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HomeMy WebLinkAbout08-10-06 .. IN THE MATTER OF THE ESTATE OF FAY E. SOUDER, DECEASED IN THE ORPHANS' COURT DIVISION OF THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 21-05-0291 ESTA TE SETTLEMENT AGREEMENT t-- THIS AGREEMENT, made as of this S ~ day of August 2006, .~ 1:.:.J WITNESSETH: ') THE CIRCUMSTANCES leading to the execution of this Agreement are as fOflows: 1. Fay E. Souder (the"Decedent") died testate on 14 March 2005 at 88 years of age, and Lindford N. Kinney qualified with the Register of \Ni!ls of Cumberland County, Pennsylvania, as Executor (the "Executor") of the Decedent's probate estate (the "Estate"). 2. Decedent's Last Will and Testament (the "Will"), which was admitted to probate, was executed by Decedent on 8 September 2004. 3. Items SECOND, THIRD, FOURTH and FIFTH of the Decedent's Will provide for the distribution of Decedent's tangible personal property and real property, as follows: SECOND: I give my tangible personal property and all casualty insurance that I am carrying on said tangible personal property to my children who are living at my death to be divided equally among or between them as my Executor may determine. I have complete confidence that Executor will honor any written instructions that I may leave with regard to said tangible personal property. Any such property not so distributed shall be sold, and the proceeds added to my residuary estate to pass as hereafter described, or to be distributed as my Executor otherwise determines. THIRD: I give and bequeath to my sister, Ruth Wevodau, jf she shall survive me, the sum of Ten Thousand Dollars ($10,000). ~~ FOURTH: I give my son-in-law, Linford N. Kinney, if he shall survive me, cash or other property equal in value to one percent (1 %) of the value of my property listed on the inventory of my real and personal estate filed with the Register of Wills of the county of my residence at the time of my death. FIFTH: I presently own a tract of real property, which was formerly a part of the farm owned by my late husband and me, situate adjacent to the West boundary of the right-of-way of Pennsylvania Interstate Route 581 northwest of the Creekview Road interchange, on which is erected a communications tower, which real property was leased by my husband and me to United Telespectrum, Inc. ("United Telespectrum"), now to its successors and assigns ("said lease"). Said lease provides payments to me in monthly installments, as adjusted periodically as set forth in said lease, and the lease has several options for renewal. At the time of my death, I direct my Executor and Trustee, hereinafter named, to establish a trust, the res of which shall be the land on which the United Telespectrum tower is erected, and all lease payments thereafter on account of the rental thereof under said lease shall be paid to the Trustee and held in trust. The monthly iease pay- ments shall be invested by my Trustee as my Trustee, in his or its sole discretion, determines shall be appropriate and the net income from that trust, including all interest earned from the investment of the periodic lease payments, shall be distributed once annually in each December in equal shares to my four children, or their benefi- ciaries as set forth in Items SIXTH (1) through (4) inclusive hereaf- ter. If any of my said children fail to survive me, then their respec- tive share shall be distributed to their respective beneficiaries as set forth for each of them in Items SIXTH (1) through (4) inclusive hereafter. At the termination of said lease, in the event United Telespectrum or its then successor and assigns elects not to reach an agreement with the Trustee to purchase the real property on which the tower is erected, then my Trustee shall proceed to sell or otherwise dispose of said real property and distribute the proceeds therefrom equally among my children or their respective beneficia- ries as set forth in Items SIXTH (1) through (4) inclusive hereafter, and the trust shall thereupon terminate. 4. Item SIXTH of the Decedent's Will provides for the distribution of the rest, residue and remainder of Decedent's property, as foliows: -2- SIXTH: I give, devise and bequeath the rest, residue and remainder of my estate, real and personal, which thereupon shall be divided into four equal shares and distributed as follows: (1) One share to my son, Ray M. Souder, Jr., if living. If he is not then living, his share shall be divided into two separate and equal shares, one share to be distributed outright to Ray's son, Steven, and the other share to be held in trust for the benefit of Ray's son, Gregory. The Trustee shall distribute annually to Gregory all net in- come from the Trust, together with an annual contribution of ten percent (10%) of the principal in said Trust at its inception, so that the principal of said Trust shall be exhausted after ten years from inception and thereupon terminated. In the event, Gregory dies prior to distribu- tion of all funds from the trust for his benefit, the remain- ing principal and income shall continue to be paid on the ten year installment basis to his issue. If Gregory dies without issue, then the remaining funds held in trust for him shall be distributed outright to his brother, Steven, or his issue. (2) One share to my daughter, Joyce A. Kinney, if living. If she is not then living, her share shall be given to her daughter, Janet. (3) One share to my daughter, Shirley Ann Snyder. If she is not then living, her share shall be distributed to her hus- band, Jerome Snyder. (4) One share to my son, Paul H. Souder, if living. If he is not then living, his share shall be divided into two sepa- rate and equal shares, a one-half share to his wife, Al- berta, and one-half share to his son, Michael, or to the survivor of them. (5) If at the time of my death, or at any later time prior to final distribution hereunder, my children and all persons named in Items SIXTH (1) through (4) inclusive are de- ceased and no other disposition of the property is di- rected by this Will, then and in that event only, the then- remaining principal of this Will and of any Trust created hereunder, together with any undistributed income, shall be divided and paid over and distributed one-half (IS) to those persons then living who would then be my heirs, their identities and respective shares to be determined in accordance with the law then in effect in the Common- -3- wealth of Pennsylvania, as if I had then died intestate, and one-half (";/z) to those persons then living who would then be my late husband's heirs, their identities and respective shares to be determined in accordance with the law then in effect in the Commonwealth of Pennsyl- vania, as if he had then died intestate. (6) Except as otherwise provided herein, if any share here- under becomes distributable to a beneficiary who has not attained the age of twenty-five (25) years, then such share shall immediately vest in such beneficiary, but notwithstanding the provisions herein, my Trustee shall retain possession of such share in trust for such benefi- ciary until such beneficiary attains the age of twenty-five (25) years, using so much of the net income and princi- pal of such share as my Trustee deems necessary to provide for the proper medical care, education, support and maintenance of such beneficiary, taking into consid- eration to the extent my Trustee deems advisable any other income or resources of such beneficiary or his or her parents known to my Trustee. Any income not so paid or applied shall accumulate and be added to princi- pal. Such beneficiary's share shall be paid over and distributed to such beneficiary upon attaining the age of twenty-five (25) years, or, if he or she shall sooner die, to his or her executors or administrators. I recommend that my Trustee consider distributing periodically all income from such share to such beneficiary after such benefi- ciary attains the age of twenty-one (21) years. 5. The Beneficiaries desire to settle the Estate informally in order to avoid the expense and delay involved with the formal adjudication of a First and Final Account by the Orphans' Court Division of the Court of Common Pleas of Cumberland County, Pennsylva- nia (the "Court"). 6. The Executor joins in this p.,greement to signify his agreement with the terms hereof as more particularly set forth hereafter. -4- 7. The Beneficiaries and Executor desire to forever settle and compromise any and all claims and rights which they may possess, now or hereafter, in the Estate and to confirm their acceptance of the Informal Account (the "Account"), attached hereto as Exhibit "A" and incorporated herein by this reference, and the Schedule of Proposed Distribution (the "Schedule"), attached hereto as Exhibit "B" and incorporated herein by this reference. The Beneficiaries and Executor desire that the distributions to the Benefi- ciaries, as set forth in Exhibit "B", be in full satisfaction of their rights in the Estate. 8. The Beneficiaries wish to release the Executor and to indemnify him against any and all claims that may be asserted against the Estate or the Executor after the date hereof. The Beneficiaries also desire to release the Executor with respect to the waiver of a right to a formal adjudication of a First and Final Account of the Estate. 9. The Executor is willing to settle the Estate informally in consideration of the indemnifications hereinafter provided by the Beneficiaries and Trustee. NOW THEREFORE, in consideration of the foregoing and intending to be legally bound, the Beneficiaries and Executor, for themselves, their heirs, personal representa- tives, successors and assigns: 1. Represent and warrant that they have read and understand this Agreement and confirm that the facts set forth above are true and correct, to the best of their knowledge, information and belief. 2. Declare that they have sufficient information to make an informed waiver of their right to a formal accounting with the Court, and they do hereby waive the filing and auditing of the same. 3. Acknowledge that the distributive share or amount set forth on the Schedule shall be in full satisfaction of the Beneficiaries' entitlements under the Will. -5- 4. Release, remise, quitclaim and forever discharge the Executor, his heirs, personal representatives, successors and assigns, from and against all claims that they may, as legatees of the Estate, and in connection with the Estate, have, had, now has or may in the future have in connection with the Estate. 5. Agree to refund, on demand, all or any part of any aforesaid distribution, which has been determined by the Executor, or by the Court, or by any cOLlrt of competent jurisdiction, to have been improperly made. 6. Agree to indemnify and hold harmless the Executor, his heirs, personal representatives, successors and assigns, from and against any and all claims, loss, liability or damage (whether or not related to the negligence of the Executor) that may hereafter be asserted against the Estate or against the Executor. 7. Agree to execute such other or additional documents as may be necessary to effectuate the agreements set forth herein. 8. Acknowledge that this Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. 9. Consent to the Court exercising personal jurisdiction over the Beneficiaries in any suit or action arising out of the enforcement of this Agreement. IN WITNESS WHEREOF, the Executor and the Beneficiaries have placed their hands and seals on the attached Consents to Estate Settlement Agreement. -6- CONSENT TO ESTATE SETTLEMENT AGREEMENT AND RECEIPT OF DISTRIBUTION I, LINFORD N. KINNEY, individually and as an Executor of the Estate of Fay E. Souder and as Trustee of the Trust Under Will of Fay E. Souder, created therein, hereby acknowledge, as Executor, causing distribution of and, individually and as Executor of the Estate of Fay E. Souder and Trustee of the Trust Under Will of Fay E. Souder, acknowl- edge receipt of the assets of the Estate of Fay E. Souder, as set forth in the attached Estate Settlement Agreement, and I, individually and in my fiduciary capacities, hereby consent to and join in the Estate Settlement Agreement, including Exhibits, which has been provided to me. WITNESS UM~f\Jo~ '-.-J COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF CUMBERLAND -\...- On this, the ~ - day of August 2006, before me, the undersigned officer, personally appeared LINFORD N. KINNEY, 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 in the capacities and for the purposes therein contained. IN WITNESS WHEREOF, I hereunde~\ ~~~ ~eal Notary Public ~L -7- NO i\RI L SEAL MICHELLE E. 80 E MILLER, Notary Public Camp Hill Bora., Cumberland County My Commission .~pir"'~ I\!O\l~.m.b.~~3, 2006 CONSENT TO ESTATE SETTLEMENT AGREEMENT AND RECEIPT OF DISTRIBUTION I, SHIRLEY ANN SNYDER, hereby acknowledge receipt of the assets of the Estate of Fay F. Souder, as set forth in the attached Estate Settlement Agreement, and I hereby consent to and join in the Estate Settlement Agreement, including Exhibits, which has been provided to me. WITNESS ~ ~ ~d(JV SHIRLEY A N SNYDER COMMONWEALTH OF PENNSYLVANIA SS. COUNTY OF cL. On this, the 5- day of August 2006, before me, the undersigned officer, personally appeared SHIRLEY ANN SNYDER, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that she executed the same in the capacities and for the purposes therein contained. IN WITNESS WHEREOF, I hereunde~ ~~~~ seal. ~ \ ~ Notary Public OT RIAL SEAL I MICHELLE E. ER MillER, Notary Public Camp HillBoro. Cumberla'1d County , My Commission E~r;'u. 11.20q~J -8- CONSENT TO ESTATE SETTLEMENT AGREEMENT AND RECEIPT OF DISTRIBUTION I, PAUL H. SOUDER, hereby acknowledge receipt of the assets of the Estate of Fay E. Souder, as set forth in the attached Estate Settlement Agreement, and I hereby consent to and join in the Estate Settlement Agreement, including Exhibits, which has been provided to me. WITNESS tZ/;vJ~ PAUL H. SOUDER COMMONWEALTH OF PENNSYLVANIA SS. COUNTY OF L On this, the ::;- - day of August 2006, before me, the undersigned officer, personally appeared PAUL H. SOUDER, 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 in the capacities and for the purposes therein contained. IN WITNESS WHEREOF, I hereund~~ ~~~~eal Notary Public _--"'i N AlSEAl . 11 MiCHELLE E. BOYER MillER, Nc~ary PubliC I Camp Hill Boro., Cumberland County i r-Ay Commissi~n ~~pir('.:,..~~o!(J,;nht':'f.~3:_?QQ?..: -9- CONSENT TO ESTATE SETTLEMENT AGREEMENT AND RECEIPT OF DISTRIBUTION I, JOYCE A. KINNEY, hereby acknowledge receipt of the assets of the Estate of Fay E. Souder, as set forth in the attached Estate Settlement Agreement, and I hereby consent to and join in the Estate Settlement Agreement, including Exhibits, which has been provided to me. JO c WITNESS 1~1It\~~~ COMMONWEALTH OF PENNSYLVANIA 55. COUNTY OF J.- On this, the 5 - day of August 2006, before me, the undersigned officer, personally appeared JOYCE A. KINNEY, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that she executed the same in the capacities and for the purposes therein contained. IN WITNESS WHEREOF, I hereund~~~~ ~ffiCial seal, Notary Public -10- CONSENT TO ESTATE SETTLEMENT AGREEMENT AND RECEIPT OF DISTRIBUTION I, RAY M. SOUDER, JR., hereby acknowledge receipt of the assets of the Estate of Fay E. Souder, as set forth in the attached Estate Settlement Agreement, and I hereby consent to and join in the Estate Settlement Agreement, including Exhibits, which has been provided to me. WITNESS ~/{1,ik~ " \j J?~ lt1--Jb ~I' RAY M. S DER, JR. tf COMMONWEAL TH OF PENNSYLVANIA S5. COUNTY OF ~ On this, the 5 - day of August 2006, before me, the undersigned officer, personally appeared RAY M. SOUDER, JR., 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 in the capacities and for the purposes therein contained. IN WITNESS WHEREOF, I hereunder set my han and official seal. ~\\Qu\5 Notary Public \L, NOT IAl SEAL MICHELLE E. BOYER MillER, Notary Public Camp Hill BOfO., Cumberland County My COITlft1ission Expirps_~.o\I~~b~U1: 2006 -11- EXHIBIT A INFORMAL ACCOUNT OF THE EXECUTOR Date of Death: March 14, 2005 Accounting for Period: March 14, 2005 through July 31, 2006 ESTA TE OF FA Y E. SOUDER ASSETS AND EXPENSES ESTA TE ASSETS: Locust Lane, Mechanicsburg Property The Vanguard Group - investment account Mortgage from Michael E. Souder PA State Bank - checking account PA State Bank - savings account $ 104,774.48 665,623.85 11,613.12 45,476.55 228,964.26 TOTAL ESTATE ASSETS $ 1,047,560.35 EXPENSES PAID FROM THE ESTA TE: $ 9,631.82 3,095.00 172.10 457.33 361 .74 1 ,108.11 241.50 108.03 224.20 35.00 764.00 6,628.18 42.00 170.00 47,843.56 10,000.00 15,000.00 TOTAL EXPENSES PAID $ 95,882.57 Malpezzi Funeral Home Loyalton of Creekview Newspaper Notices Meal after funeral Medical bills received after death Cellular tower 2005 real property taxes Sewer and trash for Locust Lane property Electric bills for Locust Lane property Water bills for Locust Lane property Short certificates/filing fees Probate Fees Loss from damage to Locust Lane property 2005 Federal estate income tax 2005 Pennsylvania estate income tax P A Inheritance tax Bequest to Ruth E. Wevodau Legal fees AMOUNT TO BE DISTRIBUTED $ 951.677.78 ESTATE OF FA Y E. SOUDER PROPOSED D/STRUBUTION BALANCE REMAINING PROPOSED DISTRIBUTIONS: Expenses Remaining: Miller & Associates, PC - legal fees/out-of-pocket Linford N. Kinney, Executor's Fee Cumberland County Register of Wills - filing fee Reserve for future taxes and miscellaneous expenses $ 951,667.78 $ 10,500.00 10,000.00 20.00 5,000.00* Expenses Remaining Beneficiary Distributions: (25,520.00) $ 11,043.72 665,623.85** 249,490.21 Linford N. Kinney - 1 % of value of the estate The Vanguard Account - split equally by four siblings Cash Distributions: Ray M. Souder, Jr. - $65,275.83 Joyce N. Kinney - $65,275.83 Shirley Ann Snyder - $65,275.84 Paul H. Souder - $65,275.83 - $11,613.12 = $53,662.71 Beneficiary Distributions (926,157.78) TOTAL PROPOSED DISTRIBUTIONS $ 951,677.78 BALANCE REMAINING IN ESTATE $ 0.00 *Any amount remaining after all estate expenses have been paid will be distributed equally to the beneficiaries. **This amount may change due to changes in market value.