enter the total of Line 5 + SA. This is the BALANCE DUE. (5B) Make Check Payable to: REGISTER OF WILLS, AGENT 503 PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred:. . . . . . . . . . . . . . . D [1g b. retain the right to designate who shall use the property transferred or its income: . D []I c. retain a reversionary interest; or . . . . . . . . . . . . . . . . . . . . . . . . D [1g d. receive the promise for life of either payments, benefits or care? . . . . . . . . . D []I 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? . . . . . . . . . . . . . . . . . . . . . . . . . . .. D []I 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? D [Jg 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. lXJ D 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 perjury, I declare that I have examined this retum, induding 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 all informat'lon of which preparer has any knowledge DATE ADDRESS ) / ()0 I '--- P.O. Box 5231, Princeton, NJ 08543 SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE cfp~ C. .~ ADDRESS DATE 4//qlO~ , I P,O. Box 5231, Princeton, NJ 08543 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 thp ".0 _HL [72PS.S9916(a)(1.1)(i)]. ~ I ) S (V' ( C (~) DG~:; ---- ;J Ii IJ ().- C vv... 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 The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets an< the surviving spouse is the only beneficiary. For dates of death on or after July 1,2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the or a stepparent of the child is 0% [72 P.S. 99116(a)(1.2)]. The tax rate imposed on the net value of transfers to Of for the use of the decedent's lineal beneficiaries is 4.5%, except as noted in '. 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. S 9116(a)(1.3)]. A sibl individual who has at least one parent in common with the decedent, whether by blood or adoption. 3W4646 1000 . . . . . . . . . REV-1502 EX + (6-98) SCHEDULE A COMMONWEALTH OF PENNSYLVANIA REAL ESTATE INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Lee Ann B. Wagner 21 05 0859 All real property owned solely or as a tenant In common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which Is jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1 . None DESCRIPTION VALUE AT DATE OF DEATH 3W4695 1 000 TOTAL (Also enter on line 1, Recapitulation) (If more space is needed, insert additional sheets of the same size) $ o . . . . . . . . . R EV-1503 EX + (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF SCHEDULE B STOCKS & BONDS FILE NUMBER Lee Ann B, Wagner 21 05 0859 All property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1. None DESCRIPTION VALUE AT DATE OF DEATH 3W4696 1.000 TOTAL (Also enter on line 2, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) o . . . . . . . . . REV-1504 EX + (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN _IDE. ENT ESTATE OF SCHEDULE C CLOSELY-HELD CORPORATION, PARTNERSHIP OR SOLE-PROPRIETORSHIP FILE NUMBER Lee Ann B. Waqner 21050859 Schedule C-1 or C-2 (including all supporting information) must be attached for each closely-held corporation/partnership interest of the decedent, other than a sole-proprietorship. See instructions for the supporting information to be submitted for sole-proprietorships. ITEM NUMBER 1 . None DESCRIPTION VALUE AT DATE OF DEATH 3W4e971.000 TOTAL (Also enter on line 3. Recapitulation) (If more space is needed, insert additional sheets of the same size) $ o . . . . . . . . . REV-1507 EX + (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lee Ann B. Waqner SCHEDULE D MORTGAGES & NOTES RECEIVABLE FILE NUMBER 21 05 0859 All property jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTlON VALUE AT DATE OF DEATH None TOTAL (Also enter on line 4, Recapitulation) $ o 3W46AC 1.000 (If more space is needed, insert additional sheets of same size) . REV-1S08 EX + (6-98) . . . . . . . . COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY FILE NUMBER 21 05 0859 ESTATE OF Lee Ann B. Waqner Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTION VALUE AT DATE OF DEATH 1 2000 Ford Taurus station wagonr estimated value 5,000 2 Carlisle Insurance Services, refund on cancellation of auto insurance policy 53 3 Carlisle Insurance Services, refund on cancellation of homeowners insurance policy 82 4 Comcast Cable, refund on cancellation 15 5 Decedent was the lifetime beneficiary of a Trust Under the Will of her father, G. William Wagner. Decedent's interest in the trust ceased with her death. All accrued and accumulated income through the date of her death had been paid to the decedent during her lifetime. o 6 Decedent's personal property, sold by Rowe's Auction Servcie. Value is net sales price. 2,669 7 Harrisburg Symphony Orchestra, refund of unused subcription 205 8 M&T Bank, Classic Checking Account No. 884073 49,306 9 M&T Bank, Credit Card Account No. 4264 2973 1700 4328, credit balance 3,778 10 M&T Bank, Savings Account No. 15004212114438 1,113 11 Sprint Nextel, refund on cancellation 7 Total from continuation schedules 3,219 3W46AD 1.000 65,447 TOTAL (Also enter on line 5, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) . . . . Estate of: Lee Ann B. Wagner . Schedule E (Page 2) Item No. Description 12 Thornwald Nursing Home{ refund of overpaid room and board 13 Time, Inc., refund on subsription cancellation 14 United States Treasury, refund due on decedent's 2005 income tax return 15 Walnut Bottom Radiology{ refund Total (Carry forward to main schedule) . . . . 209-12-0765 Value at Date of Death 2,938 21 139 121 3,219 . . . . . . . . . R EV-1509 EX + (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lee Ann B. Wagner SCHEDULE F JOINTLY-OWNED PROPERTY FILE NUMBER 21 05 0859 If an asset was made joint within one year of the decedent's date of death, it must be reported on Schedule G. SURVIVING JOINTTENANT(S) NAME ADDRESS RELATIONSHIP TO DECEDENT A. B. c. JOINTL Y-OWNED PROPERTY: lEfTER DATE a:SCRIPTlON OF PROPERTY %OF DATE OF DEATH ITEM FOR JOINT MADE INCLUDE NAME OF FINANCIAL INSTITUTION AfIO BAN<. ACCQl..NT DATE OF DEATH DECO'S VALUE OF N..MBER OR SIMILAR IDENTIFYING !'UMBER ATTACH DEED FOR NUMBER TENANT JOINT ..k:)INTlY-ttiD REAL ESTAre VALUE OF ASSET INTEREST DECEDENTS INTEREST 1. A. NonE TOTAL (Also enter on line 6. Recapitulation) $ 0 (If more space is needed, insert additional sheets of the same size) 3W46AE 1.000 . . . . . . . . . REV-151O EX + (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lee Ann B. Waqner SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY FILE NUMBER 21 05 0859 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. DESCRIPTION OF PROPERTY ITEM IN:l'...l:E Tl-E NAME OF nE TRANSFEREE. THEIR RELATIONSHIP TO DEceDENT ANj DATE OF DEATH % OF DECO'S EXCLUSION TAXABLE NUMBEF Tl-E DATE OFTRAf\GFER_ ATTACl-i A CQP'Y OF THE DEED FOR REAl ESTATE. VALUE OF ASSET INTEREST (IF .APPLICABLE) VALUE 1. TIAA Annuity Contract No. IC82598-2 dated 8/1/88. Contract provides for monthly payments for life, with guaranteed payments for 20 years. Beneficiary is Val R. Wagner. 22,445 100.0000 0 22,445 2 TIAA Annuity Contract No. IC83659-1 dated 9/1/88. Contract provides for monthly payments for life with guaranteed payments for 20 years. Beneficiary is Val R. Wagner. 6,440 100.0000 0 6,440 TOTAL (Also enter on line 7, Recapitulation) $ 28,885 (If more space is needed, insert additional sheets of the same size) 3W46AF 1 000 . . . . . . . . . REV.1511 EX + (12.99) SCHEDULE H COMMON'NEALTH OF PENNSYLVANIA FUNERAL EXPENSES & INHERITANCE TAX RETURN ADMINISTRATIVE COSTS RESIDENT DECEDENT ESTATE OF FILE NUMBER Lee Ann B. Wagner 21 05 0859 Debts of decedent must be reported on Schedule I. ITEM NUMBER DESCRIPTION A FUNERAL EXPENSES: 1. Hoffman-Roth Funeral Home, Inc. funeral services Total from continuation schedules B. ADMINISTRATIVE COSTS: Personal Representative's Commissions 1. Name of Personal Representative(s) Social Security Number(s) I EIN Number of Personal Representative(s) Street Address City State Zip Year{s) Commission Paid: 2. Attorney Fees 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State Zip Relationship of Claimant to Decedent 4. Probate Fees 5 Accountant's Fees 6. Tax Return Preparer's Fees 7. 1 Bank of America check order fee 2 Estimated remaining administration expenses Total from continuation schedules 3W46AG 1.000 TOTAL (Also enter on line 9, Recapitulation) (If more space is needed, insert additional sheets of the same size) $ AMOUNT 11,812 1,724 8,100 550 12 500 205 22,903 . . . . . . . . . Estate of: Lee Ann B. Wagner 209-12-0765 Schedule H Part 1 (Page 2) Item No. Description Amount 2 Valley Forge Memorial Gardens monument 1,724 Total (Carry forward to main schedule) 1,724 . . . . . . . . . Estate of: Lee Ann B. Wagner 209-12-0765 Schedule H Part 7 (Page 2) 2 Register of Wills, Cumberland County probate fees 205 Total (Carry forward to main schedule) 205 . . . . . . . . . REV-1512 EX+ (12-03) COMMONWEAL TH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lee Ann B. Wagner SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS FilE NUMBER 21 05 0859 Report debts incurred by the decedent prior to death which remained unpaid as of the date of death, including unreimbursed medical expenses. ITEM NUMBER 1. DESCRIPTION VALUE AT DATE OF DEATH Pennsylvania Department of Revenue balance due on decedent's 2005 state income tax return 434 2 Pharmerica balance due 18 3 PPL Electric Utilities balance due 106 4 Sprint balance due 9 3W46AH 2.000 TOTAL (Also enter on line 10, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 567 . . . . . . . . . REV-1513 EX+ (9-00) SCHEDULE J BENEFICIARIES COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Lee Ann B. Wanner FILE NUMBER 21 05 0859 1 NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] Val R. Wagner 1010 East Avenue P.O. Box E Mantoloking, NJ 08738 RELATIONSHIP TO DECEDENT Do Not List Trustee(s) AMOUNT OR SHARE OF ESTATE NUMBER I 100% of Residue to Val R. Wagner 1010 East Avenue P.O. Box E Mantoloking, NJ08738: 70,862 Brother 70,862 ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18. AS APPROPRIATE. ON REV-1500 COVER SHEET II NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 3W46AI 1.000 TOTAL OF PART" - 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 . . . . . . . . . REGISTER OF WILLS CUMBERLAND County, Pennsylvania CERTIFICATE OF GRANT OF LETTERS ~ . ..- I ~. \., " '). . '- ~ . ' .' ',.,: ,).f ",,' ~ ~ _...,1\ '1 ",1(" ~~. t(,'('k\~"'\\l ~i . \' ~~ ~ >' ' ) i , ) .. \ .. , J"I,,' , ,,"':\. it. )~...~-''''' ~~"')"'." ..1\ ,'.' I ,,) . ~ No. 2005-00859 FA No. 21-05-0859 Es ta te Of: LEE ANN B WA GNER (First. Middle. Last) Late Of: CARLISLE BOROUGH CUMBERLAND COUNTY i~, Deceased Social Securi ty No: 209-12-0765 WHEREAS, on the 27th day of September 2005 an instrument dated February 23rd 1988 was admitted to probate as the last will of LEE ANN B WAGNER (Firsl. Middle. Lastl la te of CARLISLE BOROUGH, CUMBERLAND County, who died on the 16th day of August 2005 and, WHEREAS, a true copy of the will as probated is annexed hereto. THEREFORE, I, GLENDA FARNER STRASBAUGH Register of Wills in and for CUMBERLAND County, in the Commonwealth of Pennsylvania, hereby certify tha t I have this day granted Letters TESTAMENTARY to: VAL R WAGNER who has duly qualified as EXECUTOR(RIX) and has agreed to administer the estate according to law, all of which fully appears of record in my office at CUMBERLAND COUNTY COURT HOUSE, CARLISLE, PENNSYL VANIA. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seal of my offi ce on the 27th day of September 2005. \BtulCU ~\.n W' l ~p~) 1~ eglster 0 II/S 9QA C6- _O~ eputy * * NOTE * * ALL NAMES ABOVE APPEAR (FIRST, MIDDLE, LAST) . . . . . . . . . I, LEE ANN B. WAGNER, of Cumberland County, Pennsylvania, make this will and revoke all prior wills and codicils. FIRST: Payment of Certain Expenses. The expenses of my last illness, funeral, burial and gravemarker shall be paid out of my estate. SECOND: Tanqible Personal Property. (A) I give my automobiles and all other tangible personal property (and any insurance policies relating thereto) to my brother, VAL R. WAGNER, if he survives me; or if he does not, to his children who survive me, to be divided as they shall agree, or in the absence of agreement, as my executor shall deem appropriate. Any property not distributed by my executor shall be sold and the proceeds added to the residue. (B) The cost of delivering the property to the residences of the beneficiaries shall be paid from my estate as an expense of administration. THIRD: Residue. I give the residue of my estate to my brother, VAL R. WAGNER, if he survives me by thirty days; or, if he does not so survive me, to his issue who so survive me, per stirpes. . . . . . . . . . FOURTH: Minor and Disabled Beneficiaries. (A) Any property payable hereunder to a beneficiary who is a minor, or who, in the opinion of my trustee, is disabled because of illness, advanced age or other reason, may be paid to or applied for the benefit of such beneficiary, to the extent determined by my trustee, and the balance shall be held by my trustee as a separate trust, with power to invest and reinvest. said property and any income earned thereon shall, to the extent deemed appropriate by my trustee, be paid to such beneficiary or applied for his or her health, education, support, maintenance, comfort or welfare. Any income not so paid or applied shall be accumulated and added to principal. Any funds to be applied hereunder either shall be applied directly by my trustee or shall be paid to a parent of such beneficiary or to any person or organization caring for such beneficiary, and my trustee shall have no further respon- sibility for any funds so applied or paid. (B) If the administration of a separate trust is or shall become impractical, the trust referred to in Paragraph (A) may be distributed to the beneficiary or the person or organization caring for the beneficiary or, in the case of a minor, may be converted to cash and deposited in a savings account, savings certificate, money market fund or similar -2- . . . . . . . . . interest bearing investment, payable to the beneficiary upon attaining majority. (C) The balance of principal and income in the separate trust shall be paid to the beneficiary upon attaining majority or in the case of a disabled beneficiary when, in the opinion of my trustee, he or she is free of disability; in the event of the death of the beneficiary the same shall be paid to the beneficiary's personal representative. FIFTH: Administrative Provisions. (A) Death Taxes. All federal, state and other death taxes payable because of my death on property included in my gross estate for tax purposes, together with any interest and penalties on such taxes, shall be paid out of the residue of my estate at the times that my executor shall consider advisable. (B) Protective Provision. No interest in income or principal shall be assignable by, or available to anyone having a claim against, a beneficiary before actual payment to the beneficiary. (C) Minority. For the purposes of my will a minor shall be anyone under twenty-one years of age. SIXTH: Discretionary Powers. My executor and trustee, in addition to any authority conferred by law or -3- . . , . before me ~-nd sworn X (t a-uJ;o-.- ~b . . . . . . . 4 ~-p( ~~ ~~L_ Lee Ann B. Wagner / JbC.~ witL~/~ Subscribed, sworn to or affirmed and acknowledged by LEE ANN B. WAGNER, the testatrix, and subscrfbed to Rr affirmed before me by \j~"t-~ ~ ~d).~nd S .0Q.JY\IU.A'-.9\ ' witnesses, this '7..---:7 day of , 1988. /~ ELOISE.oI.. KLlNGeS Notary Public, Philo., Philo. eel My Commission Expires Feh. 21. 1f8f -7- . . b/~_U/;j(). . . . . . . I, G. WILLIAM WAGNER, of Delaware County, Pennsylvania, make this will and revoke all prior wills and codicils. FIRST: P<lyment of C'~l:tain Expenses. The expenses of my last illness, funeral, burial and gravemarker shall be paid out of my estate. SECOND: Tangible Personal Proper!y. (A) I give my automobiles and all other tangible personal property (including any insurance policies relating thereto) to my wife, MARJORIE C. WAGNER, if she survives me by thirty days. (B) If she does not so survive me, I give the same to my children who so survive me, to be divided as they shall agree. Any property not distributed to either child shall be sold and the proceeds added to the residue. (C) The cost of delivering the property to the residences of the legatees shall be paid from my estate as an expense of administ:ration. THIRD: Marital Deduction Trust. If my wife, MARJORIE C. WAGNER, survives me, which shall be presumed if . . . . . . . . . the order of our deaths cannot be established by proof, I give a sum e~lal to the lesser of (a) the maximum marital deduction allowable for federal estate tax purposes and !b) the minimum amount whic~l, ~fter taking into account all credits and deductiors available to my estate for federal estate tax purposes, will result in no tax, to my trustees IN TRUST to keep it invested and thereafter: (A) During my wife's lifetime, she shall be paid the income at least quarter-annually together with so much of the principal as my disinterested trustee may deem desirable for her health, maintenance, support, comfort and welfare, and so much of the principal as she shall from time to time request in writing delivered to my trustees. (B) On her death the principal shall be paid to such person or persons (including her estate) in such manner and for such estates as she may appoint by last will or codicil thereto specifically referring to the power hereby conferred. (C) Should my wife fail in whole or in part effectively to exercise the above power, there shall be paid out of the principal not effectively appointed an amount equal to any increase in taxes and administration expenses payable by her estate because of the inclusion in her gross -2- . . . . . . . . . estate of the principal of this trust, such payments to be made upon the certification of her personal representatives of the sums due. The remaining balance of principal shall <-hen he added to the principal of the residuary trust. If any property not passing under this Article qualifies for the marital deduction or any similar benefit , available under the federal estate tax law in force when I die, the value of that property shall be taken into con- sideration in determining the size of this .trust; provided that no generation-skipping transfer of which I am the deemed transferor shall be considered in det~rmining the size of this trust. No property ineligible for the marital deduction or any similar benefit shall be allocated to this trust; no death taxes on my estate shall be paid from this trust; any property distributed in kind to it shall be distributed at the lower of (i) its value at the time of distribution or (ii) either its value as finally determined for federal estate tax purposes or, if it is acquired after my death, its adjusted income tax basis; and, subject to the foregoing, my disinterested executor shall have absolute discretion in selecting the property to be allocated to this trust, without any duty to make a ratable apportionment of values. If any property which is part of this trust shall -3- . . . . . . . . . be or become unproductive of income consistent with its value, my wife may require my trustees to make it productive or convert it within a reasonable time to property which is clearly productive of income consistent with its value. FOURTH: Residuary Trust. I give the residue of my estate to my trustees IN TRUST, who shall invest and reinvest the principal, and hold the same as a separate residuary trust and thereafter: (A) If my wife, MARJORIE C. WAGNER, survives me, during her lifetime my trustees shall: (1) Pay to her the' net income at least quarter-annually; (2) Pay to or expend for her or my issue, after taking into account funds available from other sources, so much of the principal as my disinterested trustee may from time to time deem appropriate for the health, maintenance, support or education of my wife or any of my issue; (3) Pay to her such amounts of principal as she may request in writing, to the extent that at the time of such written request the amount requested, together with all amounts previously reques'ted by her under this paragraph during that calendar year, does not exceed five thousand -4- . . . . . . . . . dollars ($5,000.) or five per cent (5%) of the value of the principal as of the date of the receipt of such written request, whichever is greater, such withdrawal right not to accumulate from year to year. (B) Upon the death of the survivor of my wife and me, my trustees shall divide the then-remaining principal into as many equal shares as there shall be children of mine then living and children of mine then dead with issue then living. (1) From the share of each living child my trustees shall: (a) Pay to him or her the entire net income at least quarter-annually; (b) Pay to or expend for him or her or his or her spouse or issue so much of the principal of his or her share as my disinterested trustee, after taking into account funds available from other sources, from time to time may deem appropriate for the health, education, main- tenance or support of said life tenant, spouse or issue; (c) Pay to him or her such amounts of principal as he or she may request ill writing, to the extent that at the time of such written request the amount requested, together with all amounts previously requested by him or her -5- . . . . . . . . . under this sub-paragraph during that calendar year, does not exceed five thousand dollars ($5,000), such withdrawal right not to accumulate from year to year; (d) Upon each child's death (or at the time of division into sepai'ate shares with respect to the share of a child then deceased with issue then living) the then-remaining principal of such child's share shall be paid to his or her then-living issue, per stirpes; or in default of such issue to my then-living issue, per stirpes, provided that any principal payable to a grandchild of mine shall be held by my trustees in further trust for such grandchild and thereafter: (i) From the share of each grandchild of mine, my trustees shall pay to him or her the entire net income and pay to or expend for him or her so much of the principal of his or her share as my disinterested trustee, after taking into account funds available from other sources, from time to time may deem appropriate for his or her health, education, maintenance or support. Each grandchild may be written request to my trustees withdraw from the principal of the share of the trust held for his or her benefit the following: Up to one-half at any time after reaching twenty- five (25) years of age and the entire balance thereof at any -6- . . . . . . . . . time after reaching thirty (30) years of age. The maximum amount which a grandchild may withdraw before reaching thirty (3D) years of age is to be based on the market value of his or her trust at the time of his or her fjr~t ~equ~st after re,lching twenty-five (25) yea:t.s of age. (ii) Upon each grandchild's death, the then-remaining principal of such grandchild's share shall be paid to the then-living issue of such grandchild, per stirpes; or if none, to that grandchild's parent's (who is a child of mine) then-living issue, per stirpes; or if none, to my then-living issue, per stirpes; (2) If none of the beneficiaries identified above in this Article are living at the time fixed for distribution thereunder, the balance of principal shall be paid one-half to those natural persons who would be my heirs, and one-half to those natural persons who would be my wife's heirs, under the Pennsylvania intestate laws, if I and she had died residents therein at such time, unmarried, without living parents and intestate. (3) If any principal becomes payable under subparagraphs (d) or (ii) above to a child or grandchild of mine who has property held in trust under this Article, then such principal shall be added to said trust. -7- . . . . . . . . . FIFTH: Minor and Disabled Beneficiaries. (A) Any income or principal payable hereunder to a beneficiary who is a minor, or payable under Article FOURTH to a beneficiary who in the opinion of !,l} d: sir.tere~ted truste~ is disabled because of. illness, advan~ed age or other reason, may be paid to, or applied for the benefit of, such beneficiary, to the extent determined by my disinterested trustee and the balance shall be held by my trustees as a separate trust, with power to invest and reinvest. Said income and principal and any income earned thereon shall, to the extent deemed appropriate by my disinterested trustee, be paid to such beneficiary or applied for his or her health, education, support, maintenance, comfort and welfare. Any income not so paid or applied shall be accumulated and added to principal. Any funds to be applied hereunder either shall be applied directly by my trustees or shall be paid to a parent of such beneficiary or to any person or organization caring for such beneficiary and my trustees shall have 'no further responsibility for any funds so paid. (B) If the administration of a separate trust is or shall become impractical, the trust referred to in para- graph (A) may be distributed to the beneficiary or the person or organization caring for the beneficiary or in the -8- . . . . . . . . . case of a minor the same may be converted to cash and deposited in a savings account payable to the minor upon reaching majority. (C) The balance of pri'ilcip:~l 2Dll Llcome in the separate trust shall De paid to :he minor upon reaching majority or in the case of a disabled beneficiary when, in ~. the opinion of my disinterested trustee, he or she is free of disability; in the event of the death of the beneficiary the same shall be paid to the beneficiary's personal represen- tative. SIXTH: Administrative Provisions. (A) Death Taxes. All federal, state and other death taxes payable because of my death on property included in my gross estate for tax purposes, together with any interest and penalties on such taxes, shall be paid out of the principal of my residuary trust at the times that my executors or trustees shall consider advisable. {B} Protective Provision. No interest in income or principal shall be assignable by, or available to anyone having a claim against, a beneficiary before actual payment to the beneficiary. -9- . . . . . . . . . (C) Undistributed Income. All income undistri- buted at a beneficiary's death shall be treated as if it had accrued thereafter. (e) Minority. For the purposes of my will, a minor shall be anyone under twenty-one years of age. (E) Education. As used herein the term "education" ., shall be broadly construed and shall include, but not be limited to, private preparatory school, college, vocational school, graduate school and professional school. (F) Adoption. As used herein, the words "child", "children" or "issuell shall not include adopted individuals or their issue. (G) Rule Against Perpetuities Qualification Clause. The principal of any trust hereunder shall vest absolutely in interest not later than twenty-one (21) years after the death of the survivor of myself, my wife, and such of my issue and the spouses of my issue as are living at my death, and immediately prior to the expiration of twenty-one (21) years after the death of the survivor of the above group the principal of each trust which has not previously vested in interest shall vest absolutely in and become payable to the person or persons then entitled to the income therefrom. -10- . . . . . . . . . (H) Reimbursement of Beneficiary's Estate. Except as provided in paragraph (C) of Article THIRD, any increase in taxes or administration expenses payable by the estate of a beneficiary hereunder because of the inclusion in his or her gross estate of principal or income which he or she was entitled to withdraw prior to his or her death (which right terminated upon his or her death) shall be paid out of such principal or income upon the certification of his or her personal representatives of the sums due. SEVENTH: Discretionary Powers. My executors and trustees, in addition to any authority conferred by law or elsewhere herein and without leave of court, shall have the following discretionary powers with respect to all property, until actual distribution thereof: (A) To retain any' or all property, real or per- sonal; (B) To invest in all types of real or personal property without restriction to so-called legal investments and, sUbject to the provisions of paragraph (C) of Article THIRD, to keep a reasonable amount of cash uninvested; (C) To exercise any right or option arising from ownership of any securities held hereunder and to register the same in the name of a nominee; -11- . . . . . . . . . (D) To compromise any claims and to abandon any property considered by my executors or trustees to be of little or no value; (E) To repair, alter, improve, partiti0n, div.:.de or lease for any period of time, any real or personal property; (F) To borrow money from any source without personal liability therefor and to secure the repaying thereof by note or bond and mortgage or pledge of real or personal property; (G) To sell any real or personal property at public or private sale for such prices and upon such terms, including the granting of options, as may be considered proper; (H) To apply directly for the benefit of my wife all sums to which she is entitled from the marital deduction trust if she is, in my disinterested trustee's opinion, disabled by adv,anced age, illness or other cause; (I) To distribute in kind and, except as provided in paragraph (C) of Article THIRD, to allocate specific assets among the beneficiaries (including any trust hereunder) in such proportions as my executors or trustees may think best, without regard to the income tax basis of any such asset, so long as the total market value of any beneficiary's share is not affected by such allocation; -12- . . . . . . . . . : (J) To allocate any property received or charge incurred to principal or income or partly to each, without regard to any law defining principal and income; provided that this authority. s~all not extend to the marital deduction trust and that a~l decisions under this paragraph shall be made by my di~interested executor or trustee alone; (K) To use administrative or other expenses as income tax or estate tax deductions and to value my estate for tax purposes by any method permitted by the law in force when I die, without regard to whether the size of the marital deduction trust will be affected thereby and without requiring adjustments between income and principal for any resulting effect on income or estate taxes; provided that all decisions under this paragraph shall be made by my disinterested executor alone; and (L) To employ such agents, custodians, attorneys, accountants or investment counsel, and to rely on advice given by such attorneys, accountants or investment counsel as may be reasonably necessary or desirable in managing, protecting and investing any property or trust funds, and to pay them reasonable compensation therefor in addition to the fees otherwise payable to my executors or trustees. -13- . . . . . . . . . '. EIGHTH: Executors and Trustees. I appoint my wife, MARJORIE C. WAGNER, and my son, VAL R. WAGNER, executors of and trustees under this will, and I direct that: (A) If my wife or my son for any reason fails to qualify or ceases to act as an executor or trustee, fiLst my daughter, LEE ANN B. WAGNER, and then my grandson, VAL X.H~ , WAGNER, shall become an executor or trustee in that order; (B) Any individual executor or trustee may resign at any time without court approval; (C) As used herein the words "disinterested executor" and "disinterested trustee" shall refer to my executor and trustee other than my wife and in the case of a particular trustee my trustee who is not an income beneficiary of such trust. (D) No executor or trustee shall be required to give bond. Signed this 11th day of June , 1980. /s/ G. William Wagner G. William Wagner SIGNED, PUBLISHED and DECLARED in our presence as his will -14- . . . . . . . . . : by G. WILLIAM WAGNER, and we at his request, in his presence and in the presence of each other, sign as witnesses. /s/ Frank S. Deming Phila. , PA witness Address /s/ Harry C. Schaub philadelphia, PA witness Address -15- . . . . . . . . . . . COMMONWEALTH OF PENNSYLVANIA SSe COUNTY OF PHILADELPHIA I, G. WILLIAM WAGNER, the testator whose name is signed to the attached or foregoing instrument, havin1 been july qualified according to law, do hereby acknowledg~ that I signed and exeL:uted the instrument as my last will; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. /s/ G. William Wagner G. William Wagner Sworn or affirmed to and acknowledged before me, by G. WILLIAM WAGNER, the testator, this 11th day of June , 1980. /s/ Marianna C. Moore Notary Public -16- . . . . . . . . . \ COMMONWEALTH OF PENNSYLVANIA 5S. COUNTY OF PHILADELPHIA We, Frank S. Deming and Harry C. Schaub ,the wj,tnl~Eser: who~~e names are signed to the attached or foregoinc i115-crument, being duly qualified according to law, do depose a.ld say that we were present and saw testator sign and execute the instrument as his last will; that he signed willingly and that he executed it as his free and voluntary act for the-purposes therein expressed; that each of us in the hearing and sight of the testator signed the will ~s witnesses; and that to the best of our knowledge the testator was at that time 18 or more years of age, of sound mind and under no constraint or undue influence. /s/ Frank S. Deming witness /s/ Harry C. Schaub Witness Sworn or affirmed to and subscribed to before me by Frank S. Deming and Harry C. Schaub wi tnesses, this 11th day of June , 1980. /s/ Marianna C. Moore Notary Public -17- . . . . . . . "I to}, III r _L~J~ '1 )2. ". . TlAA Contract No: IC82598-2 CREF Certificate No: IC83659-1 LEE ANN B WAGNER, deceased - /2 1: "I 1'1- 1:1 Ii! = A fixed income (contractual payment), plus dividends as declared, payable monthly beginning as of 09/01/2005 and continuing through 07/2008. $665.25 + $770.24 Total Initial Payment t $1435.49 )( JJ":: S"tJ 'lI{~" Contractual Payment Current Dividend = The commuted value of the annuity installments was $22445.330n 08/0112005. The total value actually payable in a single sum will be larger than this amount since interest will be credited on this commuted value until payment is made. ;iI. ':a., y l.{ s' ~ '1 Your CREF Stock Income is a variable income payable monthly beginning as of 09/0112005 and continuing through 08/2008. 185.78 Current Value of One Annuity Unit $231.21 Total Initial Payment Number of Annuity Units Per Payment x = $416.99 ><3'- -:: ~ If oll.,t The commuted value of the annuity installments was $6439.730n 08/01/2005. The total value actually payable in a single sum may be more or less than this amount, depending upon CREF's interim investment experience. '~'!J." ., $ :t *'- -f'~ .f. 0" ~ . . . . . . . . . TEACHERS INSURANCE AND ANNUITY ASSOCIATION DATE OF MINIMUM CONTRACT FIRST FREQUENCY GUARANTEED DATE OF NUMBER PAYMENT OF PAYMENT PERIOD BIRTH IC82598-2 08/01/88 Monthly 20 Years MO DA YR ANNUITANT Lee Ann B Wagner 04/01/26 $665.25 ANNUITY PAYMENT DATE OF ISSUE MO DA YR 08/01/88 'PROVISIONS 1. CONSIDERATION THIS CONTRACT IS ISSUED IN EXCHANGE FOR THE SURRENDER TO TlAA OF CONTRACT NUMBER(S): A087597-9 PROCEEDS IN THE AMOUNT OF $164,961.31 ARE APPLIED TO THIS CONTRACT. THESE ACTS FULFILL ALL THE OBLIGATIONS OF THE CONTRACT THAT HAS BEEN SURRENDERED. THE CONSIDERATION FOR THIS CONTRACT HAS BEEN DELIVERED AT TlAA'S HOME OFFICE IN NEW YORK, NEW YORK. 2. COMMUTED VALUE THE COMMUTED (DISCOUNTED) VALUE IS A ONE-SUM AMOUNT PAID IN LIEU OF A SERIES OF . PAYMENTS. IT IS LESS THAN THE TOTAL OF THOSE PAYMENTS, BECAUSE FUTURE INTEREST, INCLUDED IN COMPUTING THE SERIES OF PAYMENTS, WILL NOT BE EARNED IF PAYMENT IS TO BE MADE IN ONE SUM. THE COMMUTED VALUE OF FUTURE PAYMENTS IS THEREFORE THE SUM OF THOSE PAYMENTS LESS THE INTEREST FROM THE DATE OF COMMUTATION TO THE DATE EACH PAYMENT WOULD HAVE BEEN MADE. THE COMMUTED VALUE OF THE ANNUITY PAYMENT WILL BE COMPUTED AT THE EFFECTIVE ANNUAL RATE OR RATES OF INTEREST SHOWN BELOW: $637.94 $27.31 EFFECTIVE RATE OF INTEREST 2.50% 2. 25 % PART OF ANNUITY PAYMENT 902.9 Page 3 L-GP . . . . . . . . . BENEFICIARY DESIGNATION (SEE PROVISION 2) CLASS I BENEFICIARY(IES) NAME Val R. Wagner RELATIONSHIP TO ANNUITANT Brother CLASS II BENEFICIARY(IES) · NAME Bonne M. Wagner Val H. Wagner RELATIONSHIP TO ANNUITANT Niece Nephew 00 RIGHT TO RECEIVE PRESENT VALUE OF ANNUITY PAYMENTS IN ONE SUM. AT THE ANNUITANT'S DEATH, EACH BENEFICIARY SHALL HAVE THE RIGHT TO ELECT TO RECEIVE IN ONE SUM THE THEN PRESENT VALUE OF THE SHARE OF ANY REMAINING UNPAID ANNUITY PAY- MENTS APPORTIONED TO SUCH BENEFICIARY. (THIS PROVISION IS APPLICABLE ONLY IF THE PRECEDING SPACE (_) IS MARKED WITH AN (X).) ( ) AUTOMATIC ONE-SUM PAYMENT OF PRESENT VALUE OF ANNUITY PAYMENTS. AT THE ANNUITANT'S DEATH, THE PRESENT VALUE OF THE SHARE OF ANY REMAINING UNPAID ANNUITY PAYMENTS APPORTIONED TO A BENEFICIARY SHALL BE PAID IN ONE SUM. (THIS PROVISION IS APPLICABLE ONLY IF THE PRECEDING SPACE (_) IS MARKED WITH AN (X).) 902.9-1011.8 Page 5 L-GP-IR . . . . . . . . . ADDITIONAL PROVISIONS IT IS UNDERSTOOD AND AGREED THAT IF A TESTAMENTARY TRUSTEE OR AN INTER VIVOS TRUSTEE IS DESIGNATED AS BENEFICIARY: (A) TlAA SHALL NOT BE OBLIGED TO INQUIRE INTO THE TERMS OF ANY WILL OR OF ANY TRUST AFFECTING THIS CONTRACT OR ITS DEATH BENEFITS AND SHALL NOT BE CHARGED WITH KNOWLEDGE OF TERMS THEREOF. (B) IF BENEFITS BECOME PAYABLE TO A TESTAMENTARY TRUSTEE AND (I) THE WILL IS NOT PRESENTED FOR PROBATE WITHIN 90 DAYS FOLLOWING THE DATE OF THE ANNUITANT'S DEATH; OR (II) THE WILL HAS BEEN PRESENTED FOR PROBATE WITHIN THE AFORESAID 90 DAYS AND NO QUALIFIED TRUSTEE MAKES CLAIM FOR THE BENEFITS WITHIN NINE MONTHS AFTER THE ANNUITANT'S DEATH; OR (III) IF EVIDENCE SATISFACTORY TO TlAA IS FUR- NISHED TIAA WITHIN SUCH NINE-MONTH PERIOD THAT NO TRUSTEE CAN QUALIFY TO RECEIVE THE BENEFITS, PAYMENT SHALL BE MADE TO THE SUCCESSOR BENEFICIARY(IES) AS DESIG- NATED ON THE REVERSE SIDE, IF ANY SUCH BENEFICIARY(IES) ARE DESIGNATED AND SUR- VIVE THE ANNUITANT; OTHERWISE TO THE EXECUTORS OR ADMINISTRATORS OF THE ANNUITANT. (C) IF BENEFITS BECOME PAYABLE TO AN INTER VIVOS TRUSTEE AND (I) THE TRUST AGREEMENT IS NOT IN EFFECT; OR (II) NO TRUSTEE CAN QUALIFY TO RECEIVE THE BENE- FITS; OR (III) THE QUALIFIED TRUSTEE IS NOT WILLING TO ACCEPT THE BENEFITS, PAY- MENT SHALL BE MADE TO THE SUCCESSOR BENEFICIARY(IES) AS DESIGNATED ON THE REVERSE SIDE, IF ANY SUCH BENEFICIARY(IES) ARE DESIGNATED AND SURVIVE THE ANNUITANT; OTHERWISE TO THE EXECUTORS OR ADMINISTRATORS OF THE ANNUITANT. (D) PAYMENT TO AND RECEIPT BY SAID TRUSTEE, SAID SUCCESSOR BENEFICIARY(IES) OR SAID EXECUTORS OR ADMINISTRATORS OF THE ANNUITANT, AS PROVIDED FOR IN (B) OR (C) ABOVE, SHALL FULLY DISCHARGE TIAA FROM ALL LIABILITY TO THE EXTENT OF SUCH PAYMENT. TlAA SHALL HAVE NO OBLIGATIONS AS TO THE APPLICATION OF FUNDS SO PAID AND SHALL, IN ALL DEALINGS WITH SAID TRUSTEE OR WITH SAID EXECUTORS OR ADMINIS- TRATORS, INCLUDING BUT NOT LIMITED TO ANY CONSENT, RELEASE OR WAIVER OF INTEREST, BE FULLY PROTECTED AGAINST THE CLAIMS OR DEMANDS OF ANY OTHER PERSON OR PERSONS. 902.9-1011.8 Page 6 L-GP-IR .. . . . . . . . . 3. Annuity Payments. Your income begins as of the Date of First Payment if you are then alive. Payments will continue to you for the rest of your life. If you die within the Minimum Guaranteed Period following the Date of Issue, payments will be continued to the beneficiary for the remainder of that period. In lieu of payments due the beneficiary, the Commuted Value of such payments may be paid to the beneficiary in one sum, unless otherwise specified on Page 5. The Date of First Payment,' Minimum Guaranteed Period, Frequency of Payment and the amount of each payment are shown on Page 3. Payments in addition to the amount shown on Page 3 may be made by TIAA. TIAA does not guarantee that there will be such Additional Amounts. If you outlive all beneficiaries but die within the Minimum Guaranteed Period, we will pay to your estate the Commuted Value of any payments remaining due. If a beneficiary dies while entitled to receive payments, the Commuted Value of any payments remaining due to him or her will be paid to the surviving person or persons named to receive it. If no one so named is then living, the Commuted Value will be paid to the estate of such beneficiary. Payments are subject to the provisions of any method of payment agreement or any beneficiary designation in effect under this contract. 4. Change of Frequency of Annuity Payments. You, or a beneficiary receiving payments, may request a change to equivalent payments made annually, semi-annually, quarterly or monthly. However, TIAA may decline to make a change from one frequency to another of fewer payments per year. TIAA will also have the right to decline any change that would result in payments of less than $10 each. 5. Termination of Annuity Payments. The final payment to be made under this contract will be the last payment due on or before the date of your death, unless you die within the Minimum Guaranteed Period. In that case, the final payment will be the last payment due within that period. 6. Beneficiary. Beneficiaries are persons named, in form satisfactory to TIAA, to receive any payments remaining due at your death. Different classes of beneficiaries, such as primary (first) and contingent (secondary), may be oesignated. These classes set the order of payment. If a class contains more than one person, any payments remaining due at your death will be paid to the then living persons in a class in equal shares, unless provided otherwise. For example, if you die during the Minimum Guaranteed Period with your spouse having been named as primary beneficiary and ':my children" as equal contingent beneficiaries, your spouse would receive any payments remaining due upon surviving you. But if your spouse did not survive you, then your surviving children would receive equal shares of any payments remaining due. The term~ "children" or "my children" may be used to name a class of beneficiaries, either primary or contingent. Unless otherwise specified, these terms will mean all children born of your marriage or marriages and any children legally adopted by you. The term "children" also has the same inclusive meaning when used to name as beneficiaries the children of your spouse, your child, your brother or your sister. The beneficiary designation may be changed as exolained below, unless otherwise specified on Page 5. 7. Benefits Based on Incorrect Data. It payments are determined by data as to your age or sex that are incorrect, the amount of payments will be recalculated based on the correct data. Any amounts underpaid by TIAA on the basis of incorreet age or sex will be paid when the correction is made. Any amounts overpaid by TIAA on the basis of incorrect age or sex will be charged against payments due after the correction is made. Any amounts so paid or charged will include compound interest at the effective rate of 6% per year. 8. Proof of Survival. TIAA reserves the right to require satisfactory prool mat anyone named to receive benefits under the terms of your contract is alive on the date any payment is due. If this proof is not received by us after requested in writing, TIAA will have the right to withhold payments entirely until such proof is received. 9. Procedure for Elections and Changes. You or a beneficiary, having the right to do so, may elect or change, in accordance with the terms of your contract, any of the following by written notice satisfactory to TIAA sent to its home office in New York, NY: A) the method of payment to the beneficiary; B) the beneficiary; C} the frequency of payments; or D) the surrender of this contract for its Commuted Value. 902.9 Ed. 1-82 Page 7 L-GP . . . . . . . . . TEACHERS INSURANCE AND ANNUITY ASSOCIATION DATE OF MINIMUM CONTRACT FIRST FREQUENCY GUARANTEED DATE OF NUMBER PAYMENT OF PAYMENT PERIOD BIRTH IC83659-1 09/01/88 Monthly 20 Years MO DA YR ANNUITANT Lee Ann B Wagner 04/01/26 $185.78 ANNUITY PAYMENT DATE OF ISSUE MO DA YR 09/01/88 PROVISIONS 1. CONSIDERATION THIS CONTRACT IS ISSUED IN EXCHANGE FOR THE SURRENDER TO TIAA OF CONTRACT NUMBER(S): B439609-5 PROCEEDS IN THE AMOUNT OF $47,933.02 ARE APPLIED TO THIS CONTRACT. THESE ACTS FULFILL ALL THE OBLIGATIONS OF THE CONTRACT THAT HAS BEEN SURRENDERED. THE CONSIDERATION FOR THIS CONTRACT HAS BEEN DELIVERED AT TlAA'S HOME OFFICE IN NEW YORK, NEW YORK. 2. COMMUTED VALUE THE COMMUTED (DISCOUNTED) VALUE IS A ONE-SUM AMOUNT PAID IN LIEU OF A SERIES OF PAYMENTS. IT IS LESS THAN THE TOTAL OF THOSE PAYMENTS. BECAUSE FUTURE INTEREST, INCLUDED IN COMPUTING THE SERIES OF PAYMENTS, WILL NOT BE EARNED IF PAYMENT IS TO BE MADE IN ONE SUM. THE COMMUTED VALUE OF FUTURE PAYMENTS IS THEREFORE THE SUM OF THOSE PAYMENTS LESS THE INTEREST FROM THE DATE OF COMMUTATION TO THE DATE EACH PAYMENT WOULD HAVE BEEN MADE. THE COMMUTED VALUE OF THE ANNUITY PAYMENT WILL BE COMPUTED AT THE EFFECTIVE ANNUAL RATE OR RATES OF INTEREST SHOWN BELOW: $185.78 EFFECTIVE RATE OF INTEREST 2.50% PART OF ANNUITY PAYMENT 902.9 Page 3 L-GP ... . . . . . . . . ;> BENEFICIARY DESIGNATION (SEE PROVISION 2) CLASS I BENEFICIARY(IES) NAME Val R. Wagner RELATIONSHIP TO ANNUITANT Brother CLASS II BENEFICIARY(IES) NAME Bonne M. Wagner Val H. Wagner RELATIONSHIP TO ANNUITANT Niece Nephew ~ RIGHT TO RECEIVE PRESENT VALUE OF ANNUITY PAYMENTS IN ONE SUM. AT THE ANNUITANT'S DEATH, EACH BENEFICIARY SHALL HAVE THE RIGHT TO ELECT TO RECEIVE IN ONE SUM THE THEN PRESENT VALUE OF THE SHARE OF ANY REMAINING UNPAID ANNUITY PAY- MENTS APPORTIONED TO SUCH BENEFICIARY. (THIS PROVISION IS APPLICABLE ONLY IF THE PRECEDING SPACE (_) IS MARKED WITH AN (X).) ( ) AUTOMATIC ONE-SUM PAYMENT OF PRESENT VALUE OF ANNUITY PAYMENTS. AT THE ANNUITANT'S DEATH, THE PRESENT VALUE OF THE SHARE OF ANY REMAINING UNPAID ANNUITY PAYMENTS APPORTIONED TO A BENEFICIARY SHALL BE PAID IN ONE SUM. (THIS PROVISION IS APPLICABLE ONLY IF THE PRECEDING SPACE (_) IS MARKED WITH AN (X).) 102 . 9-1011. 8 Page 5 L-GP-IR - . . . . . . . - . ADDITIONAL PROVISIONS IT IS UNDERSTOOD AND AGREED THAT IF A TESTAMENTARY TRUSTEE OR AN INTER VIVOS TRUSTEE IS DESIGNATED AS BENEFICIARY: (A) TlAA SHALL NOT BE OBLIGED TO INQUIRE INTO THE TERMS OF ANY WILL OR OF ANY TRUST AFFECTING THIS CONTRACT OR ITS DEATH BENEFITS AND SHALL NOT BE CHARGED WITH KNOWLEDGE OF TERMS THEREOF. (B) IF BENEFITS BECOME PAYABLE TO A TESTAMENTARY TRUSTEE AND (I) THE WILL IS NOT PRESENTED FOR PROBATE WITHIN 90 DAYS FOLLOWING THE DATE OF THE ANNUITANT'S DEATH; OR (II) THE WILL HAS BEEN PRESENTED FOR PROBATE WITHIN THE AFORESAID 90 DAYS AND NO QUALIFIED TRUSTEE MAKES CLAIM FOR THE BENEFITS WITHIN NINE MONTHS AFTER THE ANNUITANT'S DEATH; OR (III) IF EVIDENCE SATISFACTORY TO TlAA IS FUR- NISHED TlAA WITHIN SUCH NINE-MONTH PERIOD THAT NO TRUSTEE CAN QUALIFY TO RECEIVE THE BENEFITS, PAYMENT SHALL BE MADE TO THE SUCCESSOR BENEFICIARY(IES) AS DESIG- NATED ON THE REVERSE SIDE, IF ANY SUCH BENEFICIARY(IES) ARE DESIGNATED AND SUR- VIVE THE ANNUITANT; OTHERWISE TO THE EXECUTORS OR ADMINISTRATORS OF THE ANNUITANT. (C) IF BENEFITS BECOME PAYABLE TO AN INTER VIVOS TRUSTEE AND (I) THE TRUST AGREEMENT IS NOT IN EFFECT; OR (II) NO TRUSTEE CAN QUALIFY TO RECEIVE THE BENE- FITS; OR (III) THE QUALIFIED TRUSTEE IS NOT WILLING TO ACCEPT THE BENEFITS, PAY- MENT SHALL BE MADE TO THE SUCCESSOR BENEFICIARY(IES) AS DESIGNATED ON THE REVERSE SIDE, IF ANY SUCH BENEFICIARY(IES) ARE DESIGNATED AND SURVIVE THE ANNUITANT; OTHERWISE TO THE EXECUTORS OR ADMINISTRATORS OF THE ANNUITANT. (D) PAYMENT TO AND RECEIPT BY SAID TRUSTEE, SAID SUCCESSOR BENEFICIARY(IES) OR SAID EXECUTORS OR ADMINISTRATORS OF THE ANNUITANT, AS PROVIDED FOR IN (B) OR (C) ABOVE, SHALL FULLY DISCHARGE TlAA FROM ALL LIABILITY TO THE EXTENT OF SUCH PAYMENT. TlAA SHALL HAVE NO OBLIGATIONS AS TO THE APPLICATION OF FUNDS SO PAID AND SHALL, IN ALL DEALINGS WITH SAID TRUSTEE OR WITH SAID EXECUTORS OR ADMINIS- TRATORS, INCLUDING BUT NOT LIMITED TO ANY CONSENT, RELEASE OR WAIVER OF INTEREST, BE FULLY PROTECTED AGAINST THE CLAIMS OR DEMANDS OF ANY OTHER PERSON OR PERSONS. 902 . 9-10 11.8 Page 6 L-GP-IR . . . . . . . . . : 3. Amluity Payments. Your income begins as of the Date of First Payment if you are then alive. Payments will continue to you for the rest of your life. If you die within the Minimum Guaranteed Period following the Date of Issue, payments will be continued to the beneficiary for the remainder of that period. In lieu of payments due the beneficiary, the Commuted Value of such payments may be paid to the beneficiary in one sum, unless otherwise specified on Page 5. The Date of First Payment,. Minimum Guaranteed Period, Frequency of Payment and the amount of each payment are shown on Page 3. Payments in addition to the amount shown on Page 3 may be made by TIAA. TIAA does not guarantee that there will be such Additional Amounts. If you outlive all beneficiaries but die within the Minimum Guaranteed Period, we will pay to your estate the Commuted Value of any payments remaining due. If a beneficiary dies while entitled to receive payments, the Commuted Value of any payments remaining due to him or her will be paid to the surviving person or persons named to receive it. If no one so named is then living, the Commuted Value will be paid to the estate of such beneficiary. Payments are subject to the provisions of any method of payment agreement or any beneficiary designation in effect under this contract. . 4. Change of Frequency of Annuity Payments. You, or a beneficiary receiving payments, may request a change to equivalent payments made annually, semi-annually, quarterly or monthly. However, TIAA may decline to make a change from one frequency to another of fewer payments per year. TIAA will also have the right to decline any change that would result in payments of less than $10 each. 5. Termination of Annuity Payments. The final payment to be made under this contract will be the last payment due on or before the date of your death, unless you die within the Minimum Guaranteed Period. In that case, the final payment will be the last payment due within that period. 6. Beneficiary. Beneficiaries are persons named, in form satisfactory to TIAA, to receive any payments remaining due at your death. Different classes of beneficiaries, such as primary (first) and contingent (secondary), may be designated. These classes set the order of payment. If a class contains more than one person, any payments remaining due at your death will be paid to the then living persons in a class in equal shares, unless provided . otherwise. For example, if you die during the Minimum Guaranteed Period with your spouse having been named as primary beneficiary and "my children" as equal contingent beneficiaries, your spouse would receive any payments remaining due upon surviving you. But if your spouse did not survive you, then your surviving children would receive equal shares of any payments remaining due. The terms "children" or "my children" may be used to name a class of beneficiaries, either primary or contingent. Unless otherwise specified, these terms will mean all children born of your marriage or marriages and any children legally adopted by you. The term "children" also has the same inclusive meaning when used to name as beneficiaries the children of your spouse, your child, your brother or your sister. The beneficiary designation may be changed as exolained below, unless otherwise specified on Page 5. 7. Benefits Based on Incorrect Data. It payments are determined by data as to your age or sex that are incorrect, the amount of payments will be recalculated based on the correct data. Any amounts underpaid by TIAA on the basis of incorrect age or sex will be paid when the correction is made. Any amounts overpaid by TIAA on the basis of incorrect age or sex will be charged against payments due after the correction is made. Any amounts so paid or charged will include compound interest at the effective rate of 6% per year. 8. Proof of Survival. TIAA reserves the right to require satisfactory proot that anyone named to receive benefits under the terms of your contract is alive on the date any payment is due. If this proof is not received by us after requested in writing, TIAA will have the right to withhold payments entirely until such proof is received. 9. Procedure for Elections and Changes. You or a beneficiary, having the right to do so, may elect or change, in accordance with the terms of your contract, any of the following by written notice satisfactory to TIAA sent to its home office in New York, NY: A) the method of payment to the beneficiary; B) the beneficiary; C) the frequency of payments; or D) the surrender of this contract for its Commuted Value. 902.9 Ed. 1-32 Page? L-GP