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Home My WebLink About08-25-06 (2) --.J 15056051058 REV-1500 EX (06-05) PA Department of Revenue Bureau of Individual Taxes PO BOX 280601 Harrisburg, PA 17128-0601 ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death OFFICIAL USE ONLY County Code Year File Number INHERITANCE TAX RETURN RESIDENT DECEDENT 21 06 trl 'S S Date of Birth 171-28-5208 OS/25/2006 06/03/1918 Decedent's Last Name Suffix Decedent's First Name MI MORELOCK HILDA N (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW 1. Original Return 2. Supplemental Return 3. Remainder Return (date of death prior to 12-13-82) 5. Federal Estate Tax Return Required 4a. Future Interest Compromise (date of death after 12-12-82) 7. Decedent Maintained a Living Trust (Attach Copy of Trust) 10. Spousal Poverty Credit (date of death 11. Election to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach Sch. 0) CORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number 4. Limited Estate 6. Decedent Died Testate (Attach Copy of Will) 9. Litigation Proceeds Received c.' 8. Total Number of Safe Deposit Boxes THOMAS E. FLOWER (717) 737-3405 Firm Name (If Applicable) REGISTER OF WILLS USE ONLY SAlOIS, FLOWER, LINDSAY First line of address 2109 MARKET STREET Second line of address City or Post Office State ZI P Code DATE FILED C,,; CAMP HILL PA 17011 Correspondent's e-mail address: Under penalties of perjury, I declare that I have examined this return, 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 all information of which pre parer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN DATE -p ~ /Yl,'tLt.~ . ---~~--- ADDRESS P. SCOTT MORELOCK, TRUSTEE, 41 WHEATFIELD DRIVE, CARLISLE, PA 17013 SIGrzAT~E~ OF PREPARE~~)REPRES~ENTArNE---- J'LJ1A.)J;{,j - (,/~~-'1 ~- - ---- AD SS '\ SAlOIS, FLOWER & LINDSAY, 2109 MARKET STREET, CAMP HILL, PA 17011 PLEASE USE ORIGINAL FORM ONLY _ ~/$~~Ei( lz . I Side 1 L 15056051058 15056051058 ---.J 8v ..-I 15056052059 REV-1500 EX Decedent's Name: HILDA N MORELOCK RECAPITULATION 1. Real estate (Schedule A). ... .. ...... .. .... ..... .. ....... 1. 2. Stocks and Bonds (Schedule B) . . . . ............................... 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) . . . .. 3. 4. Mortgages & Notes Receivable (Schedule D) . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4. 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) . . . . . . .. 5. 6. Jointly Owned Property (Schedule F) Separate Billing Requested . . . . . .. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) Separate Billing Requested. . . . . . .. 7. 8. Total Gross Assets (total Lines 1-7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8. 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)......... ........ ...... .. ....... .. . 11. 12. Net Value of Estate (Line 8 minus Line 11) ....... ........ ..... .. .... .. . . 12. 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made (Schedule J) . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Net Value Subject to Tax (Line 12 rninus Line 13) . . . . . . . . . . . . . . . . . . . . . . . . 14. TAX COMPUTATION. SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .0_ 16. Amount of Line 14 taxable at lineal rate X.O_ 17. Amount of Line 14 taxable at sibling rate X .12 18. Amount of Line 14 taxable at collateral rate X .15 94,848.85 19. TAX DUE.... ... ... . . . . . . . . . . . . . . . . . . . . . 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT 15056052059 Side 2 L Decedent's Social Security Number 171-28-5208 2,194.25 94,848.85 97,043.10 2,194.25 2,194.25 94,848.85 0.00 94,848.85 15. 16. 17. 18. 14,227.33 14,227.33 15056052059 ..-I REV-1500 EX Page 3 Decedent's Complete Address: DECEDENT'S NAME HILDA N MORELOCK STREET ADDRESS 325 WESLEY DRIVE File Number DECEDENTS SOCIAL SECURITY NUMBER 171-28-5208 CITY MECHANICSBURG STATE PA ZIP 17055 Tax Payments and Credits: 1. Tax Due (Page 2 Line 19) 2 Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1) 14,227.33 13,515.98 711.35 Total Credits (A + B + C ) (2) 14,227.33 3. Interest/Penalty if applicable D. Interest E. Penalty --- Total Interest/Penalty ( 0 + E ) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Fill in oval on Page 2, Line 20 to request a refund. (4) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5) (5A) (5B) 0.00 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. A. Enter the interest on the tax due. 0.00 Make Check Payable to: REGISTER OF WILLS, AGENT 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 00 b. retain the right to designate who shall use the property transferred or its income; ............................................ D 00 c. retain a reversionary interest; or.......................................................................................................................... D [iJ d. receive the promise for life of either payments, benefits or care? ...................................................................... D [iJ 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .............................................................................................................. D 00 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? .............. D 00 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ........................................................................................................................ 00 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. 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 three (3) percent [72 P.S. S9116 (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 zero (0) percent [72 P.S. S9116 (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 return are still applicable even if 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 use of a natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [72 P.S. s9116(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 four and one-half (4.5) percent, except as noted in 72 P.S. S9116(1.2) [72 P.S. s9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. s9116(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. REV-15G8 EX+ (6-98) SCHEDULE E CASH, BANK DEPOSITS, & MISe. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF HILDA N MORELOCK FILE NUMBER 21-06- Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTION PNC BANK CHECKING ACCOUNT #50-7007-5596 VALUE AT DATE OF DEATH 2 BETHANY VillAGE, RESIDENT FUNDS ACCOUNT 1,541.34 500.66 3 HOP ADMINISTRATION UNIT, REFUND OF HEALTH INSURANCE PREMIUM 152.25 TOTAL (Also enter on line 5, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 2,194.25 .LlJ.l.~J. ~~l. ,....dJ.~\.-J'J_Uh ~\.-\.-uuut JtdtCIllClll )'N C Bank e PNCBANK For the period 05/16/2006 to 06/15/2006 Primary account number: 50-7007-5596 Page 1 of 1 Number of enclosures: 0 H NAOMI MORELOCK P SCOTT MORELOCK POA 41 WHEATFIELD DR CARLISLE PA 17013-9007 g For 24-hour banking, and transaction or ~ interest rate information, sign-on to 11' Account Link@ by Web on pncbank.com. For customer service call1-888-PNC-BANK between the hours of 6 AM and Midnight ET. Para servicio en espanol, 1-866-HOLA-PNC Moving? Please contact us at 1-888-PNC-BANK l2!S:l Write to: Customer Service PO Box 609 Pittsburgh PA 15230-9738 IQ Visit LIS at pncbank.com b5 III TOO terminal: 1-800-531-1648 .For hearing impaired clients only For information on exciting offers and promotions for our free Online Bill Payment service} stop by any PNC Bank office} visit pncbank.com} or call 1-800-PNC-BANK for further details. Interest Checking Account Summary Account number: 50-7007-5596 H Naomi Morelock P Scott Morelock POA Balance Summary 1,541.34 .12 14.00 Endi ng balance 1,527-46 Please see the Activity Detail section for additional information. Beginning bal ance Deposits and other additions Checks and other deductions Average monthly balance Cha rges and fees 1,540.89 14.00 Interest Summary Annual Percerrtage Yield Earned (APYE) Number of days in interest period Average collected balance for APYE Interest Ea rned thi s period As of 06/15, a total of $.85 in interest was earned this year. 0.09% 31 1,540.89 .12 Activity Detail Deposits and Other Additions Date 06/]5 Amount Description .12 Interest Payment There was 1 Deposit or Other Addition totaling $.12. There were 2 Other Deductions totaling $14.00. Other Deductions Date 06/15 06/15 Amount 12.00 2.00 Descri ptlon Selvicc Charge Check Images In Statement Fee Daily Balance Detail Date 05/16 Balance 1,54] .34 Date 06/15 Balance 1,527.46 Renting? Arc your valuahles covered? If a fire or unexpected event occurs, your landlord's insurance most likely won't cover your belongings. Why not protect your property with Renters Insurance? It's fast and easy. To learn more visit www.rentersins.com/pnc. Product not available in FI, NC and NJ. FnRMQk.';IJ:l~ ,noJ:; REV-1Ei1Q EX+ (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF HILDA N. MORELOCK SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY FILE NUMBER 21-06- 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 INCLUDE THE NAME OF THE TRANSFEREE. THEIR RELATIONSHIP TO DECEDENT AND DATE OF DEATH % OF DECD'S EXCLUSION TAXABLE NUMBER THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST {IF APPLICABLE) VALUE 1. I THRIVENT FINANCIAL ANNUITY CONTRACT #B3007685, DEATH 94,848.85 100 BENEFIT, TRANSFEREE GRANDNIECES/NEPHEWS PER SCHEDULE J 94,84885 FOR INFORMATION ONLY: JANNEY, MONTGOMERY, SCOTT INVESTMENT ACCOUNT NO. SU07-6011-7946, M. SCOTT MORELOCK, TRUSTEE, MORELOCK FAMILY TRUST, HILDA N, ("H, NAOMI") MORELOCK, SETTLOR, BY INSTRUMENT DATED 22 OCTOBER, 2001 I (ATTACHED TO RETURN). DATE OF DEATH VALUE: $75,840.30 THE TRUST WAS IRREVOCABLE, TRANSFER NOT SUBJECT TO TAX. I I I TOTAL (Also enter on line 7 Recapitulation) $ 94,848.85 (If more space is needed, insert additional sheets of the same size) \YJ Thrivent Financial for Lutherans™ "." v 111\1" " .;..; Death Benefit Information Mpls Settlement Option Contract; B3007685 Deceased: H Naomi Morelock Date of Death: OS/25/2006 , Date Prepared: 06/05/2006 Claim Number: 3681 S4 Death BenefIt Cost Basis Taxable Gain $ $ 20,349.61 74,499.24 fotal Death Benefit $ 94,848.85 Beneficiary Dn;gnatlon Primary: Susan Morelock, Other/Miscellaneous, Jessica Morelock, Other/Miscellaneous, Jeremy Morelock, Other/MIscellaneous, Alexandria Morelock, OtherlMiscellaneous, Andriana Morelock, othirIMiscellanaous. Paran Morelock, Other/Miscellaneous. Bailey Morelock, other/Miscallaneous, De!anie Morelock, OtherlMiscellaneous ' Special MGnages ' , .~," . D,',ti' "!'l [", L" 1. IMPORTANT TAX REQUIREMENTS: Each beneficiary will be $ubje~ to fe~llncome tax withholding for their share of the taxable gain. Each beneficiary needs to complete the substitute W-4P section on the Clalmanfs Statement. If NO withholding is desired, the first section in the substitute W-4P should be checked. If the beneficiary DOES want withholding. the appropriate section should be completed. 2. To assist the beneficiary In selecting a distribution method" you 'should refer to Income Tax Chart No. i. This chert can be printed from InfoSOurce, Customer Servloe, ClaIms, Death Claims Tax Charts. ~ S&; ;'~48 ,eti . ...- , '" ...w'" -- f, Page 2 of 4)UCS VDeceaSld"'bustomar 10: 506318009 Wd SS:0~ 900Z-9l-Nnr REV-1!)11 EX+ 112-99) SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF HILDA N. MORELOCK FILE NUMBER 21-06- Debts of decedent must be reported on Schedule 1. ITEM NUMBER A DESCRIPTION AMOUNT FUNERAL EXPENSES: FACKLER-WIEDEMAN FUNERAL HOME, PROFESSIONAL SERVICES CREMATION URN 1,665.00 375.00 2 3. CREMATORY CHARGES 225.00 B. ADMINISTRATIVE COSTS: 1 . Personal Representative's Commissions Name of Personal Representative(s) Social Security Number(s)/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. TOTAL (Also enter on line 9, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 2,265.00 LESS PAYMENTS.RECElVED. ... .,............. $ BALANCE DUE. . " . . , . . . .. ..0 . . ... 0 . . . . . . . . $ Ope rot e d . 0 0 . wee 0 re .Ier-Wiedeman ERA L HOME Dennis L. Wiedeman. F.D. - President James W. Toljan. F.D. - Supervisor William A. Sibert. F.D. STAT EME;N"';ro F June 8, 2006 Mr. Po Scott Morelock 41 Wheatfield Drive Carlisle, PA17013 IA. CHARGE FOR SERVICES SELECTED: 1...& ". ._.....;:.._ The FuneralService of: Miss H. Naomi Morelock' 1. PROFESSIONAL SERVICES $ 2. FACILlTIES/SERVICES/EQUIPMENT:$ 3. AUTOMOTIVE EQUIPMENT: $ (A) TOTAL OF PROFESSIONAL SERVICES, $ FACILITIES AND AUTOMOTIVE ~B. CHARGE FORMERCHANDISESELECTED:f Casket. . . . . . . . . . . . . . . . . . . . .. . . . .- . . $ -0- (Description) Outer Receptacle.. ................... $ (Description) Outer burial container. . . . . . . . . . ." . . . . . . ,. $ (Description) AcknowledgementCards .. . . . . . . .. .... Register Book(s). . . . . .. . . . . . . . .. .. >. . . . Memory Folders. . . . . . . . . .. . . . . .. . . " . . Prayer Cards. . .. ........... '. . 0 . Temporary grave marker. . : . . . . . 0 0 . .. .. Burial Clothing 0 . 0 0 . 0 . . . . . . . . .... . . .. . . . Other Clothing o. .. . . . ... . ... . . .. .. .... Custom Graphic Design':' Priming' . " .... Flowers. . . . . . . . . . . . . . . . . . . . . . . . . 0 0 .. $ $ $ Cremation UrnSolicl O.ak. wI. SiltiO. . . . . . .'. , . . $ Interior & Exterior Crucifixes .......... .... $ Refrigeration. . . . . . . . . . . . . . . . . . . . . .. , .. $ (B) TOTAL MERCHANDISE SELECTED PAID IN FULL RECEIVED 6/14/2006 CHECK NO ~ ....1006 .., .... x4QzfJ/~tJ~' CY~. Fa mil y Own e d an d ACCOUNT 23rd and.Derry Streets .,._.f-;lprrisbLif9.P,(17104 . Phone: 717 .564.1434 Fax:,? i7.564172'14 en1ail: wie'aemanfh@cGrrtcastnet . www..wiedemanfuneraihome.com. .. ., .'L_C~~f~~:.9.~~~.~~~2'~~_~7" oj Forwarding of remains to $ (Funeral Home) Receiving of remainstrom (Funeral, Home) Immediate Burial . Direct Cremation $ $. $ $ -0- ~O- -0- C.$ .,,0:: - SUB.TOTA!..GFSPECIAL CHARGES. . .... .ID.CASHADVAN9ES: . .. -1,'0,.. Opening (3rave. '..'"i, "'._.... $" ..0-' CemeleryEquipment.... - . . .. " . " . '. $" -0-' Newspaper Notices - Local:. c. ,. $100.80 . Newspaper Notices -Out-at-town. .:. $ -O~' Telephone & Telegrams. .... :.. ... " $' ~o- Airfare. . .. . ... .. . . . .... .. . '0 . $ -0- Clergy Hcnorarium . . ... . .. . . . . . " . . .$ -Dc Pallbearers. . . . . . " . . : . . ... ... ; .. . .$ . ,0- Certified Copies of Death Certificate. '" $ 60.00' Crematory Charges. . . . . . " .. . . . . . $ 225.00 Organist.. . . ., . . . . . . .. " . . . .. .,... $ -0- Sol%t '-'.. ................... .. II: .-0-' Other Coroner Cremation Authorization ; 25.00 Other $ -O~ OO~ $ 4 SUB-TOTAL OF CASH ADVANCES . . ...... D $ 410.80 SUMMARY OF CHARGES: A. Professional Services, Facilities and Equipment and Automotive. Equipment. ....:.. , .....;.'.'; .: . . -':'.;. .'$. . - 1665.00 Merch?(l.flis~;.,..,....... ...... . .. ,'" .$ '. 510.00 Special (;harges. ; i . . . ; i. 0 . . " . $. -0- Cash'AdV~~nces .": .:('..:i;'$,.~".,_.,,41 0.80' ",' '.", '..," ~-- .~ -.0..,..- >, . '-..~. l; '.i.. . TOT ALOF' ALLJ~ELECTION5 ;",_;",,;,.:'::,t, REV-1513 EX+ (9-00) '* COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES ESTATE OF HILDA N, MORELOCK FILE NUMBER 21-06- RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE ] TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116 (a) (1,2)] 1 SUSAN MORELOCK, 41 Wheatfield Drive, Carlisle, PA 17013 GRANDNIECE 11,856,10 2 JEREMY MORELOCK, 2510 Flagg Meadow Ct., Finksburg, MD 21048 GRANDNEPHEW 11,856,10 3 JESSICA MORELOCK, 2510 Flagg Meadow Ct., Finksburg, MD 21048 GRANDNIECE 11,856,10 4 ALEXANDRIA MORELOCK, 1655 Grandview Rd" Mount JOy, PA 17552 GRANDNIECE 11,856,11 5 ANDRIANA MORELOCK, 1655 Grandview Rd" Mount JOy, PA 17552 GRANDNIECE 11,856,11 6 OAR IAN MORELOCK, 1655 Grandview Rd., Mount JOy, PA 17552 GRANDNIECE/NEPHEW 11,856,11 7 BAILEY MORELOCK, 1655 Grandview Rd., Mount JOy, PA 17552 GRANDNIECE/NEPHEW 11,856,11 8 DELANIE MORELOCK, 1655 Grandview Rd., Mount JOy, PA 17552 GRANDNIECE/NEPHEW 11,856,11 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 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) LAW OFFICES JOHN E. SLIKE ROBERT C. SAIDIS )AMES D. FLOWER,)R CAROL). LINDSAY MICHAEL L. SOLOMON BRIAN C. CAFFREY GEORGE F. DOUGLAS, III fHOMAS E. FLOWER MARYLOU MATAS SUZANNE C HIXENBAUGH SAIDIS, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 - FACSIMILE: (717) 737-3407 EMAIL: tflower@sfl-Iaw.com www.sfl-Iaw.com CARLISLE OFFICE: 26 WEST HIGH STREET CARLISLE, P A 17013 TELEPHONE: (717)243-6222 FACSIMILE: (717)243-6486 REPLY TO CAMP HILL August 24, 2006 Pa. Department of Revenue Inheritance Tax Division Re: Hilda N. ("H. Naomi") Morelock, deceased Date of death: May 25, 2006 File No. 21-01- Dear Sir/Madam: The decedent established the Morelock Family Trust, on October 22,2001, with P. Scott Morelock as Trustee. The trust instrument is attached, for your review. The trust was irrevocable, with no retained powers in the settler, and there was no possibility of income or principal payments to the settler during her lifetime, nor was the trust income or principal available to pay the settlor's debts or the debts of her estate. The value of the trust at the date of death was $75,840.30. We conclude that the transfer of trust assets to the remaindermen upon the death of the settlor was not subject to inheritance tax. Very truly yours, SAID IS, FLOWER & LINDSAY \jJuua;;t1;ZJ#( Thomas E. Flower IRREVOCABLE TRUST AGREEMENT MORELOCK FAMILY TRUST H. NAOMI MORELOCK, Settlor and P. SCOTT MORELOCK, Trustee Law Offices MARSHALL & ASSOCIATES 303 Allegheny Street ; _ Jersey Shore, Pennsylvania 17740-1405 570-398-7603 IRREVOCABLE TRUST AGREEMENT This Trust Agreement entered into this 22nd day of October, 2001, by H. NAOMI MORELOCK, who currently resides at 325 Wesley Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055, by her Agent and Attorney-in-Fact, P. SCOTT MORELOCK, who currently resides at 41 Wheatfield Drive, Carlisle, Cumberland County, Pennsylvania 17013, hereafter referred to as "Settlor," A N D P. SCOTT MORELOCK, who currently resides at 41 Wheatfield Drive, Carlisle, Cumberland County, Pennsylvania 17013, as Trustee of the Trust, hereafter referred to as "Trustee." ARTICLE 1 CREATION OF TRUST ESTATE 1.01. NAME OF TRUST. The name of the Trust will be the MORELOCK FAMILY TRUST. 1.02. TRANSFER IN TRUST. The Settlor hereby transfers the property listed in Schedule A of this Trust Agreement to the Trustee and acceptance of this property is hereby acknowledged by the Trustee. The Settlor intends to transfer additional property to the Trust over time. Said property and all other property transferred to and received by the Trustee to be held pursuant to this Trust shall constitute the "Trust Estate" and shall be held, administered, and distributed by the Trustee as hereinafter provided. 1.03. ADDITIONS TO THE TRUST ESTATE. The Settlor, either during life or by Will, or any other person shall have the right at any time to add property acceptable to the Trustee to this Trust. Such property, when received by the Trustee, shall become part of the Trust Estate. 1.04. MANAGEMENT OF TRUST INVESTMENTS. The person or persons serving in the capacity of Trustee may in writing designate one of said persons or a third person of his or their choosing to act as the authorized agent of the Trustee for purposes of performing investment and other property management decision making and services and exercising the Fiduciary powers specified in this Trust Agreement. ARTICLE 2 IRREVOCABILITY OF TRUST 2;01. IRREVOCABILITY OF TRUST. The Settlor hereby expressly acknowledges that the Settlor shall not have any right or power, either alone or in conjunction with others, or in any capacity whatsoever, to alter, amend, modify, revoke, or terminate this Trust or any of the terms of this Trust Agreement in whole or in part, or otherwise to cause any of the principal of the Trust to revert to the Settlor or to the Settlor's estate or to the creditors of the Settlor or the creditors of the Settlor's estate. ARTICLE 3 DISTRIBUTIONS BY THE TRUSTEE WHILE SETTLOR IS LIVING 3.01. ACCUMULATION OF INCOME. While the Settlor is living, the net income of the Trust shall be accumulated in the Trust and added to the corpus of the Trust on an annual basis. 3.02. INVASION OF TRUST FOR THE NIECE AND NEPHEWS OF THE SETTLOR AND THEIR CHILDREN. While the Settlor is living, the Trustee, if so directed by the Distribution Committee as specified in Article 7.01 hereinafter, shall make such distributions of such amounts from the Trust Estate, up to the whole thereof, as the Distribution Committee in its sole discretion may from time to time determine and direct; provided, however, that any such distributions may be made only to ROBERT MORELOCK, P. SCOTT MORELOCK, EDWARD A. MORELOCK, and SALLY PITCHERELLO, who are the niece and nephews of the Settlor, and to the children of the aforesaid niece and nephews of the Settlor, and to no other persons. The Distribution Committee may authorize the Trustee to make distributions to one or more of the said niece and nephews of the Settlor, and the children of the aforesaid niece and nephews of the Settlor, in unequal amounts and to exclude one or more of the others of them from such distributions. In no event may any distributions of Trust principal or income be made to or for the benefit of either the Settlor or to the Settlor's estate or to the creditors of the Settlor or the creditors of the Settlor's estate. ARTICLE 4 MANAGEMENT OF TRUST UPON DEATH OF SETTLOR 4.01. DISPOSITION OF TRUST ESTATE UPON THE DEATH OF THE SETTLOR. Upon the death of the Settlor, the Trustee shall pay all debts and expenses applicable to the Trust Estate including Trust income tax liabilities, state and federal death taxes applicable to the Trust's assets, Trustee and attorney's fees, and all appropriate Trust administration expenses. The Trustee is not authorized and shall not pay any of the Settlor's debts, and specifically shall not make payment or repayment to any person or entity or government body in regard to any debt or claim arising from Medicaid, Medical Assistance, SSI, or in regard to any other public or governmental benefits paid to or on behalf of Settlor. After payment of the Trust expenses allowed under this Article, and subject to the provisions of Article 4.02 of this Agreement, the Trustee shall thereupon distribute all of the remaining principal and accumulated income of the Trust as follows: a.) Twenty Percent (20%) thereof to the Settlor's brother, PAUL A. MORELOCK, who currently resides at 24 Fairway Drive, Selinsgrove, Pennsylvania 17870. In the event that PAUL A. MORELOCK is not living at the time of distribution, his share of the Trust Estate shall be paid as an addition to the shares of other then living beneficiaries of the Trust Estate in proportion to their interests in the Trust Estate. 2 b.) Eighty Percent (80%) thereof in equal shares to ROBERT MORELOCK, P. SCOTT MORELOCK, EDWARD A. MORELOCK, and SALLY PITCHERELLO, the Settlor's niece and nephews. In the event that any of the Settlor's said niece and nephews are not living at the time of distribution, his or her share of the Trust Estate shall be paid to those of his or her children who are then living. In the event that any of the Settlor's said niece and nephews should be then deceased and leave no children who are then living, then his or her share shall be paid as an addition to the shares of other then living beneficiaries of the Trust Estate in proportion to their interests in the Trust Estate. ARTICLE 5 GENERAL ADMINISTRATIVE DIRECTIONS 5.01. PAYMENTS FOR THE BENEFIT OF A BENEFICIARY. If at any time any beneficiary entitled to receive income or principal from the Trust Estate is a minor or an incompetent or a person whom the Trustee in the Trustee's discretion deems unable to handle funds properly or wisely if paid directly to the beneficiary, the Trustee in the Trustee's sole discretion may make payments in anyone or more of the following ways: a. Directly to the beneficiary; b. the beneficiary; To the natural Guardian or legally appointed Guardian of the Person or Estate of c. By making expenditures directly for the care, support, maintenance, or education of the beneficiary; or d. To any person or organization furnishing care, support, maintenance, or education for the beneficiary; e. To a duly appointed Agent of the beneficiary authorized to receive.such payments pursuant to a Durable Power of Attorney. . The Trustee shall not be required to see to the application of any funds paid or applied in any of the aforementioned ways and the receipt of the payee shall be full acquittance of the Trustee. The decision of the Trustee with regard to the selection of which of the aforementioned methods should be used in making payments shall be conclusive and binding on all parties concerned. 5.02. CONFLICTING CLAIMS. Whenever there are conflicting claims as to the person entitled to any payment or distribution from the Trust Estate, the Trustee may in the Trustee's discretion withhold, without the payment of interest, all or any part of any disputed payment or distribution until the matter has been adjudicated and final judgment entered by an appropriate court. 5.03. SPENDTHRIFT PROVISIONS. No beneficiary or remainderman of any interest in any trust created by this instrument shall have any right to alienate, encumber, or hypothecate his or her interest 3 in the principal or income of the Trust in any manner, nor shall any interest of any beneficiary or remainderman be subject to claims of his or her creditors or liable to attachment, execution, or other process of law. This article shall not restrict the exercise of any power of appointment specified in this Trust Agreement. 5.04. PHOTOCOPIES. Photocopies of this Trust Agreement shall have the same force and effect as the original and shall be accepted by any party as being of the same force and effect as the original. ARTICLE 6 POWERS OF FIDUCIARIES 6.01. POWERS OF FIDUCIARIES. The Trustee, and any successor Trustee, shall have the following powers in addition to those vested in them by law and by other provisions of this Trust Agreement, applicable to all property whether principal or income, including property held for minors or incompetents, which powers shall be exercisable without court approval, and shall be effective until actual distribution of all property: a. To invest in all forms of real and personal property (including, without limitation, stock, option, or other securities, common trust funds, and mortgage investment funds), without restriction to investments authorized for Fiduciaries, as the Trustee shall deem proper, without regard to any principle of diversification or risk. . b. To pay all taxes, assessments, compensation of the Trustee, and all other expenses incurred in the collection, care, administration, and protection of any Trust Estate. c. To sell at public or private sale, to exchange, or to lease for any period of time, any real or personal property and to give options for sales, exchanges or leases, with such prices and upon such terms or conditions as the Trustee deems proper. d. To allocate receipts and expenses to principal or income or partly to each as the Trustee from time to time thinks proper. e. To borrow from, orto sell to, any Fiduciary even though the Fiduciary is the Trustee, Agent, Guardian, or Executor. f. To hold property in the Trustee's name without designation of any Fiduciary capacity or in the name of a nominee or unregistered. g. To enter into transactions with other Fiduciaries including the Trustees or Executors of other trusts and estates in which any beneficiary under this instrument has any interest, and including themselves as Fiduciaries for other estates and trusts, and in such transactions to purchase property, or make loans or notes secured by property, even though similar property constitutes a large portion of 4 the Trust property, and to retain any such property or notes as if they had been an original part of the estate or trust. h. To exercise, respecting securities held by the Trust Estate, all the rights, powers, and privileges of an owner, including, without limitation, the power to vote, give proxies, and to pay assessments and other sums deemed by the Trustee to be necessary for the protection of the Trust Estate. i. To continue and operate, to sell or to liquidate, as the Trustee deems advisable, at the risk of the Trust Estate, any business or partnership interests received by the Trust Estate. j. To sell for cash or on deferred payments at public or private sale, to exchange and to convey any property of the Trust Estate. k. On any division of the Trust Estate into separate shares or trusts, to apportion and allocate the assets of the Trust Estate in cash or in kind, or partly in cash and partly in kind, or in undivided interests in the manner deemed advisable in the discretion of the Trustee. After any division of the Trust Estate, the Trustee may make joint investments with funds from some or all of the several shares or Trusts, but the Trustee shall keep separate accounts for each share or trust. I. To abandon any Trust asset or interest therein in the discretion of the Trustee. m. To grant an option involving disposition of a Trust asset and to take an option for the acquisition of any asset by the Trust Estate. n. To lease any real or personal property of the Trust for any purpose for terms within or extending beyond the duration of the Trust. o. To manage, control, improve, and repair real and personal property belonging to the Trust Estate. p. To employ attorneys, investment advisers, accountants, brokers, tax specialists, and any other Agent deemed appropriate in the discretion of the Trustee, including persons associated with or employed by any Trustee, and to pay from the Trust Estate reasonable compensation for all services performed by any of them. q. To borrow money for any Trust purpose from any person, firm, or corporation, including one acting as a Trustee hereunder, on the terms and conditions deemed appropriate by the Trustee and to obligate Trust assets for repayment; to encumber the Trust or any property thereof by mortgage, deed of trust or otherwise, using whatever procedures to consummate the transaction deemed advisable by the Trustee; and to replace, renew, and extend any encumbrance and to pay any loans or other obligations of the Trust deemed advisable by the Trustee. 5 r. To procure and carry at the expense of the Trust insurance of the kinds, forms, and amounts deemed advisable by the Trustee against any hazard. s. To compromise, submit to arbitration, release with or without consideration, or otherwise adjust claims in favor of or against trust; to commence or defend litigation affecting the Trust or any property thereof as deemed advisable by the Trustee. t. To do all the acts, to take all the proceedings, and to exercise all the rights, powers and privileges which an absolute owner or the property would have, subject always to the discharge of Fiduciary obligations; the enumeration of certain powers in this Trust Agreement shall not limit the general or implied powers of the Trustee. The Trustee shall have all additional powers that may now or hereafter be conferred on the Trustee by law or that may be necessary to enable the Trustee to administer the Trust in accordance with the provisions of this Trust Agreement, subject to any limitations specified in this Trust Agreement. u. To pay all taxes, assessments, compensation of the Trustee, and all other expenses incurred in the collection, care, administration, and protection of any trust Estate. v. To retain in the Trust for such time as the Trustee may deem advisable any property, including shares of the Trustee's own stock, notes, accounts, certificates, or other investments in which the Trustee has an interest, received by the Trustee from the Settlor, whether or not such property is of the character permitted by law for the investment of Trust funds, and to operate at the risk of the Trust Estate any business or property received by the Trustee from the Settlor. ARTICLE 7 DISTRIBUTION COMMITTEE 7.01. DISTRIBUTIONS OF PRINCIPAL DURING LIFETIME OF SETTLOR BY DISTRIBUTION COMMITTEE. Settlor hereby nominates, constitutes, and appoints the following individual and/or individuals as a "Committee," (sometimes hereafter referred to as "the Distribution Committee" or "the Committee"), with the powers and authorities hereinafter set forth: a. The initial members of the Committee shall be SALLY PITCHERELLO, the niece of the Settlor, and P. SCOTT MORELOCK, the nephew of the Settlor. b. Whenever in the sole judgment of a majority of the members of the Distribution Committee it is determined to be appropriate to make a distribution from the Trust Estate to one or more of the following persons: ROBERT MORELOCK, P. SCOTT MORELOCK, EDWARD A. MORELOCK and SALLY PITCHERELLO, the niece and nephews of the Settlor, and to the children of the aforesaid niece and nephews (i.e. the great nieces and great nephews of the Settlor), the Committee is authorized to require the Trustee to make such distributions to anyone or more of the said persons as the Distribution Committee shall direct. Distributions from the Trust may not be made to or for the benefit of any persons other than those listed in this paragraph. Distributions need not be equal among the 6 persons listed as potential distributees, and one or more of potential distributees may receive more or less in distributions than other potential distributees, as the Distribution Committee shall determine. 7.02. ADDITIONAL PROVISIONS RELATED TO THE DISTRIBUTION COMMITTEE. a. Any member of the Committee may resign in the manner provided hereinafter. b. There shall be two members of the Committee. In the event that any member of the Committee becomes incapacitated or resigns, or fails or ceases to act or continue as member of the Committee for any reason whatsoever, the following persons shall succeed to the position of member of the Committee, in the order of priority set forth below, with full power to act as set forth in this document. First Alternate Member: EDWARD A. MORELOCK, nephew of the Settlor Second Alternate Member: ROBERT MORELOCK, nephew of the Settlor c. A resignation of a member of the Committee or appointment of member to the Committee shall be by instrument in writing and such instrument shall be delivered to the Trustee and the successor Trustee provided that the failure to file or deliver such instrument shall not make it ineffective. d. The incapacity, failure to act, resignation, or cessation of action of any person named herein as a member of the Committee shall be conclusively presumed by all persons upon presentation of a written statement executed by any two of the following persons, ROBERT MORELOCK, P. SCOTT MORELOCK, EDWARD A. MORELOCK, and SALLY PITCHERELLO, which certifies the said incapacity, resignation, failure, or cessation of action by the member. All persons shall rely upon such a certification and are hereby released from any and all liability of any nature in regard to the Trust Estate and the beneficiaries of the Trust resulting from the reliance on said certification. ARTICLE 8 MISCELLANEOUS PROVISIONS 8.01. MISCELLANEOUS PROVISIONS. a. Neither the Trustee nor any other person acting hereunder shall be required to give bond for the faithful performance of his duties in any jurisdiction. b. No person dealing with the Trustee, or the Trustee's successors or survivors, shall be bound to see to the application of any purchase money or other consideration or to inquire into the validity, necessity, or propriety of any transaction to which such Fiduciaries may be parties. 7 c. Any Trustee shall be entitled at any time to seek a judicial settlement of accounts in any court of competent jurisdiction selected by my Trustee. As an alternative, the Trustee may at any time settle the account of the Trust or Trust share hereunder by agreement with the income beneficiary or beneficiaries of that Trust or Trust share who are not under any legal disability; and such agreement shall bind all persons whether or not then in being or sui juris, or then or thereafter entitled to any portion of the Trust or Trust share, and shall effectively release and discharge the Trustee for the acts and proceedings so accounted for. d. The Trustee shall be entitled to receive reasonable compensation. Any Trustee shall be entitled to be reimbursed for reasonable expenses it incurs which are necessary to carry out its duties as Trustee hereunder. e. Whenever appropriate in this Trust Agreement, the singular shall be deemed to include the plural and vice versa; and the masculine shall be deemed to include the feminine, and vice versa, and each of them to include the neuter, and vice versa. f. For all purposes hereunder, the word "property" shall be deemed to include real and personal property and any interest of any kind in any real or personal property; and the word "give" shall be taken to include the words "devise" and "bequeath" wherever appropriate in order to effectuate the transfer of real or personal property. g. For all purposes hereunder, the terms "Personal Representatives," "Committee Members," "Executors," "Trustees," "Guardians," "Agents," and "Fiduciaries," and the singulars thereof, shall apply, respectively, to those who are then entitled and qualified to act as such, whether originally appointed, remaining, substituted, or succeeding. The term "corporate Trustee," if used herein, shall mean a corporation which is in the business of acting as a Fiduciary and is duly authorized under the law of the situs of the Trust to serve as Trustee. h. The Trustee shall have the power, in the Trustee's discretion, to select assets to be sold by the Trust Estate for the payment of debts, and taxes in a manner that will minimize the recognition of gain for federal income tax purposes. The Trustee shall have the right to exercise any options and elections under the tax laws applicable to the Trust Estate as the Trustee determines should be made. No compensation adjustments between income and principal shall be made even though the elections may affect the interests of the beneficiaries. The action of the Trustee with respect to options and elections made shall be conclusive and binding upon all beneficiaries. i. There shall be no duty on the Trustee to payor see to the payment of any premiums on any policies of life insurance or to take any steps to keep them in force, until such time as the Trustee holds title to any insurance policies hereunder as a part of the corpus of any Trust Estate. The Trustee furthermore assumes no responsibility with respect to the validity or enforceability of said policies. However, as soon as practicable after receiving notice of the death of the insured under any of such policies, the Trustee shall proceed to collect all amounts payable thereunder. The Trustee shall have 8 full and complete authority to collect and receive any and all such amounts and its receipt therefor shall be a full and complete acquittance to any insurer or payor, who shall be under no obligation to see to the proper application thereof by the Trustee. ARTICLE 9 AL TERNA TE FIDUCIARIES 9.01. SUCCESSOR TRUSTEES. If P. SCOTT MORELOCK should be unable or unwilling to act or continue as Trustee for any reason whatsoever, SALLY PITCHERELLO shall be the successor Trustee with full power and authority as specified herein. If SALLY PITCHERELLO, should also be unable or unwilling to act or continue as Trustee for any reason whatsoever, ROBERT MORELCOK shall be the successor Trustee with full power and authority as specified herein. If ROBERT MORELOCK should also be unable or unwilling to act or continue as Trustee for any reason whatsoever, EDWARD A. MORELCOK shall be the successor Trustee with full power and authority as specified herein. 9.02. DETERMINATION OF INCAPACITY, RESIGNATION, OR OTHER I.NABILlTY OR UNWILLINGNESS TO ACT BY PERSON SERVING AS TRUSTEE. The inability or unwillingness of any person to act or continue as Trustee shall be conclusively presumed for all purposes upon execution by any two of the following persons of a written statement certifying the existence of said incapacity or unwillingness: P. SCOTT MORELOCK, SALLY PITCHERELLO, EDWARD A. MORELOCK and ROBERT MORELOCK. All persons shall rely upon such a certification and are hereby released from any and all liability of any nature in regard to the Trust Estate and the beneficiaries of the Trust resulting from the reliance on said certification. In the alternative, the inability of any person to act or continue as Trustee shall be conclusively presumed by all persons if a physician, duly licensed to practice in the Commonwealth or Pennsylvania or another of the United States, shall by written statement declare that in the physician's opinion the person is unable to serve as Trustee due to ill health, disability, incapacity, death, or for any other reason. All persons shall rely upon such a statement by said physician and the Settlor hereby releases all persons acting in reliance thereupon and any said physician from any and all liability of any nature in regard to the making or relying upon such a statement. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 22nd day of October, 2001. .p, ~Cr;tt ft76l.t~ H. NAOMI MORELOCK, by her Agent and Attorney-in-Fact, P. SCOTT MORELOCK 9 COMMONWEALTH OF PENNSYLVANIA : SS COUNTY OF L YCOMING ON THIS, the 22nd day of October, 2001, before me a Notary Public for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared P. SCOTT MORELOCK, known to me to be the person whose name is subscribed to the within instrument, and as Attorney-in-Fact for H. NAOMI MORELOCK, and acknowledged that he executed the same as the act of himself and the Principal for the purpose therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and seal. NOTARIAL SEAl flAm 10 TURNER, NOTARY PUBLIC JrnSEY SHORE BORO, lYCOMING CO.. PA. MY COMMISSION EXPIRES MAY 13.2002 My Commission Expires SCHEDULE A MORELOCK FAMILY TRUST The following assets have been conveyed to the Trust this 22nd day of October, 2001. 1. Ten Dollars ($10.00). iJ. 5C<M -m0l.t?1.t.n..f2. H. NAOMI MORELOCK, by her Agent and Attorney-in-Fact, P. SCOTT MORELOCK By executing this Schedule A of the MORELOCK FAMILY TRUST AGREEMENT, each of the persons named below agrees to accept the position of Trustee and further accepts the Trust assets hereby conveyed. ACCEPTED BY: ..p. Seotl fY)~ P. SCOTT MORELOCK, Trustee 10 Janney Montgomery Scott LLC SHARES 7074.403 38982.72 NAOMI MORELOCK DATE OF DEATH VALUES 5/25/06 SECURITY MEAN PRICE VALUE LORD ABBETT P A TAX FREE FD $ 5.21 $ 36,857.64 GENERAL MONEY MARKET FD 1.00 38,982.72 TOT AL VAL UE-----------------------------$ 75,840.36 **LORD ABBETT FUND SOLD 611/06 WITH ALL MONIES NOW IN GENERAL MONEY MARKET FUND. '\09 North Fifth Street. Suite ( . Sunbury, PA 17801-0072 . 570.286.6447 . 570.286.5848 . 800.831.2741 . fax: 570.286.2365 . wwwjmsonline.C'om Member New York Stock Exchange, Inc. and other principal exchanges